Brunner Investment Trust PLC · LSE:BUT

Brunner Investment Trust — The Brunner Investment Trust — Shareholder Meeting (March 2011)

29 slides from Brunner Investment Trust's shareholder meeting presentation, Mar 17, 2011

  1. Slide 1: The Brunner Investment Trust PLC Presentation to the Annual General Meeting

    The Brunner Investment Trust PLC Presentation to the Annual General Meeting 17th March 2011 Representing RCM: Lucy Macdonald, Fund Manager (CIO, Global Equities, London) Jeremy Thomas Thomas, Fund Manager (CIO (CIO, UK Equities, Equities London)

  2. Slide 2: Agenda

    Agenda g  The Th BBrunner Investment I Trust T –background, b k d recent developments d l andd performance f  Equity market background and outlook  Summary J2011-10271\Brunner Investment Trusts\SW\140311 2

  3. Slide 3: Brunner Investment Trust

    Brunner Investment Trust A bottom-up global stock-picking trust  Two T portfolios f li managedd on a ‘b ‘bottom up’’ bbasis i by b Lucy L Macdonald M d ld (Overseas) (O ) andd JJeremy Th Thomas (UK)  Stock-picking philosophy based on fundamental research  £275 million (total assets)  Discount of

  4. Slide 4: Background

    Background g  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 qu ty Portfolio o t o o holdings o d gs March a c 2011: 0 1020 UK Global Previous Curr

  5. Slide 5: Performance December 2004 to February 2011

    Performance 1 December 2004 to 28 February 2011 170 NAV performance – financial year 160 ending November 2010 % 150 Brunner 7.3 140 Benchmark 9.2 130 120 110 100 90 80 01/02/2007 01/05/2007 01/002/2010 01/005/2010 01/002/2011 01/022/2005 01/05/2005 01/08/2007 01/008/2010 01/08/2005 01/022/2006 01/05

  6. Slide 6: What has driven markets?

    What has driven markets? Citi US Economic Surprise Indicator and S&P 500 (rhs) 70 1400 60 1300 50 40 1200 30 1100 20 10 1000 0 900 -10 -20 800 Novv/09 Appr/10 Mayy/10 Mayy/10 Junn/10 Occt/10 Occt/10 Novv/10 Augg/09 Augg/09 Sepp/09 Octt/09 Octt/09 Decc/09 Jann/10 Jann/10 Febb/10 Maar/10 Maar/10 Juul/

  7. Slide 7: Long term issues remain: Zero interest rate policy

    Longg term issues remain Zero Interest Rate Policy is not sustainable forever Central Bank Rates 7 6 5 4 3 2 1 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 US Fed Funds Bank of England Base Rate ECB Main Refinancing Rate Bank of Japan Call Rate Source: Thomson Datastream J2011-10271\Brunner I

  8. Slide 8: Long term issues remain: High commodity prices

    Longg term issues remain High commodity prices impact economic growth 225% 150% 75% 0% -75% 48 53 58 63 68 73 78 83 88 93 98 03 08 Source: Dow Jones & Company, Datastream as at 1 February 2011. J2011-10271\Brunner Investment Trusts\SW\140311 8

  9. Slide 9: Long term issues remain: Earnings expectations and margins

    Longg term issues remain Earnings expectations now elevated and margins at record levels Source: FactSet JCF, Redburn Partners.. Data are mean, weighted, in pence J2011-10271\Brunner Investment Trusts\SW\140311 9

  10. Slide 10: Stock correlation within the market

    Stock correlation within the market 6-Month correlation  Correlations in all regions have declined significantly Source: Credit Suisse HOLT, 28 January 2011. J2011-10271\Brunner Investment Trusts\SW\140311 10

  11. Slide 11: Attractive opportunities

    Attractive opportunities pp 12m forward P/E: best earnings growth quintile vs vs. worst 2.20 2.00 1.80 1.60 1.40 1.20 1.00 PE Prospective Growth (Best vs Worst) PE, The valuation for quality growth stocks is attractive... Source: Thomson Reuters, IBES, SPSS, Credit Suisse Research. As at 31 August 2

  12. Slide 12: Excess corporate liquidity

    Excess corporate p liquidity q y Non-financial corporate sector FCF as a % of GDP 5 0% 5.0%  US FCF is close to an all-time 4.0% high as a share of GDP  Supportive for growth in capex, 3.0% dividends buybacks and M&A dividends, activity 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% Q1 1960 Q1 1964 Q1 1968 Q1 1

  13. Slide 13: Portfolio positioning

    Portfolio positioning p g In a below trend growth environment we are allocating investment to three specific areas:  Organic growth: Companies with the ability to grow organically organically, companies such as Amazon and Google  Restructuring candidates: Companies such as Starbucks, Estee Lauder,

  14. Slide 14: Outlook and summary

    Outlook and summaryy  Uneven recoveryy with economic ggrowth in developed p countries remainingg below trend while developing p g countries are still strongg  Central banks to remain relatively accommodative and core inflation to remain moderate in developed countries  Gradual tightening measures

  15. Slide 15: 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 mayy not gget back the amount originally g y invested. You should not make anyy assumptions p a

  16. Slide 16: The Brunner Investment Trust PLC Presentation to the Annual General Meeting

    The Brunner Investment Trust PLC Presentation to the Annual General Meeting, 17th March 2011

  17. Slide 17: Resolution - to receive and adopt the Annual Financial Report

    The Brunner Investment Trust PLC Annual General Meeting, 17th March 2011 Resolution 1 - to receive and adopt the Annual Financial Report For Discretion Against Withheld 21,690,726 13,722 0 37,880 J2011-10281\Brunner Investment Trusts\JB\160311 17

  18. Slide 18: Resolution - to declare and approve a final dividend

    The Brunner Investment Trust PLC Annual General Meeting, 17th March 2011 Resolution 2 - to declare and approve a final dividend For Discretion Against Withheld 21,728,607 13,722 0 0 J2011-10281\Brunner Investment Trusts\JB\160311 18

  19. Slide 19: Resolution - to re-elect Mr V P Bazalgette as a Director

    The Brunner Investment Trust PLC Annual General Meeting, 17th March 2011 Resolution 3 - to re-elect Mr V P Bazalgette as a Director For Discretion Against Withheld 20,654,744 15,479 941,193 130,913 J2011-10281\Brunner Investment Trusts\JB\160311 19

  20. Slide 20: Resolution - to re-elect Mr W R Worsley as a Director

    The Brunner Investment Trust PLC Annual General Meeting, 17th March 2011 Resolution 4 - to re-elect Mr W R Worsley as a Director For Discretion Against Withheld 20,624,580 15,479 968,299 133,971 J2011-10281\Brunner Investment Trusts\JB\160311 20

  21. Slide 21: Resolution - to elect Mr P M Maynard as a Director

    The Brunner Investment Trust PLC Annual General Meeting, 17th March 2011 Resolution 5 - to elect Mr P M Maynard as a Director For Discretion Against Withheld 20,627,063 16,404 932,980 165,882 J2011-10281\Brunner Investment Trusts\JB\160311 21

  22. Slide 22: Resolution - to approve the Directors' Remuneration Report

    The Brunner Investment Trust PLC Annual General Meeting, 17th March 2011 Resolution 6 - to approve the Directors’ Remuneration Report For Discretion Against Withheld 20,345,956 14,647 1,045,967 335,759 J2011-10281\Brunner Investment Trusts\JB\160311 22

  23. Slide 23: Resolution - to re-appoint Deloitte LLP as Auditors

    The Brunner Investment Trust PLC Annual General Meeting, 17th March 2011 Resolution 7 - to re-appoint Deloitte LLP as Auditors For Discretion Against Withheld 20,634,503 13,722 14,316 1,079,788 J2011-10281\Brunner Investment Trusts\JB\160311 23

  24. Slide 24: Resolution - to authorise Directors to determine Auditors' remuneration

    The Brunner Investment Trust PLC Annual General Meeting, 17th March 2011 Resolution 8 - to authorise the Directors to determine the remuneration of the Auditors For Discretion Against Withheld 20,727,482 13,722 1,269 999,856 J2011-10281\Brunner Investment Trusts\JB\160311 24

  25. Slide 25: Resolution - to renew Directors' authority to allot Ordinary Shares

    The Brunner Investment Trust PLC Annual General Meeting, 17th March 2011 Resolution 9 - to renew the Directors’ authority to allot Ordinary Shares For Discretion Against Withheld 20,636,469 37,085 1,029,210 39,565 J2011-10281\Brunner Investment Trusts\JB\160311 25

  26. Slide 26: Resolution - to disapply pre-emption rights

    The Brunner Investment Trust PLC Annual General Meeting, 17th March 2011 Resolution 10 - to disapply pre-emption rights For Discretion Against Withheld 20,604,180 16,047 1,058,951 63,151 J2011-10281\Brunner Investment Trusts\JB\160311 26

  27. Slide 27: Resolution - to authorise market purchases of Ordinary Shares

    The Brunner Investment Trust PLC Annual General Meeting, 17th March 2011 Resolution 11 - to authorise the Company to make market purchases of Ordinary Shares For Discretion Against Withheld 20,654,886 32,316 1,016,291 38,836 J2011-10281\Brunner Investment Trusts\JB\160311 27

  28. Slide 28: Resolution - to convene a meeting on 14 days' notice

    The Brunner Investment Trust PLC Annual General Meeting, 17th March 2011 Resolution 12 - to enable the Company to convene a meeting on not less than 14 days’ clear notice For Discretion Against Withheld 20,525,116 14,647 1,057,783 144,783 J2011-10281\Brunner Investment Trusts\JB\160311 28

  29. Slide 29: The Brunner Investment Trust PLC Presentation to the Annual General Meeting

    The Brunner Investment Trust PLC Presentation to the Annual General Meeting, 17th March 2011

The Brunner Investment Trust — Shareholder Meeting (March 2011) on 6ix