Monthly Update

Lindsell Train Investment Trust PLC
19 January 2006


                                        The Lindsell Train Investment Trust PLC
                                               As at 31st December 2005
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 127.00
Net Asset Value                                                       GBP 132.50
Premium (Discount)                                                        (4.2%)
Market Capitalisation                                                 GBP 25.4mn
Benchmark (21/2% Con Ann Avg Yield +4.5%)                                   +0.4
Source: Bloomberg; NAV-Lindsell Train. Share Price
quoted is closing mid price. See Benchmark definition.

Performance History (based in      2000    2001        2002         2003           2004                 YTD 2005
GBP)
Net Asset Value TR%                n/a     +3.2        -9.6         +3.1           +23.7                 +16.5
Share Price TR%                    n/a     +18.5      -19.8         -8.7           +20.6                 +27.5
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.


2004 Performance    Jan  Feb  Mar  Apr  May  Jun   Jul    Aug      Sep         Oct            Nov             Dec
Net Asset Value TR% +1.8 +3.3 +0.3 +2.3 -0.1 +2.1 -2.0   +4.8      +3.8        +1.4          +0.0            +3.7
Share Price TR%     -2.3 +6.0 -0.6 +0.6 +2.3 +2.7 +0.5   +0.5      +8.6        +3.0          -1.9            +0.0
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.


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.

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                                                            22.6
Preference Shares                                                14.2
Equity - Media                                                   11.8
Equity - Banks & Investment Co.                                   4.7
Equity - Leisure & Ent.                                          10.3
Equity - Food & Beverage                                         26.5
Investment Fund                                                  21.5
Cash & Equivalent                                               (11.6)
Total                                                            100.0
Source: Lindsell Train


Top 10 Holdings                                                 % of NAV
HBOS 9.25% Non Cum                                                10.9
Lindsell Train Global Media (Dist)                                10.4
Barr AG                                                           9.7
US Gov Treasury 6.25%                                             9.2
21/2% Consolidated Loan Stock                                     7.7
Cadbury Schweppes                                                 7.7
Diageo                                                            6.8
Lindsell Train Japan (Dist)                                       6.6
Wolverhampton & Dudley Breweries                                  6.1
UK Treasury 2.5%                                                  5.7
Source: Lindsell Train


Fund Exposure         Bonds     Prefs        Equity          Funds              Cash                  % of NAV
UK %                   13.4      14.2         45.2            4.4              (12.8)                   64.4
USA %                  9.2        -            1.4             -                5.2                     15.8
Europe (ex UK) %        -         -            2.4             -               (1.1)                    1.3
Japan %                 -         -            4.3            6.6              (2.9)                    8.0
Global %                -         -             -             10.5               -                      10.5
Total                  22.6      14.2         53.3            21.5             (11.6)                  100.0
Source: Lindsell
Train


Fund Manager's Comments

The year ended with a flourish with the Fund adding an additional 2.9% to its net asset value ('NAV') in December. This
was in part a function of the performances of world equity markets, which continue to advance. Indeed over 2005, world
equity markets (MSCI index in Sterling) advanced 19.9% compared to the 16.5% rise in the NAV. Meanwhile the benchmark
gained 4.5% meaning we outperformed comfortably. Another pleasing statistic was the performance of the Company's shares
that rose 27.5% as the discount to NAV narrowed.

December capped what proved to be a good year for UK bonds and, in particular, the ones we hold, the irredeemable 21/2%
Consolidated Loan Stock and the 21/2% Treasury. Although there have been better years in terms of total return, in 2005
they both returned 15%, a handsome amount on a low risk asset, in a year when most investors expected bond prices to
fall and long-term interest rates to rise. Indeed, at the end of December the bonds yielded 4.1% a level not seen since
April 1955. The significance of the gilt market making new highs in a year when commodity prices were so strong should
not be underestimated and underscores our long term views on continuing low inflation. We have always thought that
irredeemable gilts could yield less than 4% and maybe as low as 3% before their bull market ended as investors discount
negligible or zero inflation. The difference in yield between index-linked bonds and conventional bonds gives us an
insight as to the market's judgement of future inflation. Over maturities from 11 to 55 years the average gap is 2.9%
with the range from 2.7% to 3.2%, indicating that the market's expectation of inflation is somewhat higher than ours,
reflecting the bearish consensus and giving us hope that if that consensus is wrong again, there is further capital
upside for our gilts. We think we have even more 'margin of safety' with our investments in irredeemable HBOS
preference shares. Last year they generated nothing more than an acceptable total return of 9%, but we think these
shares could yield as low as 4.6% today, which would be the equivalent net yield of irredeemable gilts with a 1%
premium to account for the higher 'credit risk' from a stream of corporate dividends as opposed to government backed
interest payments. This yield would imply a further 25% capital appreciation in the value of the shares.

With bond yields so low, the value of stable, steadily growing, cash generative businesses is rising as a growing
stream of dividends advancing in real terms, provides stiff competition relative to nominal yields of just 4%. Whilst
all of our large UK equity positions possess these characteristics none have delivered exceptional stock market
performance in 2005. The best was AG Barr that returned 21% with the remainder underperforming the UK market (FT All
share index, up 21% in 2005). We think that if these benign interest rate conditions persist there remains more
potential from our positions in Cadbury, Diageo, Reed Elsevier, Reuters and Wolverhampton and Dudley. What may have
been holding back that potential has been investors' attraction toward more economically sensitive parts of the market
such as commodity cyclicals, where recent profits growth has been dramatic and has led to a re-rating of the shares.
However that can change and we expect the capital intensity and inherent cyclicality of such commoditised businesses,
to tell against them at some stage. At that point the more predictable characteristics of some of our holdings could
really come into their own.

The Lindsell Train Japan fund continues to be a drag on performance. The fund fell a further 6% in November as the
continued sharp rise in the price of its short positions in cyclical, commodity and real estate shares harmed returns.
At the same time the performance of the fund's large holdings in cash generative franchises such as Nintendo, Canon and
others failed to match the performance of the market making a recovery in the fund's NAV difficult until the current
extended momentum of the market dissipates.

From January 1st the directors decided to value the Fund on a bid price basis (i.e. at the lower end of the dealing
spread) as opposed to a mid price basis in order to reflect the same pricing policy as in the report and accounts,
which changed with the adoption of a new accounting standard in mid 2005. We estimate the will have the effect of
lowering NAV calculations in the future by approximately 0.5%.



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
Michael Mackenzie                       Performance Fee: 10% of annual increase Springfield Lodge, Colchester Road
Donald Adamson                          in the share price, plus dividend,      Chelmsford
                                        above the gross annual yield of the 2   ESSEX  CM2 5PW
                                        1/2% Consolidated Loan Stock.
ISIN                                    Secretary                               Listing
GB0031977944                            Phoenix Administration Services Limited London Stock Exchange
Bloomberg
LTI LN

Disclaimer
This document is intended for use by persons who are authorised by the UK Financial Services Authority ('FSA') and
those who are permitted to receive such information in the UK. The information contained in this document does not
constitute an offer or invitation to buy or sell any investments. Nothing in this document constitutes investment,
legal, tax or other advice. Lindsell Train and/or persons connected with it may have an interest in this investment.
The value of any investment in securities or funds and the income generated from them may go down as well as up and are
not guaranteed. Past performance cannot be used as a guide or guarantee of future performance. You may not get back the
original amount you have invested. Changes in foreign exchange rates may cause the value of your investment to go up or
down. Some funds with higher gearing may be subject to higher volatility and the investment value may change
substantially. The net asset value (NAV) performance of an investment trust is not the same as its market share price
performance.

Issued by Lindsell Train Limited
Authorised and regulated by the Financial Services Authority
19 Jan 2006 LTL 000-032-4b

                                                Lindsell Train Limited
                                          35 Thurloe Street, London  SW7 2LQ
                                     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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