Lindsell Train

Lindsell Train Limited is a British investment management company established in 2000 by Michael Lindsell and Nick Train, who had previously worked together at GT Management. The firm's name combines the surnames of its founders. It is principally associated with equity portfolio management and with a distinctive buy-and-hold investment style that emphasizes a relatively small number of established companies with durable brands, loyal customers and long-term earnings potential. The business obtained its first external mandate at the end of 2000, when it was appointed to manage the Finsbury Growth & Income Trust. In 2001, it launched the Lindsell Train Investment Trust, a London-listed investment vehicle intended both to support the development of the management company and to give public-market investors exposure to its growth. The investment trust remains a significant shareholder in Lindsell Train Limited, owning 24% according to the cited reference material. Lindsell Train expanded its product range through specialist and diversified equity mandates. It was appointed in 2004 to manage Close Investments' Japanese Equity fund and took over the fund structure in 2009, renaming it the Lindsell Train Japanese Equity Fund. The firm launched its UK Equity Fund in 2006 and its Global Equity Fund in 2011. These strategies generally use concentrated portfolios and low turnover, reflecting the managers' preference for holding selected businesses over extended periods rather than frequently trading in response to market movements. Companies associated with the portfolios have included consumer and media-oriented businesses such as Burberry, Nintendo and Diageo. The approach has produced periods of strong long-term performance but has also exposed the firm and its investors to periods of relative weakness. The UK Equity Fund suffered a loss in 2022 amid rising interest rates and volatile markets. The Global Equity Fund lagged rival funds in 2020 and 2021, while the investment trust recorded particularly weak relative performance in 2021 as consumer groups underperformed technology stocks. The subsequent performance pressure contributed to outflows and increased scrutiny from fund platforms, analysts and investors. Lindsell Train has also faced governance and risk-management attention. In 2020, reports said that several funds had breached concentration-limit rules, prompting discussion of portfolio concentration, liquidity and disclosure. In 2023, Hargreaves Lansdown raised concerns about the robustness and independence of the firm's investment risk framework. Lindsell Train responded that it had a defined framework and a risk and compliance committee, and said it had hired an executive focused on risk monitoring. The firm was also scrutinized in 2023 after reporting that its founders and their spouses had received substantial dividends while the funds had experienced periods of underperformance. By May 2025, the company was reported to manage £12.8 billion in assets and employ approximately 30 people. For the financial year ending in January 2025, it reported revenue of £69.1 million and pre-tax profit of £49.2 million, while paying £32.3 million in dividends. The business remains active as an independent investment manager, with the Lindsell Train Investment Trust continuing to provide a listed-market connection to the firm.

Lindsell Train was formed in 2000 by Michael Lindsell and Nick Train, investment professionals who had met while working at GT Management. The new firm's name joined the founders' surnames and signaled a partnership-centered investment business rather than a broad financial conglomerate. Its first external client was the Finsbury Growth & Income Trust, for which Lindsell Train received a management appointment at the end of 2000. The company broadened its institutional profile in 2001 by launching the Lindsell Train Investment Trust on the London Stock Exchange. The trust was designed to help finance and support the development of Lindsell Train Limited while allowing public investors to participate indirectly in the fortunes of the investment manager. The trust became a major shareholder in the manager, with a 24% interest cited in the reference material. Lindsell Train added Japanese-equity capability in the early 2000s. In January 2004, it was appointed to manage Close Investments' Japanese Equity fund. In November 2009, the firm took over the fund structure and renamed it the Lindsell Train Japanese Equity Fund. It also launched a UK Equity Fund in 2006 and a Global Equity Fund in 2011. These offerings reflected a consistent investment philosophy: concentrated holdings, limited portfolio turnover and long-term ownership of companies considered to possess enduring brands, customer loyalty or other competitive advantages. The firm's approach has often resulted in portfolios with relatively few positions. That concentration can magnify the benefits of successful long-term stock selection, but it can also make performance more sensitive to sector rotations, individual company developments and investor-redemption pressures. The UK Equity Fund delivered a reported average annual return of 10.5% through May 2023, but lost 6.1% in 2022 as interest-rate increases and market volatility affected the portfolio. The Global Equity Fund outperformed over a ten-year period cited in the reference material, although it lagged competing funds in 2020 and 2021. The investment trust's 2021 performance was particularly difficult relative to its benchmark. It returned 5.6%, compared with 10.2% for the MSCI World Index, partly because consumer-oriented holdings underperformed the technology companies that drove broad market returns. The results were accompanied by £743 million of outflows from the trust and only £152 million of inflows into Lindsell Train Limited, a sharp change from the more than £2 billion of inflows recorded in each of the preceding three years. Risk, compliance and governance became important parts of the firm's public profile during the following period. In April 2020, reports stated that several funds had breached concentration-limit requirements. The issue was examined in the wider context of the 2019 collapse of Neil Woodford's investment business and renewed concern about concentration, liquidity and fund oversight. Hargreaves Lansdown was criticized by some investors for disclosure relating to the breaches and removed the Lindsell Train UK and Global Equity Funds from its Wealth 50 list. Morningstar also downgraded the funds, citing the limited number of holdings and the potential difficulty of responding flexibly to a wave of redemptions. In May 2023, Hargreaves Lansdown raised further questions about Lindsell Train's investment risk-management process, saying it did not appear to provide sufficiently strong independent oversight. Lindsell Train rejected the characterization that its controls were inadequate, pointing to a defined framework, a risk and compliance committee and the recent hiring of an executive focused on risk monitoring. Later in 2023, reporting based on the firm's annual report drew attention to £35.5 million in dividends paid to the founders and their spouses while the investment funds had experienced periods of underperformance. In late 2024, the firm reduced its Manchester United stake by 20%, during a period of heavy withdrawals and continuing performance pressure. By May 2025, Lindsell Train was reported to manage £12.8 billion in assets and employ around 30 people. Its accounts for the year ending January 2025 showed revenue of £69.1 million and pre-tax profit of £49.2 million, with £32.3 million distributed as dividends. The company remains an active specialist investment manager whose identity is closely tied to its founders, concentrated equity portfolios and long-term ownership philosophy.

• 2025

  Assets and financial results reported

  [1]Lindsell Trainen.wikipedia.org

  The company was reported to have £12.8 billion in assets under management, £69.1 million in revenue and £49.2 million in pre-tax profit for the year ending January 2025.

• 2024

  Manchester United holding reduced

  [1]Lindsell Trainen.wikipedia.org

  Lindsell Train reduced its ownership stake in Manchester United by 20% during a period of significant fund withdrawals.

• 2023

  Risk-management framework questioned

  [1]Lindsell Trainen.wikipedia.org

  Hargreaves Lansdown publicly raised concerns about independent oversight and the robustness of Lindsell Train's investment risk process.

• 2021

  Investment trust underperformed its benchmark

  [1]Lindsell Trainen.wikipedia.org

  The trust returned 5.6% against 10.2% for the MSCI World Index, amid pressure on consumer-oriented holdings and substantial outflows.

• 2020

  Concentration-limit compliance issue reported

  [1]Lindsell Trainen.wikipedia.org

  Reports said several funds had breached concentration limits, leading to scrutiny of compliance, liquidity and disclosure.

• 2011

  Global Equity Fund launched

  [1]Lindsell Trainen.wikipedia.org

  The firm expanded its range with a global equity strategy.

• 2009

  Japanese fund renamed

  [1]Lindsell Trainen.wikipedia.org

  Lindsell Train took over the Japanese fund structure and renamed it the Lindsell Train Japanese Equity Fund.

• 2006

  UK Equity Fund launched

  [1]Lindsell Trainen.wikipedia.org

  The firm introduced its UK Equity Fund, a concentrated strategy focused on long-term ownership of selected British and internationally exposed companies.

• 2004

  Japanese equity mandate obtained

  [1]Lindsell Trainen.wikipedia.org

  Lindsell Train was appointed to manage Close Investments' Japanese Equity fund.

• 2001

  Lindsell Train Investment Trust launched

  [1]Lindsell Trainen.wikipedia.org

  The investment trust was listed on the London Stock Exchange to support the management business and provide investors with exposure to its growth.

• 2000

  Lindsell Train founded

  [1]Lindsell Trainen.wikipedia.org

  Michael Lindsell and Nick Train established the investment management company after working together at GT Management.

• 2000

  First external mandate

  [1]Lindsell Trainen.wikipedia.org

  The firm was appointed to manage the Finsbury Growth & Income Trust, its first external client.

An independent, fundamentally oriented equity manager positioned around concentrated portfolios, long holding periods, low turnover and investment in established businesses with strong brands or customer franchises.

• UK equity fund · 2006

  Lindsell Train UK Equity Fund

  Launched in 2006, the UK Equity Fund applies Lindsell Train's concentrated, long-term investment approach to companies listed in or significantly exposed to the United Kingdom. The strategy emphasizes businesses with recognizable brands, loyal customers and durable competitive characteristics. Its performance has included strong long-term results but also a 6.1% loss in 2022 amid rising interest rates and volatile markets.

• Global equity fund · 2011

  Lindsell Train Global Equity Fund

  Launched in 2011, the Global Equity Fund invests internationally through a relatively small number of carefully selected companies. The portfolio reflects the firm's preference for established businesses and long holding periods rather than high turnover. Although it outperformed its market over a ten-year period cited in the reference material, it lagged competing funds in 2020 and 2021.

• Japanese equity fund · 2009

  Lindsell Train Japanese Equity Fund

  The Japanese equity strategy originated in Lindsell Train's 2004 mandate from Close Investments. After the firm took over the fund structure in 2009, it was renamed the Lindsell Train Japanese Equity Fund. It extends the firm's concentrated, fundamental and long-term style to companies in Japan.

• Listed investment trust · 2001

  Lindsell Train Investment Trust

  Launched in 2001 and listed on the London Stock Exchange, the investment trust was created to support Lindsell Train Limited and give public investors a vehicle linked to the manager's growth. The trust owns a 24% stake in Lindsell Train Limited according to the cited reference material and invests in line with the firm's long-term equity philosophy.

• Investment-trust management mandate · 2000

  Finsbury Growth & Income Trust mandate

  The Finsbury Growth & Income Trust was Lindsell Train's first external client, with the management appointment made at the end of 2000. The mandate helped establish the firm as an investment manager and remains part of its operating history.

• 2023

  Governance and founder-dividend scrutiny

  Reports based on the firm's annual report said that the founders and their spouses received £35.5 million in dividends. The payments attracted scrutiny because Lindsell Train funds had experienced periods of underperformance and the firm was simultaneously facing questions about risk oversight.

  Source

• 2020

  Fund concentration-limit breaches

  Several Lindsell Train funds were reported to have breached compliance rules relating to concentration limits. The matter prompted scrutiny of portfolio construction, liquidity and disclosure, particularly after the collapse of Neil Woodford's investment business had heightened attention to fund-risk controls.

  Source

Read more

• 2024

  Reduction of Manchester United investmentOther

  Background

  The investment portfolio was experiencing performance pressure and substantial withdrawals.

  Action taken

  Lindsell Train reduced its ownership stake in Manchester United by 20%.

  Aftermath

  The reduction occurred during a year in which withdrawals from the fund complex were reported at £2.6 billion.

  Source

• 2023

  Strengthening of risk monitoringStrategy

  Background

  Hargreaves Lansdown questioned whether Lindsell Train had a sufficiently robust and independent investment risk framework.

  Action taken

  Lindsell Train pointed to its risk and compliance committee and said it had hired an executive focused on risk monitoring.

  Aftermath

  The firm's governance and risk controls remained a subject of public discussion alongside performance and dividend scrutiny.

  Source

• 2020

  Response to concentration and risk scrutinyStrategy

  Background

  Reports said several funds had breached concentration limits, while investors and platforms were reviewing fund liquidity and oversight after the Woodford collapse.

  Action taken

  Lindsell Train continued to defend its concentrated investment approach while its funds faced platform and analyst scrutiny.

  Aftermath

  Hargreaves Lansdown removed the UK and Global Equity Funds from its Wealth 50 list, and Morningstar downgraded the funds.

  • Morningstar — Morningstar downgraded the funds, citing the limited number of holdings and potential inflexibility during large redemptions.

  Source

• 2009

  Takeover and renaming of Japanese equity fundStrategy

  Background

  Lindsell Train had managed Close Investments' Japanese Equity fund since 2004.

  Action taken

  The firm took over the fund structure and renamed it the Lindsell Train Japanese Equity Fund.

  Aftermath

  The transaction expanded the firm's directly branded investment-product range in Japan.

  Source

1. 1Lindsell Trainen.wikipedia.org