Portfolio & Performance

ISIN GB0001490001
SEDOL 0149000

Share Price is the price of a single ordinary share, as determined by the stock market. The share price above is the mid-market price at market close.
Share Price

Net Asset Value (NAV) per Share is calculated as available shareholders’ funds divided by the number of shares in issue, with shareholders’ funds taken to be the net value of all the company’s assets after deducting liabilities. The NAV figure above is based on the fair/market value of the company’s long-term debt and preference shares (known as debt at market value). This allows for the valuation of long-term debt and preference shares at fair value or current market price, rather than at final repayment value (known as debt at par).
NAV per Share

Premium/Discount. Since investment company shares are traded on a stock market, the share price that you get may be higher or lower than the NAV. The difference is known as a premium or discount.

Dividend Yield is calculated using the latest full year dividend divided by the current share price.
Dividend Yield

Data source DataStream and Allianz Global Investors as at 18.07.2019 based on market close mid price.

Awards & Ratings

Morningstar Rating: The Morningstar Rating is an assessment of a fund’s past performance – based on both return and risk – which shows how similar investments compare with their competitors. A high rating alone is insufficient basis for an investment decision.
Morningstar Bronze Rating: Morningstar analysts assign these ratings on a five-tier scale with three positive ratings of Gold, Silver, and Bronze, a Neutral rating, and a Negative rating. If a fund receives a positive rating it means Morningstar analysts think highly of the fund and expect it to outperform over a full market cycle of at least five years.
© 2019 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
The Morningstar Analyst Rating for Funds is a forward-looking analysis of a fund. Morningstar has identified five key areas crucial to predicting the future success of a fund: People, Parent, Process, Performance, and Price. The pillars are used in determining the Morningstar Analyst Rating for a fund. Morningstar Analyst Ratings are assigned on a five-tier scale running from Gold to Negative. The top three ratings, Gold, Silver, and Bronze, all indicate that our analysts think highly of a fund; the difference between them corresponds to differences in the level of analyst conviction in a fund’s ability to outperform its benchmark and peers through time, within the context of the level of risk taken over the long term. Neutral represents funds in which our analysts don’t have a strong positive or negative conviction over the long term and Negative represents funds that possess at least one flaw that our analysts believe is likely to significantly hamper future performance over the long term. Long term is defined as a full market cycle or at least five years. Past performance of a security may or may not be sustained in future and is no indication of future performance. For detailed information about the Morningstar Analyst Rating for Funds, please visit http://global.morningstar.com/managerdisclosures.


The data shown is not constant over time and the allocation may change in the future. Totals may not sum to 100.0% due to rounding. All data source Allianz Global Investors unless otherwise stated.

Top 20 Holdings (%)

UnitedHealth Group
Royal Dutch Shell - B Shares
Cooper Cos
Visa - A Shares
Muenchener Rueckver
Estée Lauder
Taiwan Semiconductor
Agilent Technologies
AIA Group
Schneider Electric
Amadeus IT Group

Data as of 30.06.2019

Sector Breakdown (%)

Health Care
Consumer Goods
Consumer Services
Oil & Gas
Basic Materials

Data as of 30.06.2019. Excludes Cash

Geographic Breakdown (%)

North America 41.9
UK 26.3
Europe ex UK 23.4
Pacific ex Japan 6.1
Japan 2.4

Data as of 30.06.2019. Excludes Cash

Fund Manager Comments

Market Review

Global equities rallied strongly over June. Stocks initially rose on news that the US and Mexico had reached a deal to curb immigration, averting fears that the US would impose tariffs on Mexican goods. A series of dovish statements from key central banks provided further fuel for the rally throughout the month, countering concerns over rising geopolitical risks in the Middle East. Information technology stocks outpaced the broader market, with chipmakers rebounding from earlier weakness.

Economic news indicated that the US/China trade dispute may be starting to weigh on US economic activity, with job growth missing expectations in May and inflation easing. The US Federal Reserve kept rates on hold at its June meeting but signalled it would “act as appropriate to sustain the expansion”, citing “rising uncertainties” about the economic outlook. This more dovish outlook was mirrored by the European Central Bank (ECB), with ECB president Mario Draghi stating that the central bank had “considerable headroom” to restart its quantitative easing programme if required.

Sterling weakened as Theresa May resigned as leader of the Conservative Party, starting a leadership contest in which Boris Johnson was the clear leader. Mr Johnson has stated many times that he would be prepared to leave the EU without a deal on 31 October and investors continue to signal via sterling their lack of enthusiasm for this outcome.

Portfolio Review

The Trust’s NAV returned 6.6% against a benchmark return of 5.1%. Stock selection in the Consumer Goods sector has been particularly strong, with companies like Estee Lauder and Richemont continuing to generate strong revenue growth, notably in Asia.

Our holding in the Cooper Companies has made the largest positive contribution to performance this month, following a strong set of results at the end of May. The majority of Cooper’s business is the manufacture and sale of soft contact lenses under the CooperVision brand. Market growth is driven by increased myopia in the young, rising longevity, geographic penetration and a shift to one day lenses. Cooper is also gaining market share.

Stock selection in Financials has also been positive, with our position in AIA Group significantly boosting performance. The Asian insurance and investment company has significant potential to grow as the Chinese market deregulates further, given the wide protection gap there currently. AIA's high quality agency distribution, market leading products and strong brand name give a strong platform for expansion.

Tainting the overall strong result this month were a couple of stock specific laggards.

AbbVie, a US pharmaceutical company, made the largest negative contribution to performance relative to the benchmark index, after announcing the acquisition of Allergan, the manufacturer of Botox. Although some strategic move was expected to address the approaching patent expiry of Abbvie’s main profit driver, Humira, the strategic fit and price tag of Allergan were greeted with scepticism. Our judgement is that the stock weakness is overdone. While we agree that the main synergies of the deal are cost driven, the premium paid by Abbvie is on a depressed share price. At this valuation, Abbvie offers a 6 per cent dividend yield, and strong free cash flow. The stock is held mainly for its yield characteristics and these are intact.

Senior has also weakened the Trust’s returns. Shares in the UK-based manufacturer of specialist engineering products fell following publication of an analyst report that the supplier’s known exposure to Boeing’s troubled 737 Max model was higher than previously suggested. Our subsequent engagement with the company has highlighted some discrepancies in the published report on expected build rates, and the 2019 forecasts have been confirmed.

Market Outlook

After the strong rebound in the first half of the year, equity markets have rerated against a background of deteriorating growth. Without the stimulus of corporate tax cuts, the US Composite Purchasing Manager Index has fallen steadily since February, and is approaching contraction territory. The US yield curve is now inverted, a historic recession indicator.

These expectations of interest rate cuts are now factored into bond markets and suggest a more severe economic outcome than we are currently anticipating. Outlook statements from company management teams are expected to highlight uncertainty from trade skirmishes, which are affecting pricing decisions, supply chain management and the direction and scale of capital expenditure.

Our central case on trade is that some deal between US and China will emerge, though long term tensions will remain around state subsidies, technology transfer and cyber security. The resumption of trade talks post G20 supports this assumption, although the nature of the discussions is likely to ensure trade remains a source of market volatility.

We continue to expect that 2019 will see moderate returns and higher volatility. Optimistic expectations around trade and interest rates appear increasingly priced in to equity markets, with valuations towards the upper end of historic ranges. By contrast, bond markets are more focused on decelerating earnings growth and weaker economic potential. In this environment, there is little reason to expect equity markets overall to deliver strong nominal returns. As a result, active stock selection with a focus on bottom-up analysis will be essential in order to provide additional upside.

Lucy Macdonald 04 July 2019

Our central case on trade is that some deal between US and China will emerge, though long term tensions will remain around state subsidies, technology transfer and cyber security.

This is no recommendation or solicitation to buy or sell any particular security.


Performance (%)

Select period:

    Cumulative Returns (%)

    3M 6M 1Y 3Y 5Y
    Share Price 11.3 21.4 8.4 70.8 77.7
    NAV (debt at fair value) 7.5 18.0 8.7 50.4 68.6
    Benchmark 5.7 15.7 7.9 42.4 65.1

    Source: Thomson Reuters DataStream, percentage growth, mid to mid, total return to 30.06.2019.1

    Discrete 12 Month Returns (%)

    2019 2018 2017 2016 2015
    Share Price 8.4 14.3 37.8 -1.2 5.3
    NAV (debt at fair value) 8.7 9.9 25.9 5.4 6.4
    Benchmark 7.9 9.3 20.7 8.7 6.6

    Source: Thomson Reuters DataStream, percentage growth, mid to mid, total return to 30.06.2019.1

    1Past performance is not a reliable indicator of future returns. You should not make any assumptions on the future on the basis of performance information. The value of an investment and the income from it can fall as well as rise as a result of market fluctuations and you may not get back the amount originally invested.This investment trust charges 70% of its annual management fee to the capital account and 30% to revenue. This could lead to a higher level of income but capital growth will be constrained as a result.

    Copyright 2019 © DataStream, a Thomson Reuters company. All rights reserved. DataStream shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

    © Allianz Global Investors GmbH 2019, Registered Office: Frankfurt am Main, Register: HRB 9340, Local court: Frankfurt am Main. All Rights Reserved. The Brunner Investment Trust PLC is incorporated in England and Wales. (Company registration no. 226323). Registered Office: 199 Bishopsgate, London, EC2M 3TY. VAT registration no. 244 7355 54. The Company is a member of the Association of Investment Companies - Category: Global Growth.