Monthly Update

Lindsell Train Investment Trust PLC 14 March 2007 The Lindsell Train Investment Trust PLC As at 28 Feb 2007 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 153.95 Share Price GBP 148.50 Premium (Discount) 0.4% Market Capitalisation GBP 29.7mn 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 2002 2003 2004 2005 2006 YTD 2007 GBP) Net Asset Value TR% -9.6 +3.1 +23.7 +16.5 +13.7 +3.4* Share Price TR% -19.8 -8.7 +20.6 +27.5 +20.1 +1.0 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. * Source:LTL 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 +0.2 +2.8 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 -1.6 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. 2007 Performance Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Net Asset Value TR% +2.6 +0.8* Share Price TR% -1.3 +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 . * Source:LTL 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 16.1 Preference Shares 11.8 Equity - Media 11.3 Equity - Banks & Investment Co. 6.6 Equity - Leisure & Ent. 14.6 Equity - Food & Beverage 28.9 Equity - Consumer Goods 1.7 Equity - Internet 1.6 Investment Fund 20.9 Cash & Equivalent (13.5) Total 100.0 Source: Lindsell Train Top 10 Holdings % of NAV HBOS 9.25% Non Cum Pref Stk 11.8 Barr AG 11.6 Lindsell Train Global Media (Dist) 10.9 Diageo 7.6 Marston's 7.3 Nintendo 7.2 Cadbury Schweppes 7.1 Lindsell Train Ltd 6.6 21/2% Consolidated Loan Stock 6.2 Lindsell Train Japan (Distr) 5.6 Source: Lindsell Train Fund Exposure Bonds Prefs Equity Funds Cash % of NAV UK % 10.9 11.8 50.7 4.4 (13.7) 64.1 USA % 5.1 - 2.6 - 4.9 12.6 Europe (ex UK) % - - 4.2 - (2.3) 1.9 Japan % - - 7.2 5.6 (2.3) 10.5 Global % - - - 10.9 - 10.9 Total 16.0 11.8 64.7 20.9 (13.4) 100.0 Source: Lindsell Train Fund Manager's Comments February proved to be positive month for the fund, in what ended up as a down month for markets, following the large fall on its last day. After months of benign and gradually appreciating markets volatility returned, perhaps signalling tougher times for the corporate sector in general after such a strong streak of profits increases and record corporate performances over recent years. The cumulative effect of successive rises in interest rates both in the UK, the USA and elsewhere may ultimately act to restrain demand and, most importantly, undermine the growth if not the quantum of profits generated. The timing of all this is hazy as the lags are long and unpredictable but as time progresses risk mounts and the market demands its compensation in higher bond yield spreads and, arguably, in equity valuations generally. We are reassured to note that the price of government debt, especially the ultra-long dated instruments that we own, increased in value providing not only a buffer to the portfolios but also reducing the implicit rate at which we tend to discount the very far our and durable cash flows that are generated by our companies. While we recognise that during such periods of nervousness, our businesses, however good they are, will likely suffer ' quotational' loss of value, we remain sanguine about their prospects and their value. Part of that confidence is reinforced by recent dividend announcements. Reuters decided to increase its dividend once again having held it steady for the last four years, in addition to a commitment to continue with its programme of share repurchases. It struck us how resilient the performance of the shares had been in the recent setback. Three years ago such a sharp downward move in markets would have depressed the shares by 10% at least. Pearson and Reed's dividends increased by 10% this year for the second year running, notably up from the pace of growth two years ago. Cadbury's, despite a disappointing year for profits, raised its final dividend by 10%, making the pace of dividend growth for 2006, as a whole, up 8%, double the growth rate of prior years. More dramatically, Heineken raised its final dividend 83% making the total increase for the year 50% and Nintendo looks as though its final dividend will rise at least 28%, making the gain for the whole year 23%. As a result, this year, the weighted average dividend growth from the equity investments in the portfolio is likely to be 15%, up from 13% last year and notably higher than the 6% and 8% growth rates in 2003 and 2002 respectively. Clearly our businesses are not exempt from economic changes even if we view them as much more stable and predictable than others. As a result some of this recent increased growth in dividends is undoubtedly cyclical. Perhaps a better guide for what is a likely sustainable growth rate in the future is the average dividend growth rate over the six years since we began managing the trust. Since 2000, equity dividends have risen 172%, which amounts to an annualised rate of 9.5%. This is more than 3.5x the annualised increase in RPI inflation of 2.6% and over double the current return of the benchmark of 4.5%. Thus, if we are able to maintain such a rate in the future it will go a long way to satisfying the core objective of the trust of growing the real purchasing power of sterling capital over time. 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 PLC 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 Registered Number GB0031977944 Phoenix Administration Services Limited 4119429 Bloomberg Listing LTI LN London Stock Exchange 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 13 March 2007 LTL 000-044-3 Lindsell Train Limited 2 Queen Anne's Gate Buildings, Dartmouth Street, London SW1H 9BP U.K. Tel. +44 20 7227 8200 Fax. +44 20 7227 8299 enquiry@lindselltrain.com www.lindselltrain.com Lindsell Train Limited is authorised and regulated by the Financial Services Authority. This information is provided by RNS The company news service from the London Stock Exchange
UK 100

Latest directors dealings