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Lindsell Train Investment net asset value falls amid market turbulence

5th Dec 2022 12:37

(Alliance News) - Lindsell Train Investment Trust PLC on Monday said its net asset value per share fell over the six months to September 30, but added that its total NAV return per share outperformed its comparator benchmark.

The London-based, rail-focused investment trust said its NAV per share at September 30 was GBP1,029.42, down 7.6% from GBP1,113.81 on March 30.

Its NAV per share total return, however, was negative 3.0% compared to negative 7.3% in the MSCI World Index, its benchmark index.

Shares in Lindsell Train Investment were down 4.0% to GBP1,010.00 in London on Monday at midday.

It said the fall in NAV per share and total return was understandable, considering market turbulence arising from the war in Ukraine and rising inflation and interest rates. This introduced new risks, including the threat of cyberattacks, alongside declining performance and reduced risk "appetites", it explained.

Loss on investments held at fair value in the six months that ended September 30 was GBP13.0 million, swinging from a gain of GBP7.8 million a year prior.

Lindsell Train Investment has a 24% stake in Lindsell Train Ltd, which accounted for 43% of NAV on September 30. LTL's funds under management fell to GBP19.56 billion at July 31 from GBP21.25 billion at January 31.

"LTL has suffered from more than two years of disappointing relative performance across all its four equity strategies which, together with widespread outflows from equity funds generally, underlies this loss of funds under management. The experience of recent years illustrates the investment risk inherent in a fund management business that has a singular approach to investing," said Chair Julian Cazalet.

Lindsell Train Investment said the reduced performance meant it may have to reduce future dividends.

It also warned the high concentration of its investment portfolio may lead to an investment return that is lower than its benchmark index, alongside possibly failing to reach its investment objectives. It refrained from changing its objectives in the meantime.

By Greg Rosenvinge; [email protected]

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