Lindsell Train IT's bet on its own asset manager hurts performance in Q1

Heineken among biggest detractors

The Lindsell Train investment trust (LTIT) significantly underperformed its benchmark in the first quarter of the year, mostly due to a 6% drop in the valuation of its investment manager, Lindsell Train Limited.

In the three months to the end of March 2024, LTIT's net asset value remained broadly flat at 0.6%, compared with a 9.9% total return delivered by its MSCI World benchmark. In the trust's monthly report, co-manager Michael Lindsell noted LTIT's positive performance was offset by some consumer franchises, particularly Heineken, as well as the 6% fall in valuation of unquoted holding Lindsell Train Limited (LTL). The trust's stake in the asset manager remains a significant influence on performance, and while down from its peak of 50% of NAV in 2021, LTIT's weighting in the firm averaged...