Finsbury Growth & Income Share Discussion Threads

[raj k] 22/7/2024 12:08

@shield, i was also concerned about this, whereas Terry Smith does provide a free cash flow yield value regularly and in some of his annual leters also talk's about the earnings growth they are projecting.

i recall Train has mentioned an average P/E and ROE of the portfolio in one of the Frostrow seminars but hasnt give insight as how much he thinks earning's will grow within the companies.

[shieldbug] 22/7/2024 11:28

Judge Train on long term performance. The trouble with this is that if his strategy has only been successful because we have been living through a period that supports his thesis - then we have (he has) a problem when that changes.

It might not have changed, this could be a blip and FGT powers higher but the share price is quite a bit down on where it was 5 years ago.

One of my discomforts with Train is he never really presents a fundamental valuation argument for his holdings - while he often talks of relative value. I sometimes do wonder if he really is an entirely narrative based investor.

[growthpotential] 19/7/2024 12:59

You gotta love it, you can downvote the comment presumably meaning you disagree. Like if you are not happy with your losses, 1) you should accept that investing is simply not for you, 2) sell your FGT holding and move on. Lol, just lol!

[growthpotential] 19/7/2024 11:56

Not a holder of FGT, but I do hold a few of the holdings directly (RMV, FEVR, HL, DGE, LSEG). I cannot understand the criticism, judge Train on the long term performance, you have to admire how he has stuck to his investment style, which I imagine you were not complaining on the way up. Other funds might be doing better but are far more volatile...and I am saying this from having a fair few technology holdings

[essentialinvestor] 18/7/2024 16:32

The only plus point atm is the daily fat buy backs keep the discount from blowing out and are NAV accretive.

[spangle93] 18/7/2024 14:20

@Specto - The address given on the website puts in the borough of the City of London, further west than Finsbury.

So it's a triple failure - it's not in Finsbury, it doesn't grow, and it pays a pittance of income

But hey, look at the top-rated manager

[bmcollins] 18/7/2024 12:32

@Specto
You would remeber him if you heard him speak, his speech is as slow & ponderous as his investments, indeed one person on this board once described his voice uncannily accurately as "sounds like he is a teacher in a special needs school"
Everytime I've heard him since I have to chuckle !

[spectoacc] 18/7/2024 12:09

Could as easily be called "Nick Train vehicle promoted by endless articles in press/on CityWire, with photo of floppy haired asset manager (but wouldn't know Michael Lindsell if passed him in the street)".

[spectoacc] 18/7/2024 12:07

Is it based in Finsbury tho? ;)

[spangle93] 18/7/2024 12:04

It's called Finsbury Growth and Income

It hasn't grown in 3 years, and its income yield (2.27%) is small relative to the UK Equity Income sector.

So, it doesn't do anything it says on the tin

[growthpotential] 18/7/2024 11:53

Don't think it's that bad...

[essentialinvestor] 17/7/2024 11:31

I unfortunately hold a small amount of FGT.

It's looking pretty dire atm, would be disingenuous to say otherwise.

[spectoacc] 16/7/2024 13:51

Just hope that PSON-style, he doesn't endlessly dither before selling at just the wrong moment.

At a low enough price, BRBY's surely a t/o target, albeit doubt we're there yet.

Train always been a one-trick pony, which is why the AI spiel is so amusing. Stood him (& shareholders) in very good stead during the bond proxy years, but not rocket science to see what would happen beyond.

[bmcollins] 16/7/2024 12:57

Considering Train makes a fetish of not buying & selling in his portfolio, but just buying he certainly was well paid looking at Burberry drop from over £26 to just over £7 in little more than a year wasn't he ?
Looks to me like he is a fully paid up member of the "over the hill gang"...

[essentialinvestor] 15/7/2024 11:12

That's some of the fund divided income gone and I can't see a quick reinstatement of the BRBY dividend -
it's also likely to be significantly lower If/when the reinstatement occurs.

[spectoacc] 02/7/2024 15:33

All in each others' pockets I suspect, but another 5 years like this - maybe.

Train never had the special sauce, but credit to how well he traded the bond proxy years. At least one school of thought says they're returning, that debt is deflationary, that the current inflationary times are an aberration.

Can't see it myself: longer term higher inflation seems likely.

Periodic reminder of that FGT Top 5, which is c.60% of the IT:

LSEG (28)
RELX (31)
EXPN (31)
SGE (33)
DGE (15)

[essentialinvestor] 02/7/2024 15:19

It's no longer out of the question that LT lose the mandate, unless performance improves.

[steve3sandal] 02/7/2024 10:07

Following up a conversation on the managers other IT LTI.


Ref FGT
Quite a few ITs have the flexibility to go to 20% international and IIRC FGT has this optionality. However, Nick has actively been selling down FGT international holdings ostensibly because UK listed are such good value. I suspect it’s those intl sales which are raising cash for buybacks. £43M shares in Treasury is an overhang and I think these should be cancelled (another letter coming on!).

[growthpotential] 19/6/2024 23:11

Anyone know Nick Train's thoughts about this shoddy private equity deal?

[steve3sandal] 04/6/2024 14:24

Some interesting observations in my email this morning. Look across to peers suggests trough is past, though there are lots of moving parts. Certainly the opportunity to kitchen sink 2023/4 but I suspect it’s discounted. FGT allows one to top up your drinks at an FGT discount to Covid low prices. I’m hopeful we are near the bottom.

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[essentialinvestor] 04/6/2024 12:40

Well it's on a nice discount!, although arguably a deserved one now.

DGE may be ugly on the next update.

[prokartace] 03/6/2024 09:19

How can they justify an under-performance while paying a dividend less than half their competitors. No growth and no income

[steve3sandal] 28/5/2024 09:51

On the same day EDIN reports ahead, flags the same UK PE discount to international peers opportunity, and the Board have negotiated a reduction in management fees. I have to agree the FGT Board have not at all demonstrated how they held the PM to account for the (stock picking) performance. Empty words.