Lindsell Train director Nick Train puts his low-diversification strategy into practice as fund manager of the Finsbury Growth & Income Trust, which invests in larger UK company shares with the objective of achieving capital growth and providing a total return in excess of that of the FT All-Share Index.
His general rules for the portfolio of this trust are that the minimum position size will be 1 per cent of the investment portfolio and the top 10 holdings will make up approximately 60 per cent of the investment portfolio.
As at 30 June 2009, the £99.1m portfolio was spread across just 22 holdings, with the top 10 holdings accounting for 73 per cent of the portfolio as follows:
| Name | Sector | % of total investments |
|---|---|---|
| Diageo | Consumer Goods | 11.5 |
| Unilever | Consumer Goods | 10.1 |
| Barr (AG) | Consumer Goods | 10.0 |
| Cadbury | Consumer Goods | 7.0 |
| Lloyds Banking Group | Financials | 6.9 |
| Fidessa | Technology | 6.5 |
| Pearson | Consumer Services | 6.4 |
| Sage | Technology | 5.0 |
| Rathbone Brothers | Financials | 4.9 |
| Reed Elsevier | Consumer Services | 4.6 |
| Other | 27.1 |
