The £295m Lindsell Train Investment Trust has been edging towards its 2016 peak premium of 75% over the past 12 months, but commentators are warning this also increases the risk of capital loss.
The trust, which has been run by Nick Train since its inception in 2001, has seen its premium climb from 22.7% to 72.6% in just 12 months, according to data from Winterflood, which signifies increasing investor demand. The last time the trust reached such a level was in September 2016, at which point warnings were issued by management stating there was a significant mismatch in the valuation of the trust against the price, and that investors should be wary. Which trusts are most consistent outperformers over a decade? Though it traded back down to a premium of 10% the following yea...
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