Nick Train's flagship trust underperformed with Burberry, Remy Cointreau, and Schroders dragging down performance

From Morningstar: 2024-05-29 05:23:00

Star UK equities manager Nick Train is disappointed with the performance of his Finsbury Growth & Income Trust, blaming Burberry, Remy Cointreau, and Schroders. The trust’s net asset value total return is 5.9%, lower than the FTSE All Share Index’s 6.9% increase. Train apologized to shareholders and expressed frustration with the UK Equity market’s malaise.

Burberry’s underperformance has been a major drag on the trust, with shares falling 52.9% in the past year due to lower profits from decreased demand in Asia and the Americas. Remy Cointreau and Schroders also suffered share price declines, impacted by various factors such as destocking in China and the rise of passive investing.

Train acknowledged the trust’s lack of exposure to profitable sectors like energy, mining, and consumer-serving companies. Despite the setbacks, he remains optimistic about holdings like RELX, Sage, Fever-Tree, Hargreaves Lansdown, and Rightmove. The trust holds a Morningstar Bronze Medalist Rating, with a highly concentrated portfolio of long-term holdings. Investors are advised to take a long-term view given the strategy’s buy-and-hold nature.



Read more at Morningstar: Three Stocks Battering Nick Train’s Flagship Trust