• Formed in 1929 and managed by Allianz
  • Bruner has a global and sector agnostic remit
  • The trust is one of trade body the AIC’s ‘dividend heroes’

 

How it’s doing

Brunner Investment Trust PLC (LON:BUT) has been around a long time and is a balanced fund focusing on income allied to capital growth.

Formed in 1929 by the Brunner family (who still own a 29% stake), the trust is now managed by Lucy Macdonald, the head of global equity investment at German giant Allianz, the trust’s manager.

Macdonald took over full management of the trust in 2016 when its two discrete portfolios were merged.

Since then, there has been a shift in style with the emphasis now less UK-centric and more global.

At around sixty companies, it is a concentrated portfolio and to make the cut companies must meet thresholds of growth, quality and value, though some of the stocks are held largely for the income they produce.

ESG (environment, social and governance) is also becoming increasingly important and companies failing in this regard and not showing any signs of improvement are unlikely to be considered going forward.

Brunner has raised its dividend for 47 years on the trot with a notable 15% hike at the half-way point of the current year.

Global network

Microsoft helped Brunner put in a strong performance recently, but there were also good gains at US contact lens group Cooper and Taiwan Semiconductor.

Allianz’s global network helped put the trust onto Taiwan Semiconductor adds Macdonald, with the group’s analyst in Hong Kong saying it was cheap at this stage of the cycle and given the growth longer-term potential for computer chips.

What the boss says: Lucy Macdonald

The diverse nature of these businesses and their geographies underlines the strategy behind the portfolio, adds Macdonald, with active share selection at its heart.

“We are bottom-up stock pickers.” 

 

 

Inflexion points

  • Company has raised the dividend payment for 47 years consecutively.
  • Philosophy is concentrated on stock picking
  • Remit is wide and global