Lindsell Train Investment Ahead Of Benchmark On Parent's Performance

(Alliance News) - Lindsell Train Investment Trust PLC on Wednesday said its financial 2019 was a ...

Alliance News 12 June, 2019 | 11:44AM
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(Alliance News) - Lindsell Train Investment Trust PLC on Wednesday said its financial 2019 was a "successful" year as the trust greatly outperformed its benchmark.

The investment trust was set up by Lindsell Train Ltd "to provide investors with the opportunity to share in LTL's potential growth".

Lindsell Train Ltd makes up 46% of Lindsell Train Investment Trust's portfolio.

At March 31, Lindsell Train IT's NAV per share stood at GBP895.93 compared to GBP747.08 the year before, a 20% increase.

The trust's shareholder funds also increased 20% in the period, rising to GBP179.2 million from GBP149.4 million.

Lindsell Train IT declared a final dividend of GBP27.87 per share and a special dividend of GBP1.63 per share, giving a total dividend for the 12 months to March 31 of GBP29.50. The total payout represents a 35% increase over the GBP21.80 distributed the previous year.

For financial 2018, Lindsell Train IT declared a final dividend of GBP21.29 with a special dividend of GBP0.51.

Lindsell Train IT's NAV total return for the period was 23.2%, sharply ahead of benchmark, Treasury 3.5% 2068 fixed rate bond. The Treasury bond, which is the longest-dated UK government fixed rate bond, returned 4.0% in the 2019 financial period.

Lindsell Train IT's total return also was favourable to the performance of world markets, measured by the MSCI World Index, which increased 12.0% in the period.

Lindsell Train IT - which invests equities, unquoted equities, bonds, funds, cash and other financial investments - said the biggest contributor to its first half growth was Lindsell Train Ltd, whose assets grew 23% in the year to January 31.

Lindsell Train Ltd's funds under management at January 31 stood at GBP16.3 billion.

Lindsell Train IT Chair Julian Cazalet said his own company's "fortunes are inextricably linked to the prosperity of LTL".

"The investment performance of LTL's three strategies has been good and is the key reason for the success in garnering new assets over the years. In LTL's year to January 2019 I am glad to say performance was even better, with all strategies outperforming their respective benchmarks resulting in long-term excess returns increasing further. That bodes well for the growth in LTL's business. LTL's financial returns over the year were impressive with operating profits up 46% and LTL's dividend reflecting the increase, up 40%," Cazalet added.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Lindsell Train Ord 1,390.00 GBP 2.58
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