Brunner Investment Share Discussion Threads

[spoole5] 09/11/2020 10:22

15% discount here for a quality global portfolio

[shieldbug] 04/9/2020 09:03

Discount opened up when long serving manager, Lucy Macdonald left.

[shieldbug] 28/8/2020 08:29

Bought some of this yesterday on the basis that NAV and share price are diverging.

[poikka] 08/6/2020 18:32

No reason why it wouldn't pay the dividend, it's well covered by Revenue Reserves.

[ygor705] 02/6/2020 09:25

Bought a few more at 777p this morning. Should still pay a dividend and with a discount of around 10% it looks reasonable value to me.

[jontyone] 18/5/2020 21:44

Lucy Macdonald gone. New boys put in charge. Will keep an eye on this one for next few months or so.

[topvest] 23/2/2020 18:37

Agreed. One to top-up on weakness.

[ygor705] 20/2/2020 12:53

Another good set of results from Brunner with a 10% increase in the dividend with probably more to come. The discount to net asset value continues to narrow and debt refinancing has drastically reduced the trusts cost of debt. Looks a pretty solid investment to me.

[davebowler] 28/10/2019 09:07

24 Oct based on the market value of the company's long term debt and preference shares, the cum-income net asset value per ordinary share was 896.40p.

[ygor705] 19/6/2019 14:00

I thought it worth noting a couple of changes to Brunner that had not happened at the time of my last post. Since mid-December 2018 the net asset value has steadily appreciated: nothing dramatic but a good solid performance. As this has happened, the discount has narrowed and now stands at c 9%. There continues to be a steady increase in the dividend which coupled with a bit of capital appreciation and a diversified portfolio makes the shares look very reasonable in a BREXIT dominated environment. Brunner is a quality name and well worth a look.

[davebowler] 22/8/2018 13:29

11% below NAV

[davebowler] 22/8/2018 13:28

21 Aug based on the market value of the company's long term debt and preference shares, the cum-income net asset value per ordinary share was 877.17p.

[ygor705] 26/7/2018 20:45

The growth in underlying net asset value has been modest since the beginning of the year with little impact thus far from the re-emphasis of the fund towards overseas investment. Nothing therefore to narrow the share price discount to net asset value - let alone achieve the premium and ability to constantly issue new shares that is being experienced by the likes of Scottish Mortgage Investment Trust. The good news is that the two quarterly dividends declared so far this year are c.15% higher than in 2017 pushing the yield up to over 2%. Worth sticking around in my view.

[davebowler] 01/6/2018 15:46

31 May based on the market value of the company's long term debt and preference shares, the cum-income net asset value per ordinary share was 867.69p.

[ygor705] 08/1/2018 13:23

Bought more of these this morning. Good pedigree, a long record of dividend increases and a substantial discount to NAV. A big slug of high coupon debenture disappears this month which together with a refocusing of the portfolio towards non U.K. holdings will give more wriggle room on the dividend. Aviva still have a large minority in the equity that they don't appear towant (as a result of a 2016 takeover) but I cannot see them doing a disorderly exit. An interesting 12 months in prospect.

[davebowler] 12/8/2016 16:18

16% below NAV

[davebowler] 12/8/2016 16:14

11 Aug based on the market value of the company's long term debt and preference shares, the cum-income net asset value per ordinary share was 705.34p.

[davebowler] 23/7/2014 10:18

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%.

[davebowler] 21/2/2014 14:06

20 Feb NAV:
based on the market value of the company's long term debt and preference shares, the cum-income net asset value per ordinary share was 608.45p.

[topvest] 22/1/2014 19:06

Yes, on quite a discount given the excellent long term record.

[davebowler] 22/1/2014 11:38

21 Jan, based on the market value of the company's long term debt and preference shares, the cum-income net asset value per ordinary share was 612.51p.

[davebowler] 06/8/2013 13:09

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