Nick Train’s Lindsell Train Investment Trust has announced a tender offer to buy back up to 20 percent of its shares as part of an effort to support its share price amid a challenging period of underperformance. The move, proposed by the trust’s board on Friday, aims to provide liquidity to shareholders while allowing additional time for the trust’s investment strategy to improve results.

The trust has experienced disappointing returns over the past five years, with its net asset value (NAV) declining by an average of 7.1 percent annually since 2022. This downturn has weighed on the trust’s share price, which currently trades at a significant discount to NAV. Data from the trust’s latest factsheet, dated July, showed shares trading nearly 18 percent below NAV, a slight widening from a 17 percent discount recorded at the start of the year.

Launched in 2001, the Lindsell Train Investment Trust has delivered an average annual return of approximately 10 percent over the long term. However, recent market turbulence has affected some of the stocks in the portfolio. The trust’s investment approach focuses on “quality” stocks characterized by sustainable profitability, strong cash flow generation, and low levels of debt.

The trust’s chair, Roger Lambert, emphasized that the board’s decision to offer the buyback is intended to give shareholders direct choice amid current market conditions. He described the action as “proactive and decisive,” aiming to enhance shareholder value while retaining confidence in the trust’s underlying strategy.

Nick Train, the trust’s eponymous fund manager, along with co-fund manager Michael Lindsell and other directors, have opted not to participate in the buyback. This decision is intended to underscore their conviction in the company’s long-term prospects and strategy.

Earlier in the year, Train also faced a shareholder “continuation” vote regarding his management of Finsbury Growth & Income, another investment trust. It was the first such vote in Finsbury’s 20-year history, with approximately 96 percent of shareholders voting to retain him.

The tender offer reflects ongoing efforts by the trust’s leadership to stabilize performance and narrowing the discount to NAV, aiming to restore investor confidence after several years of negative returns.