Monthly Update

Lindsell Train Investment Trust PLC
18 January 2005



                     The Lindsell Train Investment Trust PLC
                            As at 31st December 2004


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 101.50
Net Asset Value                                                       GBP 115.41
Premium (Discount)                                                       (12.1%)
Market Capitalisation                                                 GBP 20.3mn
Benchmark (21/2% Con Ann Avg Yield +4.7%)                                   +0.4

Source: Bloomberg; NAV-Lindsell Train. Share Price
quoted is closing mid price. See Benchmark definition.



Performance History (based in GBP)         2004    2003   2002  2001   2000

Net Asset Value %                         +22.9    +3.5   -9.6  +3.2   n/a
Share Price %                             +20.1    -8.4  -19.8  +18.5  n/a

Source: S&P Micropal. Based in GBP. Performance years listed Jan - Dec.
Launch date 22 Jan 2001. With dividends reinvested.

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.


2003 Performance  Jan 03  Feb 03  Mar 03  Apr 03  May 03  Jun 03  Jul 03  Aug 03  Sep 03  Oct 03  Nov 03  Dec 03

Net Asset Value %  -3.8    +1.9    -2.0    +2.0    +4.0    +0.9    +2.7    +1.0    -2.7    -0.5    -0.7    +1.0
Share Price %      +0.5    +0.0    +0.0    +0.0    +0.0    -2.5    -1.1    +2.2    -4.3    +2.3    -11.0   +6.2



2004 Performance  Jan 04  Feb 04  Mar 04  Apr 04  May 04  Jun 04  Jul 04  Aug 04  Sep 04  Oct 04  Nov 04  Dec 04

Net Asset Value %  +1.8    +3.3    +0.3    +2.3    -0.1    +2.5    -2.0    +4.8    +3.8    +0.7*   +1.0*   +2.7*
Share Price %      -2.3    +6.0    -0.6    +0.6    +2.3    +3.2    +0.5    +0.5    +8.6    +3.0    -1.9    -0.8

Source: S&P Micropal unless otherwise indicated. Based in GBP. Performance years
listed Jan - Dec. Launch date 22 Jan 2001. With dividends reinvested. *Source:
Lindsell Train Limited.

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                                                                  24.4
Preference Shares                                                      14.4
Equity - Media                                                          8.3
Equity - Banks & Investment Co.                                         3.5
Equity - Leisure & Ent.                                                10.4
Equity - Food & Beverage                                               33.4
Investment Fund                                                        22.4
Cash & Equivalent                                                    (16.8)
Total                                                                 100.0
Source: Lindsell Train


Top 10 Holdings                                                    % of NAV

Glenmorangie A&B                                                       14.2
US Gov Treasury 6.25%                                                  10.4
Lindsell Train Global Media (Dist)                                      9.9
HBOS 9.25% Non Cum                                                      9.8
Barr AG                                                                 9.4
Lindsell Train Japan (Dist)                                             8.4
21/2% Consolidated Loan Stock                                           8.0
Cadbury Schweppes                                                       6.2
Wolverhampton & Dudley Breweries                                        6.1
UK Treasury 2.5%                                                        6.0
Source: Lindsell Train



Fund Exposure        Bonds Prefs   Equity     Funds          Cash     % of NAV

UK %                  14.0  14.4     49.4       4.1        (16.7)         65.2
USA %                 10.4     -      1.8         -           3.3         15.5
Europe (ex UK) %         -     -        -         -             -            -
Japan %                  -     -      4.4       8.4         (3.4)          9.4
Global %                 -     -        -       9.9             -          9.9
Total                 24.4  14.4     55.6      22.4        (16.8)        100.0

Source: Lindsell Train




Fund Manager's Comments

The NAV advanced a further 2.7% in December ending the year at its highest
point, 22.9% above that of a year earlier.+ Even though equity markets picked up
somewhat in the last quarter we managed to keep pace with their performance even
though we had just 59% invested directly. In other words our bond, preference
shares and Fund holdings all contributed. Nonetheless, it was the performance of
our holding in Wolverhampton and Dudley Breweries  ('Wolves') this month, rising
20% (22% including the final dividend) that contributed most to the performance.
The rise in price followed good results and the announcement that it had
acquired Burtonwood Brewery for £119m plus £36m in assumed debt. This
acquisition valued Burtonwood's pub properties at £350,000 per pub as compared
to an implied value of approximately £750,000 per pub for Wolves's own
properties. On this basis the deal looks highly accretive. We have always
thought that most investors' categorisation as Wolves as a 'value' stock
contradicted its extraordinary record of increasing dividends annually for 29
years by at least 10% per annum. Now following on from this month's price gains
Wolves trades at a yield of 3.2% only a 6.0% yield premium to the market at 3.0%
suggesting that investors have for the moment revised their 'value' label.

There were two other notable portfolio events this month. One was a hint of
weakness of Sterling, the other the offer by HBOS for the remainder of the
Halifax 6.125% preference shares they do not already own. While we offer no
short-term prediction about the future direction of the exchange rate we
continue to view Sterling as an expensive currency held up in the main by its
high nominal interest rates. These have been necessary to restrain demand for
borrowed money secured on rising house prices. While house prices rise the
borrowing seems prudent, but should house prices fall and with it the value of
collateral, not only might the borrowing stop but also prior judgements on the
prudence of leverage may have to be revised, causing consumer confidence to fall
and a curtailment of spending. If this indeed occurred the interest rate support
for sterling could evaporate rather quickly, and with it the value of the
currency. The recent stagnation of house prices and the lower levels of housing
turnover all point to a change in the environment. To the extent that 35% of the
Trust is in un-hedged non-sterling assets, predominantly the US dollar, any
future weakness would be accretive to the Trust's NAV.

HBOS's offer to acquire the minorities of one of its preference shares helps to
validate our long-standing interest in them. Like us, HBOS clearly thinks paying
an interest rate on preference capital at current rates of approximately 6% is
too generous. However, we think HBOS's current offer, equivalent to a net
redemption yield of 5.5%, undervalues the shares. In rationalising the offer
price, HBOS compares it to the yield on gilt with an equivalent maturity, yet in
doing so, the company compares a gross and net income steam. We agree that the
value of the HBOS preference shares should be benchmarked off government debt
and should yield more than such a gilt, to account for the increased risk of
investing in a corporate rather than government-backed issue. In this case
though, we believe HBOS is effectively comparing a gross gilt redemption yield
of 4.5% to a grossed up preference dividend yield of 6.9%. We think this 2.4%
gap is too high a yield premium, for an issue from an A+ rated bank of HBOS's
stature. What the offer does do is highlight the value in the other irredeemable
preference shares we hold in HBOS, the 9.25% whose current equivalent grossed up
yield is even higher at 7.4%. It is fortunate that of the two holdings, we have
a bigger, 10% weighting, in that issue.

+ Including the dividend of £1.45 per share paid in July.




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 77A High Street
Donald Adamson            in the share price, plus dividend,      Brentwood
Michael Lindsell          above the gross annual yield of the 2   ESSEX  CM14 4RR
                          1/2% Consolidated Loan Stock.

ISIN                      Bloomberg                               Listing
GB0031977944              LTI LN                                  London Stock Exchange


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 2005 LTL 000-023-0b



                           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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