Finsbury Growth Share Price (FGT)

Why bother with this shambles any longer? FGT was the worst performing Morningstar rated trusts in May with a fall of 2%.

This also makes the trust the worst performer among Morningstar covered trusts in the year to date. Long suffering holders are used to this but surely it's time to call a halt.

35% of this is held in just 3 companies ULVR, EXPN & LSE, the first two being majorly affected by AI, why can't the fund manager see this & hasn't he heard of diversification?

Borrowing to invest, which goes on here only accelerates losses during downturns & it doesn't take a genius to work out we are in a downturn.

All the while the fund managers get paid (£4.9 million last year) & holders don't.

PS I also hold LTI - will keep that in the hopes that a bid comes from somewhere and L&T decide to sell up! They must be pretty bored with being beaten up by the press for the last 5 years or so.

But I guess 8.5M a year dividends helps salve that pain.

I love the idea of this trust. But I think Mr T is is panicky.

And now the Board opt to charge capital with a manufactured dividend yield! Ugh!

Together with a 70M loan to buy into more of the same tech.

This smacks of the last gasp.

I know just how destructive this manufactured yield is in a falling market (I own JPMorgan China - 60% value destruction!).

Add a load of gearing...no thanks.

Its a 50/50 gamble - brilliant if hes lucky - very painful if hes not.

But maybe the retail investors will be enthused by the recent 24% uptick in "income" and ramp the price a little - so just a question of waiting to see if the discount (7%) narrows over the next few months to get me out even.

Thoughts?

Glad I sold out of this two years ago at 844p after finally losing patience with it. Nick’s very concentrated approach isn’t too good when one or more the holdings has a major wobbly!

No real growth in years apart from a few good periods.

It’s a heavily concentrated trust and a number of the holdings have plummeted today so far. Relx, Sage, Experian to name just 3. Media companies

Like WPA also fallen sharply so probably AI fears?