Monthly Update

Lindsell Train Investment Trust PLC
15 September 2006


                                        The Lindsell Train Investment Trust PLC
                                                   As at 31 Aug 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 138.82
Share Price                                                           GBP 135.00
Premium (Discount)                                                        (2.8%)
Market Capitalisation                                                 GBP 27.0mn
Benchmark (21/2% Con Ann Avg Yield +4.3%)                                   +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               +5.2
Share Price TR%                       +18.5    -19.8      -8.7        +20.6           +27.5               +6.7

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
Share Price TR%      -3.0  +7.5  +1.5  +3.4  -1.5  -2.6  +3.2    +4.1

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                                                            18.3
Preference Shares                                                13.3
Equity - Media                                                   12.3
Equity - Banks & Investment Co.                                  5.8
Equity - Leisure & Ent.                                          12.4
Equity - Food & Beverage                                         29.2
Equity - Consumer Goods                                          1.7
Equity - Internet                                                1.5
Investment Fund                                                  20.0
Cash & Equivalent                                               (14.5)
Total                                                           100.0
Source: Lindsell Train


Top 10 Holdings                                                % of NAV
Barr AG                                                     10.3
HBOS 9.25% Non Cum                                          10.3
Lindsell Train Global Media (Dist)                          10.0
Diageo                                                      7.8
Cadbury Schweppes                                           7.8
21/2% Consolidated Loan Stock                               7.1
Nintendo                                                    6.2
Wolverhampton & Dudley Breweries                            6.2
US Gov Treasury 6.25%                                       5.8
Lindsell Train Ltd                                          5.8
Source: Lindsell Train


Fund Exposure         Bonds      Prefs        Equity          Funds              Cash                 % of NAV
UK %                   12.5      13.3          49.4            4.4              (14.9)                  64.7
USA %                  5.8         -            2.8             -                5.2                    13.8
Europe (ex UK) %        -          -            4.5             -               (2.4)                    2.1
Japan %                 -          -            6.2            5.6              (2.4)                    9.4
Global %                -          -             -             10.0               -                     10.0
Total                  18.3      13.3          62.9            20.0             (14.5)                  100.0
Source: Lindsell
Train


Fund Manager's Comments

The net asset value rose 2.1% somewhat better than the 0.6% rise in stock markets (MSCI Index in Sterling). This was
attributable to a continued rise in the price of Nintendo, now up 69% this year and the awakening of some 'hidden
stores of value' that we have hitherto referred to in these monthlies. The jury is still out as to whether these
companies can hold onto the recent gains (such rises have petered out in the past) but it is encouraging to see both
Cadbury and Reed Elsevier trading at recent high prices. We think both businesses are worth much more than they are
valued at today, with many other investors failing to appreciate the value in the predictability of their the long-term
cash flows. We expect Cadbury's chocolate and Dr Pepper soft drinks to be consumed in 20 or 30 years with the same
enthusiasm as they are today, much in the same way as we and our parents consumed them 40 and 60 years ago. In a
similar way we think scientists and lawyers of the future will be just as dependant on the vast library of scientific
and legal publications produced by Reed Elsevier's subsidiaries as they are today. What really makes investors focus on
these 'long tail' cash flows is declining long-term interest rates, because as long as other variables remain constant,
a lower discount rate applied to these cash flows materially advances their value to us today. All of our equity
investments have these characteristics but none so ignored as with these two companies, we think. In that regard it is
encouraging to observe the recent rise in their share prices.

Lower long-term interest rates in themselves have been a contributor to recent performance as we still have 18.3%
invested in bonds and a further 13.3% in preference shares, that we judge have bond like qualities. With short-term
interest rates recently raised to 4.75%, irredeemable bond yields have responded by falling towards 4%, suggesting an
expectation of lower levels of future inflation whatever the pressures faced today. We think this expectation is
inconsistent with the generally positive view investors have of corporate earnings unless Sterling weakens considerably
from current levels. Last month Sterling actually rose versus the US dollar by 2%. We think Sterling remains too highly
valued against most world currencies especially the US Dollar.

Our only activity last month was to carry out our intention to add to our newly established position in eBay at just
under $23 having bought the first tranche at $27. The shares closed the month at just below $28, which if nothing else
illustrates its volatility. Recently, the company instituted an increase in the listing price of its fixed-priced
listings to ensure these do not crowd out its traditional auction listings as has been the recent case. This move has
caused some disenchantment amongst fixed price sellers and, no doubt, has contributed to recent share price weakness,
but we think is the right move for the company, because eBay's value rests on the quality of its auction experience,
rather than as a retail site. Latest data on listings confirm a 30%+ annual rate of growth overall, suggesting plenty
of growth left for the company.

The Lindsell Train UK Equity Fund was successfully launched in mid-July. This is an important initiative from Lindsell
Train Ltd., your management company, as it allows us to expand funds under management in our successful UK long only
strategy, in an open-ended structure. Currently investors can only access the strategy through the Finsbury Growth and
Income Trust ('FGIT'), a closed-ended fund, fine for individual investors but unsuitable for most institutions. The new
fund is designed for institutional investors with a £500,000 minimum initial investment and offers a similar portfolio
and dividend yield to FGIT. The Fund size is currently £7m, with commitments from institutional investors of a further
£20m in the months ahead. We hope to grow this open-ended structure and look forward to it becoming a cornerstone
contributor to the revenues of Lindsell Train Ltd., in which the Trust has a significant, 25%, interest.


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
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
13 Sep 2006 LTL 000-039-6b

                                                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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