Brunner Investment Trust PLC · LSE:BUT

Brunner Investment Trust — The Brunner Investment Trust — Shareholder Meeting (March 2012)

34 slides from Brunner Investment Trust's shareholder meeting presentation, Mar 16, 2012

  1. Slide 1: The Brunner Investment Trust PLC Presentation to the AGM

    The Brunner Investment Trust PLC Presentation to the Annual General Meeting, 16th March 2012 Representing RCM: Lucy Macdonald, Fund Manager (CIO, Global Equities, London) Jeremy Thomas, Fund Manager (CIO, UK Equities, London)

  2. Slide 2: Agenda

    Brunner Investment Trust Agenda  Background and performance  Global outlook and portfolio themes  Summary 12-10186\P-BIT\RA\120312 2

  3. Slide 3: A bottom-up global stock-picking trust

    Brunner Investment Trust A bottom-up global stock-picking trust  Two portfolios managed on a ‘bottom up’ basis by Lucy Macdonald (Overseas) and Jeremy Thomas (UK)  Stock-picking philosophy based on fundamental research  £278 million (total assets)  Discount of 9.9% ( NAV debt at fair value)  Gl

  4. Slide 4: Background

    Background  Move to a more focused approach - November 2004 (UK) and August 2005 (Overseas)  Adoption of new benchmark (March 2008)  Further reduction in number of portfolio holdings in February 2011  Equity Portfolio holdings March 2012: 106 UK Global Previous Current Previous Current Number of

  5. Slide 5: Performance December 2004 to February 2012

    Performance 1 December 2004 to 28 February 2012 170 NAV performance – financial year 160 ending November 2011 % 150 Brunner -1.7 140 Benchmark -2.0 130 120 110 100 90 80 1.2.05 1.5.05 1.8.05 1.2.06 1.5.06 1.8.06 1.2.07 1.5.07 1.8.07 1.2.08 1.5.08 1.8.08 1.2.09 1.5.09 1.8.09 1.2.10 1.5.10 1.8.10 1.2.

  6. Slide 6: Performance attribution – Equity Portfolio

    Performance attribution – Equity Portfolio 30 November 2010 to 30 November 2011 Fund % Benchmark % +/- Total Equity* +2.2 +1.4 +0.8 UK Equity* +2.8 +3.0 -0.2 Overseas Equity* +1.6 -0.3 +1.9 NAV Performance** -1.7 -2.0 +0.3 Attribution Sector Allocation Stock Selection UK Equity* +2.1 -2.3 Overseas E

  7. Slide 7: Performance – Attribution analysis

    Performance – Attribution analysis 30 November 2010 to 30 November 2011 Best Active Contributors Worst Active Contributors Overseas Portfolio Overseas Portfolio Nalco Holding 0.9% SEB -0.5% Estee Lauder 0.6% Sony -0.5% Philip Morris International 0.6% Genting Singapore -0.4% Allergan 0.5% Nidec -0.4

  8. Slide 8: Accommodative monetary policy

    Accommodative monetary policy Global Short Interest Rates/GDP Global Central banks balance sheet 10 400 8 350 6 300 4 250 2 200 0 150 -2 -4 100 -6 50 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 2007 2008 2009 2010 2011 USA EMU JAP ECB balance sheet Fed balance sheet SNB balance sheet BoE balance

  9. Slide 9: Global Economic Surprise Indices peaking?

    Global Economic Surprise Indices peaking? Citi Economic Surprise Index: US and EMU  ESI measure to what extent economic data releases are better or worse than originally estimated by consensus  The US ESI appears to have peaked  Europe has recovered from low levels Global ESI have troughed in lat

  10. Slide 10: EMU: mind the spread

    EMU: mind the spread EMU swap spreads EMU Sovereign spreads vs Germany EMU: SWAP SPREAD VS GOVIES (GWL0) 7/3/12 EMU periphery 10y spreads 7/3/12 1.40 45 40 35 30 25 1.20 20 15 1.00 10 0.80 5 0.60 0.40 0.20 0 -0.20 0.20 89 91 93 95 97 99 01 03 05 07 09 11 13 M A M J J A S O N D J F M A M J J A S O N

  11. Slide 11: Europe

    Europe Negative feedback loop of sovereign debt, banks and economy Problem:  Overleverage  Loss of capital market access  Solvency crisis Sovereign Problem: Problem:  Exposure to peripheral assets  Slow growth Banks Economy  Overleverage Deleveraging  Recession risk  Loss of capital market a

  12. Slide 12: UK Economy

    UK Economy A subdued outlook… at best 2.25 2 2.00 0 1.75 -2 1.50 -4 1.25 -6 GDP relative 1.00 HMT independent forecasts to peak, % Quarters from peak -8 for GDP growth, % yoy 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 0.75 2010 2011 1990-93 1979-83 1973-76 1930-34 2008- 2011 2012 12 OBR 10 10 Defi

  13. Slide 13: China: tightening cycle has peaked

    China: tightening cycle has peaked China’s M1 growth suggests core inflation should fall g 40 10  Recent macro data points out of China have been 35 8 encouraging 30 6  Inflation has clearly peaked as minimum wage and 25 pork price increases have moderated 4 20  This gives authorities room to eas

  14. Slide 14: Risk: rising oil price

    Risk: rising oil price US WTI Adjusted for US CPI, 2Y ROC (lhs) vs US real GDP (rhs) US WTI ad justed for US CPI , 2y ROC 7/3/12  The oil prices are rising for the 200 10 following reasons: ISM, rhs 8 - better cyclical data globally 150 (demand driven) 6 - fears around Iran (supply shock) 100 4 - l

  15. Slide 15: Healthy corporate sector

    Healthy corporate sector Corporate balance sheets in the G4 economies* are in better state than government balance sheets  Unusually, corporate balance sheets in aggregate are less risky than government debt  Equities provide a long-term hedge against higher inflation expectations, especially if w

  16. Slide 16: Global IBES revisions momentum may be close to a bottom

    Global IBES revisions momentum may be close to a bottom 12 m forward EPS revisions momentum 3.00  IBES revisions momentum has potentially seen its bottom in the US, where it has recovered 2.50 from low levels. In other regions we do not see much improvement yet 2.00  The earnings revisions momentu

  17. Slide 17: Stock correlations: trending down

    Stock correlations: trending down Regional Intra-Portfolio Correlation Trends  Realized correlations in Europe, the US, and Non- Japan Asia have declined over the past few months from near peak levels. However, correlation levels remain elevated relative to history  We anticipate a further drop as

  18. Slide 18: Our global view

    Our global view  Global economic growth will remain positive but outcomes are disparate and visibility is low  Deleveraging and fiscal austerity vs. monetary stimulus and negative real interest rates.  Better liquidity conditions in Europe but growth uncertainty remains.  U.S. economy has surpri

  19. Slide 19: Our global view (cont.)

    Our global view (cont.)  China will likely avoid a hard landing  Oil poses a significant growth risk if prices rise rapidly  Markets supported by valuations and corporate liquidity; correlations have declined  Quality companies that profitably capture secular global growth opportunities should o

  20. Slide 20: Investment themes: global reach, pricing power, corporate liquidity

    Investment themes: global reach, pricing power, corporate liquidity  Health Care — Celgene, GlaxoSmithKline, Allergan  Branded consumer goods and services with global reach — Apple, Unilever, Diageo, Adidas, Starbucks  Oil services — National Oilwell Varco, AMEC  Asia/EM growth — Standard Charte

  21. Slide 21: Investment themes (cont.)

    Investment themes: global reach, pricing power, corporate liquidity (cont.)  Technology (software, search and services) — Google, Baidu, Accenture  Global travel — Amadeus, priceline.com  Balance sheets and yield — Royal Dutch Shell, Centrica, Reed Elsevier 12-10186\P-BIT\RA\120312 21

  22. Slide 22: Disclaimer

    Disclaimer Please remember that past performance is not a guide to future performance. The value of an investment and the income from it can fall as well as rise as a result of market fluctuations and you may not get back the amount originally invested. You should not make any assumptions about the

  23. Slide 23: The Brunner Investment Trust PLC Presentation

    The Brunner Investment Trust PLC Presentation to the Annual General Meeting, 16th March 2012

  24. Slide 24: Resolution - to receive and adopt the Annual Financial Report

    The Brunner Investment Trust PLC Annual General Meeting, 16th March 2012 Resolution 1 - to receive and adopt the Annual Financial Report For Discretion Against Withheld 20,348,889 6,657 0 28,118 12-10200\P-IT-BIT-PV\JB\150312 24

  25. Slide 25: Resolution - to declare and approve a final dividend

    The Brunner Investment Trust PLC Annual General Meeting, 16th March 2012 Resolution 2 - to declare and approve a final dividend For Discretion Against Withheld 20,347,963 6,657 926 28,118 12-10200\P-IT-BIT-PV\JB\150312 25

  26. Slide 26: Resolution - to re-elect Mr W R Worsley as a Director

    The Brunner Investment Trust PLC Annual General Meeting, 16th March 2012 Resolution 3 - to re-elect Mr W R Worsley as a Director For Discretion Against Withheld 19,329,748 6,657 925,184 122,075 12-10200\P-IT-BIT-PV\JB\150312 26

  27. Slide 27: Resolution - to re-elect Mr K E Percy as a Director

    The Brunner Investment Trust PLC Annual General Meeting, 16th March 2012 Resolution 4 - to re-elect Mr K E Percy as a Director For Discretion Against Withheld 19,288,183 6,657 969,940 118,884 12-10200\P-IT-BIT-PV\JB\150312 27

  28. Slide 28: Resolution - to approve the Directors' Remuneration Report

    The Brunner Investment Trust PLC Annual General Meeting, 16th March 2012 Resolution 5 - to approve the Directors’ Remuneration Report For Discretion Against Withheld 19,212,319 6,657 1,038,403 126,285 12-10200\P-IT-BIT-PV\JB\150312 28

  29. Slide 29: Resolution - to re-appoint Deloitte LLP as Auditors

    The Brunner Investment Trust PLC Annual General Meeting, 16th March 2012 Resolution 6 - to re-appoint Deloitte LLP as Auditors For Discretion Against Withheld 20,282,585 6,657 11,951 82,471 12-10200\P-IT-BIT-PV\JB\150312 29

  30. Slide 30: Resolution - to authorise the Directors to determine the Auditors' remuneration

    The Brunner Investment Trust PLC Annual General Meeting, 16th March 2012 Resolution 7 - to authorise the Directors to determine the remuneration of the Auditors For Discretion Against Withheld 20,272,109 6,657 31,280 73,618 12-10200\P-IT-BIT-PV\JB\150312 30

  31. Slide 31: Resolution - to renew the Directors' authority to allot Ordinary Shares

    The Brunner Investment Trust PLC Annual General Meeting, 16th March 2012 Resolution 8 - to renew the Directors’ authority to allot Ordinary Shares For Discretion Against Withheld 19,382,052 6,657 960,507 34,448 12-10200\P-IT-BIT-PV\JB\150312 31

  32. Slide 32: Resolution - to disapply pre-emption rights

    The Brunner Investment Trust PLC Annual General Meeting, 16th March 2012 Resolution 9 - to disapply pre-emption rights For Discretion Against Withheld 19,273,948 6,657 1,051,478 51,581 12-10200\P-IT-BIT-PV\JB\150312 32

  33. Slide 33: Resolution - to authorise market purchases of Ordinary Shares

    The Brunner Investment Trust PLC Annual General Meeting, 16th March 2012 Resolution 10 - to authorise the Company to make market purchases of Ordinary Shares For Discretion Against Withheld 19,303,850 37,826 1,007,408 34,580 12-10200\P-IT-BIT-PV\JB\150312 33

  34. Slide 34: The Brunner Investment Trust PLC Presentation

    The Brunner Investment Trust PLC Presentation to the Annual General Meeting, 16th March 2012

The Brunner Investment Trust — Shareholder Meeting (March 2012) on 6ix