Morningstar downgrades Nick Train's funds on 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...