After a year in which the £212m Lindsell Train Investment Trust (LTIT) was “hobbled” by the performance of Lindsell Train Limited (LTL), an uplift in December proved reassuring for portfolio manager Nick Train (pictured).
LTL makes up 40.5% of the trust’s portfolio and was one of the three main contributors to the fund’s performance in December, alongside Laurent Perrier and AG Barr.
Meanwhile, the top three absolute detractors were London Stock Exchange Group (LSEG), Diageo and PayPal.
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In December’s monthly manager update, Train said: “All LTL’s portfolios are concentrated ones and by and large they are concentrated on the shares of strong companies, with secular growth opportunities. There is every reason to expect things to work out just fine.”
LTIT’s total return in December declined 0.1%, outperforming its MSCI World Index benchmark which was down 5.2%. The trust’s share price is currently trading at a 1.78% premium, up from 0.99% in November.
The trust also slightly upped its exposure to sterling in the month, making up 3.9% of the overall portfolio compared to 1.3% in its November update.
In 2022 as a whole, meanwhile, LTIT’s net asset value fell 9.4% as it lagged its benchmark, which fell 7.8% over the 12 months.
In his monthly write-up, Train took the opportunity to highlight comments from LTL global equity fund manager James Bullock, who said that the tech sector is poised to create wealth for investors in the next decade despite its recent challenges.
“In response to the issues raised by James, I’d note [LTIT’s] equity portfolio is in part made up of holdings in businesses which we believe to be well-placed to exploit or participate in technology change – specifically London Stock Exchange Group, Nintendo, PayPal and RELX.”