23rd Nov 2016 17:48
LONDON (Alliance News) - Lindsell Train Investment Trust PLC on Wednesday said it outperformed its benchmark in the first half of its financial year thanks to a strong performance from Lindsell Train Ltd, which makes up more than a third of its net asset value.
The trust said its net asset value total return per share rose 25% in the six months ended September 30, compared to the 2.0% rise in its benchmark, which is the annual average running yield of the longest-dated UK government fixed rate bond.
Over the same period the MSCI World Index rose 17.2%, Lindsell Train Investment said.
The company said its investment manager Lindsell Train, which has a large weighting within its portfolio, rose 40% in total return terms and was "once again the biggest positive contributor of returns".
"We agree with the managers that this increasing proportion of asset flows into Lindsell Train funds is the optimal way for the company to grow efficiently, given its long-held aim of keeping its organisational structure as small and simple as possible," Chairman Julian Cazalet said.
Lindsell Train Investment said, although Lindsell Train's performance across all its strategies continues to be good so far in 2016, "in the last few months, as global government bond yields have begun to rise, relative performance has stagnated".
"This has been associated with much better share price performance from cyclical, commodity and capital intensive companies where Lindsell Train, or indeed the trust, has no exposure. It is a reversal of a trend that benefitted Lindsell Train's relative performance in 2014-2015, and one that could continue for some time," Lindsell Train Investment said.
Shares in Lindsell Train Investment closed up 0.5% at 884.23 pence on Wednesday.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Lindsell Train