Lindsell Train warns on 'risky' 90% premium

Succession risk

David Brenchley
clock • 3 min read

Lindsell Train Investment trust continues to "represent a risky investment if bought at today's approximate 90% premium", according to manager Michael Lindsell.

Writing to shareholders in the trust's latest monthly report, Lindsell noted the net asset value (NAV) had advanced 19% in the year to 31 May, but that had been outstripped by the share price, which has risen 55% "and unbelievably making new highs this month as I write". Shares are currently testing the 2,000p level and are on an 87.7% premium to NAV. Its 12-month average premium is 54%, according to Morningstar data. That poses problems for investors who still seem to be queuing up to buy into the trust. Lindsell puts a worrying scenario to shareholders regarding the trust's largest ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot