LF Lindsell Train UK Equity (GB00B18B9X76) has retained its place on Interactive Investor's favourite funds list following a formal review of the £6.7bn fund’s liquidity profile. The investment platform said it had put the fund under review in late November after two ratings agencies, Morningstar and Square Mile, downgraded it on the back of concerns about its size.
“Long-term performance is excellent, and the fund has grown significantly since we added it to our list,” explained Dzmitry Lipski, head of funds research at Interactive Investor. “As a result, and because of the highly concentrated nature of the fund and a recent downgrade by two independent external agencies, we wanted to reassure ourselves that there has been no deterioration in liquidity. We conducted extensive analysis on the liquidity, capacity and concentration of LF Lindsell Train UK Equity, and spoke to [its] manager at length. The key outcome is that our investment selection committee is comfortable with the liquidity of the fund so it has been removed from being under formal review.”
Interactive Investor’s decision to keep the fund on its Super 60 list rests on the fact that many of its holdings are “large, liquid companies with diversified revenue streams”. Mr Lipski added that the fund has plenty of room for further growth without compromising its approach.