9th Jun 2016 12:53
LONDON (Alliance News) - Lindsell Train Investment Trust PLC on Thursday said the rise in the value of its holding in Lindsell Train Ltd, its investment manager, was the "overwhelming contributor" as it beat its benchmark index and broader markets in the year ended March 31.
Lindsell Train Investment Trust reported that its net asset value total return per share increased by 11.9% in the year ended March 31, and the share price, adjusted to include dividends, was up by 35.6%. That meant the premium at which the shares traded to net asset value widened to 28.6% from 5.9%.
The performance of the share price and of net asset value exceeded the return on the investment trust's benchmark and world equity markets. The benchmark was up 4.0% and the MSCI World Index (Sterling) down 0.3% over the year to March 31.
In 2001, the investment in Lindsell Train Ltd represented 0.3% of the investment trust's net asset value, and by the end of March had risen to just shy of 33% of net asset value. In the full-year to March 31, Lindsell Train Ltd's dividends accounted for 68% of the investment trust's revenue. Lindsell Train Ltd had a fair value of GBP28.7 million in the accounts.
"The success of LTL has contributed to investors' confidence in the future prospects for the company as reflected in the current share price premium,"
Excluding the contribution of the holding in Lindsell Train Ltd has made to returns, meaning the increase in capital value and the accumulated dividends, since the investment trust began, the annualised total return would have been 8.1%.
That's "notably lower" than the 11.8% actual return, according to Chairman Julian Cazalet, who said it was still a "commendable achievement" relative to the performance of the benchmark and world equity markets.
Shares in Lindsell Train Investment Trust were up 0.8% at 665.30 pence Thursday.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Lindsell Train