It’s been a tough period to be an investor in UK equities as home-grown stocks continue to underperform their international peers. The FTSE 100 may have reached an all-time high in recent weeks but many UK-focused funds have been underperforming their benchmarks over longer periods. Fund management veteran Nick Train , manager of the UK-focused Finsbury Growth & Income Trust, recently apologised for the “poor” performance of the portfolio after it underperformed its benchmark.
The investment trust had a share price total return of 2.7% in the six months to 31 March 2024 compared with 6.9% in the FTSE All Share Index.
Train said he was frustrated by the “malaise gripping the UK equity market,” which he believes is only “partly justified.” He blamed a lack of exposure to technology companies in the portfolio since the pandemic but says this has since been rectified by backing credit reference agency Experian and property website Rightmove as well as strong consumer brands such as Fever Tree. Train says he remains optimistic of better performance due to the prospects of valuations in the UK markets compared with “those of similar businesses quoted on more fashionable stock markets.
” The Finsbury Growth & Income Trust is just one example of UK-focused portfolios that have struggled in recent years due to a lack of technology stocks listed in London compared with the rise of the Magnificent 7 across the pond in the US. The latest Spot the Dog report from investme.