Lindsell Train set to land £1.8m performance fee

Train Nick Lindsell Train 2014

The Lindsell Train investment trust is set to land a performance fee of £1.8m as the investment company returns 24.5 per cent for its first six months of the financial year.

The benchmark only returned 2 per cent over the period, while the MSCI World index returned 17.2 per cent.

The investment trust would need to to maintain the same performance to March 2017, when its financial year comes to an end.

Nintendo was the investment trust’s best performing asset over the period returning 82 per cent, while Lindsell Train Limited, which accounts for 35.6 per cent of the NAV, was the largest contributor, returning 40 per cent.

The investment company’s performance fee is 10 per cent of the lower of the annual increase in the NAV or share price above the annual running yield of the longest-dated UK government bond plus a premium of 0.5 per cent.

This must include a minimum yield of 4 per cent.

The annual management fee for the investment trust is 0.65 per cent.