17th Dec 2019 18:05
(Alliance News) - Finsbury Growth & Income Trust PLC on Tuesday reported sharp growth in net assets over financial 2019 as the trust benefited from staying away from UK-facing banks and retailers.
At September 30, the trust's NAV per share stood at 935.60 pence, 15% higher than the 812.80p recorded at the same point a year earlier.
Finsbury Growth & Income's net assets grew 33% over the 12 months to GBP1.88 billion from GBP1.41 billion at the beginning of the period. Finsbury Growth & Income ended the period with 200.8 million shares in issues compared to 173.7 million at the start of the period.
The trust declared a total dividend of 16.6p for the period, up 8.5% from the 15.3p distributed the year before.
As a result, Finsbury Growth & Income's NAV total return in the period was 17.4%, sharply higher than its benchmark - the FSTE All Share Index - which gained 2.7% in the period.
Chair Anthony Townsend said: "The principal contributions to net asset value performance came from our holdings in London Stock Exchange, Mondelez International and Diageo."
The trust's portfolio manager, Nick Train of Lindsell Train Ltd, added: "But 2019 has truly felt like an unusual year for the UK stock market - with investors both domestic and international transfixed by the B-word, of course. Now, it transpired that FGT's portfolio was pretty much perfectly positioned for those months of uncertainty. FGT benefited from its bias toward global companies, like Diageo, RELX and Unilever and its lower exposure to domestic-oriented UK companies, such as banks or retailers; in fact we have zero in these sectors.
"In addition, we were helped by the near 20% we have in non-UK quoted companies, such as Heineken and Cadbury-owner Mondelez, which tended to go up in value as the pound went down."
Looking ahead, Townsend acknowledged three members of the trust's board - including himself - have served nine years. As a result, the trust will undergo a "refreshment programme". Non-Executive Director Neil Collins will step down at the trust's February AGM, David Hunt well then retire when the trust issued its half year to March 31 2020 results. Finally, Chair Townsend will step down at the 2021 AGM.
Shares in Finsbury Growth & Income closed down 0.6% in London on Tuesday at 907.00 pence each.
By Paul McGowan; [email protected]
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