Lindsell Train Global Equity Fund

CF Lindsell Train UK Equity Fund Fund
Lindsell Train Global Equity Fund
All data at 31 December 2014
Fund Objective
Fund Size
£677.5m
To increase the value of Shareholders’ capital over the longer term from a focused portfolio of
global equities, primarily those listed or traded on Recognised Exchanges in developed
countries world-wide. The Fund’s investment performance is compared with the MSCI World
Index (Developed Markets) and is reported in Sterling.
Share Price
A: £1.5595
B: £1.6215
C: $0.9955
D: £1.1076
Fund Profile
Portfolio Manager: Michael Lindsell
The portfolio is concentrated, with the number of stocks ranging from 20-35, and has low
turnover.
Sector Allocation (% NAV)
Top 10 Holdings (% NAV)
Pearson
8.3
Consumer Discretionary
23.5
Unilever
7.4
Consumer Staples
45.6
Diageo
7.1
Financials
8.8
Heineken
6.7
Healthcare
1.9
London Stock Exchange
5.4
Information Technology
eBay
5.3
Kao
5.3
Intuit
5.2
Walt Disney
5.1
Reed Elsevier
5.0
Fund Type: Dublin OEIC
Type of Scheme: UCITS
*Launch Date: 16 March 2011
Classes: A, B, C & D
17.3
Cash
Base Currency: Sterling
2.9
Total
Benchmark: MSCI World Index
(Developed Markets)
(MXWO)
100.0
GICS sector definitions
Dealing & Valuation: 12 noon each Dublin &
UK Business Day
Country Allocation (% NAV)
Year End: 31 December
Europe ex-UK
12.6
Japan
25.5
UK
28.3
USA
30.7
Cash
2.9
Total
Dividend: XD dates: 1 Jan, 1 Jul
Minimum Investment: A: £1,500
B: £150,000
C: $250,000
D: £200m
100.0
Management Fees: A: 1.15% p.a.
B & C: 0.65% p.a.
D: 0.45% p.a.
Fund Performance (GBP)
Standardised Past Performance (%)
December—December
LT Global Equity Fund
MSCI World Index
Cumulative Performance (%)
31 December 2014
Source: Lindsell Train Limited and Capita
Financial Administrators Limited.
2009/10
2010/11
2011/12
2012/13
2013/14
N/A*
N/A*
N/A*
N/A*
+10.7
+10.7
+29.6
+24.3
+9.9
+11.5
Bloomberg: A: LINTGEA ID
B: LINTGEB ID
C: LINCUSD
D: LINTGED ID
Since
Launch*
5yr
3yr
1 yr
YTD
3m
1m
LT Global Equity Fund
+65.6
-
+57.7
+9.9
+9.9
+4.3
-1.4
MSCI World Index
+51.4
-
+53.5
+11.5
+11.5
+5.0
-1.2
Source: Morningstar Direct. Fund performance is based on total return (with dividends reinvested) of A Class
shares and is net of fees, based on a 12 noon valuation point. Past performance is not a guide to future
performance.
ISIN: A: IE00B644PG05
B: IE00B3NS4D25
C: IE00BK4Z4V95
D: IE00BJSPMJ28
Sedol: A: B644PGO
B: B3NS4D2
C:BK4Z4V9
D: BJSPMJ2
Issued and approved by Lindsell Train Limited.
Authorised and regulated by the
Financial Conduct Authority.
Lindsell Train Global Equity Fund
Fund Manager’s Comments
December was a month when equity prices were battered by macro-economic factors of
sometimes dubious relevance for individual companies. On balance we remain of the view
that the fall in the Oil price results from the human ingenuity and technological skill that has
created the fracking revolution. It will certainly bring an unlooked-for and substantial dividend
– in the form of cheaper energy - for corporations and consumers all over the world. Everyone
owes a debt of gratitude to the wildcatters. We look for owners of truly global consumer
brands to be the foremost beneficiaries.
The strategy underperformed its benchmark over the calendar year, with a gain of 9.9%
versus 11.5%. The disappointment for us here is not so much the underperformance although we always feel bad about underperforming – it’s more its cause. What we mean is
that two of the major drags on our return were companies where we have high confidence in
their undervaluation and investment appeal.
The divergence between their actual
performance and our continued enthusiasm is galling.
The pair is two Japanese companies – Nintendo and Shiseido, both of which produced
currency-worsened losses over the period (the Yen declined against Sterling over the year).
Nintendo owns and develops some of the most popular and valuable entertainment “content”
we know of in the world. Meanwhile, Shiseido beauty and skin-care products are, arguably,
the only truly global luxury brands owned by an Asian company. On paper, then, they fit firmly
into two of the key strategic themes that we have built your portfolio around – the likely
escalation in value of content that draws eyeballs to entertainment devices and the escalating
value of aspirational consumer brands with unique heritage. It is true both companies face
some trading challenges, but, in our opinion, those challenges are more than fully reflected in
share prices – leaving both shares very cheap on our analysis. It is noteworthy, for instance,
that the shares are respectively 83% and 39% below their all-time highs. There is no law that
says they must recover to these levels, of course – but those highs are indicative of how
enthused other investors can get about these fine companies in more benign circumstances.
We know the companies still own their wonderful brands and expect in sunnier circumstances
and in due course for other investors to get equally enthused again.
More generally, 2014 was a banner year for global M&A activity and we wouldn’t be surprised
if this year is even busier. Almost all our holdings could be implicated – particularly those
consumer brand owners. We don’t say buy or hold this fund because we expect
takeovers. What we do say, though, is that the logic for consolidation or asset swaps between
global companies, looking to build up global franchises is very strong. For instance Unilever
has recently acquired some personal care brands from P&G – at prices that were doubtlessly
mutually beneficial, relative to each company’s strategy. This backdrop makes investing in
strongly-branded, cash generative companies an attractive option, we believe.
All data at 31 December 2014
Company / Fund Registered Office
Lindsell Train Global Funds plc
33 Sir John Rogerson’s Quay
Dublin 2, Ireland
Investment Manager and Promoter
Lindsell Train Limited
Cayzer House
30 Buckingham Gate, London SW1E 6NN
Phone: +44 20 7802 4700
[email protected]
Fund Administrator, Dealing & Registration
Capita Financial Administrators (Ireland) Limited
2 Grand Canal Square
Grand Canal Harbour
Dublin 2
Ireland
Phone: + 353 1 400 5300
Fax: + 353 1 400 5350
Regulated by the Central Bank of Ireland
Depositary & Custodian
BNY Mellon Trust & Depositary (Ireland) Limited
Guild House, Guild Street IFSC
Dublin 1, Irealnd
Regulated by the Central Bank of Ireland
Auditor
Grant Thornton LLP
24-26 City Quay
Dublin 2, Ireland
Nick Train, Lindsell Train Ltd
Lindsell Train is authorised and regulated
by the Financial Conduct Authority
Phone: +44 20 7802 4700
[email protected]
Reports can be found on our
website www.lindselltrain.com
Risk Warning
Past performance is not a guide or guarantee to future performance. Investments carry a degree of risk and the value of investments and income from them as a result of market or currency fluctuations
may go down as well as up and you may not get back the amount you originally invested.
The Lindsell Train Global Funds plc – Global Equity Fund (the “Fund”) is a Dublin authorised UCITS open ended investment company. It is a recognised scheme under Section 264 of the Financial Services
& Markets Act 2000 (“FSMA”). This document is intended for use by Shareholders of the Fund, persons who are authorized to carry out investment business, professional investors and those who are
permitted to receive such information. Nothing in this document should be construed as giving investment advice or any offer, invitation or recommendation to subscribe to the Fund. Any decision to
subscribe should be based on the Fund’s Prospectus and Key Investor Information Documents (KIIDs). This Fund is not registered under the Securities Act 1933 or the Investment Company Act 1940 of
the United States of America (“USA”) and is therefore not for distribution to any US persons or to any other person in the USA. This Fund is not registered with the Securities & Futures Commission in Hong
Kong and accordingly the distribution of this document is restricted. Opinions expressed whether specifically or in general or both on the performance of individual securities and in a wider economic
context represent the view of Lindsell Train Limited at the time of preparation. They are subject to change and should not be interpreted as investment advice. The information provided in this document
was captured on the date issued below and therefore is not current. Current prices and the latest copy of the Prospectus can be obtained from Lindsell Train or the Fund Administrator. No part of this
document may be copied, reproduced or distributed to any other person without prior expressed written permission from Lindsell Train Limited.
15 January 2015 LTL 000-156-8

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