The fund is managed by seasoned and talented UK equity manager Nick Train. It is run on a high concentration basis but had no liquidity issues during a period of large redemptions in 2019.

The top 10 stocks in Lindsell Train UK Equity account for over three quarters of the portfolio. Train highlights the liquidity inherent in his approach, which leads him to invest predominantly in well-established companies with multi-billion-pound market capitalisation. The fund has no unquoted/unlisted holdings and never has.

The manager stresses that he cares more about maintaining or growing the real value of investors’ capital and income over time than outperforming a stock market index. The investment process he uses across all his funds is based on his conviction that inefficiencies exist in the valuation of exceptional quoted companies. In his opinion, “excellent companies tend to create great wealth for their patient owners over time” – this is the effect he is aiming to capture with this strategy. Train finds most of his candidate investments in a select group of broad industry categories – financial services, beverages, personal goods and media. Favoured holdings include Diageo, Unilever and London Stock Exchange.

September 2020