Brunner Investment Trust PLC · LSE:BUT
Brunner Investment Trust — The Brunner Investment Trust — Shareholder Meeting (March 2008)
28 slides from Brunner Investment Trust's shareholder meeting presentation, Mar 20, 2008
Slide 1: The Brunner Investment Trust PLC
The Brunner Investment Trust PLC Presentation to The Annual General Meeting, 20th March 2008 Representing RCM: Mark Lovett: Fund Manager, UK Portfolio Lucy MacDonald: Fund Manager, Overseas Portfolio
Slide 2: Investment update: Agenda
Investment update: Agenda 1. Market Background 2. Recent Performance 3. Current Portfolio 4. Outlook J11391/Brunner Investment Trust/RA/170308 2
Slide 3: Market background
Market background 560 540 520 500 30 November 2004 - 29 February 2008 480 £ Local 460 FTSE World 38.6 37.2 440 FTSE All Share 42.1 42.1 420 FTSE Europe ex UK 63.8 50.5 S&P 500 15.8 20.5 400 Nikkei 225 18.4 24.8 380 MSCI Pacific Ex Japan 83.9 66.0 360 MSCI Emerging Markets 136.2 124.2 340 2005 2006 2
Slide 4: Move to a more focused approach
Move to a more focused approach - November 2004 and August 2005 Previous Target Number of Holdings 140-170 85-120 Active Risk 2-3% 3-5% Objectives Reduced number of holdings Increased active risk Increased target outperformance Source: RCM, as at 29 February 2008. J11391/Brunner Investment Tru
Slide 5: Performance since adoption of focused approach
Performance since adoption of focused approach Cumulative, Rebased to 100 Performance Nov 2004 – Nov 2007 (Annualised) 120 20 18 115 16 110 14 12 % p.a. 105 10 8 100 6 95 4 2 90 0 May-05 May-06 May-07 Nov-04 Feb-05 Aug-05 Nov-05 Feb-06 Aug-06 Nov-06 Feb-07 Aug-07 Nov-07 Brunner Inv Trust (NAV) (GBP)
Slide 6: Performance attribution: Portfolio returns – last financial year
Performance attribution: Portfolio returns – last financial year 30 November 2006 to 30 November 2007 Fund % Benchmark % +/- Total Equity* +18.4 +9.3 +9.1 UK Equity +14.1 +8.6 +5.5 Overseas Equity +25.1 +10.3 +14.8 NAV Performance** +15.6 +6.3 +9.3 Attribution Sector Allocation Stock Selection UK Eq
Slide 7: Balance sheet and portfolio yield
Balance sheet and portfolio yield Balance Sheet and Portfolio Yield Potential Gearing 23.0% Actual Net Gearing* 6.0% Portfolio Yield 3.2% Benchmark Composite (from 20 March 2008)** 50% FTSE All Share 50% FTSE World Index (ex UK) *After netting off cash and fixed interest. **Subject to shareholder ap
Slide 8: Current asset allocation
Current asset allocation Asset allocation of invested portfolio versus current composite benchmark Trust's Current Customised Benchmark Country Active Weight % Weighting % Weighting % UK 61.5 60.0 1.5 North America 20.9 21.8 -0.9 Europe 10.5 9.4 1.1 Japan 3.7 4.5 -0.8 Asia Ex Japan 1.3 1.8 -0.5 Emer
Slide 9: Within equities which area will do well? Growth
Growth Quality Within equities which area will do well? Positive outlook - growth PE dispersion (fourth minus first quartile) 16 14 The dispersion of P/Es across global equities remains historically low 12 10 8 6 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Medium term quality growth is
Slide 10: Within equities which area will do well? Quality
Growth Quality Within equities which area will do well? Positive outlook - quality PE (12 Months - Forward) of high credit rating stocks relative to low credit rating 140% 130% P/E of high credit rating Companies relative to low Looking at the ratings of lowly rated companies 120% credit rating co
Slide 11: Significant holdings – active positions
Significant holdings – active positions UK Portfolio % Overseas Portfolio % Xstrata Plc 2.4 L-3 Communications H 2.5 Cobham 2.4 Monsanto Co New 2.5 Bae Systems 2.2 Shoppers Drug Mart C 2.4 Reed Elsevier 2.1 Altria Group Inc 2.4 International Power 1.9 East Japan Railway 2.1 Man Group 1.8 Veolia Envi
Slide 12: Outlook
Outlook Earnings growth deteriorating as weaker US demand affects top line growth and higher input costs squeeze margins Volatility has risen significantly as growth slows and credit concerns mount Equities continue to look good value relative to bonds and fair value against their own history
Slide 13: 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
Slide 14: The Brunner Investment Trust PLC – Presentation to the AGM
The Brunner Investment Trust PLC Presentation to the Annual General Meeting, 20th March 2008
Slide 15: Resolution - to receive and adopt the Annual Financial Report
The Brunner Investment Trust PLC Annual General Meeting, 20th March 2008 Resolution 1 - to receive and adopt the Annual Financial Report For Discretion Against Withheld 18,581,129 8,277 0 34,194 15
Slide 16: Resolution - to declare a final dividend
The Brunner Investment Trust PLC Annual General Meeting, 20th March 2008 Resolution 2 - to declare a final dividend For Discretion Against Withheld 18,607,309 8,277 8,014 0 16
Slide 17: Resolution - to re-elect Mr B C R Siddons as a Director
The Brunner Investment Trust PLC Annual General Meeting, 20th March 2008 Resolution 3 - to re-elect Mr B C R Siddons as a Director For Discretion Against Withheld 18,275,918 8,277 322,280 17,125 17
Slide 18: Resolution - to re-elect Mr W R Worsley as a Director
The Brunner Investment Trust PLC Annual General Meeting, 20th March 2008 Resolution 4 - to re-elect Mr W R Worsley as a Director For Discretion Against Withheld 18,539,911 8,277 53,331 22,081 18
Slide 19: Resolution - to approve the Directors' Remuneration Report
The Brunner Investment Trust PLC Annual General Meeting, 20th March 2008 Resolution 5 - to approve the Directors’ Remuneration Report For Discretion Against Withheld 18,432,521 9,318 135,009 46,752 19
Slide 20: Resolution - to re-appoint Deloitte & Touche LLP as Auditors
The Brunner Investment Trust PLC Annual General Meeting, 20th March 2008 Resolution 6 - to re-appoint Deloitte & Touche LLP as Auditors For Discretion Against Withheld 18,268,027 8,277 92,669 254,627 20
Slide 21: Resolution - to authorise Directors to determine Auditors' remuneration
The Brunner Investment Trust PLC Annual General Meeting, 20th March 2008 Resolution 7 - to authorise the Directors to determine the remuneration of the Auditors For Discretion Against Withheld 18,575,097 8,277 35,596 4,630 21
Slide 22: Resolution - to amend the investment policy
The Brunner Investment Trust PLC Annual General Meeting, 20th March 2008 Resolution 8 - to amend the investment policy For Discretion Against Withheld 18,570,933 9,202 24,288 19,177 22
Slide 23: Resolution - to increase the total maximum Directors' fees
The Brunner Investment Trust PLC Annual General Meeting, 20th March 2008 Resolution 9 - to increase the total maximum Directors’ fees For Discretion Against Withheld 18,266,941 9,202 274,120 73,337 23
Slide 24: Resolution - to approve and adopt new Articles of Association
The Brunner Investment Trust PLC Annual General Meeting, 20th March 2008 Resolution 10 - to approve and adopt new Articles of Association For Discretion Against Withheld 18,509,097 12,549 65,006 36,948 24
Slide 25: Resolution - to authorise the Directors to allot Shares
The Brunner Investment Trust PLC Annual General Meeting, 20th March 2008 Resolution 11 - to authorise the Directors to allot Shares For Discretion Against Withheld 18,535,430 11,999 65,650 10,521 25
Slide 26: Resolution - to disapply pre-emption rights
The Brunner Investment Trust PLC Annual General Meeting, 20th March 2008 Resolution 12 - to disapply pre-emption rights For Discretion Against Withheld 18,467,380 11,999 107,366 36,855 26
Slide 27: Resolution - to authorise market purchases of Ordinary Shares
The Brunner Investment Trust PLC Annual General Meeting, 20th March 2008 Resolution 13 - to authorise the Company to make market purchases of Ordinary Shares For Discretion Against Withheld 18,541,045 11,999 56,628 13,928 27
Slide 28: The Brunner Investment Trust PLC
The Brunner Investment Trust PLC Presentation to the Annual General Meeting, 20th March 2008
The Brunner Investment Trust — Shareholder Meeting (March 2008) on 6ix