Lindsell Train has warned it may need to add to its compliance team in order to cope with the "burden" imposed on the firm by greater regulation including MiFID II, but added it expects research costs paid by the firm to be lower than other asset managers.
The firm confirmed it would be absorbing research costs under MiFID II but said it expected these costs to be low relative to other asset managers' payments given the firm mainly uses in-house research.
However, in its half-yearly update to 31 July, it cautioned it may be forced to hire additional staff in the future in order to cope with the greater regulatory and administrative burden imposed on the firm.
Funds under management at Lindsell Train, which includes the investment trust, UK Equity, Global Equity and Japanese Equity funds, were £11.3bn, up £2.4bn from the end of 2016.
Chairman Julian Cazalet said: "This growth has been achieved without any increase in the number of staff. There is, however, some increase in costs associated with the ever greater regulatory burden on the investment industry in general.
"Further growth will probably require some more investment in personnel.
"The burden of monitoring, reporting and analysing trades will increase the administrative burden on Lindsell Train and is likely to require additional compliance support for no benefit and considerable extra cost."
Meanwhile, manager Nick Train (pictured) said the Lindsell Train investment trust had taken a new position in the champagne company Laurent-Perrier. This would join existing drinks manufacturer holdings AG Barr and Heineken.
He has currently taken a 1% holding and said he expected to add to it in the future once the share price had come back.
"At Lindsell Train we love investing in booze of all denominations. We note that great beverage brands exhibit extraordinary longevity and protection against monetary inflation.
"We are drawn to premium or luxury beverage brands, because it is an observed phenomenon that their consumption is a good proxy for global wealth creation. As more people get wealthier in more geographies, more cognac, malt whisky or champagne gets drunk.
"In our opinion, Laurent-Perrier is a very nice asset. The company is the fourth largest house in terms of sales, but claims to have the highest proportion of revenues accounted for by premium champagne. It also exports more of its sales than rivals, c.70%, meaning it is less reliant on the French economy and has true global recognition.
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