Page 15 - DIY Investor Magazine | Issue 41

of these opportunities by keeping flexible, pivoting into better value stocks as they see fit.
The fundamental aim is to always invest in strong businesses. Fragile businesses are more vulnerable
to changes in interest rates, credit losses and other wider economic factors which affect the cost of borrowing. Businesses that borrow, or are highly levered (using debt), can see a huge change in profits when interest rates hike up.
“THE BEST PROTECTION COMES FROM HOLDING STRONG BUSINESSES THAT AREN’T FRAGILE
[ARE NOT HIGHLY LEVERAGED] AND ARE RESILIENT IN THE FACE TOF UNFORESEEN EVENTS.”
Julian clarifies, “The best protection comes from holding strong businesses that aren’t fragile [are not highly leveraged] and are resilient in the face of unforeseen events.” When it comes to all-weather investing, it’s also important to have holdings that generate a lot of cash. Uncertainty is an inherent part of investing, but having
a decent cash yield in the portfolio can provide some protection against volatility.
The trust’s income payments also help cushion investors from more volatile market conditions, increasing its investor appeal during economic downturns. Brunner’s regular rising dividend, paid out for the past 52 years, makes it one of the Association of Investment Company’s ‘Dividend Heros’5.
A healthy revenue reserve (prudently accumulated by the board during good years) meant the dividend was even paid out with an increase during the COVID-19 pandemic, when markets were down almost across the board and many companies cut dividends. The Brunner managers are proud of this achievement which shows that even in the face of potential share price uncertainty and volatility, the trust still aims to deliver a growing income stream.
WHY IS THE BRUNNER INVESTMENT TRUST AN ALL-WEATHER OPTION YOU CAN TRUST?
Brunner is a global equity investment trust which aims to weather volatility and deliver growth by taking a balanced approach. It looks for strong businesses with a decent cash yield. The managers have the freedom to choose any company from across the globe, whatever the sector or region. This flexibility ultimately aims to curate an investment trust portfolio of resilient companies which could generate smooth returns in the face of volatility and changing economic conditions. The trust’s strong dividend track record also illustrates its ability to deliver rising income
in the face of market turbulence.
1 Source: Dividend Heroes | The AIC
2 Net of fees means fees have been deducted. In other words, the trust has still outperformed benchmark even after the cost of fees has been deducted.
3 Quality, value and growth refer to specific company characteristics that are believed contribute to long-term success and performance.
4 Fundamentals include a company’s profitability, revenue, liabilities, and growth potential.
5 Source: Dividend Heroes | The AIC
ELEVATOR PITCH: A QUICK INTRODUCTION TO THE BRUNNER INVESTMENT TRUST
Brunner is a global equity investment trust which aims to weather volatility and deliver growth by taking a balanced approach. It looks for strong businesses with a decent cash yield. The managers have the freedom to choose any company from across the globe, whatever the sector or region. This flexibility ultimately aims to curate an investment trust portfolio of resilient companies which could generate smooth returns in the face of volatility and changing economic conditions. The trust’s strong dividend track record also illustrates its ability to deliver rising income in the face of market turbulence.
WATCH VIDEO HERE
MORE INFORMATION ON BRUNNER INVESTMENT TRUST HERE
Disclaimer:
Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested. Past performance does not predict future returns. For further information contact the issuer at the address indicated below. This is a marketing communication issued by Allianz Global Investors UK Limited, an investment company, incorporated in the United Kingdom, with its registered office at 199 Bishopsgate, London, EC2M 3TY, www.allianzglobalinvestors.co.uk. Allianz Global Investors UK Limited company number 11516839 is authorised and regulated by the Financial Conduct Authority. Details about the extent of our regulation are available from us on request and on the Financial Conduct Authority’s website (www.fca.org.uk). The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted; except for the case of explicit permission by Allianz Global Investors UK Limited. The Brunner Investment Trust PLC is incorporated in England and Wales. (Company registration no. 226323). Registered Office: 199 Bishopsgate, London, EC2M 3TY.
15 DIY Investor Magazine
· August 2024