Lindsell Train Ltd valuation frequency and method

RNS Number : 5756P

Lindsell Train Investment Trust PLC

09 June 2015

 



Lindsell Train Investment Trust plc

Amendment to the methodology and frequency of the valuation of the investment held in Lindsell Train Limited

The Board announces that it will in future amend the formula to value the Company's 24.42% holding in Lindsell Train Limited ('LTL') to reflect the forthcoming redemption of the 2.5% Consolidated Loan Stock and the adoption of a new benchmark announced in the recent release of the Company's annual financial report.  In addition, the Board announces that in future it will update the LTL valuation at the end of every month, rather than quarterly, beginning at the end of June.  The updated LTL valuation will then be reflected in the first weekly NAV announcement in the following month, beginning on July 8^th 2015. The formula will be a simple average of the two components below with amendments highlighted in bold:

1.         1.5% of LTL's most recent funds under management ('FUM') ignoring differences between types of asset class and fee structures; and

 
2.         LTL's net earnings (adjusted for a notional increase in staff costs to 45% of revenues excluding performance fees) calculated on a three month rolling basis, one month in arrears and annualised, divided by the annual average yield on the longest dated fixed rate UK government bond plus 0.5% subject to a minimum yield of 4% plus an equity risk premium of 4.5%.

The Board reserves the right to alter the basis of the valuation at its discretion.

All enquiries should be addressed to George Bayer at Phoenix Administration Services Limited on 01245 398984.

Phoenix Administration Services Limited
9 June 2015

 

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