Brunner Investment Trust PLC · LSE:BUT
Brunner Investment Trust — The Brunner Investment Trust — Shareholder Meeting (April 2019)
34 slides from Brunner Investment Trust's shareholder meeting presentation, April 2019
Slide 1: The Brunner Investment Trust PLC Annual General Meeting April 2019
The Brunner Investment Trust PLC Annual General Meeting April 2019 Lucy Macdonald Matthew Tillett Value. Shared.
Slide 2: Portfolio Review
01 Portfolio Review 2 19-1312 P-Brunner
Slide 3: Track record of performance
Track record of performance 260 240 220 200 180 160 140 Cumulative Returns over 10 years As at March 29, 2019 120 NAV at Fair Value 246.5 Share Price 241.0 100 Benchmark 232.7 80 Dec11 May12 Oct12 Mar13 Aug13 Jan14 Jun14 Nov14 Apr15 Sep15 Feb16 Jul16 Dec16 May17 Oct17 Mar18 Aug18 Jan19 Brunner Inv T
Slide 4: Consistent dividend growth
Consistent dividend growth 20 Reserve accumulation 46 Years of 18 Reserve depletion Rising 16 Special Dividends Dividend 14 One of the sector’s highest Net Dividend per Share 12 yielding trusts at 2.42% Pays out quarterly 10 18.2 dividends 16.5 8 15.8 Prudent capital allocation to 14.5 15.0 15
Slide 5: Reducing interest payments to boost dividend cover
Reducing interest payments to boost dividend cover Pro Forma Earnings per Share are 8.7% higher following debt Providing more scope for dividend growth given already refinancing strong reserves FDF Fintrust +1.2p +0.4p 30p 120% 20 25p 100% 15 Earnings per Share 20p 80% 15p 60% 10 20p 18.4p 10p 40% 5
Slide 6: Market Outlook and Positioning
02 Market Outlook and Positioning 6 19-1312 P-Brunner
Slide 7: What deleveraging?
What deleveraging? Global debt to GDP by sector Global debt to GDP by region % % Private Households & Non-Financial 150 Corporations 400 Developed Markets 300 Global 100 Government Emerging Markets 200 50 Financials 100 Emerging Markets ex China 0 0 1990 1995 2000 2005 2010 2015 1990 1995 2000 2005
Slide 8: Liquidity: central banks wait and see
Liquidity: central banks wait and see Central bank liquidity stimulus peaked in 2018 projection 100 25 monetary base (% of nominal country GDP) 90 80 20 % of nominal world GDP 70 60 15 50 40 10 30 20 5 10 0 0 2006 2008 2010 2012 2014 2016 2018 2006 2008 2010 2012 2014 2016 2018 2020 US Euroland Japa
Slide 9: Quality rising in importance as liquidity recedes
Quality rising in importance as liquidity recedes MSCI Quality vs. MSCI World – 5 years 170 160 150 140 130 120 110 100 90 19/02/2014 19/02/2015 19/02/2016 19/02/2017 19/02/2018 MSCI World Quality Net TR MSCI World Net TR NB: The MSCI Quality index aims to capture the performance of quality growth s
Slide 10: Trade conflicts placing strain on the global economy
Trade conflicts placing strain on the global economy More than 1/3 of all US imports under threat of higher tariffs Further trade conflict may spill over to the world economy Negative impact on global GDP (over 2-3 years) of 30 a 10% point increase in tariffs on: Affected US imports: 58bn steel/alum
Slide 11: Growth: earnings revisions slowing
Growth: earnings revisions slowing Earnings revisions momentum (ratio of up/down estimates, 3months moving average) >1 means more upgrades than downgrades S&P 500 MSCI Europe Topix MSCI EM Analysts are reducing earnings estimates as US tax cut impact fades and leading indicators cool. Source: Allian
Slide 12: Valuation: Cyclically Adjusted PE Ratios
Valuation: Cyclically Adjusted PE Ratios Index price to 10 year average real earnings per share 45 40 35 30 25 20 15 10 5 0 Emerging… Canada Mexico Taiwan New Zealand USA Portugal Chile Switzerland MSCI ACWI Brazil Russia France Eurozone Australia Norway Spain Sweden China UK Greece Ireland India Ph
Slide 13: Market outlook
Market outlook Liquidity Ten years after the financial crisis, central banks have tentatively begun to normalise monetary policy Liquidity removal will eliminate and slowly reverse the main driver of asset returns over that period Growth US fiscal stimulus has powered economic and earnings gro
Slide 14: The Cooper Companies
The Cooper Companies Specialist healthcare manufacturing Description: A medical devices company, made up of Cooper Vision and Cooper Surgical. These specialise in the production of contact lenses and women’s fertility devices, respectively. Quality: CooperVision operates within a regulated, oligopol
Slide 15: Compass Group
Compass Group International Food Service Provider Description: Compass is the world’s largest food service provider. The company operates internationally, with a strong presence in the US and Europe. Serving public sector and business clients, Compass also runs franchises like Starbucks and Burger K
Slide 16: Informa
Informa Global leader in exhibitions and media Description: Informa’s key business operations are in events and exhibitions, business intelligence and academic publishing. In January 2018, Informa announced its acquisition of UBM, creating the world’s largest exhibitions company. Quality: Exhibition
Slide 17: Agilent Technologies
Agilent Technologies Global leader in life sciences and applied chemical markets Description: Agilent provides core bio-analytical and electronic measurement solutions to the communications, electronics, life sciences, and chemical analysis industries. Quality: Significant ongoing restructuring acro
Slide 18: Ecolab services
Ecolab services International water, hygiene and energy Description: Ecolab provides solutions and on-site services to companies in a range of sectors. These range from the food and hospitality industry, to hospitals and energy companies. Quality: Operating in a logistically and chemically complex s
Slide 19: Why Brunner?
Why Brunner? One of the highest yielding trusts in its sector with over 46 years of consecutive dividend growth Long term outperformance vs benchmark Optimal balance of global diversification and high conviction stock selection An experienced team with a robust investment process A discount that has
Slide 20: Disclaimer
Disclaimer This is no recommendation or solicitation to buy or sell any particular security. Any security mentioned above will not necessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date. Investment trusts are quoted companies listed on the Lo
Slide 21: Active is: Allianz Global Investors
Active is: Allianz Global Investors
Slide 22: The Brunner Investment Trust PLC Annual General Meeting
The Brunner Investment Trust PLC Annual General Meeting 4 April 2019 Lucy Macdonald Matthew Tillett Value. Shared.
Slide 23: Resolution 1: To receive and adopt the annual financial report
The Brunner Investment Trust PLC Annual General Meeting, 4 April 2019 Resolution 1: To receive and adopt the annual financial report For Discretion Against Withheld 16,385,126 31,612 0 5,724 23 19-1312 P-Brunner
Slide 24: Resolution 2: To declare a final dividend
The Brunner Investment Trust PLC Annual General Meeting, 4 April 2019 Resolution 2: To declare a final dividend For Discretion Against Withheld 16,387,792 31,612 0 3,058 24 19-1312 P-Brunner
Slide 25: Resolution 3: To re-elect Vivian Bazalgette as a Director
The Brunner Investment Trust PLC Annual General Meeting, 4 April 2019 Resolution 3: To re-elect Vivian Bazalgette as a Director For Discretion Against Withheld 15,912,990 33,442 315,176 160,854 25 19-1312 P-Brunner
Slide 26: Resolution 4: To re-elect Ian Barlow as a Director
The Brunner Investment Trust PLC Annual General Meeting, 4 April 2019 Resolution 4: To re-elect Ian Barlow as a Director For Discretion Against Withheld 16,169,122 33,442 127,509 92,389 26 19-1312 P-Brunner
Slide 27: Resolution 5: To re-elect Peter Maynard as a Director
The Brunner Investment Trust PLC Annual General Meeting, 4 April 2019 Resolution 5: To re-elect Peter Maynard as a Director For Discretion Against Withheld 16,163,104 33,442 75,728 150,188 27 19-1312 P-Brunner
Slide 28: Resolution 6: Directors’ Remuneration Implementation Report
The Brunner Investment Trust PLC Annual General Meeting, 4 April 2019 Resolution 6: To approve the Directors’ Remuneration Implementation Report For Discretion Against Withheld 16,163,523 33,442 116,935 108,562 28 19-1312 P-Brunner
Slide 29: Resolution 7: To re-appoint PricewaterhouseCoopers LLP as Auditor
The Brunner Investment Trust PLC Annual General Meeting, 4 April 2019 Resolution 7: To re-appoint PricewaterhouseCoopers LLP as Auditor For Discretion Against Withheld 16,139,851 33,442 223,308 25,861 29 19-1312 P-Brunner
Slide 30: Resolution 8: Auditor remuneration
The Brunner Investment Trust PLC Annual General Meeting, 4 April 2019 Resolution 8: To authorise the directors to determine the remuneration of the Auditor For Discretion Against Withheld 16,298,089 33,442 44,742 46,189 30 19-1312 P-Brunner
Slide 31: Resolution 9: Authority to allot ordinary shares
The Brunner Investment Trust PLC Annual General Meeting, 4 April 2019 Resolution 9: To renew the directors’ authority to allot ordinary shares For Discretion Against Withheld 16,297,011 34,368 68,455 22,628 31 19-1312 P-Brunner
Slide 32: Resolution 10: To disapply pre-emption rights
The Brunner Investment Trust PLC Annual General Meeting, 4 April 2019 Resolution 10: To disapply pre-emption rights For Discretion Against Withheld 15,839,307 34,368 476,470 72,317 32 19-1312 P-Brunner
Slide 33: Resolution 11: Market purchases of ordinary shares
The Brunner Investment Trust PLC Annual General Meeting, 4 April 2019 Resolution 11: To authorise the company to make market purchases of ordinary shares For Discretion Against Withheld 16,100,607 33,538 240,605 47,712 33 19-1312 P-Brunner
Slide 34: Active is: Allianz Global Investors
Active is: Allianz Global Investors
The Brunner Investment Trust — Shareholder Meeting (April 2019) on 6ix