QuotedData’s James Carthew is quoted in this article by David Brenchley.
A 2% discount – its widest for almost a decade – may not be enough to present a ‘bargain’ in Nick Train’s Finsbury Growth & Income investment trust (FGT), according to analysts.
Despite continued outperformance from FGT – 2019 represented its third calendar year beating its FTSE All-Share benchmark – the discount has widened in recent weeks.
That was compounded by ratings agency Morningstar downgrading the trust from a Gold rating to Silver on Christmas Eve amid capacity concerns related to the LF Lindsell Train UK Equity OEIC and a potential knock-on effect to the wider strategy, of which FGT is a part.
That came just two days after Investec slapped a ‘sell’ recommendation on it.
Investec analyst Alan Brierley noted retail investors could access the OEIC, which is a mirror image of FGT, at a cheaper cost through investment platform Hargreaves Lansdown, though later clarified that the trust was cheaper once account charges were factored in.
Still, he told Investment Week:… read more here