Train: How I outperformed FTSE All Share during 2011

Lindsell Train founder Nick Train has revealed hefty positions in some of the more defensive stocks in the FTSE 100 helped him outperform the market substantially last year.

Train, who heads up the £340m Finsbury Growth & Income investment trust, saw the portfolio’s NAV increase by 5.8% over its last financial year to 30 September 2011, beating the FTSE All Share index loss of 4.4% over the same period. The manager said a focus on blue chips, including drinks giant Diageo and consumer goods group Unilever, enabled the trust to deliver a positive return 10% higher than the benchmark. Diageo is Train’s largest holding in the concentrated trust, worth 12.1%, while Unilever is 10.3%. Heading into 2012, Train is focusing on companies which can grow their di...