Edison issues review on The Brunner Investment Trust (BUT)
The Brunner Investment Trust (BUT) is managed by Matthew Tillett at Allianz Global Investors (AllianzGI), along with deputy managers Christian Schneider and Marcus Morris-Eyton. Tillett is confident that the trust's shares can trade at a narrower discount to NAV following the exit of a major shareholder, which had acted as an overhang since 2016. He suggests that 'now is a great opportunity to buy a solid reliable trust that has delivered good performance over the long term'. The manager says that BUT has a 'philosophy and process that is tried and tested' with the fund offering investors 'high quality, large, liquid companies at attractive valuations'. He believes that the trust is well positioned to benefit in an environment where investors place a greater emphasis on the quality and strength of company fundamentals.
BUT offers a balanced portfolio of high-quality, global equities with the prospects of both capital appreciation and income growth. The trust has a long-term record of outperformance – its NAV total returns are ahead of those of the composite benchmark over the last one, three, five and 10 years – and has generated absolute annualised double-digit NAV and share price total returns over the last decade. BUT could appeal to income-focused investors. It is one of the UK investment trusts with a very long-term record of dividend growth and has paid a higher annual distribution in each of the last 49 consecutive years. AllianzGI has a well-defined investment approach, with stocks selected on a bottom-up basis based on three pillars of quality, growth and valuation, and an assessment of a company's environmental, social and governance (ESG) credentials is an integral part of the process.
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