The Lemon Fool

Why is FG&I so highly rated by some pundits on certain investment websites? Is it because the manager Nick Train talks a good game? I have held it for some years now, but looking at the AIC stats it has had total returns for the past 5, 3 and 1 years of 70%, 23% and 21%. The comparison figures for Foreign & Colonial are 111%, 39% and 41%. For Bankers (another big international trust) the comparative figures are 116%, 44% and 34%. I shall hold for the time being to see if Nick Train is right that all his big international drinks companies become spectacularly profitable as people start eating and drinking out when the pandemic recedes. But I think this trust is a good example of one that is living off its past reputation, hoping that people don't notice that it has gone off the boil.

Not quite comparing like with like. FGT is a U.K. equity trust and U.K. equities have underperformed global equities for the past 5 years.

Furthermore, every successful investment has its place in the sun. I would rather be with Nick Train than a number of other investment managers.As always it depends on your timescale. There is I think nothing wrong with F G & T's style and long term outlook.

Dod

Not that I have any axe to grind here (I hold both Finsbury and FCIT), but comparing Lindsell Train's Global Equity Fund with FCIT shows that the LT Fund has returned 126% over 5yrs vs 109% for FCIT. That's a fairer like with like comparison.

Comparing FGT to the rest of the UK sector, instead of global over the last five sorry years shows a different picture.
It performed well in its peer group and imo is well placed to benefit from any recovery.
I believe it is allowed to be 30% non UK. A shame it is not more.

Avantegarde wrote: But I think this trust is a good example of one that is living off its past reputation, hoping that people don't notice that it has gone off the boil.

An interesting POV - aren't they all doing something similar?

Anyhow, everything comes and goes, ebbs and flows. I can remember people pointing the finger at the other trusts you mention for being old, staid and under-performing. There isn't a month that goes by without someone pointing out "hey! I've found something with go-faster stripes! - much better than the old model."

After so many decades investing, I sorry to say I have become tired of trying to secondguess, and I've grown more patient of temporary set backs. From my POV in terms of TR it is the second best IT I have at present (the first is 3IN which some people wouldn't count) so I couldn't possibly rule out holding on to it through a bad patch, or jump into something which has done well but may slow down. Don't misunderstand - I'm not saying we shouldn't care or try to improve by culling the dogs, but we need to be very careful about how we do it because you may only get it right half the time or less.

In a wider sense, it seemed likely that the UK was not going to be the best place to invest until Brexit is properly sorted, so like others I have been bolstering some other regions. That does not mean that FGT is a dead duck - I believe far from it.
Just consider this: if it's having a relatively poor period, isn't that the time to invest? Or to put it another way, how many times have we looked at a chart of a share which has done well recently, and thought (looking back) if only I had invested then? - that is, at the point where the shares had dropped out of favour and everyone was making snide remarks.

Arb.

Edison has just released a report on Finsbury Growth and Income, free to all with no registration. Bear in mind that it is paid for research.

https://www.edisongroup.com/publication/hopeful-for-better-relative-uk-market-performance/30955/

Finsbury is my third largest investment trust holding, behind Caledonia and Foreign & Colonial.

If you are interested in the research on ICs we have a dedicated tab with links that go directly to the research for each company. So your example is here https://www.theaic.co.uk/companydata/0P ... G/research

After the summer we will also build a page that allows one to see all research handily in one place. Sortable by company, data, research provider etc.

Don't say I never give you anything

https://citywire.com/investment-trust-i ... efea=91468

"Fund managers Nick Train and Michael Lindsell have committed to work for another seven years"

Two RNS announcements today showing Nick Train is still eating his own cooking. He bought 27,000 shares @ 799p this morning.

DavidM13 wrote:If you are interested in the research on ICs we have a dedicated tab with links that go directly to the research for each company. So your example is here https://www.theaic.co.uk/companydata/0P ... G/research

After the summer we will also build a page that allows one to see all research handily in one place. Sortable by company, data, research provider etc.

Don't say I never give you anything

here you go. Lots of 3rd party research for ICs all in one place https://www.theaic.co.uk/research-tools ... y-research

For those interested in FGT, I note Nick Train has just bought 25000 more shares (at an average price of 856p):

https://www.investegate.co.uk/finsbury- ... 2517P1BE3/

It's 1-2p cheaper today.

(I don't currently hold FGT mainly due to its low dividend yield and his stubborn commitment to Pearson some years back, though I have held it in the past).

richfool wrote:For those interested in FGT, I note Nick Train has just bought 25000 more shares (at an average price of 856p):

https://www.investegate.co.uk/finsbury- ... 2517P1BE3/

It's 1-2p cheaper today.

(I don't currently hold FGT mainly due to its low dividend yield and his stubborn commitment to Pearson some years back, though I have held it in the past).

And he now has over £40M invested in the IT

richfool wrote:I don't currently hold FGT mainly due to its low dividend yield . .

Conversely FGT is the only mainstream IT I hold that invests in the UK. And it is its low'ish yield that attracts me as I am suspicious of funds that are constrained to only high yielding shares.

I also hold LTI which is a growthier version, for its share in the underlying fund management business. That yields 5% if that is your thing, although I assume that most of that is the company paying out its profits to the partners.

FGT is one of my (non) growth shares. I am hoping for better things this year.

Dod

Lootman wrote:

richfool wrote:I don't currently hold FGT mainly due to its low dividend yield . .

Conversely FGT is the only mainstream IT I hold that invests in the UK. And it is its low'ish yield that attracts me as I am suspicious of funds that are constrained to only high yielding shares.

I also hold LTI which is a growthier version, for its share in the underlying fund management business. That yields 5% if that is your thing, although I assume that most of that is the company paying out its profits to the partners.

Don't get me wrong I am not against holding FGT., but I have been trying to minimise the number of IT's I hold, to avoid incurring Dod's displeasure or adverse comments.

DIG which I do hold has some overlap with holdings with FGT.

richfool wrote:Don't get me wrong I am not against holding FGT., but I have been trying to minimise the number of IT's I hold, to avoid incurring Dod's displeasure or adverse comments.

For the wrath of Dod is fearsome to behold!

UncleEbenezer wrote:

richfool wrote:Don't get me wrong I am not against holding FGT., but I have been trying to minimise the number of IT's I hold, to avoid incurring Dod's displeasure or adverse comments.

For the wrath of Dod is fearsome to behold!

Not wrath, but I do believe in holding strong views when 8mvesting. Nothing to say they need be correct though.

Dod

Interview with Mr Train. 31-03-2023.

https://www.investorschronicle.co.uk/po ... ick-train/

Or

https://shows.acast.com/a4c5de36-8260-4 ... 0012904cf5


"Dave Baxter welcomes back popular UK equity manager Nick Train to The IC Interviews. Best known for co-founding Lindsell Train Ltd and running its UK Equity, Global Equity funds and the Finsbury Growth and Income Trust, Nick is a household name when it comes to picking UK stocks.

In this episode, Nick shares his thoughts on the state of the UK equity market, British luxury designer Burberry, the events that would lead him to sell a holding and more."


(I had a little bit of a problem with the link ( 404 error). If the first link doesn't work, please try the second)

monabri wrote:Interview with Mr Train. 31-03-2023.

https://www.investorschronicle.co.uk/po ... ick-train/

Thanks, monabri. I bought some more FGT on Friday at 790p - the discount to NAV was just too high to resist. I noticed Nick Train mentioned starting a new position in a data rich FTSE100 company in the interview; so not many suspects! I can only think of three such FTSE100 companies: Rightmove, Auto Trader, or possibly Intertek, that meet his usual investment criteria. I’ve heard him declare interest in Smith & Nephew in the past but that wouldn’t appear to meet that brief.

All the best, Si