(Bloomberg) -- U.K. money manager Nick Train said his listed investment fund Lindsell Train Investment Trust Plc is experiencing its worst performance since it started business. Most Read from Bloomberg The World’s Relentless Demand for Chips Turns Deadly in Malaysia Sand and Soldiers Mix as Troops Move In to Protect Cancun Tourists Even in the Metaverse, Not All Identities Are Created Equal The $300 Billion Plan to Bring Green Power to China’s Megacities Meet the New Climate Refugee in Town: Coyotes “I will not make flippant or complacent predictions about prospects for Lindsell Train Limited, as we experience arguably the worst period of relative investment performance in our 20-year history,” Train said in the closed-end fund’s half-year results. Lindsell Train, which manages more than 23 billion pounds ($30.5 billion), was co-founded by Train and fellow money manager Michael Lindsell in 2000 and runs several funds and trusts. Train sought to reassure investors about the long-term prospects of the firm’s investment trust, which manages 241 million pounds and whose share price has dropped almost 10% this year. “Protecting the long-term value of your savings, after the effects of inflation and tax is no trivial challenge,” he said in the statement. “It is indeed a battle and although taking some risk in battle is unavoidable, you better not take frivolous risks or indulge in what you know is long-term losing behaviour. Because if you do, you run the risk of defeat.” The Lindsell Train Global Equity Fund, one of the most popular among U.K. retail investors, has underperformed its peers over the past 12 months as well as over the past three years, after previously outperforming them. Its assets, which peaked at more than 9 billion pounds at the end of June, have since shrunk by more than 1 billion pounds, according to data compiled by Bloomberg. “Lindsell Train has a very particular investment philosophy which focuses on companies with robust brands, balance sheets and earnings streams, and this style can be expected to move out of step with the wider market, sometimes for better, sometimes for worse,” Laith Khalaf, an analyst at AJ Bell wrote in a note on Wednesday. “The managers have earned plenty of credit in the bank, which will likely mean most investors stay on board with Lindsell Train for now.” (Updates with performance of the Lindsell Train Global Equity fund in the fifth paragraph, analyst comment in the last paragraph.) Most Read from Bloomberg Businessweek From the Great Resignation to Lying Flat, Workers Are Opting Out Return-to-Office Chaos Is the Best Thing to Happen to Consultants Since Y2K The Fall of a Russian Cyberexecutive Who Went Against the Kremlin Paige Bueckers, a College Athlete Who’s Cashing In The Meme Stock ©2021 Bloomberg L.P.
Star Money Manager Nick Train Warns of Worst Returns in 20 Years
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