Finsbury Growth & Income Trust has stayed committed to a concentrated portfolio, a long holding period and a strong preference for durable businesses with pricing power, cash generation and resilient competitive positions. That approach has been tested by the recent sell-off in data and software-related names, but it also means the portfolio now looks more clearly positioned for recovery if sentiment towards quality growth businesses improves.
At the end of February, it held 21 stocks, with the top ten making up 86% of assets. That concentration increases stock-specific risk, but it also gives successful ideas real influence on returns.
The recent weakness has largely come from one of the portfolio’s most distinctive features, its substantial exposure to London-listed data, platform and software businesses. These holdings have been marked down as markets reassessed how artificial intelligence could affect their competitive positions. The manager’s view is more constructive. He believes businesses with proprietary data, established customer relationships and strong market positions are well placed to use AI to strengthen their products and improve efficiency.
Finsbury Growth & Income Trust Plc (LON:FGT) invests in the shares of predominantly UK-listed companies, with the objective of achieving capital and income growth.
