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.

2008 AGM PROXY RESULTS
The results of the Proxy Voting held at this years AGM.

The 2½% Consolidated Loan Stock

There are three principal reasons why the annual average gross running yield on the 2½% Consolidated Loan Stock is an appropriate investment benchmark for the Company.

First is the theoretical significance of this yield or interest rate. The 2½% Consolidated Loan Stock (Consol) is an irredeemable United Kingdom Gilt, first issued in 1749. The gilt has no fixed life and there is no promise of redemption at par, or issue price, as is the case with more common, dated gilts. This perpetual characteristic of the Consol means that its yield represents, at any point in time, investors best estimate of the required running nominal yield to at least preserve the purchasing power of Sterling for the foreseeable future, because there is no stated end to the gilt's life.

The annual average yield on the 2½% Consolidated Loan Stock Achievement of benchmark return brings, at a minimum:

- an absolute return
- an annual total return which over the twentieth century has averaged nearly 2.0% more than actual inflation

Achievement of the objective should, at a minimum generate a return that exceeds that required to maintain the real value, in Sterling terms, of the Shareholders capital in the Company over the long term.

The 2½% Consolidated Loan Stock Yield
performance over the 20th Century.

If holders of the Consol did not believe its yield to be high enough to protect purchasing power, they would sell, until the price reached a level and new yield which did satisfy this requirement. Indeed, the price of the Consol has fluctuated widely over its life, particularly during the last 100 years, between a high of £0.98p (giving a yield of 2.53% per annum) and a low of £0.14p (giving a yield of 17.1% per annum) as investor's expectations for very long term trends in United Kingdom inflation have declined and risen.

At a minimum, therefore, if the Company achieves an annual total return in excess of the Consol's annual average yield, it should have delivered an absolute gain in excess of investors long term inflation expectations.

Second, this contention, based on theory, is supported by evidence from financial history. Over the twentieth century, United Kingdom inflation averaged 4.1% per annum (source: ABN-AMRO, The Millennium Book, 2000). Meanwhile, the average yield on the Consol has run out at 5.89% per annum. In other words, the Consol's yield has not only matched long-term inflation, it has exceeded it, by an average of nearly 2.0% per annum.

While there can be no certainty that past patterns of return will be repeated, it is notable that the current annual average gross running yield on the Consol, at 4.7% (Source: Bloomberg), is nearly 2.0% greater than current United Kingdom inflation, calculated at 2.8% to April 2007 (Source: bankofengland.co.uk) , suggesting that the yield continues to more than protect current and long term purchasing power. Investors should note that fluctuations in the value of the Consol mean that the absolute return on the Consol differs from its running yield.

Third, Shareholders should benefit from the adoption of an absolute objective, rather than one aimed at matching the performance of an equity or bond index that could deliver both negative as well as positive returns.

To hold a 25% stake in Lindsell Train Limited

This is the only unquoted investment the company aims to hold. Although it represents a small proportion of the companies starting capital (less than 0.5%), it could, over time, subject to the successful implementation of its business plan, become one of the more important assets of the company.

The business plan adopted by the Investment Manager, of establishing a range of investment funds characterised by absolute return investment objectives and the potential to earn both standard and performance fees, is similar to those of other so-called alternative asset managers. A fixed proportion of the Investment Managers net profits, which could be substantial in years when performance fees are earned, will be paid to the Company as dividends, subject only to the ongoing requirements of the Investment Managers business. Should the business plan be successfully implemented, the value of the Company's holding should appreciate, thus furthering the achievement of the investment objective.

To invest mostly in quoted equities, bonds, cash and other financial instruments
The investment powers of the Company are comprehensive, allowing the use of the widest range of financial assets, including equities, unquoted equities, bonds, cash and other financial instruments. The Company will be empowered to invest globally, with no limitation on the markets or sectors in which investment may be made, though there may be a bias toward Sterling assets, consistent with the Sterling-denominated investment objective. The flexibility implicit in these powers should assist in the achievement of the absolute returns the investment objective requires.

To invest in Lindsell Train Limited products (up to 25% of NAV at cost)
The Company should benefit directly and indirectly from investing in Lindsell Train Fund Products, subject to certain constraints. These constraints are that any investment in a Lindsell Train Fund Product will require the approval of the Board and its acknowledgement that the investment objectives of any fund are appropriate in the context of seeking to achieve the investment objective of the Company. There will be a limit on the proportion of the Company's portfolio that may be committed to such fund products equivalent to 25% of NAV at cost. Periodic management and performance fees otherwise receivable by the Investment Manager from the relevant underlying fund in respect of such investment in a Lindsell Train Fund Product will be waived. In this way, the Company can, if appropriate, access the specialised investment management skills of the Investment Manager. In addition, by providing investment capital to Lindsell Train Fund Products, the Company accelerates the commercial development of the Investment Manager, in which the Company will directly benefit.

"Normal" allocation to equities should be 80%
The Investment Manager expects a normal allocation to equities in the Company will be 80% and that it would be very unusual if it were to fall below 50% However, these percentages are selected empirically, from the previous experience of the Founder Shareholders, and in practice the allocation to equities will be determined by the Investment Manager's ability to identify sufficient opportunities with the potential to beat the benchmark.

Concentrated Equity Portfolio: 8-25 Holdings
The Investment Manager intends to run a highly concentrated equity portfolio, with perhaps as few as eight holdings. A normal number might be fifteen. The reason for this proposed concentration, relative to many investment trusts, is that the Investment Manager believes that risk is reduced in this way. The Investment Manager is risk averse. It sees the greatest risk as the loss of the real value of capital over the long term and the investment policy followed in managing the Company's investment portfolio will seek to avoid this outcome. In this sense of seeking to avoid absolute loss, the policy of portfolio concentration is intended to decrease risk, if it widens, as it should, the required margin of safety the Investment Manager seeks in any potential investment. Otherwise, risk, as often defined in the investment industry, as being that of short term volatility of return, relative to either an index or a peer group of similar funds, is not a concern for the Investment Manager and it will not seek to limit it.

Gearing: Up to 50% of Net Asset
Opportunistic, not structural The Investment Manager will not gear the Company above 50% of its net assets, as an absolute maximum. It intends to use gearing selectively, not structurally. The Directors do not anticipate that there will be permanent debt. Instead, borrowings will be taken out in relation to a specific asset or circumstance. For instance, the Company may borrow against a security when the income return from the security accounts for a high proportion of the cost of the borrowing and when the Investment Manager believes the asset is undervalued or when an arbitrage opportunity offers a likely risk-adjusted return well in excess of the annualised cost of borrowing, for instance in a takeover or a corporate capital reconstruction.

A powerful alignment of interests across the structure created by:

- The Executives' ownership of 10% of The Lindsell Train Investment Trust
- The Trust's ownership of 25% Lindsell Train Limited
- The levying of all fees on the share price, not the net asset value

Access to a London listed absolute return investment product.

Access to a 25% stake in Lindsell Train Limited through an investment in the Lindsell Train Investment Trust.

Shares are available on the London Stock Exchange, please contact your Financial Advisor for various ways to invest.

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