Business & Investment


BRUNNER INVESTMENT TRUST: One-stop shop for growth … and dividends

Mutual Fund Bruner is a global fund whose mission is to provide shareholders with long-term income and capital growth.

Unlike the more well-known global rival Scottish Mortgages, who have succeeded in bringing brilliant profits to investors by making large investments in companies such as electric car maker Tesla, Bruner’s approach is far. Is conservative. The trick is to mitigate investment risk as much as it produces investor profits.

The result is a long-term investment record that is not as attractive as Baillie Gifford’s Scottish mortgages. Over the last five years, the returns have been 99% and 419%, respectively. Still, the £ 369m Bruner, run by investment giant Allianz Global Investors, has its benefits.

Matthew Tillet Manager said: “For investors who want to get in touch with some of the best companies in the world, we think it’s a one-stop shop that promises a combination of dividends and return on equity.”

The trust dividend record is perfect. Next month, when we announce the final quarterly financial results for the fiscal year ending November 30, 2020, we plan to achieve a 49th consecutive year of dividend increases. The dividend increase is likely to be slight, but the annual income is just over 20p. Until 19.98p in 2019 – Given the collapse of dividend payments around the world as a result of the pandemic, it will be warmly accepted by shareholders. Part of the income paid to investors comes from the sound reserves of trusts that have been accumulated over the years, just as dividends are being reduced.

Tillett operates a strong portfolio of 61 US equities. Microsoft is in the largest position, reporting record quarterly profits last week. But apart from making sure that trust is diversified across markets and industrial sectors, it’s all about stock selection, except that individual holdings aren’t too dominant. “We are investing in quality growth companies around the world,” says Tillett. “Some companies make money, others don’t. Next, see if a company that has done due diligence but hasn’t bought a portfolio can improve them.

As a result, it consists of traditional income-paying stocks such as Uniriva and the National Grid, and non-paying companies such as the US travel agency Booking Holdings (more commonly known as and the robotic surgery specialist Intuitive. An eclectic fund was born. Surgery.

Since March last year, Tillet has tweaked its portfolio to account for changes in consumer and corporate behavior that it believes to be permanent. Informa, a UK exhibition business, has come out, with Booking, Spanish IT company Amadeus, US derivative specialist CME, and UK homebuilder Redrow.

Tillett is concerned that there are signs of “speculative investor behavior” in certain sectors of the global equity market, such as electric vehicles and software.

Valuations in these areas “look a bit growing, so investors need to be careful,” he says. Still, he believes that global equities are not a bubble and that there are many companies in the “affordable” sector. “We have to focus on these stocks,” he says.

Originally established 95 years ago to manage the private property of the Bruners (famous businessmen), the trust costs a total of 0.67 percent annually. Its stock market identifier is 0149000 and its stock closes at £ 8.56 on Friday and is trading at an attractive double-digit discount on the value of the trust’s assets.



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