Finsbury Growth & Income Trust FGIT said it remains optimistic despite what it described as “disappointing” annual results.
The London-listed trust, which invests in shares of predominantly UK-listed companies, said net asset value per share as at September 30 was 943.4p, up 5.9% from 891.2p a year before. However, the company underperformed the FTSE All-Share index benchmark, whose total return was 13% in the period.
Finsbury Growth & Income shares were trading at 886p on Wednesday, having risen around 5% in 2024 so far, while the FTSE All-Share is 8% higher this year.
Finsbury attributed this to continuing uncertainty due to global inflation and interest rates. Around 32% of the company’s portfolio is made up of consumer brands, including Burberry, Diageo and Unilever, which have been disproportionately affected by uncertain economic conditions.
Burberry’s share price has fallen 35% in the year to date, Diageo has lost 17%, but Unilever is up around 20% in 2024.
Finsbury Growth & Income paid a dividend of 19.6p per share during the recent year, up 3.2% from 19.0p the year before.
Looking ahead, Finsbury said it remains optimistic and will continue to invest for the long term in “high quality companies that own both durable and cash generative franchises.”
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