Monthly Update

Lindsell Train Investment Trust PLC
21 February 2006


                                        The Lindsell Train Investment Trust PLC
                                                As at 31st January 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.

Share Price                                                           GBP 123.00
Net Asset Value                                                       GBP 133.74
Premium (Discount)                                                        (8.3%)
Market Capitalisation                                                 GBP 24.6mn
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            2005             YTD 2006
GBP)
Net Asset Value TR%               n/a   +3.2     -9.6      +3.1        +23.7          +16.5               +0.9
Share Price TR%                   n/a   +18.5    -19.8     -8.7        +20.6          +27.5               -3.0

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.


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
Share Price TR%       -3.0

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                                                            22.4
Preference Shares                                                14.8
Equity - Media                                                   11.9
Equity - Banks & Investment Co.                                   5.9
Equity - Leisure & Ent.                                          10.5
Equity - Food & Beverage                                         26.8
Investment Fund                                                  20.1
Cash & Equivalent                                               (12.4)
Total                                                            100.0
Source: Lindsell Train


Top 10 Holdings                                                 % of NAV
HBOS 9.25% Non Cum                                                11.4
Lindsell Train Global Media (Dist)                                10.1
Barr AG                                                           9.5
US Gov Treasury 6.25%                                             8.6
21/2% Consolidated Loan Stock                                     7.9
Cadbury Schweppes                                                 7.7
Diageo                                                            7.0
Lindsell Train Japan (Dist)                                       5.9
Wolverhampton & Dudley Breweries                                  5.9
UK Treasury 2.5%                                                  5.8
Source: Lindsell Train


Fund Exposure         Bonds     Prefs        Equity          Funds              Cash                  % of NAV
UK %                   13.8      14.8         46.5            4.5              (13.6)                   66.0
USA %                  8.6        -            1.4             -                5.1                     15.1
Europe (ex UK) %        -         -            2.6             -               (1.1)                    1.5
Japan %                 -         -            4.6            5.5              (2.8)                    7.3
Global %                -         -             -             10.1               -                      10.1
Total                  22.4      14.8         55.1            20.1             (12.4)                  100.0
Source: Lindsell
Train


Fund Manager's Comments

The NAV progressed again in January, to a new high of £133.74, representing a gain on the month of 0.9%. This advance
outpaced that of the MSCI World Equity Index in Sterling - an informal benchmark for your Company's performance - of
0.6%. It also exceeded the return on our formal benchmark, the annual average yield on the Consolidated Loan Stock,
which is returning c0.33% per month currently. This outperformance extends the Company's record of beating its
performance hurdles over the now just over five calendar years of its life. Since inception the NAV total return of the
Company is +39.5%. Meanwhile, the gilt yield benchmark has reached +35.5%.

Illustrating the severity of the equity bear market of the first part of those five years, the MSCI World Equity Index
Total Return in Sterling is still showing a decline, of -12.1%. We also think it worth noting that the NAV total return
on the Finsbury Growth & Income Trust over the same five year period - which is a track record that has attracted a lot
of interest and new clients for Lindsell Train Limited ('LTL') - is virtually identical to that of your Company. Sure,
FGIT bounced very strongly from its 2003 low, but so it should have, as a leveraged equity strategy, but it had fallen
a long way too, during the bear market - far more so than the NAV of your Company, with its absolute return objective.

As significant personal investors in the Company ourselves, we are satisfied with this performance, although perhaps it
is fair to say we are not yet delighted by it. It is so easy to see in hindsight how returns could have been improved.
Nonetheless, we believe important assets within the portfolio today are significantly undervalued and so see scope for
future gains in NAV.

We are not so satisfied with the share price of the Company, which fell 3.0% in January, meaning a measurable discount
has opened up. We can think of a variety of explanations for this drift, with the disappointing performance of our
Japan Fund as the most likely. There is no getting away from the truth of this. The Fund lost 33.5% in value over the
twelve months to end January, hitting both the NAV of your Company and closing, at best temporarily, one route to
growth in Funds under Management for LTL, in which your Company has a major investment. For a full analysis of what has
gone wrong for the Fund in 2005, please look to, or request copies of, its monthly reports. You will not be surprised
to read that the performance of the Japan Fund has been a matter of great concern within LTL and subject of intense
discussion with your Board, with which final responsibility for investment in this Fund sits. A number of observations
should now be made, as well as reporting on developments. Proportionately, the Manager (Michael Lindsell) has more
capital at risk to the Japan Fund than any other investor. He remains both committed to and persuasive about, the
merits of the investment policy the Fund pursues. However, he has made changes to the investment approach, with a view
to reducing future risk of capital loss. In particular, both the net and gross market exposures have been constrained.
These changes cannot abolish the risk of further loss of value, but should limit the extent, while allowing scope for
material recovery, when and if the Fund strategy begins to work.

The exposure to the Japan Fund so far as your Company is concerned now stands at c5.9%, with the loss in value fully
reflected in the January NAV. It remains, therefore, an important investment, but not one on which the entire future of
the Company can be said to rely. As this report is written, the Japanese stock market is now showing a decline for
calendar 2006, of over 4.0% and there has been a significant change of leadership within it, both developments
beneficial to the Japan Fund.

Meanwhile, LTL continues to grow its business, notwithstanding this setback and this growth is of tangible benefit to
your Company. During 2005 LTL's FUM grew by 90.0%, to over £350 million. These gains arose predominantly from the award
of two segregated accounts for our UK equity process and the issuance of new shares by Finsbury Growth & Income.
However, even our Japanese business made progress, with the award, late last year, of a £20 million 'long only'
institutional mandate. This last account win was gratifying for every conceivable reason, not least because it confirms
the, we believe, coherence and distinctiveness of our Japanese product. This growth in our business is reflected in
your Company in two ways. First, in the carrying value of the 25.0% stake in LTL's equity. This increased by 84.0% in
2005 and the investment now represents c5.9% of your Company's NAV. Next, the management company is becoming
increasingly profitable, because growth in its FUM bears few attendant costs and this has permitted strong dividend
growth. For the year ending January 2005, your Company received a dividend of £74.5 per share on its holding in LTL, up
50.0% and there will be further progress for the current year. In total, dividends of £219.50 per share have been paid
out, on an investment of £100 per share made in January 2001 (in other words the original capital invested in the
management company has been returned c2.2 times over). On internal forecasts for the year ending January 2006, the
dividend yield on LTL's equity is in the order of 4.75%, making for an important contribution to your Company's
dividend paying potential, with, we earnestly hope, scope for very considerable future growth as LTL develops its
business further.

The present writer has taken advantage of the fall in your Company's share price to add to his family's investment. For
the first time, shares have been purchased in his wife's name, meaning his incentive to create value for all investors
will be reinforced at the breakfast table, as well as during office hours.



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
21 Feb 2006 LTL 000-033-4b

                                                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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