Key Takeaways
- • Lindsell Train Investment Trust delivered a NAV total return of -21.3% for the year ended 31 March 2026, significantly underperforming its benchmark and reflecting persistent weakness in the manager's concentrated portfolio strategy.
- • The trust's funds under management rose 3% in the six months to end of September 2021, despite net outflows of £743m, indicating underlying asset appreciation offset by investor redemptions.
- • Manager Nick Train attributed weak performance to "short term" market conditions, though the trust's five-year performance remained subdued relative to peers, while 10-year NAV total returns remained above both peer group and benchmark averages.
- • The trust's portfolio concentrated in "AI winners" thesis faced headwinds, with recent positions including a new stake in US credit scorer FICO, suggesting continued conviction in thematic positioning despite near-term underperformance.
- • NAV per share declined to 716.1 pence at end of March from 952.1 pence one year earlier, representing a 25% contraction in share value during the period.
Summary
Lindsell Train Investment Trust has experienced a period of significant underperformance against its benchmark, with the trust reporting a NAV total return of -21.3% for the year ended 31 March 2026. This substantial decline reflects broader challenges facing the manager's concentrated value-oriented strategy, which has struggled to compete with benchmark returns across multiple measurement periods.
The trust's asset base has demonstrated resilience despite redemption pressures, with funds under management increasing 3% in the six months to end of September 2021 despite net outflows totaling £743m. This dynamic—where underlying portfolio appreciation has offset investor withdrawals—suggests that while new capital has been withdrawn, remaining positions have generated positive returns during the period measured.
Performance divergence has been notable across different time horizons. On a one-year basis, the NAV per share contracted sharply from 952.1 pence to 716.1 pence, representing a 25% erosion of shareholder value. However, the trust's 10-year NAV total return has remained competitive, trading above both its peer group and benchmark. Manager Nick Train has characterized the recent weakness as temporary, attributing underperformance to "short term" market conditions rather than fundamental strategy deterioration.
The trust's concentrated positioning in what it terms "AI winners" has been a notable factor in recent performance, with the portfolio recently establishing a position in US credit scorer FICO. This thematic conviction, despite near-term headwinds, reflects the manager's continued belief in the long-term thesis underlying the portfolio construction, even as shorter-duration investors have incurred losses relative to broader market indices.
The trust's asset base has demonstrated resilience despite redemption pressures, with funds under management increasing 3% in the six months to end of September 2021 despite net outflows totaling £743m. This dynamic—where underlying portfolio appreciation has offset investor withdrawals—suggests that while new capital has been withdrawn, remaining positions have generated positive returns during the period measured.
Performance divergence has been notable across different time horizons. On a one-year basis, the NAV per share contracted sharply from 952.1 pence to 716.1 pence, representing a 25% erosion of shareholder value. However, the trust's 10-year NAV total return has remained competitive, trading above both its peer group and benchmark. Manager Nick Train has characterized the recent weakness as temporary, attributing underperformance to "short term" market conditions rather than fundamental strategy deterioration.
The trust's concentrated positioning in what it terms "AI winners" has been a notable factor in recent performance, with the portfolio recently establishing a position in US credit scorer FICO. This thematic conviction, despite near-term headwinds, reflects the manager's continued belief in the long-term thesis underlying the portfolio construction, even as shorter-duration investors have incurred losses relative to broader market indices.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.