How a snapshot of life in the UK can deliver profits

TRUST WATCH Finsbury Growth & Income Trust

WHAT DOES IT DO?

Created in 1926, it invests mainly in UK-listed companies. It ploughs investors’ money into firms which hand out dividends, and grows the investment as share prices rise.

WHAT DOES THE MANAGER INVEST IN?

Nick Train has built a portfolio which ‘reads like a snapshot of life in the UK’ says Ed Monk at Fidelity International. ‘There’s Unilever, home to everything from Dove soap to Hellmann’s mayonnaise. Even the Daily Mail features.’

WHAT DO THE EXPERTS SAY?

Monk says: ‘Train has built one of the best track records around by buying market-leading companies with products that are second nature to customers.’

WHAT DO THE EXPERTS LIKE?

A disciplined approach to keeping the share price steady, so the value of holdings does not fall suddenly, Monk says. The trust buys or sells its own shares when their price moves too far from the value of the assets. It has returned 87pc over five years.

ARE THERE ANY DOWNSIDES?

The environment over the past decade, where most sturdy companies have steadily climbed, has been ‘helpful’ to the high-quality businesses Train likes. Monk adds: ‘As this changes, some have predicted a reversal of fortune. Train rejects that view.’ The trust does not churn out dividends and yields well below the FTSE All Share.