Shareholders question Nick Train's investment strategy

In London, the Finsbury Growth & Income investment trust is facing scrutiny over its investment strategy. Shareholders convened for the annual general meeting on a rainy January lunchtime to express their concerns about the trust's lack of diversification. With only 22 holdings and approximately 92 percent of its £1.5 billion assets concentrated in ten companies, investors are questioning whether this concentrated approach is effective. Many believe that spreading risk across more companies could lead to a better performance and safeguard investments in uncertain market conditions. Nick Train, the portfolio manager behind the trust, has been at the center of the debate as some mentioned the narrow range of stocks could expose investors to greater risk. Shareholders are increasingly asking for clarity on his strategy and are suggesting that a broader investment approach may align better with their interests. The trust's performance has been put under the microscope as it operates within a volatile market environment that frequently shifts and changes. As this discussion unfolds, it highlights a broader concern among investors regarding investment concentration in general. The potential for higher returns from a narrow set of strong-performing companies can be tempting; however, it equally raises the probability of significant losses if those selections falter or underperform. This volatility is exacerbated by the uncertain nature of global markets, which prompts further calls for action from Train. Ultimately, the pressure is mounting for Nick Train to reassess his strategy and consider investing in a more diversified pool of companies. While some shareholders remain confident in his capabilities, others are making their feelings known as they seek reassurance and a commitment to reducing risk in their investments moving forward. The outcome of these discussions may significantly impact the future direction of the Finsbury Growth & Income investment trust.