The Brunner Investment Trust PLC has released its November 2023 update, highlighting the reasons to invest in the trust. These include its 51 years of dividend growth, one of the highest yields in its sector, and a global, actively managed equity portfolio. The fund manager's review states that November was a good month for the trust, with a NAV total return of 5.5% compared to 4.5% for the benchmark. The trust finished the year up 8.6%, outperforming the benchmark for the past five consecutive financial years. The review attributes this success to the trust's all-weather investment approach, which balances quality, value, and growth within the portfolio.
In November, markets were generally strong worldwide, with evidence of inflation coming under control leading to lower bond yields. This provided less competition for equities and boosted the value of companies' future profits. The trust's bias towards quality and growth companies helped its performance during the month. Positive contributors to the trust's performance included Partners Group, Charles Schwab, and S&P Global, while United Health, TotalEnergies, and Munich Re retreated from high levels.
The trust added a new position in AENA, a state-controlled company that owns 46 airports across Spain. While the profitability of the aeronautical side of the business is regulated, the commercial side, which accounts for 60% of profit, is unregulated and provides an uncapped income stream. AENA acts as a landlord, renting out space to duty-free retailers, restaurants, and car hire firms at its airports. The trust expects passenger numbers and spend per passenger to grow over time, as well as an increase in rent charged to tenants.
The trust also added to its existing positions in Thermo Fisher and ASML, funded by a reduction in Novo Nordisk and Munich Re. The trust's outlook for technology companies that have benefited from the AI boom this year is not provided in the update.
For more information on the trust's portfolio breakdown, performance, and dividend information, readers are directed to visit the trust's website.