Hello, I'm Annabel Brody-Smith. I'm the communications director of the Association of Investment Companies. Today we're looking ahead to our investment company showcase on October the 10th and I'm delighted to be joined by Nick Train, who's the manager at Finsbury Growth and Income. Nick, great to have you here. Can you explain the investment objective of your trust and how you achieve that, please?
Annabel, thanks. It's great to be here too. Yes, I will do my best to do that and as succinctly as possible. On the tin it says that the objective of this investment trust is to do better than the UK equity market. But I think the way I look at it is this: I've been now managing this investment trust for basically a quarter of a century. And over that period I've been persistently adding to my personal or family's holding in Finsbury Growth and Income Trust. It's now actually quite a sizable part of my family's financial affairs. And when I think about that, what I think about is that at a minimum, at a minimum, I want to protect that investment I've made in this company against the effects of monetary inflation and tax. That's at a minimum. But at the same time, I mean, actually, you know, to make it worth everybody's while, what I really want to do is make the NAV of this investment trust go up a lot, you know, so I and fellow shareholders can make a lot of money out of it, you know.
That's basically what we're trying to do. And how do we do it? Well, I was influenced at an impressionable age in terms of my career by Warren Buffett and ever since then I've sought to copy Warren Buffett and Charlie Munger, and by and large, with some ups and downs, that's worked for me. So Finsbury's portfolio today, as it's always been, is invested in not very many holdings. It's a highly concentrated portfolio, less than 20, but 20 outstanding businesses. And it's my expectation and belief that the successful business performance of those companies that we're invested in will create wealth for shareholders and ultimately for me.
Thanks very much, Nick. And it was very interesting to hear about your family investing because I always say I invest for my children's children, quite honestly, and investment trusts are for me but also for the family and sort of future-proof the family for any occasion, anything that could come up. So it's very interesting to hear that.
They are, as you know, and as I'm sure will be conveyed at this showcase event, they are an ideal vehicle for private wealth. I won't go into the reasons for that now, but they truly are. So you've made a right decision for your children and grandchildren. I hope I have for mine.
Well, I will fully agree with you — touching words — but I'm pretty sure that I have made a good decision. Now, how did you actually become a fund manager?
Luck, to a significant extent — just being at the right place at the right time. I was working for a small to midsize fund management company that was growing quickly and needed all hands on deck. And I had an opportunity and I grabbed that opportunity.
I mean, I do think to an extent it was my destiny, Luke, to be a fund manager. I do think that I have some of the characteristics — probably not all of them — but I have some of the characteristics that give you a chance to make a living out of what I've done. And can I tell you what I think those characteristics are, or the ones that I feel most strongly in me personally?
I really want to know. Go on, tell me your destiny.
I'd say three things. First, I'm fascinated by history — just in general, in history: what made the world change in the past and what might make it change in the future? It helps I actually studied history at university, but I've always, you know, had that curiosity about the way that the world is.
Second thing I would say is that I think I'm quite a patient person. Some people might say a stubborn person. But I do think that patience — you know, willing to ride through the rough times, to stick to a theory — that is a help.
Then the last thing I'd say, and actually I don't think I'm proud of this, but it's just a piece of self-awareness. I think that there's a streak of miserliness in me. I do, you know, I like building wealth. I like building wealth for shareholders. I like to see things compounding and growing in wealth over time. I find that satisfying. I don't know that that's a particularly praiseworthy personality trait, but maybe it makes sense in doing what I've done.
Well, I think it does make sense. You know, that obsession with history, patience so you can ride it out, and as you put it, miserly, but wanting to grow wealth for people — they all seem like very important characteristics for a fund manager to me.
