Monthly Update

Lindsell Train Investment Trust PLC
21 March 2006


                                        The Lindsell Train Investment Trust PLC
                                               As at 28th February 2006
Fund Objective

To maximise long-term total returns subject to the avoidance of loss of absolute value and with a minimum objective to
maintain the real purchasing power of Sterling capital, as measured by the annual average yield on the 2.5%
Consolidated Loan Stock.

Share Price                                              GBP 132.50

Net Asset Value                                          GBP 136.33

Premium (Discount)                                            (2.8%)

Market Capitalisation                                    GBP 26.5mn

Benchmark (21/2% Con Ann Avg Yield +4.4%)                     +0.4

Source: Bloomberg; NAV-Lindsell Train. Share Price
quoted is closing mid price. See Benchmark definition.

Performance History (based in         2001      2002       2003         2004           2005             YTD 2006
GBP)

Net Asset Value TR%                   +3.2      -9.6       +3.1        +23.7           +16.5              +3.2

Share Price TR%                      +18.5     -19.8       -8.7        +20.6           +27.5              +4.5

Source: LTL and S&P Micropal. Performance years listed Jan - Dec. Launch date 22 Jan 2001. TR=Total Return (with
dividends reinvested) *Source: Lindsell Train Ltd.

Past performance is not a guide to future performance. The price of units and the income from them may go down as well
as up. Investors may not get back what they invested.


2005 Performance      Jan   Feb   Mar   Apr   May   Jun   Jul   Aug     Sep       Oct           Nov            Dec

Net Asset Value TR%  +1.4  +0.3  +1.7  +0.2  +3.4  +2.9  +0.0   +0.2    +1.0      -1.5         +2.3*          +2.9

Share Price TR%      +8.6  +3.5  -3.4  +1.8  +2.6  +9.3  +0.4   -2.3    +2.4      -3.9         +1.2           +4.0

Source: LTL and S&P Micropal unless otherwise indicated. Performance years listed Jan - Dec. Launch date 22 Jan 2001.
TR=Total Return (with dividends reinvested) *Source: Lindsell Train Ltd.

2006 Performance         Jan  Feb  Mar Apr May Jun  Jul    Aug      Sep        Oct            Nov             Dec

Net Asset Value TR%      +0.9 +1.9

Share Price TR%          -3.0 +7.5

Source: LTL and S&P Micropal unless otherwise indicated. Performance years listed Jan - Dec. Launch date 22 Jan 2001.
TR=Total Return (with dividends reinvested) *Source: Lindsell Train Ltd.

Past performance is not a guide to future performance. The price of units and the income from them may go down as well
as up. Investors may not get back what they invested.


Industry Breakdown                                             % of NAV

Bonds                                                            22.2

Preference Shares                                                14.7

Equity - Media                                                   11.7

Equity - Banks & Investment Co.                                  5.8

Equity - Leisure & Ent.                                          10.7

Equity - Food & Beverage                                         27.5

Equity - Consumer Goods                                          1.6

Investment Fund                                                  20.5

Cash & Equivalent                                               (14.7)

Total                                                           100.0

Source: Lindsell Train


Top 10 Holdings                                                % of NAV

HBOS 9.25% Non Cum                                               11.4

Lindsell Train Global Media (Dist)                               10.8

Barr AG                                                           9.3

US Gov Treasury 6.25%                                             8.6

Cadbury Schweppes                                                 8.1

21/2% Consolidated Loan Stock                                     7.7

Diageo                                                            7.4

Lindsell Train Ltd                                                5.8

UK Treasury 2.5%                                                  5.7

Wolverhampton & Dudley Breweries                                  5.7

Source: Lindsell Train


Fund Exposure         Bonds      Prefs        Equity          Funds              Cash                 % of NAV

UK %                   13.5      14.7          46.5            4.5              (14.4)                  64.8

USA %                  8.7         -            1.5             -                5.0                    15.2

Europe (ex UK) %        -          -            4.3             -               (2.5)                    1.8

Japan %                 -          -            5.0            5.2              (2.8)                    7.4

Global %                -          -             -             10.8               -                     10.8

Total                  22.2      14.7          57.3            20.5             (14.7)                  100.0

Source: Lindsell
Train


Fund Manager's Comments

The net asset value continued to make upward progress through February ending the month up 1.9%. The share price
recovered as well, narrowing the discount to 2.8%.

Performance was driven by a steady if unspectacular advance from some of the core consumer franchises, Cadbury, Diageo
where we have large positions of 7.5% in each and Heineken where we have a lesser position of 2.5%. All three companies
announced 2005 results which, we believe reinforced the predictability and stability of the cash flows these companies
generate. Cadbury's results demonstrated how accretive the purchase of Adams, the chewing gum and medicated sweet
business, was in 2003. Cadbury's financed the purchase with new debt, gearing the balance sheet to 1.5x equity. Now,
just two years later, the return on equity has increased from 20% to 26% and the gearing should fall to 1x equity by
the end of 2006. At the current price the free cash flow yield is c6%, 1.5x the bond yield and we think dividends can
grow at 5% as they did over the last 10 years. Diageo, which owns 8 of the top 20 spirits brands (and a 35% interest in
a 9th), is now a pure drinks company following the divestments of the last 3 years. As we have pointed out before, the
company operates one of the largest share repurchase programmes of any British company. As these have been taking place
at cash flow yields at 6% (where the yield is today) and above, these repurchases have been highly accretive for
shareholders. Over the last 5 years the company has distributed 70% of net earnings to shareholders as dividends.
Adding repurchases to this figure, the total return, in buybacks and dividends, has been 140%. Heineken announced
better than expected results, which was frustrating for us as we are still building our investment in the company.
Although we admire the Heineken brand we have doubts about the management strategy of expanding though the acquisition
of local brands of lesser quality at what may prove to be high prices. While this strategy prevails and the management
has provided no indication otherwise, we feel that the extra risk that our concerns may be correct was well compensated
with the 7-8% free cash flow yield, the price we were able to accumulate the shares last year. Now, the yield has
dropped to nearer 6.5% following the recent share price gain. We continue to think that all these shares represent some
of the more undervalued assets in the Trust, a situation that is unlikely to persist if the compounding effect of high
free cash flow yields continues and especially if investors sense that earning gains elsewhere in the market are less
buoyant than in prior years.

Another consumer franchise that has performed well for the Trust lately is Nintendo, up 21.1% in 2006. Sales of its
handheld console, Nintendo DS, have surpassed all expectations in Japan and look like continuing, following the launch
of a sleeker version the 'Nintendo Lite'. The company's stated intent of broadening its customer base by designing
games that appeal to women and older people seems to be working. This means that the company's 2005 performance is
likely prove better than expected. What is less clear today is whether Nintendo will have the same success in expanding
the markets in the USA and Europe, which traditionally record sales 3 times higher than Japan. It makes the US March
launch of the 'brain teasing' games that have sold so well in Japan over the end of last year so important for the
company, as these were the ones that drove the adult sales. On top of all this Nintendo will launch its new console
with its revolutionary controller this autumn. With so many initiatives ongoing it is perhaps not so surprising that
the shares have been firmer of late, not least because the potential for more success introduces an 'optionality' in
our investment that could have a dramatic effect on cash flows and business value were they to pay off. While we wait
we earn a 2% yield, not bad for a Japanese company, especially one with so much potential.

We initiated a new position in February in Clarins, a family controlled, French cosmetics company with a 50 year
heritage. We have followed the company for some time and regret not taking advantage of the low prices the company
traded at in 2002 and 2003. Nevertheless we accessed an opening position at a market capitalisation 1.7x the company's
sales. We think this, as an initial entry point, could still prove to represent exceptional value. Like other consumer
franchises the cosmetics business benefits from low raw material costs but bears high distribution and marketing
expenses. Clarins' products are distributed worldwide in 123 different countries. The cost of this global reach for a €
1bn sales company is, we suspect, much greater, proportionately, compared with larger quoted competitors, like L'Oreal
or Estee Lauder. This explains Clarins' lower level of profit margin than one might otherwise expect. Despite this, the
global expansion of the brand, which has been ongoing from 1974, is raising awareness, providing a base for growth at
higher margins in years to come, as worldwide market share builds. 60% of Clarins' sales are beauty products
(predominantly skin care and some make-up) and 40% perfumes. The company aims to sell to the high/mid market: high
quality, high efficacy but affordable. As a result of its market positioning, we think Clarins cosmetics products are '
aspirational' in that even though they are expensive, they are affordable to the mass market in search for quality. By
steering away from exclusivity, a characteristic many other cosmetic brands actively seek, the company widens its net
of potential customers. Ageing population profiles in many developed countries provides a helpful demographic
background to sales, a dynamic that has not gone unnoticed by others, including Alan Lafley, the CEO of Proctor and
Gamble, who in a recent FT interview, signalled that the future growth of his company was likely to be dominated by '
beauty', which he defined as a $150bn business growing at 10% per annum. Few consumer businesses have this growth
profile. Actual transactions, as a guide to the value of Clarins in the industry are few and far between. The latest
was Kao's purchase of Kanebo Cosmetics in Japan for 2x sales. Not only was Kanebo an inferior business to Clarins, we
think, but was probably bought from a government agency at a more favourable price that if it had been a successful
independent company, making Clarins at 1.7x much better value. Although the company's dividend yield is only 1.5%, the
dividend has grown an impressive 16.8% per annum over the last 20 years and 11.5% over the last 5 years, illustrating
the favourable growth characteristics of the industry.



Fund Manager                            Launch Date                             Denomination

Nick Train                              22 Jan 2001                             GBP

Year End                                Dividend                                Benchmark

31st Mar                                Ex Date: June                           The annual average yield on the 21/2%
                                        Payment: August                         Consolidated Loan Stock.

The Board                               Management Fees                         Registered Address

Rhoddy Swire                            Standard Fee: 0.65%                     Lindsell Train Investment Trust
Michael Mackenzie                       Performance Fee: 10% of annual increase Springfield Lodge, Colchester Road
Donald Adamson                          in the share price, plus dividend,      Chelmsford
                                        above the gross annual yield of the 2   ESSEX  CM2 5PW
                                        1/2% Consolidated Loan Stock.

ISIN                                    Secretary                               Listing

GB0031977944                            Phoenix Administration Services Limited London Stock Exchange

Bloomberg

LTI LN

Disclaimer
This document is intended for use by persons who are authorised by the UK Financial Services Authority ('FSA')
and those who are permitted to receive such information in the UK. The information contained in this
document does not constitute an offer or invitation to buy or sell any investments. Nothing in this document
constitutes investment, legal, tax or other advice. Lindsell Train and/or persons connected with it may have an
interest in this investment.

The value of any investment in securities or funds and the income generated from them may go down as well as up and are
not guaranteed. Past performance cannot be used as a guide or guarantee of future performance. You may not get back the
original amount you have invested. Changes in foreign exchange rates may cause the value of your investment to go up or
down. Some funds with higher gearing may be subject to higher volatility and the investment value may change
substantially. The net asset value (NAV) performance of an investment trust is not the same as its market share price
performance.

Issued by Lindsell Train Limited
Authorised and regulated by the Financial Services Authority
21 Mar 2006 LTL 000-034-2b

                                                Lindsell Train Limited
                                          35 Thurloe Street, London  SW7 2LQ
                                     Tel. [phone]  Fax. [phone]
                                   [e-mail]  www.lindselltrain.com
                Lindsell Train Limited is authorised and regulated by the Financial Services Authority.





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