 Investec;
Portfolio Review:
¢ Over the period the portfolio's NAV rose 2.2%, compared with an increase of 2.8% for the benchmark index (50% FTSE All-Share, 50% FTSE World ex-UK). Performance benefitted from positive stock selection in Industrials, Consumer Services and Technology. The overweight positions in Health Care and Oil & Gas also helped. These positives were offset by stock selection in Financials, Telecommunications and Consumer Services, and the underweight in Utilities.
¢ New holdings during the period included Weir Group, William Hill, Ashmore Group, EOG Resources and Monsanto. A number of securities were sold including Henkel, Inmarsat, Toyota Motor and Genting Singapore.
¢ Outlook:
¢ The ongoing extended period of low volatility in global equities has resulted in lower portfolio tracking errors and reduced the opportunities that active managers have for generating outperformance with similar levels of risk taken in the past. The manager has responded to this environment in a prudent manner by reducing the number of holdings in portfolios in order to concentrate more on the highest conviction investment ideas. These actions have increased the active share of the portfolio to circa 75% and reduced the number of stocks held to 85.
¢ Areas where the manager continues to find attractive quality growth opportunities include health care, technology, media and industrials.
¢ In health care, there have been significant and exciting breakthroughs in areas such as oncology and immunology which are positive for a number of companies owned, including GlaxoSmithKline, Roche, Celgene, and Astellas Pharma.
¢ In technology and media, the move to cloud computing and the rapid growth in mobile internet and e-commerce provide opportunities for companies that can help businesses transform their businesses to a cloud-based environment, such as Microsoft, as well as those exposed to online advertising and travel, such as Google and Priceline Group.
Investec Insights:
¢ Brunner has a market cap of £232m and trades at a -15.3% discount to NAV, versus the weighted peer group average of -7.2%. The current discount is in the middle of its 1 year range. It has provided a 2.7% dividend yield on a historic basis which is ahead of the peer group (at 1.9%).
¢ Top Sectors held are Financials 16.9%, Industrials 16.8%, Oil and Gas 13.6%, Health care 13.2%, Consumer Services 10.1%, cash 9.1%
¢ Geographic breakdown UK 44.5%, North America 25.0%, Europe ex UK 11.3%, cash 9.1%
¢ Fees are relatively low, with an annual management charge of 0.45%, no performance fee and ongoing charge totalling 0.77%. |
On 22 July 2013, The Brunner Investment Trust PLC issued its report, for the six months to 31 May. Brunner offers 'the world within reach' as it aims to provide growth in capital and dividends over the long term by seeking out the world's most exciting growth opportunities. Over the six month period, net assets rose by 15.4%. The capital return on the benchmark index (comprising 50% FTSE All-Share and 50% FTSE World Index (ex UK, in sterling) was 15.5%. The Board has declared an interim dividend of 6 pence per ordinary share and stated that it intends to at least maintain the final dividend for the year ending 30 November 2013.
Brunner is jointly managed by Lucy Macdonald and Jeremy Thomas, who commented on the more recent volatility seen towards the end of the period under review: "market gyrations have not altered our view that, for long term investors, equities should be a preferred asset class. We view market weakness as an opportunity to add to high conviction portfolio holdings, particularly quality dividend-paying companies capturing global growth opportunities."
Fact sheet
Brunner: Half-Yearly Financial Report
To access Brunner's half-yearly financial report, click on the image. You can also visit Brunner's own website www.brunner.co.uk |
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