Finsbury Growth & Income Trust Plc

UK Growth

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
Name
Finsbury Growth & Income Trust Plc
Manager
Lindsell Train Ltd
Type
Closed Ended Investment Company
ISIN
GB0007816068
Sector
UK Equity Income
Launched
15/01/1926
OCF
0.66 %
Risk Rating
1
3 Year Sharpe
0.45
3 Year Alpha
7.01
Yield
2.1 %
Benchmark
FTSE AllSh TR GBP
Fund Size
£ 1.79 billion
NAV
821
Gearing
101
Discount Premium
0
The company aims to achieve capital and growth and to provide shareholders with a total return in excess of that of the FTSE All-Share Index (the benchmark of the company). The company aims to invest principally in the securities of companies, whilst up to a maximum of 20% of the portfolio, at the time of acquisition, can be invested in quoted companies worldwide. It is company policy to invest no more than 15% of its GA in other closed ended investment companies (including investment trusts).
Holding %
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 %
Region %
United Kingdom 82.87 %
United States 8.97 %
Eurozone 8.11 %
Sector %
Consumer Defensive 38.05 %
Financial Services 29.80 %
Communication Services 14.89 %
Consumer Cyclical 10.73 %
Technology 6.52 %
Name
Lindsell Train Ltd
Address
SW1E 6AU, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Nick Train
Joined 12/11/2000

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.

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