The May 2024 update from Brunner Investment Trust PLC highlights the trust's appeal as an investment, emphasizing its 52 years of dividend growth, high yields, and a global, actively managed equity portfolio. The fund manager's review reveals that the trust's hybrid benchmark, comprising 70% global and 30% UK exposure, performed well in May, with the trust's Net Asset Value (NAV) total return at 1.95% compared to the benchmark index's 2.55%. The trust made three new investments in May, including Alphabet, American Financial Group, and Roper Technologies, while reducing holdings in Intuit, MarketAxess, and Rentokil to fund these purchases.
Alphabet, the parent company of Google, was one of the new investments, with the company's consistent performance and strong free cash flow generation being key factors in the decision. American Financial Group, a family-run insurer, was also added to the portfolio due to its superior combined loss ratios and focus on specialty property and casualty insurance. Roper Technologies, a US-listed industrial technology company, was the third new holding, with its focus on creating a predictable, growing, high-quality cash flow stream being a significant factor in the decision.
The trust's decision to reduce several holdings was driven by high multiples that could potentially reduce future investment returns. This included a full sale of Intuit, a US software company, due to its valuation and stock-based compensation practices. Additionally, the trust sold its positions in MarketAxess and Rentokil, as their investment cases had not evolved as hoped and performance had disappointed. The trust is confident that the new holdings will provide a meaningful improvement to the overall portfolio.
For more detailed information on the portfolio breakdown, performance, and dividend information, investors can visit the Brunner Investment Trust PLC website. The update concludes with contact information for Allianz Global Investors UK Limited, the company managing the trust, and a disclaimer about the risks associated with investing.