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Lindsell Train writedown hits investment trust

Fall in assets prompts revaluation
Lindsell Train writedown hits investment trust

Asset manager Lindsell Train Limited has had its valuation written down resulting in Lindsell Train Investment Trust's (LTI) net asset value (NAV) falling 6.9 per cent in March. Lindsell Train Limited is the investment trust's largest holding, accounting for 46.8 per cent of its assets at the end of March. Lindsell Train Limited's assets under management fell from £22.5bn in July 2019 to £18.2bn at the end of March this year.

“The trust’s NAV fell 6.9 per cent, hit particularly by the fall in value of Lindsell Train Limited,” said Michael Lindsell , co-manager of Lindsell Train Investment Trust. “This month the board felt it appropriate to modify the earnings component of its valuation formula to fully capture the fall in Lindsell Train Limited's funds under management to £18.2bn at the end of March and its effect on earnings. The decision also reflected the sharp fall in the values of most quoted fund management companies.”

Mr Lindsell added that the global equity trust’s listed holdings had “fared well” relative to the performance of markets, but none would be immune to the economic fallout of the current crisis.

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