Nick Train Wins Shareholder Support Amid Poor Performance

Shareholders of the Finsbury Growth and Income Trust have expressed overwhelming support for manager Nick Train, despite a recent history of underperformance. During the annual meeting held at the Guildhall in the City of London, a remarkable 97.2 per cent voted in favour of retaining Train’s management approach, which has been described as “lonely” but steadfast.

Train faced pointed criticism over what he termed his “dire” and “terrible” stock-picking results. His admission of struggle was met with a mixed reaction from the approximately 200 shareholders present. Train articulated his regret about the recent performance but reinforced his commitment to his investment philosophy, which focuses on large UK growth-oriented companies.

Critics of Train’s management have highlighted that Finsbury is the worst performing UK equity income trust over both one and five-year periods. Despite this dismal record, shareholder support remained strong, with only 1.2 million votes cast against the continuation of his strategy, compared to 41.5 million in favour.

The outcome of the vote suggests that shareholders value Train’s long-term investment philosophy, which prioritises companies with substantial intellectual property and potential growth, particularly those influenced by advancements in artificial intelligence.

Concerns were also raised regarding the board’s communication and commitment. Many small retail shareholders noted the lack of personal investment from board members, contrasting that with Train’s significant £50 million commitment to the trust. This disparity raises questions about the board’s dedication to the fund’s success.

In response to the criticisms, Train acknowledged the need for better performance and reiterated that his strategic approach would remain unchanged. He emphasised that investors must see tangible results, implying that he is fully aware of the expectations placed upon him.