Lindsell Train has trimmed its stake in Rathbones after the asset manager delivered 14% returns in July and was the top contributor to performance in the Finsbury Growth & Income Trust over the period.
Lindsell Train’s stake in Rathbones dropped from 13.9% to 13%, according to a regulatory filing published on Monday afternoon.
Nevertheless, Lindsell Train remains the largest shareholder with US firm Mawer Investment Management, the next largest investor, owning a 8.9% stake.
The transaction took place on 10 August when the share price was trading around 1,658p. The stock had been trading at 1,460p at the start of July.
Rathbones’ Q2 trading update at the end of July had prompted a 10.9% jump in share price, when it went from 1,516p to 1,682p.
The interim results showed assets under management of £49.4bn, a 2% decrease on the end of 2019 but outperforming the FTSE and MSCI industry indices. Revenue was 3.6% ahead of the prior year to £179m, while margins were “resilient” at 25.7%.
Nick Train had stated in his latest Finsbury Growth & Income Trust monthly update that he spotted an opportunity for investment industry stocks as the UK savings ratio soared in the face of coronavirus uncertainty.
Train singled out Rathbones as one of his holdings that he expected to benefit from consumers stashing more cash. Hargreaves Lansdown and Schroders were also set to benefit, he said.
Lindsell Train increased its stake in Hargreaves earlier in the pandemic. The boutique fund house currently holds 13% of the D2C platform compared to 12% in April.
The Office for Budget Responsibility has predicted that the savings ratio jumped to 30% during the height of the lockdown compared to 5% in February.
See also: Nick Train highlights stellar returns from Rathbones as savings ratio soars
