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The Lindsell Train Investment Trust has posted a 13% share price total return and a net asset value total return of 21% over the six months to 30 September 2020, with its holding in management firm Lindsell Train Limited (LTL) the biggest positive contributor to returns.
In its unaudited half-year results for the six-month period, chairman Julian Cazalet said that world stock markets 'recovered strongly' over the period, with the MSCI World index up by 23.6% in sterling terms, but that the company's net asset value (NAV) total return 'failed to keep up with world markets over the subsequent six months, but exceeded its benchmark return of 2%'.
The investment trust's share price total return rose by 13% to £1,155, which represented a continued contraction in the share price premium, ending 30 September at 3.9%.
Lindell Train's holding in LTL at 47.3% of NAV meant that it was the biggest positive contributor, with its valuation rising by 24.5% from its low point at 31 March 2020, which it attributed to LTL's growth in funds under management.
It identified holdings PayPal, Finsbury Growth, LSE, Mondelez, Nintendo and Unilever as having made double-digit gains during the period, while Heineken and Laurent Perrier were both down.
Investment manager Nick Train said: 'When you look at the strategic shape of the direct holdings in the portfolio they essentially split into two buckets. Two-thirds is invested in companies that either are already, or have the potential to become, digital winners.
'The rest is in the owners of beloved and trusted consumer brands. Evidently, as noted, there have been some disappointments for us in 2020 in both these buckets.'
At 1:24pm: (LON:LTI) Lindsell Train Investment Trust Plc the share price was 0p at 1255p