Morningstar downgrades Nick Train's funds on capacity concerns

'Less nimble'

clock • 2 min read

Morningstar has downgraded its ratings in Nick Train’s LF Lindsell Train UK Equity fund and Finsbury Growth & Income investment trust over capacity concerns.

The ratings agency said it had downgraded the ‘Acc' share class of the UK Equity OEIC from Gold to Bronze, and the trust from Gold to Silver. Analyst Peter Brunt said the sheer size of the strategy makes the OEIC susceptible to a run of investor redemptions should sentiment turn quickly. The Lindsell Train UK Equity OEIC has seen its assets more than double, from £3bn to £6.7bn, in the past three years, Morningstar data show. Five years ago, the fund was £1.3bn. Given the fund is highly concentrated, "this has led to some significant ownership stakes in the companies held", said Br...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

'No difference in my view': Reeves LTAF-ISA decree not enough to make platforms offer them

'No difference in my view': Reeves LTAF-ISA decree not enough to make platforms offer them

Retail platforms await further rule change details

Eve Maddock-Jones
clock 16 July 2025 • 4 min read
Bikes, bias and the quest for outperformance

Bikes, bias and the quest for outperformance

I'm a disciple of the philosophy espoused by Lotus founder Colin Chapman: 'Add lightness'

Tobias Bucks
clock 14 July 2025 • 5 min read

Watch Professional Adviser's Working Lunch with Schroders - Beyond the Pulse: Essential insights for financial advisers in 2025

Catch up on the discussion

Professional Adviser
clock 10 July 2025 • 1 min read