Monthly Update

Lindsell Train Investment Trust PLC
18 January 2007


                                        The Lindsell Train Investment Trust PLC
                                                   As at 31 Dec 2006
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.

Net Asset Value                                                       GBP 148.73
Share Price                                                           GBP 150.50
Premium (Discount)                                                          1.2%
Market Capitalisation                                                 GBP 30.6mn
Benchmark (21/2% Con Ann Avg Yield +4.2%)                                   +0.4
Source: Bloomberg; NAV-Lindsell Train. Share Price
quoted is closing mid price. See Benchmark definition.

Performance History (based in        2001     2002       2003        2004            2005               YTD 2006
GBP)
Net Asset Value TR%                  +3.2     -9.6       +3.1        +23.7           +16.5               +13.7
Share Price TR%                      +18.5    -19.8      -8.7        +20.6           +27.5               +20.1
Source: LTL and S&P Micropal. Performance years listed Jan - Dec. Launch date 22 Jan 2001. TR=Total Return (with
dividends reinvested) *Source: Lindsell Train Ltd. Past performance is not a guide to future performance. The price of
units and the income from them may go down as well as up. Investors may not get back what they invested.


2005 Performance    Jan  Feb  Mar  Apr  May  Jun   Jul    Aug      Sep        Oct            Nov              Dec
Net Asset Value TR% +1.4 +0.3 +1.7 +0.2 +3.4 +2.9 +0.0   +0.2     +1.0        -1.5          +2.3*            +2.9
Share Price TR%     +8.6 +3.5 -3.4 +1.8 +2.6 +9.3 +0.4   -2.3     +2.4        -3.9           +1.2            +4.0
Source: LTL and S&P Micropal unless otherwise indicated. Performance years listed Jan - Dec. Launch date 22 Jan 2001.
TR=Total Return (with dividends reinvested) *Source: Lindsell Train Ltd.


2006 Performance    Jan  Feb  Mar  Apr  May  Jun   Jul    Aug      Sep        Oct            Nov              Dec
Net Asset Value TR% +0.9 +1.9 +1.2 -1.8 -2.0 +1.8 +1.7   +2.1     +3.2       +0.5       +1.1                 +13.7
Share Price TR%     -3.0 +7.5 +1.5 +3.4 -1.5 -2.6 +3.2   +4.1     +5.7       +3.0       +3.6                 +20.1
Source: LTL and S&P Micropal unless otherwise indicated. Performance years listed Jan - Dec. Launch date 22 Jan 2001.
TR=Total Return (with dividends reinvested) *Source: Lindsell Train Ltd.

Past performance is not a guide to future performance. The price of units and the income from them may go down as well
as up. Investors may not get back what they invested.


Industry Breakdown                                             % of NAV
Bonds                                                            16.7
Preference Shares                                                12.4
Equity - Media                                                   11.8
Equity - Banks & Investment Co.                                   6.0
Equity - Leisure & Ent.                                          14.9
Equity - Food & Beverage                                         28.1
Equity - Consumer Goods                                           1.6
Equity - Internet                                                 1.5
Investment Fund                                                  20.2
Cash & Equivalent                                               (13.2)
Total                                                            100.0
Source: Lindsell Train


Top 10 Holdings                                                 % of NAV
HBOS 9.25% Non Cum Pref Stk                                  12.4
Barr AG                                                      10.3
Lindsell Train Global Media (Dist)                           10.3
Diageo                                                       7.8
Wolverhampton & Dudley Brewery                               7.7
Cadbury Schweppes                                            7.4
Nintendo                                                     7.1
21/2% Consolidated Loan Stock                                6.5
Lindsell Train Ltd                                           6.0
US Gov Treasury 6.25%                                        5.3
Source: Lindsell Train


Fund Exposure         Bonds     Prefs        Equity          Funds              Cash                  % of NAV
UK %                   11.4      12.4         49.9            4.6              (13.6)                   64.7
USA %                  5.3        -            2.7             -                4.9                     12.9
Europe (ex UK) %        -         -            4.2             -               (2.3)                    1.9
Japan %                 -         -            7.1            5.3              (2.2)                    10.2
Global %                -         -             -             10.3               -                      10.3
Total                  16.7      12.4         63.9            20.2             (13.2)                  100.0
Source: Lindsell
Train


Fund Manager's Comments



The year ended well with a 2.8% rise in the net asset value in December. During 2006 the Trust's NAV gained 12.3%,
which together with the dividend gave a total return of 13.7%, this not only exceeded the benchmark that is currently
compounding at a 4.5% annualised rate but also world equity markets as measured by the MSCI World index in Sterling
that advanced only 3.6%.

This year it was the portfolio's equity holding that added most of the value. Our holdings in long term fixed interest
fell in price but probably achieved a marginal positive return adjusting for the interest income received. The two best
performers were Nintendo and Wolverhampton and Dudley Breweries, now renamed Marston's after its best selling beer
brand, up 117% and 43% respectively. It was these companies that contributed to the strong performance in December as
well. We have discussed in previous monthlies the improving fortunes of Nintendo (see the April, October and November
monthlies). Marstons's good performance is underpinned by the extraordinary record of dividend growth extending into
another year, the 32 year of unbroken 10% dividend increases. However, the recent strength of the shares is more to do
with investors renewed appreciation of the value of the companies pub estate, as Real Estate Investment Trusts ('
REITs') are first established in this country. These are property holding companies akin to investment funds that are
exempt from corporation tax and are required to distribute all net income. Some analysts have speculated that companies
with pub estates such as Marston's might transfer these property estates into REITs, a route we think unlikely but
nonetheless has focused investors' attention of the value of the property holdings. Following last year's performance
Marston's yield 2.4% a far cry from the 6% yield, the level at which we first bought the shares. For the first time
since we bought the company we have become uncomfortable with the valuation but not as uncomfortable as we would be if
we were holders of other pub companies such as Greene King and Fullers which seem even more expensive.

Last years performance was blunted by the continued fall in the value of the US dollar versus Sterling. The US Dollar
fell 12% versus Sterling over the year and the Trust has a 30% direct exposure to US dollar based investments. At some
juncture we expect a respite from this weakness and indeed could conceive Sterling falling appreciably against the US
Dollar, though we have thought this for some time and have been proved wrong. Despite this we continue to believe that
over the long term the change in capital value of the underlying investments we own in US dollar terms will likely far
outweigh any exchange rate fluctuations and as a result we rarely hedge such positions.

A significant feature of last year was the disappointing performance of some of the media content companies Reed,
Pearson and Reuters and of Cadbury that actually ended the year 1% down. We think all these businesses have much
potential that is currently overlooked by the market. A hint of this came with the announcement of the acquisition of
Houghton Mifflin, a leading provider of educational textbooks, by Riverdeep, a newly created Irish listed company. If
Pearson's education business was valued on the same basis as in this deal, it would equate to the whole of the current
value of the company, yet Pearson runs other important businesses including the Financial Times Group and Penguin Books
that we think represent at least 40% of the value of the combined business, which are therefore in the current price '
for free'.

We hope recovery in Pearson and these other underperformers will help us build further value for your Company into
2007.


Fund Manager                            Launch Date                             Denomination
Nick Train                              22 Jan 2001                             GBP
Year End                                Dividend                                Benchmark
31st Mar                                Ex Date: June                           The annual average yield on the 21/2%
                                        Payment: August                         Consolidated Loan Stock.
The Board                               Management Fees                         Registered Address
Rhoddy Swire                            Standard Fee: 0.65%                     Lindsell Train Investment Trust
Donald Adamson                          Performance Fee: 10% of annual increase Springfield Lodge, Colchester Road
Dominic Caldecott                       in the share price, plus dividend,      Chelmsford
Michael Lindsell                        above the gross annual yield of the 2   ESSEX  CM2 5PW
Michael Mackenzie                       1/2% Consolidated Loan Stock.
ISIN                                    Secretary                               Listing
GB0031977944                            Phoenix Administration Services Limited London Stock Exchange
Bloomberg
LTI LN

Disclaimer
Risk Warning This factsheet is intended for use by shareholders of the Lindsell Train Investment Trust ('LTIT') and/or
persons who are authorised by the UK Financial Services Authority or those who are permitted to receive such
information in the UK. Any opinion expressed whether in general or both on the performance of individual securities and
in a wider economic context represents Lindsell Train's views at the time of preparation. They are subject to change
without notice and should not be construed as investment advice or investment recommendation. Past performance is not a
guide to future performance and may not be repeated. The value of investments and income from them can go down as well
as up and you may not get back the amount originally invested. Lindsell Train Investment Trust plc is an investment
trust company listed on the London Stock Exchange. Investment trusts have the ability to borrow to invest which is
commonly referred to as gearing. Companies with higher gearing are subject to higher risks and therefore the investment
value may change substantially. The net asset value ('NAV') per share and its performance of an investment trust may
not be the same as its market share price per share and performance.

Issued by Lindsell Train Limited
Authorised and regulated by the Financial Services Authority
17 January 2007 LTL 000-042-4

                                                Lindsell Train Limited
                         2 Queen Anne's Gate Buildings, Dartmouth Street, London SW1H 9BP U.K.
                                     Tel. [phone]  Fax. [phone]
                                   [e-mail]  www.lindselltrain.com
                Lindsell Train Limited is authorised and regulated by the Financial Services Authority.





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