Investments  

Train trims FTSE 100 holding amid takeover talk

Train trims FTSE 100 holding amid takeover talk

Fund manager Nick Train has banked £9.6m from selling shares in one of his top holdings, London Stock Exchange Group.

A stock market disclosure showed Mr Train’s fund management company, Lindsell Train, sold 131,000 shares in the FTSE 100 company at a price of about £73.49 each, netting £9.6m.

Lindsell Train continues to own a stake of 7 per cent in the firm, on behalf of his clients. The LSE is the fourth largest investment in his £7.3bn Lindsell Train UK Equity fund. 

The stock is the third largest investment in his Finsbury Growth and Income Trust.

Mr Train is a long-term believer in the investment case for financial services companies, as he believes trends such as ageing populations will mean people need to save more for retirement.

LSE is presently the subject of a takeover offer from the Hong Kong Stock Exchange, while it itself is bidding for the financial data company Refinitiv. 

LSE shares have risen from £47.50 to the current £74.12 over the past year, and were £18.92 five years ago. 

Data from FTAdviser's sister title, the Financial Times, showed Lindsell Train Limited is the largest shareholder in the LSE. 

In his most recent update to unit holders in the Lindsell Train UK equity fund Mr Train wrote that he welcomed the potential acquisition of Refinitiv by the LSE. 

He wrote: “Ownership of proprietary data with quantifiable benefits to the customer is an increasingly enviable position for companies to be in, and we believe that these names are particularly well placed to benefit from this continuing trend.”  

LSE has rejected the takeover offer from the Hong Kong Stock Exchange.

The Lindsell Train UK Equity fund has returned 16 per cent over the past year, compared with a return of one per cent for the average fund in the sector in the same time period. 

david.thorpe@ft.com