Finsbury Growth & Income

Last updated 15 April 2019

Fund manager Nick Train ignores the benchmark entirely - investing in companies which he believes will perform well...

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This is not substantive investment research or a research recommendation, as it does not constitute substantive research or analysis. With this commentary, Kepler Partners LLP does not intend to influence your investment firm's behaviour. 

Finsbury Growth & Income

Finsbury Growth & Income is a highly-concentrated investment trust with a portfolio of mainly UK stocks, aiming to achieve capital and income growth in excess of that produced by the FTSE All-Share.

Fund manager Nick Train ignores the benchmark entirely - investing in companies which he believes will perform well regardless of their weighting in the index. The trust tends to invest in companies that have been resilient over various cycles and exhibit steady earnings growth over the long term.

He runs a highly-concentrated portfolio which stood at just 22 stocks when last reported in February, and Nick is renowned for his very long-term, low-turnover approach. For example, the most recent addition to the portfolio was Manchester United last summer, and he has only added one other new stock to the portfolio over the past four years. This, along with his focus on high-quality, cash-generative companies with strong franchises means his portfolio is highly differentiated to his peers in the AIC UK Equity Income sector.

Over the past five years (to the end of March) the trust has delivered an NAV return of 78.9%, beating the AIC UK Equity Income sector by 44.5%and more than doubling the returns of the FTSE All Share. The trust’s returns over the longer term have been equally as strong, with it having beaten the index in nine of the past ten calendar years.

The trust is known for trading at a slight premium to par, however, in recent times we have seen this gap narrow. At the time of writing the premium is just 0.2%, relative to the three year historical average of 0.6%.

William Sobczak
William joined Kepler Partners in February 2018 as an investment trust analyst. Prior to joining, William graduated from the University of Western Australia, with a BSc in Psychology.

Fund History

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Key facts

Investment objective

To achieve capital and income growth and providing a total return in excess of that ofits benchmark, the FTSE All-Share Index (net dividends reinvested).

As at:

09/04/2019

Group/Investment

Finsbury Growth and Income

Ticker

FGT

Management Company

Lindsell Train

Manager Name

Nick Train

Association of Investment Companies (AIC) Sector

UK Equity Income

12 Mo Yield

1.86%

Dividend Distribution Frequency

Semi-Annually

Latest Market Capitalisation

£1,586,813,197

Latest Net Gearing (Cum Fair)

2%

Latest Ongoing Charge Ex Perf Fee %

0.7%

Shares Outstanding

188,731,712

(Discount)/ Premium % (Cum Fair)

0.4

Daily Closing Price

8.41p

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