Finsbury Growth & Income
Company Notes
Concentrated portfolio focused on strong brands
Finsbury Growth & Income* invests in the shares of predominantly UK-listed companies, with the objective of achieving capital and income growth. Lindsell Train was appointed as Investment Manager of the fund in December 2000, since which time Nick Train has been its sole portfolio manager. Nick Train’s investment approach involves building a concentrated portfolio of up to 30 ‘quality’ companies that have strong brands and/or powerful market franchises. Holdings in PZ Cussons and Fevertree Drinks have recently been initiated, which both have the key characteristics that the manager looks for in an investment.
The fund’s performance record under Nick Train is very strong, with the NAV up 498% on a total return basis compared with a return of 141% for the fund’s benchmark, the FTSE All Share Index. Furthermore, within the UK Equity Income peer group, Finsbury Growth & Income has the strongest track-record over the last three, five and ten years. In recent weeks the fund’s performance has been impacted in the Coronavirus-related market sell-off by falls in the share prices of a number of portfolio companies exposed to Asia and luxury spending, such as Burberry, Remy Cointreau and Diageo. However, the manager took advantage of the panic to add to each of these holdings.
The fund pays semi-annual dividends and has delivered annualised dividend growth of 5.7% over the last ten years to 30 September 2019. The total dividend of 16.6p declared in respect of the 2019 financial year represents a dividend yield of 2.0% on the current share price.
*Denotes a corporate broking client of Winterflood Securities
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