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After nearly 25 years running a concentrated, buy\u2011and\u2011hold Finsbury Growth & Income Trust, Nick Train faces board scrutiny following years of lagging returns. He has modestly increased his stake and shifted the portfolio from consumer brands towards data\u2011rich, analytics and AI\u2011exposed London listings such as RELX, LSEG and Experian, arguing the pivot offers a route back to outperformance even as the trust trades at a modest discount to NAV.<\/p>\n<\/div>\n
For almost a quarter of a century Nick Train has run the Finsbury Growth & Income Trust as a concentrated, buy\u2011and\u2011hold vehicle built around a relatively small group of high\u2011quality 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\u2019s recent regulatory disclosures, that period of underperformance has prompted closer scrutiny from the board even as managers and directors stress a long\u2011term focus.
(Reference: Daily Mail; AIC half\u2011year announcement.)<\/p>\n
The gulf between headline market moves and Finsbury\u2019s returns is stark. While the FTSE 100 has staged a recovery this year, the trust\u2019s share price total return has lagged materially \u2014 market commentary places year\u2011to\u2011date returns for the FTSE well ahead of Finsbury\u2019s roughly flat performance, and third\u2011party factsheets show the trust\u2019s one\u2011year return at around 9.7%, five\u2011year at roughly 15.8% and a stronger ten\u2011year result approaching c.90% \u2014 figures that underscore both recent pain and longer\u2011term 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.)<\/p>\n
Train says the answer has not been to abandon the approach that produced those longer\u2011term gains. Speaking to the Daily Mail he described the past few years as \u201cno fun underperforming\u201d and said the team has \u201cstuck to a clear set of principles\u201d, invoking the concentrated, high\u2011conviction style influenced by Warren Buffett that remains at the heart of Finsbury\u2019s 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.)<\/p>\n
Crucially, Train argues the portfolio has quietly shifted its shape. Where consumer brands once dominated, he has increased exposure to London\u2011listed businesses that own proprietary data and analytics capabilities \u2014 companies he believes are well placed to monetise advances in artificial intelligence. \u201cIf you look at the shape of Finsbury\u2019s portfolio over the past four or five years, there has definitely been a shift towards these London\u2011listed data and data analytics software companies,\u201d 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\u2011data and information businesses.
(Reference: Daily Mail; Shares Magazine.)<\/p>\n
The poster child for that repositioning is RELX (formerly Reed Elsevier). Train highlights RELX\u2019s evolution from a mid\u2011cap to one of the largest FTSE constituents and cites early returns from legal AI tools as evidence of scalable monetisation. Vendor\u2011commissioned studies cited by RELX\u2019s legal\u2011information 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\u2011centric holdings such as LSEG, Experian and Sage among the largest positions.
(Reference: Daily Mail; LexisNexis\/Forrester studies; MarketScreener factsheet.)<\/p>\n
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 \u2014 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.)<\/p>\n
From a shareholder perspective the trust presents a mixed picture. Ongoing charges run at about 0.6% and the trust\u2019s 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\u2019s half\u2011year report flags the performance shortfall versus the FTSE All\u2011Share, notes share buy\u2011backs have been used to support the market and emphasises that directors continue to hold the manager to account while backing the longer\u2011term strategy. That combination of oversight and active balance\u2011sheet management is intended to reassure investors that governance is not being neglected during a difficult patch.
(Reference: Daily Mail; AIC half\u2011year announcement; MarketScreener factsheet.)<\/p>\n
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\u2011rich, analytics\u2011heavy UK companies \u2014 and the argument that a subset of London\u2011listed businesses can capture value from the AI cycle \u2014 gives Train a plausible path back to outperformance if execution and market sentiment align. For investors the choice is therefore between backing a long\u2011standing 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.)<\/p>\n