Finsbury Growth & Income Trust PLC (“the Company”) invests principally in the securities of UK quoted companies, whilst up to a maximum of 20% of the Company’s portfolio, at the time of acquisition, can be invested in quoted companies worldwide. Where possible, a minimum position size of 1% of the Company’s gross assets is held unless the holding concerned is being built or disposed of.
The portfolio will normally comprise approximately 30 investments. Unless driven by market movements, securities in FTSE 100 companies and comparable companies listed on an overseas stock exchange will normally represent between 50% and 100% of the portfolio; securities in FTSE 350 companies and comparable companies listed on overseas stock exchanges will normally represent at least 70% of the portfolio.
Whilst performance is measured against the FTSE All-Share Index, the Company’s portfolio is constructed and managed without reference to a stock market index, investments being selected only after extensive research by the Investment Manager. The Investment Manager uses a bottom-up stock picking approach and looks to invest in a universe of excellent UK-listed businesses that appear undervalued.
The Company does not and will not invest more than 15%, in aggregate, of the value of the gross assets of the Company in other closed-ended investment companies (including investment trusts) listed on the London Stock Exchange.
Further, the Company does not and will not invest more than 10%, in aggregate, of the value of its gross assets in other closed-ended investment companies (including investment trusts) listed on the London Stock Exchange, except where the investment companies themselves have stated investment policies to invest no more than 15% of their gross assets in other closed-ended investment companies (including investment trusts) listed on the London Stock Exchange.
The Company’s gearing policy is that gearing will not exceed 25% of the Company’s net assets. In normal market conditions it is expected that the level of gearing will be between 5% and 25% of the Company’s net assets.
The Company has the ability to invest a proportion (up to 25% of its gross assets) in preference shares, bonds and other debt instruments, although no more than 10% of any one issue may be held. In addition, a maximum of 10% of the Company’s gross assets can be held in cash, where the Investment Manager believes market or economic conditions make equity investment unattractive or while seeking appropriate investment opportunities or to maintain liquidity.