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ii Super 60 - LF Lindsell Train UK Equity

ii Super 60 investments

ii Super 60 investments:
LF Lindsell Train UK Equity

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Formal review concluded. This Super 60 Fund is retained. Find out more

Asset Group Asset Sub-Group Investment Category
Equities UK equities Core

Selection rationale:
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

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Formal review concluded

The LF Lindsell Train UK Equity fund is included in the ii Super 60 list of rated funds as a core holding in the UK equity category.

In line with our stated methodology, Lindsell Train UK Equity was put under formal review on 29 November 2019 after being downgraded by two independent external agencies. Given its highly concentrated nature, we wanted to reassure ourselves that there had been no deterioration in liquidity.

The interactive investor selection team conducted extensive analysis on the liquidity, capacity and concentration of Lindsell Train UK Equity, and spoke to the fund manager at length. The key outcome is that our investment selection committee is comfortable with the liquidity of the fund, it has been removed from being under formal review, and it will remain on our Super 60 list. The majority of the holdings are large, liquid companies with diversified revenue streams. In terms of capacity, there is plenty of room for further growth without compromising the mandate. The fund has always had a concentrated, high conviction approach but has a low turnover and long-term successful track record.

(19 January 2020)

Risk warnings

Past performance of the underlying constituents is not a guarantee of future performance. The value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. 

Annual performance can be found on the factsheet of each fund, trust or ETF. Simply click on the asset’s name and then the performance tab. 

The information we provide in the ii Super 60 investments list is an opinion provided by ii or one of its partners on whether to buy a specific investment. Please note that none of the opinions we provide are a “personal recommendation”, which means that we have not assessed your investing knowledge and experience, your financial situation or your investment objectives. Therefore you should ensure that any investment decisions you make are suitable for your personal circumstances.

If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial advisor. 

Any changes to the ii Super 60 investments list and the rationale behind those decisions will be communicated through the Quarterly Investment Outlook.

Details of all recommendations issued by ii during the previous 12 month period can be found here.

ii adheres to a strict code of conduct. Members of ii staff may hold shares in companies mentioned in the ii Super 60 investments list, which could create a conflict of interest. Any member of staff intending to complete some research about any financial instrument in which they have an interest are required to disclose such interest to ii. We will at all times consider whether such interest impairs the objectivity of the recommendation.

In addition, staff involved in the production of this ii Super 60 list are subject to a personal account dealing restriction. This prevents them from placing a transaction in the specified instrument(s) for five working days before and after an investment is included or amended and made public within the list. This is to avoid personal interests conflicting with the interests of the recipients of this ii Super 60 investments list.

Formal review concluded. This Super 60 Fund is retained. Find out more