Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a683585

Lindsell Train caps stunning year by switching performance fee

 
Lindsell Train caps stunning year by switching performance fee

Nick Train and Michael Lindsell have put forward a proposal to change Lindsell Train Investment Trust's performance fee.

Due to the trust's strong outperformance, just shy of £2 million was accrued in performance fees over its last financial year, prompting the managers to tweak how they calculate the fee. 

From now on, the performance fee will be worked out based on the lower of the trust's net assets or market capitalisation, rather than just its market capitalisation, as was previously the case.

In addition, half of the performance fee accrued last year that was attributable to the expansion of the premium will be withheld by the company, and only paid in full if the net asset value (NAV) next March exceeds the NAV for the previous financial year.

Strong run

In-keeping with its longer term track record, Lindsell Train once again enjoyed another strong year in terms of its performance.

According to its latest report to investors, the trust's NAV increased by 27.2% over the 12 months to the end of March, while its share price grew by 32%.

Over three years the trust has grown its share price by 87.7% and its NAV by 53.5%.  It trades at a 12.4% premium.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire Guide to Investment Trusts


In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

More about this:

Look up the shares

Look up the fund managers

  • Nick Train
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Michael Lindsell
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

FCA warns preference share issuers amid Aviva fallout

by Daniel Grote on Apr 19, 2018 at 08:51

Sorry, this link is not
quite ready yet