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 21.01.2019 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 10 Holdings (%)

Royal Dutch Shell B Shares
Cooper Cos
Agilent Technologies

Data as of 30.11.2018

Geographic Breakdown (%)

North America 44.4
UK 26.4
Europe ex UK 21.5
Pacific ex Japan 5.5
Japan 2.2

Data as of 30.11.2018. Excludes Cash

Sector Breakdown (%)

Health Care
Consumer Services
Consumer Goods
Oil & Gas
Basic Materials

Data as of 30.11.2018. Excludes Cash

Fund Manager Comments

Market Review

After the previous month’s turbulence, November was a quieter month for global equity markets. Most started the month on a brighter note, lifted by hopes of thawing US-Chinese trade tensions. Uncertainty over the US mid-term elections was also alleviated when the results were broadly in line with expectations.

However, markets generally lost ground in the second half of the month. In Europe, political uncertainty added to worries over a lacklustre economy, with exports affected by higher tariffs and the slowdown in growth in all regions apart from the US. Heightened tensions between Russia and Ukraine also weighed on sentiment. In general, emerging markets outperformed developed market stocks, with Chinese equities performing particularly strongly.

While Health Care was the best performing sector, Technology continued to sell off, fuelled by speculation that Apple had cut production of its latest iPhone models due to weak sales. Energy stocks also fell as oil prices plunged.

The US Federal Reserve (Fed) appeared to soften its stance towards raising interest rates, with chair Jay Powell indicating that rates were nearing their “neutral” level. Elsewhere, the Bank of England indicated it may be forced to raise interest rates sharply if Brexit led to higher UK inflation. The European Central Bank confirmed it would press ahead with plans to end its bond-buying programme by the end of this year.

Oil fell steadily, with Brent crude falling below USD 60 a barrel, from a peak of more than USD 85 in October. Industrial metals, such as copper, initially weakened but closed the month broadly unchanged. Gold rallied slightly.

Portfolio Review

The Trust’s NAV returned +1.59% against a benchmark return of 0.59%. This outperformance was driven by stock selection, particularly in the Health Care, Consumer Services and Industrials sectors. Although the Trust is underweight Telecommunications, which have performed well, this was comfortably offset by positive stock selection in other sectors.

AbbVie made the largest contribution to the Trust’s returns. Having weakened the previous month , the speciality pharmaceutical company’s share price rallied strongly in November. The company reported year on year revenue growth of 17.7 per cent, as well as better than expected Q3 earnings.

UnitedHealth Group has also boosted performance. The integrated health care company reported impressive Q3 results in mid-October. The company's acquisition of two speciality pharmacies (Avella and Genoa) in Q3 testify to management’s commitment of growing earnings through acquisitions.

Amadeus has been the weakest performing stock in the portfolio. Markets reacted negatively to the processor of online travel bookings revealing it had missed Q3 revenue expectations. This was largely due to declining market share in European global distribution systems. In addition, the European Commission has opened a formal probe, examining whether agreements between Amadeus and Sabre (a competitor) restrict the ability of airlines and travel agents to use alternative suppliers.

Richemont also detracted from returns. The luxury retail conglomerate announced year on year H1 revenue growth of 21.1 per cent, but a 3.1 per cent reduction in operating income. Partially this is due to the company’s deliberate reduction of specialist watches into wholesale channels. However, Asia accounts for around 50% of all revenue and this has declined recently on the back of a weaker Chinese renminbi and lower growth expectations. However, with its investment in online platforms (including a recent joint venture with Chinese ecommerce giant Alibaba), the company has a clear potential growth strategy.

Market Outlook

Markets have reached an inflection point. As of November 30th in USD terms, the MSCI All Country World Index (net) is down 2.1%, compared to a 21.9% gain over the same period last year. Getting here has involved the continuing normalisation of monetary policy, slowing global growth and rising political tensions.

For now, this direction of travel appears fixed, with the result that volatility is rising and valuations have become suppressed across a range of asset classes, not just equities. According to Morgan Stanley, an investment bank, “none of the 17 major asset classes have outperformed inflation, the only time this has happened since 1992”. And as at November 30, the Vix (a measure of stock market volatility) has been above its 200 day moving average for over a month and a half. Conversely, as many investors look for safe haven assets, some stocks do look cheap. The average price to earnings ratio in the MSCI World Index is now at its lowest since June 2013.

Thus the current outlook presents us with a range of opportunities and challenges. Companies which have been oversold are looking attractive once again, while there are plenty with further to fall. As a team, our bias towards quality growth companies has shielded us from some of the worst losses in the recent correction. Implementing our investment process and taking a truly active approach to will be key to navigating the year ahead.

Lucy Macdonald 10 December 2018

the current outlook presents us with a range of opportunities and challenges. Companies which have been oversold are looking attractive once again, while there are plenty with further to fall.

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 -3.7 -4.6 -2.8 48.7 68.1
    NAV -4.2 -3.4 -0.2 41.1 52.1
    Benchmark -4.5 -0.4 4.1 41.4 57.8

    Source: Thomson Reuters DataStream, percentage growth, mid to mid, total return to 30.11.2018.1

    Discrete 12 Month Returns (%)

    2018 2017 2016 2015 2014
    Share Price -2.8 35.8 12.7 2.7 10.1
    NAV -0.2 18.3 19.5 1.0 6.7
    Benchmark 4.1 15.1 18.0 1.8 9.6

    Source: Thomson Reuters DataStream, percentage growth, mid to mid, total return to 30.11.2018.1

    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 2018 © 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.