Star fund manager Nick Train has revealed the key questions that he is asking companies right now amid the uncertainty within the current environment.
Recognising the importance of a long-term outlook, Train, manager of the £5.8bn Lindsell Train UK Equity Fund has revealed that current questioning to management revolves around:
- Asking for reassurance about the ability to survive the effects of lock down
- Asking what measures the company is taking to ensure it is in a stronger position and can thrive in the future
In an update on the performance of the respective fund, Train indicated that technology is becoming the key driver for companies who are confident of emerging out of the pandemic in a stronger position and answering the second question:
“Nearly twenty years ago the late, great Andy Grove of Intel said “In the future every company will be an internet company.” The truth of that prediction is becoming more and more apparent. And many of our companies are telling us they can harness its power and as a result likely grow faster with higher profitability in years to come. The AI enhancements DMGT is adding to its catastrophe risk modelling business, Mondelez shifting its advertising increasingly to e-commerce sites and Sage introducing an app to help its small company customers apply for government support are the sort of marginal growth and productivity initiatives that gave confidence to the boards of those companies to increase their dividends in May.”Nick Train, LF Lindsell Train UK Equity Fund