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 20.03.2019 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
Agilent Technologies
Cooper Cos
Visa - A Shares
Muenchener Rueckver
Taiwan Semiconductor
Estée Lauder
Microchip Technology
Amadeus IT Group

Data as of 28.02.2019

Sector Breakdown (%)

Health Care
Consumer Goods
Consumer Services
Oil & Gas
Basic Materials

Data as of 28.02.2019. Excludes Cash

Geographic Breakdown (%)

North America 43.2
UK 27.6
Europe ex UK 21.3
Pacific ex Japan 5.8
Japan 2.1

Data as of 28.02.2019. Excludes Cash

Fund Manager Comments

Market Review

Global equities advanced in February, although more moderately than during January’s recovery. Markets were reassured by more dovish tones from central banks, as well as promising US/China trade talks.

Corporate earnings were mixed. Although companies tended to beat estimates, many also lowered their future guidance, citing a slower global economy and higher tariffs. At a sector level, markets moved further from their defensive positioning; Information Technology and Industrials performed strongest, while Real Estate and Telecom Services weakened.

Economic data continues to indicate that trade tensions are slowing global growth. In the US, Q4 Gross Domestic Product (GDP) expanded 2.6% on an annualised basis, a considerable slowdown from Q3. China’s official manufacturing Purchasing Manager Index (PMI) fell for its third consecutive month. Europe’s manufacturing PMI moved into contraction, falling to its lowest level in six years.

Speculation that Brexit would be delayed along with a lower probability of no-deal departure caused the British pound to advance against all major currencies. Sterling touched a five-month high against the US dollar and neared a two-year high against the euro.

Oil prices advanced over February with Brent crude rising back above 65 USD a barrel. Gold also rose modestly.

Portfolio Review

The Trust’s NAV rose by 3.3% against a benchmark return of 1.8%. Stock selection in Consumer Goods and Financials has helped drive this outperformance, as has the Trust’s overweight position in Industrials.

Estée Lauder made the largest positive contribution. The manufacturer of cosmetic products posted strong Q2 results which beat cautious estimates. However, the company has reiterated its cautious forward guidance citing a moderation in sales and higher expected costs associated with Brexit.

Visa also outperformed. The payments company released another set of consistent results. Cross-border transactions have softened as a result of the stronger US dollar, but in the context of stronger overall spend, these appear manageable.

Microsoft, the largest position in the Trust, also made a strong positive contribution.

Although it was a positive month overall, there were a couple of negative stock specific impacts worth highlighting. UnitedHealth Group suffered as US Democrats called for greater state medical provision in the run up to 2020’s presidential election. The sell-off in this integrated health care provider thus reflects profit-taking given the company’s success in recent years.

Booking Holdings also detracted from returns. Strong delivery on this quarter was combined, as is usually the case from this conservative management team, with weaker guidance for the next. There is legitimate cause for short-term concern given weaker booking trends in Europe, Booking’s largest profit driver.

Market Outlook

After February, global equity markets have recovered strongly from Q4’s downturn. This has largely been driven by more accommodative monetary policy and the promise of US-China trade reconciliations. Whether it can be sustained further will depend on the extent to which stronger economic and company performance can follow.

The prospect of fewer rate hikes has been welcomed by equity markets. However, economic fundamentals continue to weaken, with softer manufacturing PMI data across the US, UK, Eurozone and China. Brazil and India make for notable exceptions. Investors will be watching the Fed’s meeting on March 19-20 closely, to see just how supportive the monetary policy respite will be.

Markets will also be focusing on two key political events. US/China trade talks appear to be making “substantial progress”, enabling President Trump to hold off placing an additional 200 billion USD tariff on Chinese goods. However, economic disputes between the two nations may outlast the immediate benefit of any deal. Similarly, at the time of writing, it is still not clear what the UK’s relationship with the European Union will look like on 30 March. Even after that, the euro-zone faces further unease in May with European Parliament elections and Spain’s third general election in four years.

Decisions at a macro level are likely to provide some short-term volatility over the coming weeks, as investors gauge how much support they provide to equities. However, these potential headwinds can present opportunities to invest in quality companies that generate structural growth. Without a substantial improvement in fundamentals, monetary policy support will not change our slowdown scenario for 2019. Our longer-term thesis – that such stocks should outperform through the cycle and generate superior returns for clients - remains unchanged.

Lucy Macdonald 11 March 2019

Sterling touched a five-month high against the US dollar and neared a two-year high against the euro.

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 0.8 -2.9 0.9 62.8 61.2
    NAV (debt at fair value) -0.9 -4.6 -0.6 47.9 54.8
    Benchmark -0.4 -4.8 3.1 43.9 54.1

    Source: Thomson Reuters DataStream, percentage growth, mid to mid, total return to 28.02.2019.1

    Discrete 12 Month Returns (%)

    2019 2018 2017 2016 2015
    Share Price 0.9 17.9 36.9 -7.1 6.6
    NAV (debt at fair value) -0.6 12.9 31.8 -4.1 9.1
    Benchmark 3.1 7.0 30.5 -4.1 11.8

    Source: Thomson Reuters DataStream, percentage growth, mid to mid, total return to 28.02.2019.1

    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.