For almost a quarter of a century Nick Train has run the Finsbury Growth & Income Trust as a concentrated, buy‑and‑hold vehicle built around a relatively small group of high‑quality UK names. Yet the strategy that once reliably outpaced the market has struggled since the pandemic: the trust last beat the market in 2020, when its shares fell 0.7% in a year the UK market plunged some 11.6%. According to the trust’s recent regulatory disclosures, that period of underperformance has prompted closer scrutiny from the board even as managers and directors stress a long‑term focus.
(Reference: Daily Mail; AIC half‑year announcement.)

The gulf between headline market moves and Finsbury’s returns is stark. While the FTSE 100 has staged a recovery this year, the trust’s share price total return has lagged materially — market commentary places year‑to‑date returns for the FTSE well ahead of Finsbury’s roughly flat performance, and third‑party factsheets show the trust’s one‑year return at around 9.7%, five‑year at roughly 15.8% and a stronger ten‑year result approaching c.90% — figures that underscore both recent pain and longer‑term resilience. Independent snapshots also show the trust trading at a discount to net asset value in the high single digits.
(Reference: Daily Mail; MarketScreener factsheet; AIC announcement.)

Train says the answer has not been to abandon the approach that produced those longer‑term gains. Speaking to the Daily Mail he described the past few years as “no fun underperforming” and said the team has “stuck to a clear set of principles”, invoking the concentrated, high‑conviction style influenced by Warren Buffett that remains at the heart of Finsbury’s philosophy. Journalists covering the trust also note Train has modestly increased his own holding, a signal the manager is backing his convictions.
(Reference: Daily Mail; Shares Magazine.)

Crucially, Train argues the portfolio has quietly shifted its shape. Where consumer brands once dominated, he has increased exposure to London‑listed businesses that own proprietary data and analytics capabilities — companies he believes are well placed to monetise advances in artificial intelligence. “If you look at the shape of Finsbury’s portfolio over the past four or five years, there has definitely been a shift towards these London‑listed data and data analytics software companies,” he told the Daily Mail, adding that he sees both an earnings and valuation opportunity in that pivot. Independent coverage of the trust records a reduction in exposure to traditional consumer names in favour of financial‑data and information businesses.
(Reference: Daily Mail; Shares Magazine.)

The poster child for that repositioning is RELX (formerly Reed Elsevier). Train highlights RELX’s evolution from a mid‑cap to one of the largest FTSE constituents and cites early returns from legal AI tools as evidence of scalable monetisation. Vendor‑commissioned studies cited by RELX’s legal‑information arm report very large returns on investment for early adopters of legal AI, though those studies are commercial pieces and their findings should be viewed in that context. Factsheets and regulatory commentary from the trust also list other information‑centric holdings such as LSEG, Experian and Sage among the largest positions.
(Reference: Daily Mail; LexisNexis/Forrester studies; MarketScreener factsheet.)

Train has also been prepared to make the occasional new purchase where he sees a durable franchise combined with technology or data advantages. Late in 2024 he added Clarkson, the global shipbroker, and Intertek, the testing and assurance group, to his UK portfolios — rare new buys for a manager known for concentrated holdings. The trades were disclosed in company factsheets and were explained as opportunistic purchases to exploit price falls while acquiring businesses with transaction data or regulatory exposure that can be enhanced by technology.
(Reference: AIC industry report; Shares Magazine.)

From a shareholder perspective the trust presents a mixed picture. Ongoing charges run at about 0.6% and the trust’s shares have been trading at a discount to net asset value in the high single digits, providing a potential entry point for new investors. The board’s half‑year report flags the performance shortfall versus the FTSE All‑Share, notes share buy‑backs have been used to support the market and emphasises that directors continue to hold the manager to account while backing the longer‑term strategy. That combination of oversight and active balance‑sheet management is intended to reassure investors that governance is not being neglected during a difficult patch.
(Reference: Daily Mail; AIC half‑year announcement; MarketScreener factsheet.)

The rearview and the road ahead tell different stories. Past underperformance is real and has forced a period of uncomfortable reflection for a manager whose style relies on concentration and conviction. Yet the strategic tilt towards data‑rich, analytics‑heavy UK companies — and the argument that a subset of London‑listed businesses can capture value from the AI cycle — gives Train a plausible path back to outperformance if execution and market sentiment align. For investors the choice is therefore between backing a long‑standing manager through a cyclical trough, with a modest discount and active board oversight, or reallocating to managers whose recent rhythm matches the current market more closely.
(Reference: AIC announcement; Shares Magazine; MarketScreener factsheet.)

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Source: Noah Wire Services