Portfolio & Performance


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 20.11.2020 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.
© 2020 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 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
Taiwan Semiconductor
Cooper Cos
Agilent Technologies
Visa - A Shares
Muenchener Rueckver
Estée Lauder
Schneider Electric
AIA Group
Microchip Technologies
Partners Group

Data as of 31.10.2020

Sector Breakdown (%)

Health Care
Consumer Goods
Consumer Services
Basic Materials
Oil & Gas

Data as of 31.10.2020. Excludes Cash

Geographic Breakdown (%)

North America 48.3
Europe ex UK 26.4
UK 17.2
Pacific ex Japan 5.2
Japan 2.8

Data as of 31.10.2020. Excludes Cash

Fund Manager Comments

Market Review

Global equities initially strengthened, boosted by rising optimism that the US Congress would agree on a new support package. However, sentiment deteriorated sharply towards the month-end as a sharp rise in Covid-19 cases in Europe led to the re-imposition of lockdown measures in several European countries. New infections also surged in the US, with the upcoming presidential election also causing uncertainty. Asian and emerging equities outpaced developed market stocks, helped by solid gains from China. The British pound strengthened, boosted by speculation that the UK and EU were nearing agreement on their future trading arrangement.

Portfolio Review

The Trust slightly underperformed its benchmark over the month with a NAV total return of -3.3% against the -3.2% of the benchmark. Stock selection in the Financials and Utilities sectors made the largest negative contribution to returns, partially offset by a stronger performance in Consumer Services and Consumer Goods.

Tyman, the manufacturer of window and door components, made the largest positive contribution following a positive unscheduled trading update. The company stated Q3 trading was better than expected and H2 revenues are likely to be only slightly behind 2019. Tyman is benefiting from the rapid recovery in housing and construction in the US and UK markets. Despite the upward move, the shares remain attractively valued.

TSMC also boosted returns. The Taiwanese semiconductor manufacturer released Q3 results which beat revenue and margin expectations thanks to sustained high demand. Management also gave strong guidance for Q4 as sales of the 5G iPhone are expected to drive full year revenue growth of over 30% year on year. Longer-term, TSMC is scheduled to start production of its 3nm chips in 2021, further cementing its technological leadership versus peers.

Fresenius, the German healthcare group, saw its shares fall as European lockdowns were re-imposed. However, the company’s Q3 results were solid, with sales above consensus and a robust outlook thanks to resilience in its core dialysis division. Fresenius’s valuation is very attractive considering the stability and predictability of the company’s earnings stream.

Visa also detracted from performance. Weak results from its payments peer MasterCard, combined with rising Covid-19 cases dented the shares. However, solid Visa results at the end of the month outlined key differences between the two and provided a boost for the shares. Whereas MasterCard suffered due to cross border transactions, Visa has captured more spending through debit and online channels.

Market Outlook

At the time of writing, the US pharmaceutical giant Pfizer had just announced a Covid-19 vaccination with 90% effectiveness. This is a very significant development for financial markets and the reaction has been instant. Companies whose business models have been most heavily impacted by Covid-19 have seen sharp share price recoveries. Conversely, stocks which have benefitted from the pandemic are weakening.

This stark polarisation within the equity market and the potential for such a divergence in performance has been a key focus in the Trust’s portfolio positioning in recent months. Our goal has been to ensure that portfolio holdings benefitting from the pandemic have sustainable long-term investment cases which can underpin their valuations once the virus eases. Similarly, we have initiated or increased positions in companies that have been impacted by the pandemic, but where we believe this to be temporary and where we see a compelling long-term investment case.

Recent earnings reports have gone some way to validating this strategy. In the “stay at home” camp, portfolio holdings such as Microsoft, TSMC and Intuit have all reported strong revenue and earnings growth. Undoubtedly part of this is due to Covid-19 accelerating the uptake of their products and services. Certainly there could be a temporary hiatus in activity if the economy and society return to normal quickly, but ultimately these trends are structural in nature with a long runway of future demand still to come.

On the other hand, outside of the most exposed areas such as airlines and hospitality (where the trust has little exposure), well managed companies that have invested behind their businesses have found ways to adapt to the pandemic. Strong recent trading updates from Redrow, LVMH and Estée Lauder have demonstrated this point, with the shares responding positively.

Away from Covid-19, the all but certain election of Joe Biden as US President has provided a separate boost for equity markets. A Biden administration is expected to deliver more geopolitical stability than that of its predecessor, particularly with respect to global trade. At the same time, a gridlocked congress is unlikely to pass legislation radical enough to erode earnings in profitable sectors like Health Care and Technology.

The freshness of the Pfizer vaccine news also gives scope for disappointment. Testing still needs to be completed and it will take time to roll out in meaningful numbers. However, it does offer a much needed psychological boost both for financial markets and society as a whole. Whichever way events play out, we are likely to see continued volatility within the stock market. In this context, the Trust’s actively managed and balanced portfolio of high-quality companies should continue to deliver sustainable long-term growth in capital and income.

Matthew Tillett11 November 2020

a gridlocked congress is unlikely to pass legislation radical enough to erode earnings in profitable sectors like Health Care and Technology

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


Performance (%)

Select period:

    Cumulative Returns (%)

    Share Price0.8-3.1-3.68.460.5
    NAV (debt at fair value)-0.45.8-4.20.840.5

    Source: Thomson Reuters DataStream, percentage growth, mid to mid, total return to 31.10.2020.1

    Discrete 12 Month Returns to 31 October (%)

    2020 2019 2018 2017 2016
    Share Price-3.614.6-1.929.414.4
    NAV (debt at fair value)-4.27.6-2.216.519.6

    Source: Thomson Reuters DataStream, percentage growth, mid to mid, total return as at 31.10.2020.1

    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 2020 © 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 2020, 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.