Finsbury Growth and Income extends run of outperformance – net asset value return per share for the year was 13.1% and the share price total return 13.2%. Both have again significantly outperformed the benchmark, the All-Share Index, measured on a total return basis, which rose by 5.9% over the same period. The principal contributions to net asset value performance came from major holdings in Hargreaves Lansdown, London Stock Exchange and Fidessa (which got taken over). Dividends totaled 15.3p, up 7.7% on the prior year.
Company continues to expand
Consistent demand for the company’s shares led to the issue of a total of 14,795,000 new shares during the year. The net proceeds received by from the issue of these new shares amounted to GBP115.6 million. Since the financial year end a further 4,395,000 new shares have been issued.
Manager remains cautious
“I’m pleased that Finsbury Growth & Income Trust PLC (“FGT”) has delivered another year of respectable absolute returns and outperformance of its benchmark. But this means – more than ever – that it is important for me to convey to shareholders that our performance seems as remarkable and perhaps unsustainable to us as it should to them. We can’t reasonably account for why the strategy has done as well as it has for as long as it has and so must assume that luck has played a part along the way. And in that case one can be sure that luck will work against us at some point and that a run of bad luck (or bad judgements by us at Lindsell Train) could put a dent in FGT’s returns. This is especially so when you consider the following two factors: the concentration of FGT’s portfolio and the current state of the global economy.”
FGT : Finsbury Growth and Income extends run of outperformance