Finsbury Growth & Income Trust
Train puts his money where his mouth is
14 May 2024
Finsbury Growth & Income Trust (FGT) has been managed by Lindsell Train since the beginning of 2001. During his long tenure, approaching a quarter of a century, lead manager Nick Train has steadily acquired a significant 2.9% personal holding in the trust, which is a considerable amount of ‘skin in the game’. From the beginning of 2001 until the end of 2023, FGT’s 9.0% annual NAV total return was comfortably ahead of the UK market’s 5.1% annual total return. However, Train and deputy manager Madeline Wright, who was appointed in 2019, have underperformed for the last three years. The managers will continue with their successful long-term strategy of running a concentrated portfolio; Train’s philosophy is that wealth creation requires a concentrated approach, while diversification is necessary for wealth protection. MORE »
Looking forward to improved relative performance
15 February 2024
Finsbury Growth & Income Trust (FGT) has been managed by Nick Train since the beginning of 2001 and in 2019 Madeline Wright was appointed as the trust’s deputy portfolio manager. Despite an impressive long-term record – during Train’s tenure to the end of 2023, FGT’s NAV generated a 9.0% annual total return versus the UK market’s 5.1% annual total return – there have now been three consecutive years of underperformance. The managers will continue to employ the long-term successful strategy of running a concentrated fund, investing in quality growth businesses, with high returns and low capital intensity, which can thrive throughout the economic cycle. Train and Wright believe that the market will reward FGT’s shareholders over time. Portfolio names change infrequently in keeping with the fund’s very low turnover, but in September 2023, property platform Rightmove entered the portfolio; this was the first new holding since 2020. MORE »
Sticking to the successful long-term strategy
8 June 2021
Finsbury Growth & Income Trust (FGT) is managed by Nick Train, one of the founding partners of boutique investment firm Lindsell Train. He is optimistic on the current outlook for UK equities, all the more so given several years of relative underperformance; in particular, the manager believes that global investors are underestimating the level of technological innovation within the UK corporate sector. While FGT’s relative performance has lagged that of its peers and the UK market in recent months, a period that followed positive COVID-19 vaccine news last November, Train has a very commendable long-term record. This has been achieved by following a buy-and-hold strategy, focusing on specific sectors and a select number of companies that he believes have superior long-term earnings and dividend growth potential as a result of their unique brands and franchises. MORE »
‘Perfectly rational to do nothing if you are unsure’
26 January 2021
Finsbury Growth & Income Trust (FGT) is celebrating its 20th anniversary under the management of Nick Train. While underperforming in recent months, the trust is ahead of the broad UK market over the last one, three, five and 10 years. Stock market volatility in 2020 afforded the manager an opportunity to add another new name to the fund, credit bureau Experian, which he considers a rare example of a globally significant UK company that is benefiting from the optimisation of its vast database. Train is sticking to his tried-and-tested process that incorporates three rules of thumb: ‘if a company’s products taste good, buy the shares; the world will never be bored of being informed or entertained; and the pros are always too cautious about the stock market’. MORE »
Another new addition to the fund – Fever-Tree
9 June 2020
Finsbury Growth & Income Trust (FGT) has been managed by Nick Train since January 2001. Given the economic uncertainty due to the global COVID-19 pandemic, he stresses the importance of determining which companies will survive and thrive, and which could ultimately fail. The manager also seeks to invest in firms that can take advantage of the upsurge in digital and software services, as technology is advancing at an accelerating pace. While Train rarely initiates new holdings in the fund, in recent months he has added a position in premium mixer producer Fever-Tree, taking advantage of a significant pullback in its share price. FGT has a very strong performance record and has outpaced the broad UK market over the last one, three, five and 10 years. MORE »
PZ Cussons is first new UK holding since 2010
30 January 2020
Finsbury Growth & Income Trust (FGT) has been managed by Nick Train since the beginning of 2001. He has a reputation for investing with a long-term view, willing to take the ups and downs in performance, primarily in consumer branded goods companies. However, the manager is keen to stress that FGT also has important holdings in other businesses with strong franchises and brands, whose shares may be more volatile. Of note, the trust’s three best-performing stocks in 2019 were not consumer goods companies – London Stock Exchange (+91%), Daily Mail & General Trust (+48%) and Schroders (+36%). Despite a pullback in relative performance in recent months as UK stocks with domestic operations have rallied due to a less uncertain political backdrop, FGT has outperformed the FTSE All-Share Index over the last one, three, five and 10 years. MORE »
A further step-up in performance
13 June 2019
Finsbury Growth & Income Trust (FGT) has been managed by Nick Train since 2001. His strategy of running a highly concentrated portfolio (currently 20 names) – focused on just three business areas – has proved to be very successful, as illustrated in the 10-year relative NAV chart below. FGT has outperformed the FTSE All-Share Index over the last one, three, five and 10 years, helped by a recent step-up in capital appreciation, and has outpaced the performance of all of its larger-cap peers in the AIC UK Equity Income sector over these periods. Train remains optimistic about the outlook for selected UK equities, focusing on high-quality companies that can grow regardless of the stage of the economic cycle. MORE »
Strong record of capital and dividend growth
10 December 2018
Finsbury Growth & Income Trust (FGT) has a distinguished track record of outperformance – its NAV total returns are above those of the FTSE All-Share index benchmark over one, three, five and 10 years. It also ranks first over these periods when comparing its performance with that of its 10 larger-cap peers in the AIC UK Equity Income sector. Manager Nick Train highlights the trust’s 7.7% dividend growth in FY18, which was fully covered by revenue. He says this growth rate is very encouraging compared to the much lower levels of UK inflation and interest rates, and illustrates the strong cash flow being generated by portfolio companies, which he argues should continue to support FGT’s annual distributions. MORE »
Adding to positive performance track record
10 May 2018
Finsbury Growth & Income Trust (FGT) is managed by Nick Train, who runs a concentrated portfolio of primarily UK equities, aiming to generate long-term capital and income growth. A key feature is the trust’s low portfolio turnover – initiating a new holding or a complete disposal of a position happens very infrequently. FGT is invested in just four out of 10 sectors of its benchmark FTSE All-Share index. Shareholders have benefited from the manager’s focused, long-term investment approach, with the trust having significantly outperformed its benchmark over the last one, three, five and 10 years. Train remains optimistic on the outlook for FGT’s portfolio companies and has been taking advantage of individual share price pullbacks, adding to some of his largest positions, such as Burberry. MORE »
Adding to positive performance track record
10 May 2018
Finsbury Growth & Income Trust (FGT) is managed by Nick Train, who runs a concentrated portfolio of primarily UK equities, aiming to generate long-term capital and income growth. A key feature is the trust’s low portfolio turnover – initiating a new holding or a complete disposal of a position happens very infrequently. FGT is invested in just four out of 10 sectors of its benchmark FTSE All-Share index. Shareholders have benefited from the manager’s focused, long-term investment approach, with the trust having significantly outperformed its benchmark over the last one, three, five and 10 years. Train remains optimistic on the outlook for FGT’s portfolio companies and has been taking advantage of individual share price pullbacks, adding to some of his largest positions, such as Burberry. MORE »
Glory, glory, Man United
16 November 2017
Finsbury Growth & Income Trust (FGT) aims to generate long-term capital and income growth from a concentrated portfolio of primarily UK equities. Manager Nick Train has recently initiated a position in Manchester United, which is FGT’s first new holding since 2015. He believes that the football club has a very strong and valuable franchise, along with a history of generating positive returns for shareholders. FGT has a long-term track record of outperformance versus its FTSE All-Share index benchmark, with higher returns over the last one, three, five and 10 years. The trust has a progressive dividend policy; the FY17 dividend was 8.4% higher than in FY16, despite a meaningful dividend cut at portfolio company Pearson. MORE »
Performance record remains intact
9 May 2017
Finsbury Growth & Income Trust (FGT) has been managed by Nick Train since 2000; he runs a concentrated portfolio of 25-30 primarily UK equities, aiming to generate growth in capital and income. Despite a period of underperformance in CY16, as result of the outperformance of cyclical companies where FGT has minimal exposure, its performance track record remains intact. It has outperformed its benchmark, the FTSE All-Share index, over one, three, five and 10 years. FGT has a progressive dividend policy and the 2016 annual dividend was increased by 8.3% versus the prior year. As a result of continued capital appreciation and investor demand, FGT’s assets under management now exceed £1bn. MORE »
Highly concentrated portfolio, strong performance
26 October 2016
Finsbury Growth & Income Trust (FGT) aims to generate long-term growth in capital and income from a concentrated portfolio of primarily UK equities, which are held for the long term. FGT is benchmarked against the FTSE All-Share index, but is not constrained by its composition; c 70% of the portfolio is invested in consumer stocks. The trust has a progressive dividend policy and annual dividends have compounded by 6.9% pa since FY11; the current dividend yield is 2.0%. FGT has outperformed its peers and the benchmark over one, three, five and 10 years. Strong investor demand along with capital appreciation means the size of the trust has grown significantly; assets under management now approach £1bn. MORE »
Outperformance from a concentrated portfolio
29 March 2016
Finsbury Growth & Income Trust (FGT) is a concentrated portfolio of 25-30 stocks chosen for their quality and potential for long-term growth in total return. Turnover is very low; the last complete disposal was in 2013 and the purchase of Remy Cointreau in 2015 was the first new position in the portfolio for more than four years. Performance has been very strong; FGT has outperformed the peer-group average over one, three, five and 10 years. Although not targeting a high income, FGT has a progressive dividend policy and the 2015 dividend was increased by 7.1%. MORE »
A measure of optimism (and one of cognac)
9 October 2015
Finsbury Growth & Income Trust (FGT) is a focused portfolio of 25-30 stocks, mainly large cap and focused on the UK, although up to 20% at the time of acquisition (currently c 18%) may be held in overseas companies. Manager Nick Train is known for his long-term, low-turnover approach; the last complete exit from the portfolio was in 2013 and until the recent purchase of Rémy Cointreau, no new stocks had been bought since 2011. Long-term performance has been strong, with NAV and share price total returns in excess of 10% a year over 10 years, and the trust is ranked in the top quartile of its peer group over one, three, five and 10 years. MORE »
A short stock list with a long investment horizon
22 January 2015
Finsbury Growth & Income Trust (FGT) is a concentrated portfolio of mainly UK stocks chosen for their enduring quality and total return potential. Manager Nick Train takes a very long-term view and has made no new purchases or full exits in the past year, although significant share issuance has allowed him to top up holdings in certain stocks. While not targeting a high income, the trust increased its dividend by 7.6% in FY14. Performance has been strong and FGT is ranked first for NAV total return over five and 10 years in the AIC’s UK Equity Income sector. MORE »
A concentrated portfolio with a convincing record
12 June 2014
Finsbury Growth & Income Trust (FGT) is differentiated by its concentrated portfolio, low turnover (c 6% a year over 13 years) and strong long-term record of outperformance. Manager Nick Train looks to buy mainly UK companies with strong brands and intellectual property, and hold them for the very long term to achieve growth in both capital and income. The trust has increased in size significantly over the past three years, with an active programme of share issuance to manage the premium to net asset value. MORE »
Another good year for FGT
21 January 2014
2013 was another strong year for Finsbury Growth & Income Trust (FGT) building on its successful long-term record; over the year NAV total return was 35.1% versus the FTSE All-Share benchmark return of 20.8% (10 years 292.3% versus 131.6%). Investor demand has seen the trust issue £70.3m of new shares during the year to manage the premium to NAV (average during the year 1.3%). This has provided cash flow to gradually increase holdings in the trust's media and telecom investments, while allowing weightings in FGT's more market-sensitive financial sector investments, strong performers over the past year, to naturally reduce. MORE »
Consistent long-term outperformance
20 May 2013
Finsbury Growth & Income Trust (FGT) maintains a relatively concentrated portfolio of 25-30 stocks, with a focus on well-managed businesses with strong franchises. FGT has an experienced management team, which uses a bottom-up strategy to select positions that are held for the long term (turnover is just over 6% per year). It is moderately geared, aims to provide an above-average dividend yield, and its strong record of outperformance has continued during the last year. During the last 10 years, FGT has outperformed its benchmark, the FTSE All-Share, by 159.6% and 227.7% in terms of NAV and share price total return respectively. MORE »
