We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us
Investment Times

Fund manager outlook: Nick Train of Lindsell Train Global Equity

| 18 December 2014 | A A A
Fund manager outlook: Nick Train of Lindsell Train Global Equity

No recommendation

No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

The fund manager outlooks should not be seen as a personal recommendation to invest or make any changes to a portfolio. Please note Hargreaves Lansdown and the fund groups do not necessarily share these views. All stock market investments will fall as well as rise in value so investors could get back less than they invest. All investments should be regarded with a long-term view.

Nick Train has an outstanding track record of identifying companies which have prospered over the long run. He prefers to run concentrated portfolios, investing in all sizes of companies, from larger businesses to more risky smaller companies. He is co-manager of the Lindsell Train Global Equity Fund.

Find out more about the Lindsell Train Global Equity Fund

What is your outlook for the market in 2015?

One of our favourite sayings is from Jack Brennan of Vanguard Group: "There are two types of investor: Those who don't know where the market is headed and those who don't know that they don't know."

No recommendation

No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

You can read acres of opinion, but nobody really 'knows' what is going to happen over a period as short as twelve months. All the known factors are already embedded in prices. It is the unknown that will move markets in 2015. Think what a surprise the collapse in the oil price has been in 2014 - few predicted that a year ago.

We are therefore unwilling to make short-term forecasts. However, we are exceptionally bullish about UK equities over the longer term. The prospects are as rosy as they have ever been and arguably rosier. It seems feasible the market could be very much higher in three-to-five years' time; we just have no idea whether the gains will come in 2015 or 2017.

What are your views on the economy?

The justifications for our bullishness are partly cultural and partly macro-economic. As for cultural qualities - the UK corporate sector is one of the best managed and, critically, honest in the world. In addition, UK companies have this cherishable and by no means worldwide habit of sharing the fruits of their success with shareholders via dividends.

What excites us about the economic outlook is the prospect of decades of secular economic growth. Past bull markets have been driven by either the opening up of new geographies for trade - for instance the South Seas in the 18th century, or by profitable application of new technologies, like railways in the 19th. Today British companies confront both types of opportunity - with the opening up of emerging markets and the advent of the internet still immature themes.

Do you think interest rates will rise in 2015?

Commentators worry that interest rates may rise in 2015, but for equities we are dubious the vagaries of monetary policy are relevant. If you don't believe me, unearth a 50-year chart of the UK stock market. The trajectory is definitively upwards, but it's difficult to identify which of the inevitable fluctuations were caused by the ups and downs of interest rates. The returns from equity are driven by entrepreneurial success, not the short-term cost of money.

What one stock would you buy and hold for 10 years?

It's dangerous to invest in any single company for ten years or more. For exposure to all the great companies we see around the world, I'd suggest an investment in our Lindsell Train Global Equity Fund!

Nick Train's career track record

Our quantitative research allows us to piece together a fund manager's track record across different funds and compare it with a benchmark. These composite manager track records are available to Hargreaves Lansdown clients in the 'HL Research' tab on our new online fund factsheets.

Please note as this fund is based offshore it is not covered by the UK Financial Services Compensation Scheme.

Please remember past performance is not a guide to future returns.

  Dec 11-12 Dec 12-13 Dec 13-14
Lindsell Train Global Equity
annual growth
14.6% 26.3% 14.2%

Full-year performance figures before this date are unavailable.

Find out more about the Lindsell Train Global Equity Fund

Key investor information document for the Lindsell Train Global Equity Fund

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.