The July 2024 update from Brunner Investment Trust PLC's portfolio managers highlights the trust's appeal as an investment, including its 52 years of dividend growth, high yields, and global, actively managed equity portfolio. The monthly fact sheet provides data and commentary as of 31st July 2024.
The fund manager's review discusses the political and market changes in various countries, such as the UK, France, and the USA. It notes the shift in equity market leadership, particularly in the USA, where there was a move away from the largest technology companies towards mid-sized and smaller companies. The UK market also experienced a change in leadership, with strong outperformance from medium-sized companies.
The trust underperformed its benchmark in July, primarily due to weak market reactions to first-half financial results reported by some of its companies. However, the managers express confidence in the long-term prospects of these companies, despite the temporary setback. They also discuss their cautious approach towards companies caught up in the AI wave and weight-loss drug manufacturers, making adjustments to the trust's portfolio accordingly.
The review also highlights the trust's increased investments in existing holdings, such as Align Technology and Assa Abloy, and the narrowing of the trust's discount to NAV, which is seen as a vote of confidence in the Brunner approach by fellow shareholders.
Overall, the update provides a comprehensive overview of the market conditions, the trust's performance, and the portfolio adjustments made in response to the evolving market dynamics.