Star fund manager Nick Train warned there was ‘little sign of respite’ as the London-listed trust he runs reported another slump in the value of its portfolio.
Lindsell Train Investment Trust was hit by its heavy exposure to consumer giants including Unilever, Diageo and Laurent Perrier, whose shares have tumbled.
Train admitted the fund was stuck in a long period of under-performance as it reported a 3.6 per cent slump in its net asset value in the six months to the end of September – and shares slipped yesterday by 2.3 per cent.
Train said: ‘There is no consolation for shareholders when an investment strategy is stuck in a long period of under-performance, with little sign of respite.
‘The rapid rise in interest rates – to a level not seen for 15 years – is providing stiff competition to equities.’
Slump: Lindsell Train Investment Trust was hit by its heavy exposure to consumer giants including Unilever, Diageo and Laurent Perrier, whose shares have tumbled
Holdings were dragged down by its 24.1 per cent stake in its own investment manager Lindsell Train Limited (LTL).
Over the six months, LTL’s valuation fell by 11.9 per cent on the back of a slide in its funds under management from £18.6billion to £16.4billion.
Lindsell Train Investment Trust was floated on the London stock exchange in 2001, and has 13 holdings in total.
Its stakes in drinks giant Diageo and Laurent Perrier have also been hit hard.
Asset manager Premier Miton was also struggling as the firm posted a 60 per cent drop in its annual profits and cut its dividend. Its shares fell 2.4 per cent.