Train's FGT outperformance to continue but 2% discount is not yet a 'bargain'

Share price dropped by 3.5%

A 2% discount – its widest for almost a decade – may not be enough to present a 'bargain' in Nick Train’s Finsbury Growth & Income investment trust (FGT), according to analysts.

Despite continued outperformance from FGT - 2019 represented its third calendar year beating its FTSE All-Share benchmark - the discount has widened in recent weeks. Performance started to decline around the middle of last year, with FGT's share price declining by 3.5% in the six months to 14 January 2020 compared to the FTSE All-Share's 5.8% gain, according to FE fundinfo. Morningstar downgrades Nick Train's funds on capacity concerns That was compounded by ratings agency Morningstar downgrading the trust from a Gold rating to Silver on Christmas Eve amid capacity concerns related...