Nick Train more bullish than ever before on equities

Train Nick Lindsell Train 2014

Finsbury Growth & Income trust manager Nick Train says the outlook for equities and the fund is the best its ever been, as it sees a share price return of 20.8 per cent for the full year.

The FTSE All Share returned 16.8 per cent over the same period, the investment company’s annual results released today point out.

Even though share price performance has almost doubled from 11.8 per cent in 2015, Train says he holds even higher hopes for 2017.

“I am more excited about the outlook for global and UK equities – and hence for the shares of your Company – than I have ever been.

“Almost every company we meet can see an opportunity for unprecedented growth or efficiency gains or both.

“Investors by and large are far too pessimistic about the outlook. And yet the pace of technology change – even as this creates the opportunities – means more and more potentially ruinous surprises for individual companies.”

The investment company’s largest holdings for the financial period ending September were Diageo and Unilever, which both account for 9.9 per cent. The latter was also the largest contributor to performance delivering 20.7p per share.

RELX rounds out the top three accounting for 9.7 per cent.

Pearson was the biggest detractor from performance resulting in a loss of 8.3p per share, followed by Rathbones, which resulted in a 1.6p loss per share.

The fund’s current share price is 658p, only slightly above the 657.7p net asset value.

Chairman for the investment company Anthony Townsend says an investment of £1,000 10 years ago would today be worth £2,867 compared to £1,756 for the FTSE All-Share index.

Today’s annual results revealed a dividend of 13.1p.