Lindsell Train to scrap gearing due to regulatory costs

The Lindsell Train investment trust has announced it will no longer give itself the option of gearing the portfolio, in part due to rising regulatory costs.

The trust’s chairman, Donald Adamson, said in its annual report that the company's risk-adjusted NAV had risen past the €100m level at which it must either abandon gearing or submit to greater regulatory scrutiny. The Alternative Investment Fund Manager Directive (AIFMD) had previously required the trust to register as a "small" AIFM, but its increased size means it now must apply for more onerous full registration if it wishes to gear up. Adamson admitted the increase in size had come quicker than expected. This is due to a jump in the company’s NAV, which grew by almost 28% per sh...