Lindsell Train IT

[EricLightbulb]

Just looking into the figures for Lindsell Train Limited in connection with LTI. I stress here that I am a novice.

Using figures from the January update, where LTIs stake of 24% is valued at £41.5 it seems LTL is valued at about £173m. I believe the valuation is via an agreed methodology involving AUM, and a profit element which I don't understand. Last years return to January 2016 shows LTL made £16.2m profit after tax. There was a £5.3m performance fee included in the turnover.

Nick Train says LTL AUM started at £6.2bn in 2016 and ended at £8.9bn - up 43%. Making a big assumption that LTL profit will be up 43% gives a profit of 23.2m. I think that the only fund with a performance fee is LTI? It is paid monthly at 10% over benchmark (lower of share price/NAV). A 21% increase in NAV in 2015 gave £5.3m. 2016 NAV was up about 28%, that should produce some hefty performance fees.

Just pondering and meandering here, and I don't really have a point, only trying to understand the reasons for the premium to understand how reasonable it is.

I don't know how or why the LTL investment came about, but it seems a bit of a weird and incestuous set up.


http://www.lindselltrain.com/funds/lind ... roach.aspx

http://www.investegate.co.uk/lindsell-t ... 00055756P/

[geoff1309]

Hi everybody , I have a very simple criteria for my IT'S, the min. performance i expect is at least a 5% growth with a min. yld of 5% over the last year the following holdings in my small hype portfolio have more than achieved this . they are: HFEL, BRIC, NRR (reit), EAT. Nothing remarkable but happy with this.
regards
Geoff 1309