THE LINDSELL TRAIN
INVESTMENT TRUST PLC
Annual Report and Financial Statements
For the year ended 31 March 2024
Company Secretary and Registered Office
Frostrow Capital LLP
25 Southampton Buildings
London
WC2A 1AL
Tel: 020 3008 4910
www.frostrow.com
The Lindsell Train Investment Trust plc
Registered in England, No: 4119429
This report is printed on Revive 100% White Silk a totally recycled paper produced
using 100% recycled waste at a mill that has been awarded the ISO 14001
certificate for environmental management.
The pulp is bleached using a totally chlorine free (TCF) process.
This report has been produced using vegetable based inks.
Contents
Page
Company Summary 1
Strategic Report
Business Review 2
Investment Objective 3
Investment Policy 3
Company Performance 4
Financial Highlights for the Year 5
Five Year Historical Record 5
Principal Data 5
Chairman’s Statement 6
Portfolio Holdings 9
Analysis of Investment Portfolio 10
Manager’s Report 11
Performance and Prospects 14
Key Performance Indicators 14
Alternative Performance Measures 15
Principal Risks, Emerging Risks and Risk Management 16
Long-Term Viability Statement 20
Section 172 Disclosure 21
LTL's Approach to Responsible Ownership 26
Governance
Board of Directors 32
Report of the Directors 34
Corporate Governance Statement 39
Directors’ Remuneration Report 50
Directors’ Remuneration Policy 55
Statement of Directors’ Responsibilities 57
Report of the Audit Committee 59
Independent Auditor's Report 65
Financial Statements
Income Statement 72
Statement of Changes in Equity 73
Statement of Financial Position 74
Statement of Cash Flows 75
Notes to the Financial Statements 76
Appendices (unaudited)
Appendix 1 – Annual Review of Lindsell Train Limited 92
Appendix 2 – Share Capital 100
Appendix 3 – Agreements with Service Providers 101
Additional Shareholder Information (unaudited)
Notice of Annual General Meeting 102
Explanatory Notes to the Resolutions 107
Glossary of Terms and Alternative Performance Measures 108
Company Information 112
THE LINDSELL TRAIN INVESTMENT TRUST PLC
Perivan.com
268118
1
Company Summary
The Company
The Lindsell Train Investment Trust plc (the “Company” or “LTIT”) is a listed investment company.
Its shares are quoted on the premium segment of the Official List and traded on the main market
of the London Stock Exchange. The Company is a member of the Association of Investment
Companies (“AIC”).
The Company is a UK Alternative Investment Fund (“AIF”) under the European Union Alternative
Investment Fund Managers’ Directive (“AIFMD”). The Board is the Small Registered UK Alternative
Investment Fund Manager (“AIFM”) of the Company.
Investment Objective
The objective of the Company is to maximise long-term total returns with a minimum objective
to maintain the real purchasing power of Sterling capital.
Investment Manager
Lindsell Train Limited (“LTL”) acts as discretionary Investment Manager (the “Manager”) of the
Company’s assets. However, the Board retains ultimate discretion over the investments in LTL and
in the LTL managed fund products. Decisions on these investments are based on advice and
information received from the Manager.
Further details concerning the Agreements with the Company’s service providers can be found in
Appendix 3, on page 101.
Performance and Benchmark
The performance and financial highlights are provided on pages 4 and 5.
The Company compares its performance and calculates its performance fee relative to its
benchmark, the MSCI World Index in Sterling.
Dividend
An unchanged final dividend of £51.50 per Ordinary Share (2023: a final dividend of £51.50 per
Ordinary Share) is proposed for the year ended 31 March 2024. If this dividend is approved by
shareholders at the Annual General Meeting, it will be paid on Friday, 13 September 2024 to
shareholders on the register at close of business on Friday, 9 August 2024 (ex-dividend Thursday,
8 August 2024).
Annual General Meeting
The notice of the Annual General Meeting, scheduled for Wednesday, 4 September 2024 at
2.30 p.m. at the Marlborough Suite, St Ermin’s Hotel, 2 Caxton Street, London, SW1H 0QW, is
provided on pages 102 to 106.
Capital Structure
The Company’s capital structure comprises 200,000 Ordinary Shares of 75 pence each. Details are
given in note 13 to the Financial Statements on page 84.
THIS DOCUMENT IS IMPORTANT AND, IF YOU ARE A HOLDER OF ORDINARY SHARES, REQUIRES YOUR IMMEDIATE
ATTENTION. If you are in any doubt as to what action to take, you should seek advice from your stockbroker, bank
manager, solicitor, accountant or other financial adviser authorised under the Financial Services and Markets Act
2000 (as amended). If you have sold or otherwise transferred all of your Ordinary Shares in the capital of the
Company you should send this document, together with any other accompanying documents, including the form
of proxy, at once to the purchaser or transferee or to the stockbroker, bank or other agent through whom the sale
or transfer, was effected, for onward transmission to the purchaser or transferee.
THE LINDSELL TRAIN INVESTMENT TRUST PLC
2
THE LINDSELL TRAIN INVESTMENT TRUST PLC
Business Review
The Directors present their Strategic Report for the Company for the year ended 31 March 2024.
The Report contains: a review of the Company’s business model and strategy, an analysis of its
performance during the financial year and its future developments as well as details of the
principal risks and challenges it faces. Its purpose is to inform shareholders and help them to assess
how the Directors have performed their duty to promote the success of the Company.
Further information on how the Directors have discharged their duty under Section 172 of the
Companies Act 2006 can be found on pages 21 to 23.
The Strategic Report contains certain forward-looking statements. These statements are made by
the Directors in good faith based on the information available to them up to the date of this
Report and such statements should be treated with caution due to the inherent uncertainties,
including both economic and business risk factors, underlying any such forward-looking
information.
Business Model
The objective of the Company is to maximise long-term total returns with a minimum objective
to maintain the real purchasing power of Sterling capital.
The Company’s strategy is to create value for shareholders through achieving its investment objective.
As an externally managed investment company the Company has no executive directors,
employees or internal operations. The Company delegates its day-to-day management to
third-parties.
The Board is responsible for all aspects of the Company's affairs, including the setting of
parameters for and monitoring of the investment strategy as well as the review of investment
performance and policy. It also has responsibility for all strategic issues and corporate governance
matters.
Reviews of the financial year and commentary on the future outlook are presented in the
Chairman’s Statement on pages 6 to 8 and the Manager’s Report on pages 11 to 13.
The Company’s Investment Objective and Investment Policy are set out on page 3.
Strategic Report
3
THE LINDSELL TRAIN INVESTMENT TRUST PLC
Investment Objective
The objective of the Company is to maximise long-term total returns with a minimum objective
to maintain the real purchasing power of Sterling capital.
Investment Policy
The Investment Policy of the Company is to invest
(i) in a wide range of financial assets including equities, unlisted equities, bonds, funds, cash
and other financial investments globally with no limitations on the markets and sectors in
which investment may be made, although there is likely to be a bias towards equities and
Sterling assets, consistent with a Sterling-dominated investment objective. The Directors
expect that the flexibility implicit in these powers will assist in the achievement of the
investment objective;
(ii) in LTL managed fund products, subject to Board approval, up to 25% of its gross assets;
and
(iii) in LTL and to retain a holding, currently 23.9%, in order to benefit from the expected long
term growth of the business of the Company’s Manager.
The Company does not envisage any changes to its objective, its investment policy or its
management for the foreseeable future. The current composition of the portfolio as at 31 March
2024, which may be changed at any time (excluding investments in LTL and LTL managed funds)
at the discretion of the Manager within the confines of the policy stated above, is shown on
pages 9 and 10.
Diversification
The Company expects to invest in a concentrated portfolio of securities with the number of equity
investments averaging fifteen companies. The Company will not make investments for the
purpose of exercising control or management and will not invest in the securities of, or lend to,
any one company (or other members of its group) more than 15% by value of its gross assets at
the time of investment. The Company will not invest more than 15% of gross assets in other
closed-ended investment funds.
Gearing
The Directors have discretion to permit borrowings up to 50% of the Net Asset Value. However,
the Directors have decided that it is in the Company’s best interests not to use gearing. This is in
part a reflection of the size and risk associated with the Company’s unlisted investment in LTL,
but also in response to the additional administrative burden required to adhere to the full scope
regime of the AIFMD.
Dividends
The Directors’ policy is to pay annual dividends consistent with retaining the maximum permitted
earnings in accordance with investment trust regulations, thereby building revenue reserves.
In a year when this policy would imply a reduction in the ordinary dividend the Directors may
choose to maintain the dividend by increasing the percentage of revenue paid out or by drawing
down on revenue reserves. Revenue reserves are currently more than twice the annual proposed
2024 ordinary dividend.
All dividends have been distributed from revenue or revenue reserves.