The Brunner Investment Trust PLC has released its monthly update for October 2023. The Trust highlights its long history of dividend growth, high yield, and global, actively managed equity portfolio as reasons to invest in Brunner. The Fund Manager's Review discusses the impact of the events in Israel and Gaza on the global economy and stock markets. While the situation is a humanitarian tragedy, the Trust believes there will be limited impact on financial markets. In October, markets fell, with energy stocks performing well and economically sensitive sectors like basic materials and industrials weakening. Higher energy prices also kept fears of inflation alive, impacting interest rate sensitive sectors like real estate.
The Trust's stock selection aims to provide inflation protection, with Nestlé being one example. Nestlé reported sales growth of 8% for the nine-month period, driven by price increases. Equities, unlike other financial assets, can protect profits in real terms during inflationary periods. The Trust notes that while the UK economy is flirting with recession, nominal GDP growth, which includes inflation, is strong. Performance for the month was good compared to the benchmark, despite disappointing results from smaller positions such as Rentokil, Align, and St James Place. Microsoft, Munich Re, AJ Gallagher, Visa, and UnitedHealth, among the Trust's larger holdings, reported strong Q3 results. The Trust did not make any trades during the month.
For the latest portfolio breakdown, performance, and dividend information, readers are directed to the Trust's website.