Monthly briefing August 2002

Lindsell Train Investment Trust PLC
12 September 2002


The Lindsell Train Investment Trust PLC
As at 31st August 2002


Fund Objective

To maximise long-term total returns subject to the avoidance of loss of absolute
value and with a minimum objective to maintain the real purchasing power of
Sterling capital, as measured by the annual average yield on the 2.5%
Consolidated Loan Stock.


Share Price                                                   GBP 91.50
Net Asset Value                                               GBP 96.77
Discount (Premium)                                                 5.5%
Market Capitalisation                                        GBP 18.3mn


Source: Bloomberg
             NAV - LTL


Performance
(based in GBP)                        Aug          Jul          Jun       1 Year     Since Launch
NAV                                  +3.6         -5.3         -3.6         -0.5             -3.2
Share Price                                       -6.8         -8.0        -11.6             -8.5
2.5% Consol Loan Stock               -5.2
Annual Average Yield
Source: Bloomberg.                    5.1
Based in GBP.


Top 10 Holdings
                                                                  % NAV
US Gov Treasury 6.25%                                              14.5
Lindsell Train Japan (Dist)                                        12.6
Lindsell Train Global Media (Dist)                                 11.8
US Gov Treasury IL 3.875%                                           8.3
HBOS 6.125% Non Cum                                                 6.7
21/2% Consolidated Loan Stock                                       6.2
Cadbury Schweppes                                                   6.1
UK Treasury 2.5%                                                    5.4
Barr (AG)                                                           5.1
HBOS 9.25% Non Cum                                                  4.9



Industry Breakdown
                                                                  % NAV
Bonds                                                              37.4
Preference Shares                                                  11.7
Media                                                               8.8
Banks & Investment Co.                                              7.6
Leisure & Tourism                                                   7.9
Food & Beverage                                                    15.9
Investment Fund                                                    24.4
Cash & Equivalent                                                (13.7)
Total                                                             100.0


Geographical Breakdown
                                                                                % NAV
Bonds                                                                            37.4
                                      UK*                         14.6
                                      US                          22.8
Preference Shares                                                                11.7
Equities                                                                         40.2
                                      UK                          29.0
                                      US                           5.0
                                      Japan                        4.0
                                      Europe                       2.2
Funds                                                                            24.4
                                      LT Japan                    12.6
                                      LT Global Media             11.8
Cash & Equivalent                                                              (13.7)
Total                                                                           100.0

  * Including the Daily Mail 2.5% 2004 Convertible Bonds (3% of NAV)


Currency Exposure
                                                                  % NAV
USD                                                                52.7
JPY                                                               (0.2)
EUR                                                                 2.2
GBP                                                                44.9
Total                                                             100.0


Fund Manager's Comments

Stock Markets (the MSCI world index in Sterling) added 1.1% of value during the
month. The company's NAV followed the same trend with more vigour. It ended the
month 3.6% higher. The NAV remains 6.3% lower than the year-end figure and 7.6%
lower than the level at the end of last fiscal year (Mar 2002). There has been
no change to the portfolio except some small addition to the HBOS preference
shares.

Although frustrated with our inability to guard against capital loss however
insubstantial relative to falls in world stock markets, we are somewhat
encouraged about one development this month. At last our bond holdings have
begun to perform. The lack of any evidence of inflation and a growing fear of
deflation, should world economies slow more if consumers decide to save instead
of consume, has encouraged a growing body of investors to raise their weightings
in bonds. During the month our holding of the 28 year US Treasury bond rose in
price by 5.8% (not counting income), the US Inflation linked bond by the same
and the 2 irredeemable gilts by 6.2% on average. Since the end of March 2002,
which was near the low point for bonds so far this year, they have appreciated
by 13.3%, 13.2% and 13.6% respectively (not counting income). These are heady
gains reminiscent of a return profile of equities in past years. Shareholders
might reasonably wonder why we don't we have more of them, especially as we have
been extolling their virtues for some time (see all but the February report this
year). One reason is tax. The income we earn from bonds and cash has not been
subject to any tax, unlike dividend income that is paid from company's post tax
profits. As a result any such income, in excess of expenses (which includes our
borrowing costs) is subject to tax of 30% within the investment trust. This acts
as a major disincentive to building a position any larger than one that would
earn us income equal to or less than our expenses.

It is this tax issue that makes our 10% holding in the two Halifax preference
shares so attractive. The 7% income yield from these shares is equivalent to
income from the highest quality corporate bond but because the dividend has
already suffered tax prior to being paid to us we pay no more on it within the
investment trust. As a result it provides us a way of increasing our weighting
to long duration fixed interest assets without incurring the punitive tax
burden. The price of these preference shares tends to lag the performance of
government bonds. As yet they have hardly reacted to the recent fall in long
rates, we are confident they will in short order.

Even though bonds will have substantially contributed to our performance last
month the weakness of the dollar against sterling remains a drag, however
unsustainable we think it likely to be.

The Extraordinary General meeting of the company's shareholders convened on 28th
August 2002 resulted in the successful passage of all seven resolutions. Cutting
to the quick this practically means two things:

•    For one day, October 1st, the share price will likely adjust to one
     third of its value from the day before. The next day the price will likely
     adjust back to the prior price. Investors should not be alarmed about this. 
     It simply results from the bonus issue being one business day before the
     capitalisation.

•    Following these changes each shareholder will receive a new certificate 
     showing his ownership of exactly the same number of shares as before
     but with a par value of 75p rather than 25p.

The whole point of this rather complicated set of changes was to put in place
provisions to allow the directors of the company to buy back its own shares
subject to the conditions outlined in the memorandum circulated to shareholders
and released to the Stock Exchange on 8th August 2002. This follows the
commitment made in the placing memorandum when the company was established last
year.



Fund Manager         Launch Date              Denominated Currency
Nick Train               22 January 2001              GBP

Year End             Dividend                 Benchmark
31st March               Ex-date:  June             The annual average yield on
                         Payment:  August           the 21/2% Consolidated Loan     
                                                    Stock.

Sedol No             Bloomberg
3001710                   LTI LN

The Board            Management Fees          Registered Address
Rhoddy Swire              Standard Fee: 0.65% p.a.   Lindsell Train Investment 
Michael Mackenzie         Performance Fee:           Trust                      
Donald Adamson            10% of annual increase in  77A High Street
Michael Lindsell          the share price, plus      Brentwood
                          dividend, above            ESSEX  DM14 4RR
                          the gross annual yield 
                          of the 21/2%
                          Consolidated Loan Stock.

Disclaimer

The contents in this document is solely for information purposes only. The
information contained herein does not constitute an offer or invitation to buy
or subscribe any securities or funds in any jurisdiction in which such
distribution is not authorised. Nothing in this document constitutes investment,
legal, tax or other advice and cannot be relied upon in making any investment
decision. Applications to invest in some of the funds must only be made on the
basis of offer documents which may only be available for private circulation.
The information contained in this document is published in good faith and
neither Lindsell Train Limited nor any other person so connected assumes any
responsibility for the accuracy or completeness of such information as provided.
No representation is made or assurance given that any statements made, views,
projections or forecasts are correct or that objectives will be achieved.
Lindsell Train and/or persons connected with it may have an interest in the
Fund.  The value of investments and the income from them may go down as well as
up and are not guaranteed. Past performance is no guarantee of future
performance. You may not get back the amount you invested. Foreign exchange
rates may cause the value of investments to go up or down. Investments may be
subject to higher volatility in certain funds and the investment value may fall
suddenly and substantially.



                             Lindsell Train Limited
                       35 Thurloe Street, London  SW7 2LQ
                  Tel. [phone]  Fax. [phone]
                   [e-mail]  www.lindselltrain.com

                  Lindsell Train Limited is regulated by the FSA.



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