Finsbury Growth & Income bolsters Experian holding amid higher for longer concerns
Nick Train (pictured), manager of the Finsbury Growth & Income trust.
In October, the trust reported a 3.6% drop in net asset value and a 4.4% decline in its share price, compared to an index drop of 4.1%, according to the latest factsheet.
Manager Nick Train said October can be a «cruel month for stock markets», after very few stocks in portfolio escaped a «clattering».
He said the impact of higher energy costs had combined with concerns that interest rates would remain higher for longer, creating some additional headwinds to the consumer facing parts of the trust.
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Experian, which is now the sixth largest holding in the trust, making up 8.4% of the portfolio, from 7.9% in September.
The firm's stock tumbled by 10.3% on 24 October, with Train noting «there are fears the interest rate environment will deter credit growth in the US».
The manager had previously added to the creditor in the aftermath of the SVB and Credit Suisse crisis when its share price companies linked to the banking sector generally took a hit.
However, Train argued that worries around the firm «are overdone», citing Experian's geographic and business mix and noting the firm's exposure to the provision of credit scores in the US was less than 20% of revenues, «with much of the remainder of its business enjoying steady growth».
The manager also touched on the 4% decline in Unilever's share price throughout the month, which is the trust's fourth largest holding.
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He said there was «no surprise» that the firm's share price fell in the period but he argued that while there are «some genuinely good bits» in the product portfolio, but
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