Profile: Finsbury Growth & Income

Published by Moira O'Neill on 12 October 2016.
Last updated on 01 November 2017

Finsbury Growth and Income is a member of Moneywise’s First 50 Funds for beginners. To find out more about investment trusts and how they work read our guide: Understanding investment trusts.

Finsbury Growth & Income (FGT)

AIC sector: UK Equity Income
Objective: To achieve capital and income growth and to provide shareholders with a total return in excess of that of the FTSE All-Share Index.
Ongoing charge: 0.74%
Yield: 2%

The fund manager of Finsbury Growth & Income, Nick Train, bases his investment approach on iconic investor Warren Buffett’s philosophy.

Warren Buffett famously said: “When we own portfolios of outstanding businesses with outstanding managements, our favourite holding period is for ever.” For more about the investment guru, read Who is Warren Buffett?

Mr Train aims to buy good companies listed on the London Stock Exchange and hold them indefinitely.

A big theme in his investment philosophy is consumer branded goods companies, such as Unilever and Diageo (his top holdings in the portfolio), which provide predictable cash flows and some protection against inflation.

He runs a concentrated portfolio of around 30 stocks, which is much fewer than other fund managers, and his long-term approach means that turnover is extremely low. He doesn’t buy very often – when he bought Remy Cointreau in 2015, it was his first new holding in four years. His most recent purchase is Manchester United (MANU) football club in September, buying a block of shares directly from majority owners, the Glazer family. He does not take general economic and political developments into account as he says they eventually wash through.

*Information on fees and holdings correct as at 19 October 2017.

Read more about Finsbury Growth & Income

See up to date information on performance and holdings on the Finsbury Growth & Income factsheet.

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