Nick Train UK equity funds downgraded by Morningstar due to 'narrow focus'

Silver to bronze

Morningstar's fund research team has downgraded Nick Train's Lindsell Train UK Equity fund and the Finsbury Growth & Income trust from silver to bronze due to its "narrow focus".

Train follows a "well-defined" investment philosophy, but has become "gloomier" on small and mid-caps due to market liquidity concerns amid outflows, the firm's fund research analysts said in their latest qualitative Medalist Rating rebalancing. The £1.8bn Finsbury Growth & Income trust has underperformed the AIC UK Equity Income sector in the past three years, according to the Association of Investment Companies. In share price terms, the trust is up 4.1% in the last three years, while the sector has gained 17.2%. Its  NAV total return is up 12.6% over the period, compared to the sec...