Finsbury Growth & Income Trust Plc
Rated Fund 2013-17, 2020. A concentrated portfolio of established companies
Finsbury Growth & Income sits in the UK Equity Income investment trust sector and was named Best UK Income Trust in Money Observer's 2019 investment trust awards. However, we hesitated in giving it this title due to its yield of 1.9% being less than half the sector average. It is for that reason that we have decided to add it to the UK Growth asset group of our Rated Funds for 2020.
It is one of Morningstar's highest-conviction picks in UK equity investing, with a gold analyst rating. Charles Stanley also likes the trust, with analyst Rob Morgan deeming it the best way to access the skills of well-known fund manager Nick Train. He believes we are experiencing a golden period for equity investing and expects growing UK companies to be strong share price performers in 2020 and beyond. He has been sole manager of the trust since 2000 and has focused on an increasingly concentrated portfolio of mainly UK companies, many of which he has held for at least 10 years. The trust has just 23 holdings, with the top 10 accounting for 83% of assets at the end of 2019.
Consumer goods multinationals such as Diageo and Unilever accounted for 46%, financials such as London Stock Exchange and Schroders for 28% and consumer services such as publisher Relx for 20%. Sage Group was its only technology holding, but Train strives to ensure his holdings capitalise on technological advances rather than being undermined by them. He cites Burberry, Hargreaves Lansdown and Relx as examples of companies that have harnessed digital to reach more customers. A zero-discount control mechanism ensures the trust's shares typically trade around the value of its assets.
Narrative and ratings content all as of January 2020.See all Money Observer rated funds
|London Stock Exchange Group PLC||11.47 %|
|RELX PLC||10.78 %|
|Unilever PLC||9.80 %|
|Diageo PLC||9.43 %|
|Mondelez International Inc Class A||8.87 %|
|Burberry Group PLC||7.71 %|
|Schroders PLC||7.43 %|
|Hargreaves Lansdown PLC||6.67 %|
|Sage Group (The) PLC||6.47 %|
|Heineken Holding NV||5.20 %|
|United Kingdom||82.87 %|
|United States||8.97 %|
|Consumer Defensive||38.05 %|
|Financial Services||29.80 %|
|Communication Services||14.89 %|
|Consumer Cyclical||10.73 %|
Nick Train co-founded Lindsell Train Limited in 2000. He is the portfolio manager for UK equity portfolios and jointly manages Global portfolios. Before founding Lindsell Train he was head of Global Equities at M&G Investment Management, having joined there in 1998 as a director. Previously he spent 17 years (1981 – 1998) at GT Management which he left soon after its acquisition by Invesco. At his resignation he was a director of GT Management (London), Investment Director of GT Unit Managers and Chief Investment Officer for Pan-Europe. Nick has a BA honours degree in Modern History from Queen’s College, Oxford.
Data provided by Morningstar.
The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.
This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.
You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.