(Alliance News) - Shares in Lindsell Train Investment Trust PLC fell on Wednesday after it reported a decline in net asset value amid an outflow of funds at investment manager and portfolio holding Lindsell Train Ltd.
The investment trust set up by Nick Train and Michael Lindsell said NAV per share at March 31 was GBP1,026.43, down 2.9% from GBP1,056.95 a year prior.
Shares in Lindsell Train Investment Trust were down 2.2% to GBP827.70 in London on Wednesday.
For the financial year to March 31, Lindsell Train declared an unchanged final dividend of GBP51.50 per share. It pays no interim dividend.
Taking account of the dividend, the NAV total return was 2.1% compared to a negative 0.4% the year before, Lindsell said.
However, this performance compared unfavourably with the company's benchmark index, the MSCI World Index in sterling, which over the same period had a much better total return of 22.5%.
During the financial year, Lindsell said only Relx PLC and Nintendo Co Ltd among the company's quoted holdings performed better than the benchmark, achieving total returns of 34% and 41% in sterling, respectively.
Even more significant than the disappointing return from the remaining quoted portfolio holdings was the total return of negative 7.1% generated by the company's 23.9% unlisted investment in Lindsell Train Ltd, the company said.
With the investment representing 33.6% of NAV at March 31, it proved to be the biggest detractor from the NAV's performance over the year, the investment trust noted.
Lindsell Train Investment Trust said market pressures resulted in clients of Lindsell Train Ltd withdrawing funds.
The company said all pooled funds of LTL, except for North America, its smallest, have shrunk in size and some segregated clients have terminated mandates.
Fund under management outflows for LTL over the year to January 31 amounted to GBP3.4 billion, accelerated from GBP2.9 billion outflows a year prior. Funds under management at LTL at March 31 fell to GBP15.18 billion from GBP18.53 billion a year before.
By Jeremy Cutler, Alliance News reporter
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Lindsell Train (LTI)