London, UK, 30 May 2022
Edison issues review on Finsbury Growth & Income Trust (FGT)
Finsbury Growth & Income Trust (FGT) is managed by Nick Train, one of the founding partners of boutique investment firm Lindsell Train. While he is disappointed by the fund's underperformance over the last 18 months, the manager emphasises that when things improve, it will not be due to a change in strategy or in the top positions, which all have multi-year holding periods. Train believes that there is potential for a relative catch-up by UK stocks given their significant underperformance compared with US and global indices, and the fact that the UK is home to a number of leading worldwide businesses that trade at a discount to their global peers.
Typically, over the last decade, FGT's shares have generally traded close to the fund's NAV (in normal market conditions) helped by an active programme of share issuance and repurchases. However, following an 18-month period of relative underperformance, the trust's shares are currently trading at a 6.3% discount to cum-income NAV. This may be an opportune time for investors to revisit a fund that has a clearly defined strategy of investing in high-quality growth stocks, especially given the manager's very creditable long-term history of outperformance versus the broad UK and other developed markets.
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