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Lindsell Train Global Funds plc

Interim Report & Condensed Unaudited Financial Statements for the six months ended 30 June 2019

Lindsell Train


2

Table of contents page

Company information 3

Performance History 4

Investment Manager’s report 5

Statement of financial position (unaudited) 8

Statement of comprehensive income (unaudited) 10

Statement of changes in net assets attributable to holders of redeemable participating shares (unaudited) 12

Statement of cash flows (unaudited) 14

Notes to the financial statements 16

Schedule of investments 26

Statement of significant portfolio movements 28


3

Company information Directors of the Company

Alex Hammond-Chambers, Chairman (UK) (Independent) David Dillon (Irish) Gerald Moloney (Irish) (Independent) Keith Wilson (UK) (All Directors are non-executive)

Registered Office

33 Sir John Rogerson’s Quay Dublin 2 D02 XK09 Ireland

Investment Manager and Distributor

Lindsell Train Limited 5th Floor 66 Buckingham Gate London SW1E 6AU

Administrator and Registrar

Link Fund Administrators (Ireland) Limited

1st Floor, 2 Grand Canal Square Grand Canal Harbour Dublin 2 D02 A342 Ireland

Independent Auditors

Grant Thornton Chartered Accountants and Statutory Audit Firm 13-18 City Quay Dublin 2 D02 ED70 Ireland

Irish Legal Advisor

Dillon Eustace Solicitors 33 Sir John Rogerson’s Quay Dublin 2 D02 XK09 Ireland

Depositary

BNY Mellon Trust Company (Ireland) Limited One Dockland Central Guild Street International Financial Services Centre Dublin 1 D01 E4X0 Ireland

Company Secretary

Tudor Trust Limited 33 Sir John Rogerson’s Quay Dublin 2 D02 XK09 Ireland

Provision of Designated Individuals Bridge Consulting Ferry House 48-52 Mount Street Lower Dublin 2 D02 PT98 Ireland

Company number 285933 (Registered in Ireland)


4

Performance History For the six months ended 30 June 2019

Lindsell Train Global Equity Fund Investment Objective and Policy

The investment objective of this sub Fund is to achieve capital and income growth over the long term. It is the sub- fund's policy to invest in a concentrated portfolio of global equities; primarily those listed or traded on Recognised Exchanges in developed countries worldwide.

Total Return

Historical Performances 30-Jun-2019 31-Dec-2018 YTD June 1 year June 3 years June 5 Years June

Net Asset Value Base Currency Base Currency Base Currency Base Currency

Class A Shares (£) £ 3.565 £ 2.973 20.9% 18.0% 83.9% 166.1%

Class B Shares (£) £ 3.901 £ 3.233 21.2% 18.6% 86.7% 172.9%

Class D Shares (£) -launched 03/03/2014 £ 2.665 £ 2.210 21.3% 18.8% 87.8% 175.5%

MSCI World Dev Markets (£) £ 1,711.592 £ 1,479.201 17.1% 10.3% 46.6% 85.0%

Class C Shares ($) -launched 30/06/2014 $ 2.032 $ 1.688 20.4% 14.5% 75.6% 103.2%

MSCI World Dev Markets ($) $ 2,178.346 $ 1,883.901 17.0% 6.3% 39.6% 37.7%

Class E Shares (€) -launched 20/12/2017 € 1.313 € 1.084 21.2% 17.1% na na

MSCI World Dev Markets (€) € 1,912.849 € 1,648.000 17.4% 9.0% na na

Source: Morningstar Direct

Lindsell Train Japanese Equity Fund Investment Objective and Policy

The investment objective of this sub Fund is to achieve capital and income growth over the long term. It is the sub- fund's policy to invest in a concentrated portfolio of Japanese equities, primarily those listed or traded on Recognised Exchanges in Japan.

Total Return

Historical Performances 30-Jun-2019 31-Dec-2018 YTD June 1 year June 3 years June 5 Years June

Net Asset Value Base Currency Base Currency Base Currency Base Currency

Net Asset Values

Class A Shares (¥) ¥ 458.210 ¥ 431.552 6.2% -10.1% 49.2% 79.9%

Class B Shares (¥) ¥ 201.243 ¥ 189.061 6.4% -9.7% 51.5% 84.4%

Class B Distributing Shares (¥) ¥ 170.125 ¥ 161.019 6.4% -9.7% 51.5% 84.4%

Class B Distributing Hedged Shares £ £ 2.571 £ 2.423 6.9% -9.0% 52.8% 83.0%

TOPIX Index (¥) ¥ 1,551.140 ¥ 1,494.090 5.2% -8.2% 33.1% 36.6%

*Class B Sterling Quoted Dist. Shares £ £ 2.720 £ 2.512 8.3% -5.2% 47.2% 121.9%

TOPIX Index (£) £ 11.312 £ 10.693 7.2% -2.1% 33.1% 72.6%

Class C Shares $ - launched 30/06/14 $ 1.734 $ 1.590 9.0% -7.2% 44.6% 73.4%

TOPIX Index ($) $ 14.400 $ 13.618 7.1% -5.7% 26.7% 28.4%

Source: Morningstar Direct *Class A Sterling Quoted Shares changed name to Class B Sterling Quoted Dist. Shares on 17 August 2015.


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Investment Manager’s report For the six months ended 30 June 2019

Lindsell Train Global Equity Fund (the “Fund”)

The first six months of 2019 have been good for Global Equity Markets. The total return of the Class B shares over the period was 21.2%, outperforming the MSCI World index that was up 17.1% (please see the return statistics for all classes of shares on page 4 as computed by Morningstar). The strong tone to markets has been helped by benign monetary conditions, characterised by falling global long-term bond yields. It seems inflation remains well contained in an environment of full employment and strong corporate cash flows. With most of our companies having reported FY 2018 results, it is encouraging to see that their dividends continue to edge up. Weighted average dividends are up c.12% and expectations for the current fiscal year show a further increase of 7%. With inflation languishing below 3% this accretive real growth in income for long-term investors helps also to underpin recent share price gains. The two largest contributors in this regard are Nintendo and Shiseido, whose dividends are growing on the back of improved profitability and a rising return on capital. In Nintendo’s case the improvement comes after six years of disappointing results (reflecting poor sales of the Wii U console) and the company’s reorientation of its strategy to focus on monetising its intellectual property (‘IP’), in particular by showcasing its core IP on smartphones. The Switch console’s success has built a platform for sales of its key software titles which has been the driving force behind the improvements in profitability. Operating margins have at last recovered to the c.20% level that was the average in the years before the disappointment of the Wii U. Shiseido’s profits improvement stems from a wholesale restructuring and repositioning of the company undertaken by a new executive team that has now been in place for five years. Aside from a divisional reorganisation, the company has shed unprofitable brands, invested aggressively behind core alternatives, grown digital sales and expanded into Asia, particularly China. Operating margins have risen from an average of 6% in the year prior to the change in management to now 10%, with the expectation of further rises to 15% or more over the next few years. Return on equity has risen commensurately and this is driving a revaluation of the company to nearer the average of other global cosmetics companies. Shiseido’s enterprise value is now 2.8x its sales, up from a low point of 0.6x when we first started the investment. 4x is possible if it emulates the valuations of Estée Lauder and L’Oréal. The two stock exchange holdings have exhibited the best long-term annualised dividend growth of all our companies. Over 15 years it has been 20% from the London Stock Exchange and 25% from the Japan Exchange Group, a testament to c.50% operating margins, prodigious cash flow, significant synergy benefits from acquisitions, and high returns on capital. Not surprisingly, both have been big contributors to performance over time, including the London Stock Exchange’s 36% rise in the latest half year. The last ten years have been particularly helpful as markets have risen in an unbroken trend. When this ends these companies will likely underperform, perhaps significantly in the short term as JPX is beginning to do. But even then the cash will continue to flow, underpinning any subsequent recovery. On the assumption that world markets in the future perform roughly as they did in the 20th century at 8% per annum, and that such market growth is a reasonable proxy for the revenue growth of exchanges, it provides a wonderful background for supercharged wealth creation at such high returns on capital. Looking over this half year, the key contributors to performance were eBay, Nintendo, Mondelez, Juventus, LSE, Intuit and PayPal. All were up by more than a third. On the downside, Pearson was the only notable decliner, down 11%, with WWE and the Japan Exchange Group marginally down. Investors remain encouraged by Disney’s determined investments in direct to consumer video distribution. It underpinned a 22% rise in the shares from the end of December 2018. Having outlined its hope for the Disney+ earlier this year, the company has subsequently taken full control of Hulu by buying out the minorities - ATT immediately and Comcast over a five year time frame. Now that Disney has control we expect to learn of more detailed plans for Hulu, especially its international expansion, which will also involve increased investment and the potential of the loss of high margin licensing revenues as content is taken in house. The distribution side of Disney’s business, which makes up c.45% of its revenues, is undergoing a multi-year repositioning with the investments in direct to consumer streaming platforms. In due course the streaming of sports content will become more commonplace, potentially changing ESPN’s very profitable and dominant business model. Disney has already launched ESPN+ showcasing overflow content that is not broadcast on TV. When broadcasting deals with the major leagues come up for renegotiation we expect the proportion of streaming content to increase. It will be important for Disney to strike a balance between protecting the existing ESPN franchise on the one hand and embracing the move towards streaming on the other. Without ultimate control of the sports rights this could prove more challenging as compared with the move to streaming its wholly owned film and entertainment assets. Nintendo’s strong performance this quarter is in part a recovery from weakness throughout last year but also helped by the announcement that the company will partner with Tencent to apply for approval to sell the Switch console in China. China is the world’s biggest gaming market and as yet Nintendo has no exposure there. It is easy to imagine how Chinese consumers might see the appeal of Nintendo’s core franchises but enthusiasm has to be tempered by stifling regulation (neutralised through Tencent’s involvement we hope) and the Chinese preference for playing games on PCs or smartphones. It is not clear if Chinese consumers will be willing to fork out for a dedicated console. On the other hand, if they do it could be transformative for Nintendo’s business. It’ll be some time before we know one way or the other. WWE’s strong performance last year has in part unwound following a disappointing fall-off in engagement late last year and early this. The company believes it is temporary and to do with wrestler injuries that have limited WWE’s ability to curate storylines and shows. The company has just signed its three year distribution deal in the UK with BT Sport, in preference to the incumbent Sky, and is looking to strike deals in India and Germany before giving more details on the terms. These deals, together with the US ones struck last year, will lift the profile of the content even more. We remain committed to the investment and indeed are buyers on weakness. The Japanese stock market has been falling since early 2018 and just recently market volumes have started to wane. This will bear down on JPX’s revenues, c.40% of which still remain geared to market activity or market levels. If this continues, profits and dividends will be down this fiscal year. The shares understandably have begun to respond, this month more decisively with a 13% fall. Over the years we have allowed our position in the company to diminish from over 5% of the Fund to just 2% today. As the price comes back we are keen, for the reasons articulated earlier, to at a minimum retain our weighting at the lower end of this range. Intuit, PayPal, and eBay were swept up in the strong performance of technology shares in general. But not without reason as new online customers (Intuit) and transaction volumes (PayPal) continue to expand at a double digit pace. eBay’s management is collaborating with an activist shareholder in a strategic review of its peripheral businesses - classifieds and ticketing (Stubhub). Then turning to our consumer franchise holdings, it’s encouraging to see Mondelez performing better after its share price spent four years marking time.


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Investment Manager’s report (continued) For the six months ended 30 June 2019

Lindsell Train Global Equity Fund (the “Fund”) (continued)

Pearson, having performed surprisingly well in 2018, has succumbed to a weaker showing so far this year. Most of the fall happened after the release of 2018 results which matched market expectations but only because additional cost cutting helped profitability. Sceptics think that once costs have been cut to the bone, sales declines will be directly reflected in profit declines as the rising competition from lower value and undifferentiated digital products undercuts the profitability of the whole business. We are more optimistic. We see sales of Pearson’s subscription based digital product helping to bridge the gap between Pearson’s share of usage in the US higher educational courseware market at c.35% and share of revenue at c.20%. The difference is currently bridged by second hand sales of textbooks, largely its own, which over time should be superseded by digital product. We would emphasise that educational courseware is a critical part of any lecturer’s toolkit, which through digital enhancement can provide significantly greater utility to both the student and teacher and in time, through a subscription model, greater predictability to the revenue stream of the company.


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Lindsell Train Japanese Equity Fund (the “Fund”)

Both the Japanese market and the Fund ended 2018 on a weak note. Almost as soon as 2019 began however, prices started to recover helped by supportive statements from policy makers in the USA that triggered a rally in long-dated US bonds. This set the stage for a sustained decline in long-term rates around the world in the first half of 2019. Japan participated but only to the extent that long-term bond yields fell into negative territory with the yield curve inverting below zero. The recovery in the Japanese stock market (its Topix Index returned 5.2%) was slightly bettered by the Fund’s B Class share’s total return of 6.4%. The supporting background from falling interest rates was tempered by concerns about the progression of profits. For many, declining economic activity was reflected in lower sales and margins and any company that experienced a continued rise in profits became the exception rather than the rule. Although this characterised the background to the market over the half year, the reasons behind the performance of each of the portfolio’s companies was inevitably more random. Here’s a review of the main holdings and what drove their share prices. Nintendo did well, rising in value by 38%, having had a poor 2018. The most important announcement was its collaboration with Tencent to gain access to the Chinese market, the biggest market for video games in the world and one where they currently have no exposure. Meanwhile the Switch console continues to sell well, as does its associated software titles where most of the profits are generated. Kao (up 2%) will spend the year balancing the fall in demand for their core products from Chinese tourists with the pick-up in direct sales in China. At the same time it has launched a new version of its ‘Attack’ brand of washing detergent and a new high end cosmetic brand ‘Sensai’. Shiseido (up 18%), like Kao, is increasing its penetration in direct China sales (40% online). It is also further rationalising its brand portfolio and investing heavily behind its core brands as well as investing in new production facilities. Further, it is trying to turn around its USA and Europe businesses which have been profitless for some years. The shares were up 18% over the half year. Obic Business Consultants (up 14%) is one company whose profits are rising quickly as demand for its software surges in advance of the hike in the Japanese consumption tax. This trend should continue for most of the year and when it tails off the company should continue to benefit from high margin maintenance revenues. The shares were up 14%. Astellas (up 11%) will see a decline in profits this year as Vesicare, its incontinence treatment, loses patent protection. On the other hand the company is investing behind new products that are in late stage clinical trials and in the meantime it is seeing continued sales growth from its Xtandi prostate cancer treatment that it has developed and marketed in collaboration with Pfizer. Milbon (up 17%) continues to do well, expanding its footprint in Japan and Asia. Even in uncertain times spending on beauty and haircare remains steady. Milbon is the only company we know that has an exclusive focus on serving beauty parlours and hairdressing salons with specialised products. That focus, we think, gives it a competitive edge. The shares were up 17%. Mandom (down 12%), the male grooming specialist, experienced weaker sales in Indonesia and spent more investing in the ‘Gatsby’ brand which dented profitability late last year. We expect to see a return to a positive trajectory later this year. The shares have fallen, 12% over the half year. Meanwhile the company is sensibly buying back shares as are we, adding to the position. At times since the end of December 2018 the prices of Square Enix and Takeda have been weak which has allowed us to add to our position in both companies. Takeda’s business has more implicit risk given its debt burden. It was good to see that the company made some progress towards debt reduction by selling assets early in the year. We have also added to the position in the Japan Exchange Group (‘JPX’) (down 2%) that has justifiably fallen in line with declining volumes in the market. It should result in some decline in revenues, profits and dividends but, even so, returns on capital should remain high as the company earns c.50% operating profit margins. We will want to take advantage of such weakness to build up the position once again. JPX used to be one of the biggest positions in the Fund. We can see a scenario where this could happen again but only if we are able to build the position back up at lower prices. One disappointment has been the performance of Taisho Pharmaceutical, down 25% over the half year. If anything the recent spate of acquisitions, putting idle cash to work, might have given investors some encouragement that a long overdue repositioning of the business was underway. It seems not. Perhaps investors worry that a Japanese centric management will not be able to adapt to managing assets in Europe and Asia and that the ongoing decline in prescription pharmaceutical sales will overwhelm these new revenues. That is certainly a risk. On the other hand we continue to believe that the market undervalues Taisho’s branded consumer healthcare assets and that a global consolidation of this niche part of the healthcare industry will highlight this anomaly. Aside from investing inflows and taking advantage of anomalous price movements, some of which have been referred to above, there were no changes in the constituents of the portfolio since December.


The accompanying notes form an integral part of these financial statements

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Statement of financial position (unaudited) As at 30 June 2019 Global

Equity Fund Japanese

Equity Fund Total

Company Note GBP JPY GBP Assets Financial assets at fair value through profit or loss 3 -Transferable securities 8,068,491,170 47,654,300,129 8,416,026,320 Cash and cash equivalents 4 330,828,485 1,589,553,917 342,420,846 Dividends receivable 6,573,067 131,009,435 7,528,498 Subscriptions receivable 49,195,734 1,691,633,577 61,532,545 Total assets 8,455,088,456 51,066,497,058 8,827,508,209 Liabilities Financial liabilities at fair value through profit or loss -Financial derivative instruments 3 - 49,823,556 363,355 Securities purchased payable 23,744,944 246,137,348 25,539,984 Redemptions payable 16,811,861 785,479,422 22,540,235 Investment manager’s fee payable 5 3,838,398 25,005,460 4,020,759 Other expenses 8 40,432 971,408 47,516 Audit fee payable 7,578 118,191 8,440 Administration fee payable 6 131,358 3,485,795 156,779 Depositary fee payable 7 215,756 3,536,404 241,546 Total liabilities (excluding net assets attributable to holders of redeemable participating shares) 44,790,327 1,114,557,584 52,918,614 Net assets attributable to holders of redeemable participating shares 8,410,298,129 49,951,939,474 8,774,589,595

The statement of financial position is continued on page 8.



9

Statement of financial position (audited) (continued) As at 31 December 2018 Global


Equity Fund Total

Company Note GBP JPY GBP Assets Financial assets at fair value through profit or loss 3 -Transferable securities 5,145,778,219 37,981,195,687 5,417,048,367 -Financial derivative instruments - 2,020,197 14,429 Cash and cash equivalents 4 117,435,120 1,035,679,427 124,832,173 Dividends receivable 12,979,265 128,651,821 13,898,125 Subscriptions receivable 26,949,024 306,284,505 29,136,576 Securities sold receivable - 34,648,652 247,468 Other assets 72,608 638,652 77,169 Total assets 5,303,214,236 39,489,118,941 5,585,254,307 Liabilities Financial liabilities at fair value through profit or loss - Financial derivative instruments 3 - 120,316,395 859,326 Unrealised loss on open spot currency contracts 18,508 - 18,508 Bank overdraft 4 132,284 - 132,284 Securities purchased payable 7,604,143 6,252,205 7,648,798 Redemptions payable 26,102,706 1,793,981,478 38,915,721 Investment manager’s fee payable 5 2,778,804 22,057,772 2,936,346 Directors fee payable - 10,703 76 Other expenses payable 8 40,959 761,867 46,400 Audit fee payable 15,700 241,694 17,426 Administration fee payable 6 191,664 3,321,870 215,390 Depositary fee payable 7 347,794 4,763,201 381,814 Total liabilities (excluding net assets attributable to holders of redeemable participating shares) 37,232,562 1,951,707,185 51,172,089 Net assets attributable to holders of redeemable participating shares 5,265,981,674 37,537,411,756 5,534,082,218



10

Statement of comprehensive income (unaudited) For the six months ended 30 June 2019 Global


Equity Fund Total

Company Note GBP JPY GBP Investment Income Dividend income 64,720,747 492,357,387 68,178,361 Interest income 167,751 432,092 170,785 Other income 5,619 88,628 6,241 Net gain on financial assets and financial liabilities at fair value through profit or loss and foreign exchange 3 1,245,491,377 1,818,613,971 1,258,262,721 Total investment income 1,310,385,494 2,311,492,078 1,326,618,108 Expenses Investment manager’s fee 5 19,745,079 143,877,582 20,755,469 Other expenses 8 355,235 3,401,478 379,122 Audit fee 7,871 130,452 8,787 Administration fee 6 797,599 19,050,258 931,381 Directors’ fees 15 32,517 515,908 36,140 Depositary fee 7 445,148 6,505,134 490,831 Total expenses 21,383,449 173,480,812 22,601,730 Net income 1,289,002,045 2,138,011,266 1,304,016,378 Finance costs Interest expense 53,567 1,430,893 63,616 Distributions 13 26,543,163 179,520,876 27,803,861 Total finance costs 26,596,730 180,951,769 27,867,477 Profit on ordinary activities before taxation 1,262,405,315 1,957,059,497 1,276,148,901 Taxation Withholding tax on dividends 7,197,124 73,853,609 7,715,766 Increase in net assets attributable to holders of redeemable participating shares from continuing operations

1,255,208,191 1,883,205,888 1,268,433,135

Gains and losses arise solely from continuing operations. There were no gains/losses in the financial period other than those disclosed in the statement of comprehensive income. The statement of comprehensive income is continued on page 10.



11

Statement of comprehensive income (unaudited) (continued) For the six months ended 30 June 2018 Global


Equity Fund Total

Company Note GBP JPY GBP Investment Income Dividend income 38,615,090 304,255,528 40,650,263 Interest income 11,521 3,124 11,542 Other income 28,566 122,860 29,388 Net gain on financial assets and financial liabilities at fair value through profit or loss and foreign exchange 3 545,718,403 2,826,854,233 564,627,301 Total investment income 584,373,580 3,131,235,745 605,318,494 Expenses Investment manager’s fee 5 12,724,506 107,102,919 13,440,920 Other expenses 8 249,594 2,230,765 264,516 Audit fee 7,612 127,242 8,463 Administration fee 6 920,259 16,425,395 1,030,129 Directors’ fees 15 32,431 531,018 35,983 Depositary fee 7 656,112 9,738,363 721,252 Total expenses 14,590,514 136,155,702 15,501,263 Net income 569,783,066 2,995,080,043 589,817,231 Finance costs Interest expense 12,025 1,184,142 19,946 Distributions 13 13,439,264 121,378,830 14,251,170 Total finance costs 13,451,289 122,562,972 14,271,116 Profit on ordinary activities before taxation 556,331,777 2,872,517,071 575,546,115 Taxation Withholding tax on dividends

5,129,354 45,638,330 5,434,630 Increase in net assets attributable to holders of redeemable participating shares from continuing operations

551,202,423 2,826,878,741 570,111,485

Gains and losses arise solely from continuing operations. There were no gains/losses in the financial period other than those disclosed in the statement of comprehensive income.



12

Statement of changes in net assets attributable to holders of redeemable participating shares (unaudited) For the six months ended 30 June 2019

Global


Equity Fund Total

Company GBP JPY GBP Net assets attributable to holders of redeemable participating shares at the start of the financial period

5,265,981,674 37,537,411,756 5,534,082,218

Increase in net assets attributable to holders of redeemable participating shares from continuing operations

1,255,208,191 1,883,205,888 1,268,433,136

Issue of redeemable participating shares 2,508,050,073 23,867,597,734 2,675,661,952 Redemption of redeemable participating shares (618,941,809) (13,336,275,904) (712,596,741) Notional foreign exchange adjustment - - 9,009,030 Net assets attributable to holders of redeemable participating shares at the end of the financial period

8,410,298,129 49,951,939,474 8,774,589,595

The statement of changes in net assets attributable to holders of redeemable participating shares is continued on page 12.



13

Statement of changes in net assets attributable to holders of redeemable participating shares (unaudited) (continued) For the six months ended 30 June 2018

Global


Equity Fund Total

Company GBP JPY GBP Net assets attributable to holders of redeemable participating shares at the start of the financial period

3,702,142,553 28,145,040,010 3,886,836,603

Increase in net assets attributable to holders of redeemable participating shares from continuing operations

551,202,423 2,826,878,741 570,111,485

Issue of redeemable participating shares 1,217,529,609 11,601,699,380 1,295,133,663 Redemption of redeemable participating shares (576,541,953) (5,104,795,638) (610,688,057) Notional foreign exchange adjustment - - 9,157,656 Net assets attributable to holders of redeemable participating shares at the end of the financial period

4,894,332,632 37,468,822,493 5,150,551,350



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Statement of cash flows (unaudited) For the six months ended 30 June 2019 Global


Equity Fund Total

Company GBP JPY GBP Cash flow from operating activities Increase in net assets attributable to holders of redeemable participating shares from operations 1,255,208,191 1,883,205,888 1,268,433,135 Adjustment for: Distributions to holders of redeemable shares 26,543,163 179,520,876 27,803,861 Interest income (167,751) (432,092) (170,785) Dividend income (64,720,747) (492,357,387) (68,178,361) Other income (5,619) (88,628) (6,241) Withholding taxes 7,197,124 73,853,609 7,715,766 Interest expense 53,567 1,430,893 63,616 Net operating cash flow before change in operating assets and liabilities 1,224,107,928 1,645,133,159 1,235,660,991 Net increase in financial assets at fair value through profit or loss (2,922,712,951) (9,671,084,245) (2,990,628,818) Net decrease in financial liabilities at fair value through profit or loss - (70,492,839) (495,041) Net decrease in other receivables 72,608 35,287,304 320,416 Net increase in other payables 16,980,894 241,845,294 18,679,270 Cash used in operations (1,681,551,521) (7,819,311,327) (1,736,463,182) Interest received 167,751 432,092 170,785 Dividend received 63,929,821 416,146,164 66,852,237 Other income received 5,619 88,628 6,241 Interest paid (53,567) (1,430,893) (63,616) Net cash used in operating activities (1,617,501,897) (7,404,075,336) (1,669,497,535) Cash flows from financing activities Distributions paid to holders of redeemable shares (26,543,163) (179,520,876) (27,803,861) Issue of redeemable participating shares 2,485,803,363 22,482,248,662 2,643,686,531 Redemption of participating shares (628,232,654) (14,344,777,960) (728,969,863) Net cash from financing activities 1,831,027,546 7,957,949,826 1,886,912,807 Net increase in cash and cash equivalents 213,525,649 553,874,490 217,415,272 Cash and cash equivalents at the start of the financial period 117,302,836 1,035,679,427 124,699,889 Notional foreign exchange adjustment 305,685 Cash and cash equivalents at the end of the financial period 330,828,485 1,589,553,917 342,420,846

Breakdown of cash and cash equivalents Cash and cash equivalents 330,828,485 1,589,553,917 342,420,846 The statement of cash flows is continued on page 14.



15

Statement of cash flows (unaudited) (continued) For the six months ended 30 June 2018 Global


Equity Fund Total

Company GBP JPY GBP Cash flow from operating activities Increase in net assets attributable to holders of redeemable participating shares from operations 551,202,423 2,826,878,741 570,111,485 Adjustment for: Distributions to holders of redeemable shares 13,439,264 121,378,830 14,251,170 Interest income (11,521) (3,124) (11,542) Dividend income (38,615,090) (304,255,528) (40,650,263) Other income (28,566) (122,860) (29,388) Withholding taxes 5,129,354 45,638,330 5,434,630 Interest expense 12,025 1,184,142 19,946 Net operating cash flow before change in operating assets and liabilities

531,127,889

2,690,698,531

549,126,038

Net increase in financial assets at fair value through profit or loss (1,222,616,943) (9,435,727,985) (1,285,732,761) Net decrease in financial liabilities at fair value through profit or loss - 119,217,605 797,450 Net increase in other receivables 6,236 29,755,767 205,272 Net increase in other payables (3,652,087) (259,164,174) (5,385,643) Cash used in operations (695,134,905) (6,855,220,256) (740,989,644) Interest received 11,521 3,124 11,542 Dividend received 34,791,439 266,113,003 36,571,475 Other income received 28,566 122,860 29,388 Interest paid (12,025) (1,184,142) (19,946) Net cash used in operating activities (660,315,404) (6,590,165,411) (704,397,185) Cash flows from financing activities Distributions paid to holders of redeemable shares (13,439,264) (121,378,830) (14,251,170) Issue of redeemable participating shares 1,220,383,492 11,641,070,311 1,298,250,899 Redemption of participating shares (571,714,191) (4,710,373,282) (603,495,006) Net cash from financing activities 635,230,037 6,809,318,199 680,504,723 Net increase in cash and cash equivalents (25,085,367) 219,152,788 (23,892,462) Cash and cash equivalents at the start of the financial period 108,835,034 938,962,044 114,996,713 Notional foreign exchange adjustment - - 285,719 Cash and cash equivalents at the end of the financial period 83,749,667 1,158,114,832 91,389,970

Breakdown of cash and cash equivalents Cash and cash equivalents 83,749,667 1,158,114,832 91,389,970


16

Notes to the financial statements For the six months ended 30 June 2019

1. General information

Lindsell Train Global Funds plc (the “Company”) was incorporated on 7 May 1998 under the laws of Ireland as an open-ended umbrella type investment company with variable capital and limited liability, with segregated liability between sub-funds. The Company is authorised in Ireland as an Undertaking for Collective Investment in Transferable Securities (“UCITS”) pursuant to the European Communities UCITS Regulations 2011 (as amended) (the “UCITS Regulations”).

There are two sub-funds in operation as at the reporting date, Lindsell Train Japanese Equity Fund (“Japanese Equity Fund”) which commenced trading on 25 September 1998 and Lindsell Train Global Equity Fund (“Global Equity Fund”) which commenced trading on 16 March 2011.

2. Significant accounting policies

(a) Basis of preparation

The interim report and condensed unaudited financial statements of the Company for the six months ended 30 June 2019 have been prepared in accordance with IAS 34 “Interim financial reporting”, Irish statute comprising the Companies Act 2014, the UCITS Regulations and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2019 (the “Central Bank Regulations”).

The interim report and condensed unaudited financial statements do not contain all of the information and disclosures required in the full annual financial statements and should be read in conjunction with the audited financial statements for the year ended 31 December 2018, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”), the Companies Act 2014, the UCITS Regulations and the Central Bank Regulations.

3. Financial assets and financial liabilities at fair value through profit or loss and foreign exchange

(i) Net gains and losses of financial assets and liabilities at fair value through profit or loss and foreign exchange

For the six months ended 30 June 2019

Global


Equity Fund Total Company GBP JPY GBP

Net realised gain on financial assets and liabilities at fair value through profit or loss and foreign exchange 10,118,401 102,838,872 10,840,594 Change in unrealised gain/(loss) on financial assets and liabilities at fair value through profit or loss and foreign exchange 1,235,372,976 1,715,775,099 1,247,422,127 Net gain on financial assets and liabilities at fair value through profit or loss and foreign exchange 1,245,491,377 1,818,613,971 1,258,262,721 For the six months ended 30 June 2018

Global


Equity Fund Total Company GBP JPY GBP

Net realised gain/(loss) on financial assets and liabilities at fair value through profit or loss and foreign exchange

50,490,858

225,679,455

52,000,433

Change in unrealised gain/(loss) on financial assets and liabilities at fair value through profit or loss and foreign exchange

495,227,545

2,601,174,778

512,626,868

Net gain on financial assets and liabilities at fair value through profit or loss and foreign exchange

545,718,403

2,826,854,233

564,627,301

Notes to the financial statements (continued) Lindsell Train Global Funds plc For the six months ended 30 June 2019

17

3. Financial assets and financial liabilities at fair value through profit or loss (continued)

(ii) Fair value of financial instruments (continued)

IFRS 13 – Fair Value Measurement, establishes a fair value hierarchy for inputs used in measuring fair value that classifies investments according to how observable the inputs are. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions, made in good faith, about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1 – Inputs reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date;

Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and

Level 3 – Inputs that are not observable.

Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Observable data is considered to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorisation of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the perceived risk of that instrument by Lindsell Train Limited (the “Investment Manager” and the “Distributor”).

There were no transfers between any levels during the financial period (2018: nil). As at 30 June 2019 Level 1 Level 2 Level 3 Total Global Equity Fund GBP GBP GBP GBP Held for trading - Equity securities 8,068,491,170 - - 8,068,491,170 Financial assets at fair value through profit or loss 8,068,491,170 - - 8,068,491,170 Japanese Equity Fund JPY JPY JPY JPY Held for trading - Equity securities 47,654,300,129 - - 47,654,300,129 Financial assets at fair value through profit or loss 47,654,300,129 - - 47,654,300,129 Held for trading Derivatives - Forward currency contracts - (49,823,556) - (49,823,556) Financial liabilities at fair value through profit or loss - (49,823,556) - (49,823,556) As at 31 December 2018 Level 1 Level 2 Level 3 Total Global Equity Fund GBP GBP GBP GBP Held for trading - Equity securities 5,145,778,219 - - 5,145,778,219 Financial assets at fair value through profit or loss 5,145,778,219 - - 5,145,778,219 Japanese Equity Fund JPY JPY JPY JPY Held for trading - Equity securities 37,981,195,687 - - 37,981,195,687 Derivatives - Forward currency contracts - 2,020,197 - 2,020,197 Financial assets at fair value through profit or loss 37,981,195,687 2,020,197 - 37,983,215,884 Held for trading Derivatives - Forward currency contracts - (120,316,395) - (120,316,395) Financial liabilities at fair value through profit or loss - (120,316,395) - (120,316,395)

All other assets and liabilities held by the sub-funds at the reporting dates 30 June 2019 and 31 December 2018 are carried at amortised cost; their carrying values are a reasonable approximation of fair value. Cash and cash equivalents have been classified at level 1, due to the liquid nature of the asset. All other assets and liabilities held have been classified at level 2.


18

3. Financial assets and financial liabilities at fair value through profit or loss (continued)

(iii) Financial derivative instruments

The derivative instruments that the Company holds or issues are forward currency contracts. The Company records its derivative activities on a mark-to-market basis.

A forward currency contract involves an obligation to purchase or sell a specific currency at a future date, at a price set at the time the contract is made. Forward currency contracts will be valued by reference to the forward price at which a new forward contract of the same size and maturity could be undertaken at the valuation date. The unrealised gain or loss on open forward currency contracts is calculated as the difference between the contract rate and this forward price, and this difference is recognised in the statement of comprehensive income.

4. Cash and cash equivalents

The following cash balances and overdrafts were held at the reporting date:

As at 30 June 2019

Credit rating (S&P) Currency

Global Equity Fund

GBP equivalent balance

Japanese Equity Fund

JPY equivalent balance

Total Company

GBP The Bank of New York Mellon SA/NV AA- EUR 3,190,091 650,533 3,194,835 The Bank of New York Mellon SA/NV AA- GBP 278,050,273 297,575,527 280,220,443 The Bank of New York Mellon SA/NV AA- JPY 6,092,301 1,248,177,802 15,195,060 The Bank of New York Mellon SA/NV AA- USD 16,676,970 6,603,168 16,725,126 The Bank of New York Mellon SA/NV AA- HKD 4,603,185 - 4,603,185 Bank of New York Mellon – London Branch AA- EUR 2,068,775 - 2,068,775 Bank of New York Mellon – London Branch AA- GBP 15,742,411 36,548,887 16,008,943 Bank of New York Mellon – London Branch AA- USD 4,404,479 - 4,404,479 Total 330,828,485 1,589,553,917 342,420,846

As at 31 December 2018

Credit rating (S&P) Currency

Global Equity Fund

GBP equivalent balance


JPY equivalent balance

Total Company

GBP The Bank of New York Mellon SA/NV AA- EUR (132,284) 1,568,981 (121,078) The Bank of New York Mellon SA/NV AA- GBP 90,715,071 707,661,529 95,769,347 The Bank of New York Mellon SA/NV AA- JPY 1,317,833 201,627,330 2,757,900 The Bank of New York Mellon SA/NV AA- USD 12,439,125 106,728,216 13,201,402 Bank of New York Mellon – London Branch AA- EUR 1,308,040 - 1,308,040 Bank of New York Mellon – London Branch AA- GBP 6,794,349 - 6,794,349 Bank of New York Mellon – London Branch AA- USD 4,860,702 17,169,944 4,983,334 Bank of New York Mellon – London Branch AA- JPY - 923,427 6,595 Total 117,302,836 1,035,679,427 124,699,889

5. Investment manager’s fee

The Investment Manager is entitled to an annual fee in respect of each sub-fund, at the rate set out in the below table of the NAV for the relevant class, calculated and accrued as at each dealing day (plus VAT, if any) and payable monthly in arrears. Such fee may be increased up to a maximum level of 2% per annum in respect of any sub-fund upon giving three months’ notice to the shareholders of the relevant sub-fund.

Sub-fund Global Equity Fund Japanese Equity Fund Class A Shares 1.15% 1.15% Class B Shares 0.65% 0.65% Class B Yen Distributing Shares - 0.65% Class B Sterling Hedged Distributing Shares - 0.65% Class B Sterling Quoted – Distributing Shares - 0.65% Class C US Dollar Shares 0.65% 0.65% Class D Shares 0.45% - Class E Euro Shares 0.65% -

Total investment manager’s fees accrued at the reporting date and charged for the financial period are disclosed in the statement of financial position and the statement of comprehensive income respectively.


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6. Administration fee

Each sub-fund pays Link Fund Administrators (Ireland) Limited (the “Administrator”) an annual fee calculated and accrued as at each dealing day and paid monthly in arrears at the following rates (plus VAT, if any) and subject to a monthly minimum fee of €5,500 per sub-fund (plus VAT, if any):

The administration fee will be paid at the following rates: For assets up to €100m 0.12% Between €100m and €200m 0.10% Between €200m and €500m 0.06% Greater than €500m 0.04%

Total administration fees accrued at the reporting date and charged for the financial period are disclosed in the statement of financial position and the statement of comprehensive income respectively.

7. Depositary fee

BNY Mellon Trust Company (Ireland) Limited (the “Depositary”) receives from the Company a trustee fee calculated and accrued as at each dealing day at a rate not exceeding 0.03% per annum of the NAV of the Company paid monthly in arrears (plus VAT, if any). The minimum annual trustee fee is €30,000 for the Company (plus VAT, if any).The Depositary also receives from the Company fees in relation to the custody of assets, which ranges from 0.01% up to a maximum of 0.70% per annum of the NAV per sub-fund payable monthly in arrears (plus VAT, if any) plus transaction fees, which are at normal commercial rates.

Total depositary fees accrued at the reporting date and charged for the financial period are disclosed in the statement of financial position and the statement of comprehensive income respectively.

8. Other expenses

The below table outlines details of other expenses payable as at the reporting date:

As at 30 June 2019

Global Equity Fund


Total Company

GBP JPY GBP Other fees charged by the Administrator 6,318 347,415 8,850 Company secretary fee 6,348 115,196 7,188 Directors expense 872 15,025 982 Directors insurance 781 13,689 881 KIID charges 208 36,736 476 Legal fees 12,484 176,220 13,769 MLRO fee 2,197 37,241 2,469 Professional fees 9,684 195,255 11,108 Regulatory fee 1,540 34,631 1,793 40,432 971,408 47,516 As at 31 December 2018

Global Equity Fund


Total Company

GBP JPY GBP Other fees charged by the Administrator 7,306 188,997 8,655 Legal and professional fees 32,605 564,234 36,635 Regulatory fee 429 8,636 491 Directors expense 619 - 619 40,959 761,867 46,400

The below fees and expenses were charged through the statement of comprehensive income during the financial period:


Global Equity Fund


Total Company

GBP JPY GBP Other fees charged by the Administrator 243,838 1,122,771 251,722 Bank charges 69,166 812,467 74,872 Company secretary fee 4,443 89,019 5,068 Directors expenses 962 15,835 1,073 Directors insurance 5,464 645,708 9,999 KIID charges 1,426 232,318 3,057 Legal fees 2,171 19,973 2,311 MLRO fee 2,186 36,272 2,441 Professional fees 24,469 401,120 27,286 Regulatory fee 1,110 25,995 1,293

355,235 3,401,478 379,122


20

8. Other expenses (continued)


Global Equity Fund


Total Company

GBP JPY GBP Other fees charged by the Administrator 166,697 878,281 172,573 Solvency fee 511 55,717 884 MLRO fee 2,188 36,562 2,433 Legal fees 11,228 188,762 12,489 Professional fees 16,047 258,748 17,778 Company secretary fee 6,552 109,614 7,285 Regulatory fee 3,239 52,556 3,591 Directors insurance 5,555 92,868 6,176 Directors expenses 835 13,933 928 Bank charges 36,742 543,724 40,379

249,594 2,230,765 264,516 9. Exchange rates

The following exchange rates were used at the reporting date: 30 June 2019 31 December 2018 Exchange rate to GBP Exchange rate to GBP Euro EUR 1.117580 1.130787 Hong Kong Dollar HKD 9.942977 9.971465 Japanese Yen JPY 137.120807 146.237647 U.S. Dollar USD 1.272701 1.320251

30 June 2019 31 December 2018 Exchange rate to JPY Exchange rate to JPY British Pound GBP 0.007293 0.006562 Euro EUR 0.008150 0.007393 U.S. Dollar USD 0.009282 112.649998

The Japanese Equity Fund’s statement of comprehensive income, statement of changes in net assets attributable to holders of redeemable participating shares and the statement of cash flows is translated to GBP using the average exchange rate of 0.007023 (2018: 0.006781).


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10. Share capital

Authorised The Company has an authorised share capital of 500,000,000 redeemable participating shares of no par value.

Management shares The Company has an authorised share capital of 37,500 management shares of EUR 1 each. These shares do not form part of the NAV of the Company.

Issued share capital Proceeds from the issue of redeemable participating shares and shares issued during the financial period include dividends reinvested. Shareholders may redeem some or all of their shares on any dealing day at the NAV per share in accordance with the procedures set out in the relevant supplement. There is no minimum redemption amount for any of the share classes of the Company.

The following table details the share transactions during the financial period/year ended:

Global


Equity Fund Global


Equity Fund 30 June 2019 30 June 2019 31 December 2018 31 December 2018 Class A Shares Opening balance 182,318,415.616 930,639.148 165,743,768.130 507,940.259 Shares issued 35,499,699.176 9,037,420.137 43,523,392.491 564,148.201 Shares redeemed (15,410,243.258) (7,895,782.735) (26,948,745.005) (141,449.312) Closing balance 202,407,871.534 2,072,276.550 182,318,415.616 930,639.148 Class B Shares Opening balance 518,380,226.328 52,505,334.521 365,092,633.697 37,084,048.929 Shares issued 254,873,047.847 22,792,457.058 256,448,265.439 29,733,771.454 Shares redeemed (46,382,494.494) (12,282,110.630) (103,160,672.808) (14,312,485.862) Closing balance 726,870,779.681 63,015,680.949 518,380,226.328 52,505,334.521 Class B Distributing Shares Opening balance - 39,666,873.851 - 35,698,833.307 Shares issued - 3,638,543.431 - 11,405,057.742 Shares redeemed - (4,081,020.085) - (7,437,017.198) Closing balance - 39,224,397.197 - 39,666,873.851 Class B Sterling Hedged Distributing Shares Opening balance - 23,661,440.054 - 18,430,532.121 Shares issued - 7,377,187.198 - 13,067,570.684 Shares redeemed - (5,512,400.459) - (7,836,662.751) Closing balance - 25,526,226.793 - 23,661,440.054 Class B Sterling Quoted – Distributing Shares Opening balance - 31,790,630.292 - 14,141,606.337 Shares issued - 27,178,819.203 - 30,273,112.858 Shares redeemed - (10,893,165.215) - (12,624,088.903) Closing balance - 48,076,284.280 - 31,790,630.292 Class C US Dollar Shares Opening balance 261,169,742.657 9,245,243.976 425,879,403.698 8,678,865.972 Shares issued 172,725,904.177 7,978,347.795 155,291,821.698 1,792,494.293 Shares redeemed (64,301,053.994) (2,114,123.310) (320,001,482.739) (1,226,116.289) Closing balance 369,594,592.840 15,109,468.461 261,169,742.657 9,245,243.976 Class D Shares Opening balance 1,195,393,065.957 - 834,990,975.312 - Shares issued 448,951,974.270 - 572,631,690.344 - Shares redeemed (115,646,542.443) - (212,229,599.699) - Closing balance 1,528,698,497.784 - 1,195,393,065.957 -

Class E EUR Shares Opening balance 63,370,962.344 - 147,962.060 - Shares issued 113,476,335.780 - 67,209,476.645 - Shares redeemed (18,294,672.142) - (3,986,476.361) - Closing balance 158,552,625.982 - 63,370,962.344 -


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11. Net asset values

Net asset value per share 30 June 2019 31 December 2018 Lindsell Train Global Equity Fund Class A Shares GBP 3.5653 GBP 2.9727 Class B Shares GBP 3.9005 GBP 3.2331 Class C US Dollar Shares USD 2.0322 USD 1.6876 Class D Shares GBP 2.6654 GBP 2.2095 Class E EUR Shares EUR 1.3133 EUR 1.0840 Lindsell Train Japanese Equity Fund Class A Shares JPY 458.2103 JPY 431.5520 Class B Shares JPY 201.2434 JPY 189.0611 Class B Distributing Shares JPY 170.1246 JPY 161.0188 Class B Sterling Hedged Distributing Shares GBP 2.5706 GBP 2.4226 Class B Sterling Quoted – Distributing Shares GBP 2.7196 GBP 2.5106 Class C US Dollar Shares USD 1.7336 USD 1.5901 12. Reconciliation of published net asset value

The published NAV per redeemable participating share at which the shareholders may subscribe to or redeem from each sub-fund may differ from the NAV per the financial statements. The difference may be due to the treatment of formation expenses, subscriptions receivable and redemptions payable at the reporting date. For the purpose of determining the NAV in accordance with the terms of the prospectus, establishment expenses are being amortised over 60 months. However, for the purpose of these financial statements, establishment expenses have been expensed as incurred as required under IFRS.

The table below shows a reconciliation of the published NAV to the financial statement NAV:

As at 30 June 2019

Global


Equity Fund GBP JPY Net asset value per financial statements 8,410,298,129 49,951,939,474 Subscriptions receivable1 (11,095,318) (36,038,531) Redemptions payable1 4,102,518 177,043,076 Published net asset value 8,403,305,329 50,092,944,019

1Subscriptions receivable and redemptions payable with trade date of 28 June 2019 for Global Equity Fund and Japanese Equity Fund.


Global


Equity Fund GBP JPY Net asset value per financial statements 5,265,981,674 37,537,411,756 Subscriptions receivable1 (8,211,411) (148,243,475) Redemptions payable1 2,640,600 666,876,662 Published net asset value 5,260,410,863 38,056,044,943 1Subscriptions receivable and redemptions payable with trade date of 31 December 2018 for Global Equity Fund and 28 December 2018 Japanese Equity Fund.

13. Soft commission arrangements

There were no soft commission arrangements in place during the financial period (2018: None).


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14. Distributions

All share classes of the Company have obtained “Reporting Fund Status” under the United Kingdom Offshore Funds (Tax) Regulations 2009 for the purpose of United Kingdom taxation for the financial period. Class C USD Shares and Class E Euro Shares of Global Equity Fund and Class A, Class B and Class C US Dollar Shares of Japanese Equity Fund are accumulating share classes and as such do not declare a dividend.

The Directors declared the following dividends during the six months ended 30 June 2019:

Global Equity Fund

Class1 Currency Distribution

per Share Ex-Date

Final distribution

paid

Income received on

subscriptions

Income deducted on redemptions

Net distribution

charge Class A GBP £0.0238 02-Jan-19 £4,339,178 (£275,594) £203,638 £4,267,222 Class B GBP £0.0147 02-Jan-19 £7,620,189 (£1,361,208) £389,976 £6,648,957 Class D GBP £0.0122 02-Jan-19 £14,583,796 (£1,842,640) £958,099 £13,699,255

£26,543,163



per Share Ex-Date

Final distribution

paid

Income received on

subscriptions


Net distribution

charge Class B Distributing JPY ¥1.1684 04-Jan-19 ¥46,346,775 (¥3,515,495) ¥993,463 ¥43,824,743 Class B Sterling Hedged Distributing GBP £0.0175 04-Jan-19 £414,075 (£38,533) £31,664 £407,206 Class B Sterling Quoted – Distributing GBP £0.0176 04-Jan-19 £559,515 (£72,194) £62,637 £549,958

1Share class is subject to equalisation

The Directors declared the following dividends during the six months ended 30 June 2018:

Global Equity Fund


per Share Ex-Date

Final distribution

paid

Income received on

subscriptions


Net distribution

charge Class A Shares GBP £0.0174 2-Jan-18 £2,883,942 (£180,231) £128,423 £2,832,134 Class B Shares GBP £0.0097 2-Jan-18 £3,541,399 (£469,508) £211,714 £3,283,605 Class D Shares GBP £0.0084 2-Jan-18 £7,013,923 (£1,214,917) £251,708 £6,050,714 £13,439,264 Japanese Equity Fund


per Share Ex-Date

Final distribution

paid

Income received on

subscriptions


Net distribution

charge Class B Shares JPY ¥1.0906 4-Jan-18 ¥38,933,148 (¥571,439) ¥62,110 ¥38,423,819 Class B Sterling Hedged Distributing Shares GBP £0.0168 4-Jan-18 £309,633 (£32,288) £13,408 £290,753 Class B Sterling Quoted Shares GBP £0.0163 4-Jan-18 £230,508 (£28,876) £14,468 £216,100

1Share class is subject to equalisation

On the purchase of shares in a sub-fund, there may be included in the subscription price a sum per share which the Directors deem to be the amount representing income of the sub-fund accrued but undistributed up to the time of the issue thereof. This sum is known as the “equalisation amount”. The purpose of equalisation is to ensure that all shareholders in the sub-fund receive the same distribution per share while ensuring that an investor purchasing shares in a sub-fund during a distribution period is not entitled to share in the income of the sub-fund arising before their acquisition of those shares.

15. Transactions involving connected persons

The Central Bank (Supervision and Enforcement Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations, 2019 (the “Central Bank Regulations”) 10.2 - ‘Transactions involving Connected Persons’ states in paragraph 43 that any transaction carried out with a UCITS by the management company or depositary to a UCITS; and the delegates or sub-delegates of such a management company or depositary (excluding any non-group company sub-custodians appointed by a depositary); and any associated or group company of such a management company, depositary, delegate or sub-delegate (“connected persons”) must be carried out as if negotiated at arm’s length and in the best interests of the unitholders.

The Board of Directors is satisfied that there are arrangements (evidenced by written procedures) in place, to ensure that the obligations set out in paragraph 43 of the Central Bank Regulations 10.2 are applied to all transactions with connected persons; and the Board of Directors is satisfied that transactions with connected persons entered into during the financial period complied with the obligations set out in this paragraph.


24

16. Related party disclosures

In accordance with IAS 24 ‘Related Party Disclosures’ the related parties of the Company and the required disclosures relating to material transactions with parties are outlined below. All transactions between related parties are conducted at arm’s length

Investment Manager The Investment Manager is considered to be a related party as it has significant influence over the Company. Keith Wilson, a Director of the Company is also employed by the Investment Manager. Michael Lindsell and Nick Train are each directors of the Investment Manager or companies affiliated to the Investment Manager and are thus considered related parties. Refer to note 5 for details of fees charged by the Investment Manager.

Consultant Bridge Consulting is considered to be a related party by virtue of its employment of David Dillon as a Director. David Dillon is also a Director of the Company. Bridge Consulting provides professional services and an MLRO service to the Company.

For the six months ended 30 June 2019 Bridge Consulting charged EUR 10,250 (excluding VAT) for the provision of Designated Individuals (2018: EUR 10,250). In addition they also charged EUR 2,250 (excluding VAT) for the MLRO services (2018: 2,250).

Directors The Directors are also considered related parties of the Company.

Aggregate directors’ fees charged during the six months ended 30 June 2019 amount to GBP 36,140 (30 June 2018: GBP 35,983).

Share transactions The below table provides details of shares held by related parties: As at 30 June 2019 Related Party Related Party Type Sub-fund Class Shares Gerald Moloney Director Global Equity Fund Class E 197,962.06 David Dillon Director Global Equity Fund Class B 92,350.88 David Dillon Director Global Equity Fund Class E 38,072.03 Keith Wilson* Director Global Equity Fund Class D 48,195.96

Keith Wilson* Director Japanese Equity Fund Class B Sterling Hedged – Distributing 19,609.24

Alex Hammond-Chambers* Director Japanese Equity Fund Class A 5,471.67

Alex Hammond-Chambers* Director Japanese Equity Fund Class B Sterling Hedged – Distributing 18,891.03

Nick Train* Investment Manager Global Equity Fund Class B 286,010.04 Nick Train Investment Manager Japanese Equity Fund Class B Yen 35,151.49 Michael Lindsell* Investment Manager Japanese Equity Fund Class B Yen 2,129,406.84 Michael Lindsell* Investment Manager Global Equity Fund Class B 379,485.66 James Bullock Portfolio manager Global Equity Fund Class D 71,428.30


Related Party Related Party Type Sub-fund Class Shares Gerald Moloney Director Global Equity Fund Class E 197,962.06 David Dillon Director Global Equity Fund Class B 92,350.88 Keith Wilson* Director Global Equity Fund Class D 48,195.96

Keith Wilson* Director Japanese Equity Fund Class B Sterling Hedged – Distributing 19,609.24

Alex Hammond-Chambers* Director Japanese Equity Fund Class A 5,471.67

Alex Hammond-Chambers* Director Japanese Equity Fund Class B Sterling Hedged – Distributing 18,891.03

Nick Train* Investment Manager Global Equity Fund Class B 286,010.04 Nick Train Investment Manager Japanese Equity Fund Class B Yen 35,151.49 Michael Lindsell* Investment Manager Japanese Equity Fund Class B Yen 2,129,406.84 Michael Lindsell* Investment Manager Global Equity Fund Class B 379,485.66 James Bullock Portfolio manager Global Equity Fund Class D 33,266.55

* Holdings contain balances held by spouses and/or dependents.

17. Efficient portfolio management

The Company may, on behalf of any sub-fund and subject to the conditions and within the limits laid down by the Central Bank, employ techniques and instruments relating to transferable securities, including investment in financial derivative instruments (“FDI”). Such techniques and instruments may be used for efficient portfolio management (“EPM”) purposes, or to provide protection against exchange risk or for direct investment purposes, where applicable. Only such FDI as are provided for in the current risk management process for the Company approved by the Central Bank may be used by the Company.

Any over the counter (“OTC”) derivatives must be with an approved counterparty (being a counterparty with which a UCITS may enter into OTC derivative contracts) and in accordance with the requirements of the Central Bank.

During the financial period, forward currency transactions were entered into by the Japanese Equity Fund for the purpose of EPM. Details of all open transactions at the reporting date are disclosed in the schedule of investments.


25

18. Capital Management

The redeemable shares issued by the Company provide an investor with the right to require redemption for cash at a value proportionate to the investor’s shares in the sub-fund’s net assets at each redemption date and are classified as liabilities. The sub-funds’ objectives in managing the redeemable shares are to ensure a stable base to maximise returns to all investors and to manage liquidity risk arising from redemptions.

19. Fund Asset regime

The Company operates under a Fund Asset Model, whereby umbrella cash accounts designated in different currencies at umbrella level are held in the name of the Company. The umbrella cash accounts are used to collect subscription monies from investors and pay out redemption monies and also dividends (where applicable) to shareholders. The balances held in the accounts are reconciled on a daily basis and monies are not intended to be held in the accounts for long periods. The monies held in the umbrella cash accounts are considered an asset of the Company and are disclosed in the statement of financial position within cash and cash equivalents.

20. Commitments and contingent liabilities

The Directors are not aware of any commitments or contingent liabilities of the Company.

21. Changes to the prospectus

There were no changes made to the prospectus during the financial period.

22. Significant events during the financial period

There were no items to report during the financial period.

23. Events after the reporting date

Effective 1 July 2019, investment management fees on share classes charged at 0.65% per annum were reduced to 0.60% per annum. Investment management fees on Class A shares were reduced from 1.15% to 1.10% per annum. Rebate arrangements on management fees were abolished.

The Directors declared the following dividends after the reporting date: Global Equity Fund

Class Currency Distribution

per Share Ex-Date

Final Distribution

paid

Income received on

subscriptions


Net Distribution

charge Class A Shares* GBP £0.0267 1-Jul-2019 £5,404,290 (£433,361) £193,627 £5,164,556 Class B Shares* GBP £0.0178 1-Jul-2019 £12,938,300 (£1,956,991) £386,556 £11,367,865 Class D Shares* GBP £0.0143 1-Jul-2019 £21,860,389 (£2,426,464) £755,659 £20,189,584 £40,202,979 Japanese Equity Fund

Class Currency Distribution

per Share Ex-Date

Final Distribution

Paid

Income received on

subscriptions


Net Distribution

charge Class B Distributing Shares* JPY ¥1.5777 1-Jul-2019 ¥61,884,331 (¥2,578,510) ¥1,151,948 ¥60,457,769 Class B Sterling Hedged Distributing Shares* GBP £0.0240 1-Jul-2019 £612,629 (£71,732) £39,071 £579,968 Class B Sterling Quoted – Distributing Shares* GBP £0.0242 1-Jul-2019 £1,163,446 (£395,553) £96,321 £864,214 *Share class is subject to equalisation

24. Approval of the financial statements

The unaudited financial statements were approved by the Board of Directors on 14 August 2019.


26

Schedule of investments As at 30 June 2019

Lindsell Train Global Equity Fund Currency Nominal

Holdings Fair Value

GBP % NAV

Financial assets at fair value through profit or loss Equities Italy Juventus Football Club SpA EUR 103,817,317 136,914,315 1.63%

Prada SpA HKD 32,278,847 78,679,843 0.94%

215,594,158 2.57%

Japan Astellas Pharma Inc JPY 15,787,100 177,377,876 2.11%

Canon Inc JPY 1,138,300 26,212,242 0.31%

Ito En Ltd JPY 3,339,100 58,242,791 0.69%

Japan Exchange Group Inc JPY 13,516,800 169,381,650 2.01%

Kao Corp JPY 6,751,605 405,731,656 4.82%

Meiko Network Japan Co Ltd JPY 710,300 4,959,968 0.06%

Nintendo Co Ltd JPY 1,528,950 441,945,919 5.25%

Shiseido Co Ltd JPY 6,764,591 402,105,270 4.78%

1,685,957,372 20.03%

Netherlands Heineken Holding NV EUR 7,702,593 635,750,194 7.56%

635,750,194 7.56%

United Kingdom Celtic PLC GBP 5,095,123 8,406,953 0.10%

Diageo PLC GBP 18,683,921 631,796,789 7.51%

Hargreaves Lansdown PLC GBP 13,964,941 268,126,867 3.19%

London Stock Exchange Group PLC GBP 7,406,581 409,583,929 4.87%

Pearson PLC GBP 41,035,626 337,887,344 4.02%

Relx PLC EUR 21,544,248 412,658,640 4.91%

Unilever PLC GBP 14,026,117 683,703,073 8.13%

2,752,163,595 32.73%

United States Brown-Forman Corp – Share Class A USD 1,851,982 80,034,782 0.95%

Brown-Forman Corp – Share Class B USD 252,152 10,986,370 0.13%

Walt Disney Co/The USD 3,907,218 428,985,405 5.10%

eBay Inc USD 8,508,326 263,481,367 3.13%

International Speedway Corp – Share Class B USD 112,483 3,959,400 0.05%

Intuit Inc USD 2,025,405 411,849,466 4.90%

International Speedway Corp – Share Class A USD 883,911 31,169,388 0.37%

World Wrestling Entertainment Inc USD 5,883,765 334,823,763 3.98%

PepsiCo Inc USD 3,873,323 402,031,674 4.78%

Mondelez International Inc USD 9,502,354 405,333,735 4.82%

PayPal Holdings Inc USD 4,535,786 406,370,501 4.83%

2,779,025,851 33.04%

Total equities 8,068,491,170 95.93%

Total financial assets at fair value through profit or loss 8,068,491,170 95.93%

Cash and cash equivalents and other net assets 341,806,959 4.07%

Net assets attributable to holders of redeemable participating shares 8,410,298,129 100.00%

Analysis of total assets

% of total assets

Transferable securities listed on an official stock exchange or dealt on another regulated market 95.43%

Other current assets 4.57%

100.00%

*Securities are classified by incorporate country rather than listed country.


27

Schedule of investments (continued) As at 30 June 2019

Lindsell Train Japanese Equity Fund Currency Nominal

Holdings Fair Value

JPY % NAV

Financial assets at fair value through profit or loss

Equities

Japan

Astellas Pharma Inc JPY 1,998,200 3,067,237,000 6.14%

Broadleaf Co Ltd JPY 1,400,000 744,800,000 1.49%

Calbee Inc JPY 583,200 1,695,945,600 3.40%

Canon Inc JPY 173,400 545,516,400 1.09%

Earth Corp JPY 314,800 1,517,336,000 3.04%

Hogy Medical Co Ltd JPY 754,540 2,399,437,200 4.80%

Ito En Ltd JPY 879,591 2,096,065,353 4.20%

Japan Exchange Group Inc JPY 1,270,200 2,174,582,400 4.35%

Kao Corp JPY 538,183 4,418,482,430 8.85%

Kirin Holdings Co Ltd JPY 1,054,504 2,450,140,044 4.90%

Mandom Corp JPY 924,613 2,411,390,703 4.83%

Medikit Co Ltd JPY 89,700 531,024,000 1.06%

Meiko Network Japan Co Ltd JPY 594,900 567,534,600 1.14%

Milbon Co Ltd JPY 468,133 2,443,654,260 4.89%

Morningstar Japan KK JPY 2,159,400 719,080,200 1.44%

Nintendo Co Ltd JPY 123,650 4,882,938,500 9.78%

OBIC Business Consultants Co Ltd JPY 722,200 3,527,947,000 7.06%

Shiseido Co Ltd JPY 436,840 3,547,577,640 7.10%

Sotsu Co Ltd JPY 303,800 592,106,200 1.19%

Square Enix Holdings Co Ltd JPY 706,118 2,436,107,100 4.88%

Taisho Pharmaceutical Holdings Co Ltd JPY 177,800 1,470,406,000 2.94%

Takeda Pharmaceutical Co Ltd JPY 655,000 2,504,065,000 5.01%

Tsutsumi Jewelry Co Ltd JPY 480,700 910,926,499 1.82%

47,654,300,129 95.40%

Total equities 47,654,300,129 95.40%

Total financial assets at fair value through profit or loss 47,654,300,129 95.40%

Financial liabilities at fair value through profit or loss

Derivatives

Forward Currency Contracts (Counterparty: Bank of New York Mellon)

Purchase Currency Amount Sale Currency Amount

Settlement date

Fair Value JPY % NAV

Class B Sterling Hedged Distributing

GBP 66,419,052 JPY (9,120,000,000) 17-Jul-2019 (49,823,556) (0.10%)

(49,823,556) (0.10%)

Total derivatives (49,823,556) (0.10%)

Total financial liabilities at fair value through profit or loss (49,823,556) (0.10%)

Cash and cash equivalents and other net assets 2,347,462,901 4.70%

Net assets attributable to holders of redeemable participating shares 49,951,939,474 100.00%

Analysis of total assets

% of total assets

Transferable securities listed on an official stock exchange or dealt on another regulated market 93.32%

Other current assets 6.68%

100.00%

*Securities are classified by incorporate country rather than listed country.


28

Statement of significant portfolio movements For the six months ended 30 June 2019 The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the semi-annual report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period.

Global Equity Fund Cost Purchases GBP Unilever PLC 165,303,758 Heineken Holding NV 150,632,188 Kao Corp 124,793,332 Diageo PLC 121,435,589 Hargreaves Lansdown PLC 115,526,875 Pearson PLC 115,125,091 RELX PLC 85,600,469 PepsiCo Inc 83,426,557 PRADA SpA 74,684,686 Intuit Inc 71,856,687 World Wrestling Entertainment Inc 71,791,169 Walt Disney Co/The 70,164,544 Japan Exchange Group Inc 65,732,830 Shiseido Co Ltd 65,638,951 London Stock Exchange Group PLC 64,227,956 Nintendo Co Ltd 61,618,782 Astellas Pharma Inc 61,279,166 Mondelez International Inc 50,861,551 eBay Inc 35,542,897 PayPal Holdings Inc 29,951,247 Cost Sales GBP London Stock Exchange Group PLC 21,035,788 Intuit Inc 8,668,604 Nintendo Co Ltd 941 The Central Bank Regulations require a minimum of 20 purchases and sales to be disclosed, however; due to trading volumes the total amount of sales for the period have been disclosed.


29

Statement of significant portfolio movements (continued) For the six months ended 30 June 2019 The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the semi-annual report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period.

Japanese Equity Fund Cost Purchases JPY Takeda Pharmaceutical Co Ltd 1,044,245,275 Nintendo Co Ltd 1,010,152,798 Kao Corp 1,005,872,569 Square Enix Holdings Co Ltd 962,730,592 Mandom Corp 954,275,805 Hogy Medical Co Ltd 813,803,665 Kirin Holdings Co Ltd 784,081,687 Taisho Pharmaceutical Holdings Co Ltd 765,575,506 Calbee Inc 723,494,438 Japan Exchange Group Inc 591,166,039 Astellas Pharma Inc 554,153,309 Milbon Co Ltd 451,650,613 OBIC Business Consultants Co Ltd 426,546,034 Shiseido Co Ltd 422,468,959 Ito En Ltd 348,815,809 Earth Corp 216,571,144 Tsutsumi Jewelry Co Ltd 106,944,854 Morningstar Japan KK 98,612,533 Sotsu Co Ltd 91,176,335 Proceeds Sales JPY Nintendo Co Ltd 884,747,072 Square Enix Holdings Co Ltd 586,328,275 Takeda Pharmaceutical Co Ltd 381,841,513 Shiseido Co Ltd 298,325,474 Hogy Medical Co Ltd 278,404,695 Milbon Co Ltd 272,764,701 Kao Corp 257,085,650 Kirin Holdings Co Ltd 173,587,853 OBIC Business Consultants Co Ltd 151,477,493 Mandom Corp 128,165,148 Meiko Network Japan Co Ltd 108,793,358 Ito En Ltd 95,456,604 Taisho Pharmaceutical Holdings Co Ltd 75,272,412 Earth Corp 48,824,848 Canon Inc 43,636,955 Astellas Pharma Inc 34,781,301 Financial derivative instruments are excluded from the above due to no cost being attributed to purchases and sales of such instruments.

The Central Bank Regulations require a minimum of 20 purchases and sales to be disclosed. Due to trading volumes the above details all of the purchases and sales during the financial period.

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