Monthly Update

Lindsell Train Investment Trust PLC
23 February 2005


                           The Lindsell Train Investment Trust PLC
                                    As at 31st January 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 110.50
Net Asset Value                                                       GBP 117.01
Premium (Discount)                                                        (5.6%)
Market Capitalisation                                                 GBP 20.3mn
Benchmark (21/2% Con Ann Avg Yield +4.8%)                                   +0.4

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


Performance History (based in GBP)  YTD 2005   2004    2003   2002  2001   2000

Net Asset Value %                      +1.7    +22.9    +3.5   -9.6  +3.2   n/a
Share Price %                          +8.9    +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.


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.


2005 Performance  Jan 05  Feb 05  Mar 05  Apr 05  May 05  Jun 05  Jul 05  Aug 05  Sep 05  Oct 05  Nov 05  Dec 05
Net Asset Value %  +1.7
Share Price %      +8.9

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                                                                  24.3
Preference Shares                                                      14.3
Equity - Media                                                          8.2
Equity - Banks & Investment Co.                                         3.9
Equity - Leisure & Ent.                                                 9.8
Equity - Food & Beverage                                               20.6
Investment Fund                                                        22.8
Cash & Equivalent                                                     (3.9)
Total                                                                 100.0
Source: Lindsell Train


Top 10 Holdings                                                    % of NAV

US Gov Treasury 6.25%                                                  10.8
Lindsell Train Global Media (Dist)                                     10.0
Barr AG                                                                 9.8
HBOS 9.25% Non Cum                                                      9.7
Lindsell Train Japan (Dist)                                             8.6
21/2% Consolidated Loan Stock                                           7.8
Cadbury Schweppes                                                       6.4
Wolverhampton & Dudley Breweries                                        5.8
UK Treasury 2.5%                                                        5.8
HBOS 6.125% Non Cum                                                     4.6
Source: Lindsell Train


Fund Exposure        Bonds Prefs    Equity     Funds        Cash           % of NAV

UK %                  13.5  14.3      36.9       4.2       (3.9)               65.0
USA %                 10.8     -       1.6         -         3.4               15.8
Europe (ex UK) %         -     -         -         -           -                  -
Japan %                  -     -       4.0       8.6       (3.4)                9.2
Global %                 -     -         -      10.0           -               10.0
Total                 24.3  14.3      42.5      22.8       (3.9)              100.0
Source: Lindsell
Train




Fund Manager's Comments

The year has got off to an intriguing start, with capital markets behaving quite differently from expected. In
particular, both the US Dollar and the Anglo-Saxon bond markets have confounded pundits by going up. As this note is
written, the long-dated US Treasury owned in the Trust has gained over 5.0% in capital terms - more than the US stock
market, which is down year-to-date, the Japanese equity market, which has eked out a sub 1.0% rise and even the FT
All-Share, which is up an otherwise healthy 4.8%. Our gilts, too, are better by 2.0% in capital terms, even after their
double-digit returns in 2004. Meanwhile, the US Dollar has reclaimed 2.5% of its Sterling value since year-end,
enhancing the return on the US bond and indeed the other US assets within the Company.

Clearly investors are being forced to reconsider their negative views on both bonds and the Dollar. The trigger is the
Federal Reserve's policy of raising short-term US interest rates. These increases are helping long bonds, by reducing
the risk that what is already very low US inflation will get out of hand. In addition, a rising income return on Dollar
assets makes bears of the currency think hard about their commitment to Yen, where it is zero and the Euro bloc,
including even Sterling, where the chances are good that the next move in short-term interest rates will be down.

Our position on bonds and the Dollar remains unchanged. We expect long-term interest rates to decline further, in
response to low inflation and institutional demand. However, we are not buyers of bonds today and expect to reduce our
positions into strength. On the Dollar, we remain long-term bulls of the world's most productive and dynamic capitalist
economy and hence its currency. However, we will not increase nor decrease our exposure to investment assets on
currency considerations alone.

One attraction of US capital assets is the fact that, par excellence, the US remains the place where things happen -
where new industries emerge and where old ones consolidate. Bears of the US deny themselves the chance of investing in,
for instance, Google, up nearly 10.0% already in 2005, which we do not own, or eBay, down 31.0% year-to-date, which we
do own, via the Media Fund (eBay doubled in value for the Fund last year and we expect it to recover after this share
price indigestion). The Internet is dominated by US corporations. Avoiding these incredible growing companies on the
strength of nothing more substantive than a guess about something as unpredictable as currency rates seems irrational
to us (avoiding them because they may or may not be grossly overvalued is another matter).

More relevant to your Trust, the US is leading the way in industry consolidation. Most notably P&G's offer for Gillette
is a significant event both for the global consumer branded goods industry and, therefore, for the Lindsell Train
Investment Trust. P&G has made two marks. First, it has indicated it believes the industry is on the verge of a
sustained period of consolidation, as branded goods owners look to reclaim value lost to retailers and to claim
economies of scale from increasingly global operations. Second it has put an exceptionally high price on what is,
doubtless, an exceptionally fine asset. Gillette is valued on circa 5.0x its annual revenues by the merger terms. Here
is our interest in the transaction. We own substantial positions in a number of other fine consumer branded goods
companies, that may or not be implicated in future transactions, but which definitely are valued far more cheaply by
stock market investors. Diageo and Cadbury spring immediately to mind, trading on 2.9x and 2.2x sales respectively.
Cadbury, 7.0% of your company's assets, is up 3.0% today on probably specious gossip of a bid from Kraft, but would go
up very considerably more if consolidation does continue.

Another branded goods business, A.G. Barr, is certainly too small to appear on investment bankers' radar as a likely
merger candidate, however that has not prevented its share price from making further progress. Up 33.0% in 2004, the
shares have put on 8.0% in 2005. At current levels the shares offer a dividend yield little higher than the market
average. Here they offer decent value, with dividends likely to grow in excess of the average, but, regrettably, we can
no longer regard them as an absolute bargain, as they have been for much of the life of your Trust.

Both Lindsell and Train have been busy through January, seeking, with some success, to exploit 2004's good investment
performance and raise new capital for the management company, of which the Trust owns 25.0%. Shareholders should hope
that both the investment performance and the raising of new funds under management can be sustained, because the
combination should drive the share price of the Trust higher.





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
23 Feb 2005 LTL 000-023-6b


                                    Lindsell Train Limited
                              35 Thurloe Street, London  SW7 2LQ
                         Tel. [phone]  Fax. [phone]
                    [e-mail]  http://www.lindselltrain.com/

       Lindsell Train Limited is authorised and regulated by the Financial Services Authority.




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