Its aim is capital appreciation and income combined, with a total return in excess of the FTSE All-Share.
Long standing manager Nick Train’s approach is based on that of Warren Buffett’s and involves building a concentrated portfolio of “quality” companies that have strong brands and/or powerful market franchises.
He holds shares for the long term regardless of short-term volatility, aiming for them to double or more in value over time. This results in extremely low portfolio turnover, which saves on transaction costs. The trust's total expense ratio remains reasonably low at just under 0.7%.
The trust has this week announced results for the full year to 30th Sept 2018 (link via Investegate). Share price total return is 13.2% compared to 5.9% return for the FTSE All Share.
|5 Yr Performance -v- FTSE All Share|
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Top five portfolio holdings are: Diageo 10.0%, Relx 9.8%, Unilever 9.5%, Hargreaves Lansdown 9.2% and London Stock Exchange 8.6%.
Over the past year the dividend has increased by a respectable 7.7% to 15.3p (2017 14.2p). Revenues were 16.5p (2017 15.8p) and therefore there is a surplus after accounting for payments of dividends which will further bolster the dividend reserves.
It is worth noting that Nick Train has continued to add to his personal share holding in the Company - currently just over 2 million - which represents the whole of his personal investment in UK equity and is a significant portion of his total assets. Now that's called having skin in the game.
Commenting on the results, manager Train said