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A lot of fund’s saw significant withdrawals, up to 10%, from June onwards last year spooked by a combination of Woodford fallout and Brexit jitters. The off the back of the initial Woodford reports Train was hit with liquidity concerns. Personally, I think it’s all a blip and as long as the NAV continues to perform this trust is as good as any. https://www.trustnet.com/news/7461001/nick-train-brushes-off-liquidity-concerns-after-ratings-downgrade
In 2019 Funds under Management grew 41% to £21.9 billion. Not bad.
Does anyone know if Lindsell Train are taking new money in or are their funds seeing redemptions? Just want to know if the business is growing or shrinking
Well, I sort of meant not way above NAV.
A true price?.
That also depends on how popular the funds are?
Well hargrieves took lti off the reccommended list because lti holds a small slice of hargrieves who, I am sure would not want to get into further misselling trouble after the woodford scandal. Perhaps now lti has found its true price level and we can grow steadily from here. I hope so anyway.
Oh dear, what's happening here?.
Ah, I see now. Thanks. This is seriously not good.
Below net asset value is a first for this one. Nick Train said he would start buying it if that ever happened.
It seems to be under pressure every day. I am down and take today - down 6%.
Its lost its way for sure.
Any one know why LTI is under pressure today? can't see any news out there.
We trade ITs a lot but do generally avoid those few with a premium. With a discount they give you a better yield. We do acknowledge that some always trade at a premium and this did hit around the £19 mark so if it drops to £10 or £11 with the same premium it may be worth buying as some of its holdings may be out of favour, therefore worth buying. We go for stocks / sectors out of favour as they usually come back and often give a decent dividend in between.
4% premium and 2.4% yield, this is now looking like a sensible investment
7% premium now! I’ve never seen it so low. Topped up. Shame about my paper loss though......
I feel confident I will be in profit eventually though. NAV has gone up over the last couple of months
when will the pain end !
The long term success of this Trust will be determined by the success of the funds management by Lindsell Train Limited which now represents 50% of NAV. If the funds perform well more people will invest in them and therefore the earnings of LTL will grow. In 2019 Lindsell Train Global, its biggest fund, was the 2nd most popular fund on the Interactive Investor platform. Not surprising given its annual return is 20% over 5 years. Not even Fundsmith beats that.
Nav is frequently updated. Present situation premium 13%. I'd sooner trust Nick and co at a premium than most others at a discount.
I'd avoid. Spread is nearing 4% and no one has a clue how much it's really worth.
Ah, that could explain the big price drop again today. I would be surprised if it keeps its morningstar rating at this rate. My loss is hurting.
So looking at the half year report yesterday I thought it interesting to look at the investment our Trust has in Lindsell Train Limited (LTL) as this now represent 50.87% of NAV. LTL made a PAT of £28mil on Turnover of £50.5mil. This is a growth of 43% in Turnover and 47% in PAT. Our 25% share of LTL was valued at £109m mil for the purposes of calculating NAV. This works out at a PE of 7.8. This is incredible low for a company growing by 43% and explains why there is a such a large premium on NAV. How much is LTL worth? I have no idea.
Ah, now I see. Thank you OliG. I always have a rant at the broker when they make excuses. But not this time.
Is it my imagination or has performance declined since the July selloff? I guess there is high correlation with FTSE and perhaps some seasonal factors at play.
But more generally, if say a global IT has no correlation with the FTSE 100 but there happens to be a general selloff would I be correct to assume that even global IT's do not really provide exposure to other markets as these are ultimately traded on LSE...
There were some big purchasers yesterday. Someone bought £73k worth. When I bought in I had to do it in 4 small parcels to get the position I wanted. Liquidity is not great in this stock because it is relatively small and they don't issue new shares but you should be able to get one with a decent broker. Who do you use?
I see, and thank you for your swift reply and incite. Incidentally I was trying all day yesterday to place an order with the broker and was unable to do so. There seemed to be a liquidity issue in the sense that there were no sellers dealing at the time. How strange.
Figgsey, its important to understand that LTI is not a normal investment trust in one key aspect. 51% of its net asset value is a 25% stake in Lindsell Train Limited which is the company that manages all the Lindsell Train funds. The company's external accountants do a valuation of those shares because there is no market value as with all the other investment holdings. The premium is therefore investors saying they believe the value of Lindsell Train Limited is higher than that calculated by the accountants. I am in the camp. If you look at the growth of Lindsell Train over the last 5 years it has been phenomenal. This growth has been achieved because LT funds have performed consistently well and therefore the funds under management have grown. They are now £22.1 billion. A year ago they were £16.1m so the growth continues.