Brunner Investment Trust PLC · LSE:BUT

Brunner Investment Trust — The Brunner Investment Trust — Shareholder Meeting (March 2010)

34 slides from Brunner Investment Trust's shareholder meeting presentation, Mar 18, 2010

  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 18th March 2010 Representing RCM: Mark Lovett, Fund Manager (UK Portfolio) L cy Macdonald, Lucy Macdonald Fund F nd Manager Mana er (Global Portfolio)

  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 portfolio positioning, examples, and equity market background  Summary J2010-10335\Brunner Investment Trusts\RA\160310 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 ‘bottom ‘b up’’ bbasis i bby LLucy M Macdonald d ld (Gl (Global) b l) andd Mark M k Lovett L (UK)  Stock-picking philosophy based on fundamental research  Strong growth investment orientation  £2

  4. Slide 4: Recent developments

    Recent developments p  Move to a more focused approach - November 2004 (UK) and August 2005 (Global)  Adoption of new benchmark (March 2008) UK Global Previous Current Previous Current Number of Names 60 – 70 35 – 55 Number of Names 80 – 100 50 - 75 Objectives  Increase focus  Increase target ou

  5. Slide 5: Performance since adoption of focused approach

    Performance since adoption p of focused approach pp 1 December 2004 to 28 February 2010 160 Cumulative Retuurn 120 C 100 90 2004 2005 2006 2007 2008 2009 2010 Dec Period Brunner Inv Trust (NAV) (GBP) BRUNNER BM TR (GBP) Source: Mellon Analytical Solutions, as at 28 February 2010. J2010-10335\Brunner

  6. Slide 6: Brunner performance 2005 to 2009

    Brunner pperformance 2005 to 2009 UK and Overseas (OS) portfolio returns 40 0 40.0 30.0 28.4 26.6 20.0 22.7 24.1 24.2 22.0 17.9 16.9 18.6 10.0 12.3 13.8 10.4 8.1 5.2 8.0 4.0 0.0 -10.0 -20.0 -26.1 -29.4 -30.0 -35.0 -39.4 -40.0 UK OS UK OS UK OS UK OS UK OS 2005 2006 2007 2008 2009 Brunner Relevant Be

  7. Slide 7: Portfolio positioning – economic outlook

    Portfolio ppositioningg – economic outlook Historical relationship between Government debt, growth and inflation Government debt, growth, inflation in developed economies 4,5%  Historically, economies with high public debt/ GDP ratios 4,0% , tended to have relatively low real growth rates in compar

  8. Slide 8: Active positions – Top Ten Active Weights UK

    Active positions p Top Ten Active Weights UK % Cobham 3.4 Compass Group 2.9 Glaxosmithkline 2.8 BG Group 2.6 Melrose 2.4 International Power 2.2 International Personal Finance 22 2.2 Informa 2.2 Unilever 2.1 Telecity 1.9 Source: RCM, as at 15 March 2010. J2010-10335\Brunner Investment Trusts\RA\1603

  9. Slide 9: Compass Group – corporate spending

    Compass Group – corporate spending Compass Group operates an international foodservice group, group which provides contract and concession catering to businesses in over 90 countries. Initial investment case – key drivers  Growth: The long long-term term structural trend for outsourcing remains int

  10. Slide 10: Portfolio positioning

    Portfolio positioning p g In a below trend growth environment we are focused on 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, Wells Fargo,

  11. Slide 11: Positive outlook – corporate spending

    Positive outlook – corporate p spending p g Record Free Cash Flow allows corporates to spend without increasing borrowing Source: Thomson Reuters DataStream, Credit Suisse research. J2010-10335\Brunner Investment Trusts\RA\160310 11

  12. Slide 12: Active positions – Top Ten Active Weights Overseas

    Active positions p Topp Ten Active Weights g Overseas % BNP Paribas 19 1.9 Nestle 1.8 Fresenius SE 1.7 Eutelsat 1.6 Tyco International 1.6 Vinci 1.6 Disney 1.6 Estee Lauder 16 1.6 Bayer 1.6 Abbott Labs 1.6 Source: RCM, as at 15 March 2010. J2010-10335\Brunner Investment Trusts\RA\160310 12

  13. Slide 13: Amazon.com Inc. – organic growth

    Amazon.com Inc.- organic growth Amazon com is an online retailer, Amazon.com retailer selling such products as books, books music, music videotapes, videotapes audiotapes. audiotapes Initial investment case – key drivers  Growth: Amazon has been succeeding in gaining market share against both offli

  14. Slide 14: Starbucks Corp – restructuring

    Starbucks Corpp - restructuring. g Starbucks retails, roasts, and provides its own brand of specialty coffee. The company operates retail locations worldwide and sells whole bean coffees through its sales group, supermarkets and over the internet. Starbucks also produces and sells bottled coffee dri

  15. Slide 15: Graham-Dodd P/E (10y average earnings)

    Graham-Dodd P/E / ((10yy average g earnings) g) Europe USA 50 60 45 50 40 35 40 30 25 30 20 15 20 10 10 5 0 0 Mar 77 Mar 80 Mar 83 Mar 86 Mar 89 Mar 92 Mar 95 Mar 98 Mar 01 Mar 04 Mar 07 Mar 10 Mar 77 Mar 80 Mar 83 Mar 86 Mar 89 Mar 92 Mar 95 Mar 98 Mar 01 Mar 04 Mar 07 Source: RCM. Source: RCM. Jap

  16. Slide 16: Relative performance equities vs. bonds relative to trend

    Relative pperformance equities q vs. bonds relative to trend US S&P 500 (TR) vs AAA long bond return since 1990  Equities have underperformed the broad long-bond market (measured by AAA bonds) since the late 1990s. The relative performance is as far away from the long-term trend as in the early 193

  17. Slide 17: Summary

    Summaryy  Overhang of debt in developed economics – will lead to a subdued economic recovery  Earnings growth will largely be driven by self self-help help or secular sales growth  Equities continue to look good value relative to bonds and cash: fair value against their own history  Brunner will

  18. Slide 18: 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

  19. Slide 19: The Brunner Investment Trust PLC Presentation to the Annual General Meeting

    The Brunner Investment Trust PLC Presentation to the Annual General Meeting, 18th March 2010

  20. Slide 20: Resolution - to receive and adopt the Annual Financial Report

    The Brunner Investment Trust PLC Annual General Meeting, 18th March 2010 Resolution 1 - to receive and adopt the Annual Financial Report For Discretion Against Withheld 20,483,592 23,208 0 40,517 J130206/Brunner Investment Trust/JB/040209 20

  21. Slide 21: Resolution - to declare and approve a final dividend

    The Brunner Investment Trust PLC Annual General Meeting, 18th March 2010 Resolution 2 - to declare and approve a final dividend For Discretion Against Withheld 20,523,039 23,208 1,070 0 J130206/Brunner Investment Trust/JB/040209 21

  22. Slide 22: Resolution - to re-elect Mr K E Percy as a Director

    The Brunner Investment Trust PLC Annual General Meeting, 18th March 2010 Resolution 3 - to re-elect Mr K E Percy as a Director For Discretion Against Withheld 20,213,788 23,208 232,378 77,943 J130206/Brunner Investment Trust/JB/040209 22

  23. Slide 23: Resolution - to re-elect Mr V P Bazalgette as a Director

    The Brunner Investment Trust PLC Annual General Meeting, 18th March 2010 Resolution 4 - to re-elect Mr V P Bazalgette as a Director For Discretion Against Withheld 20,210,305 23,208 238,919 74,885 J130206/Brunner Investment Trust/JB/040209 23

  24. Slide 24: Resolution - to re-elect Mr W R Worsley as a Director

    The Brunner Investment Trust PLC Annual General Meeting, 18th March 2010 Resolution 5 - to re-elect Mr W R Worsley as a Director For Discretion Against Withheld 20,230,464 23,208 216,460 77,185 J130206/Brunner Investment Trust/JB/040209 24

  25. Slide 25: Resolution - to re-elect Mr I E Barlow as a Director

    The Brunner Investment Trust PLC Annual General Meeting, 18th March 2010 Resolution 6 - to re-elect Mr I E Barlow as a Director For Discretion Against Withheld 20,205,533 23,208 223,874 94,702 J130206/Brunner Investment Trust/JB/040209 25

  26. Slide 26: Resolution - to approve the Directors' Remuneration Report

    The Brunner Investment Trust PLC Annual General Meeting, 18th March 2010 Resolution 7 - to approve the Directors’ Remuneration Report For Discretion Against Withheld 20,110,200 26,633 320,982 89,502 J130206/Brunner Investment Trust/JB/040209 26

  27. Slide 27: Resolution - to re-appoint Deloitte LLP as Auditors

    The Brunner Investment Trust PLC Annual General Meeting, 18th March 2010 Resolution 8 - to re-appoint Deloitte LLP as Auditors For Discretion Against Withheld 20,221,224 25,708 11,004 289,381 J130206/Brunner Investment Trust/JB/040209 27

  28. Slide 28: Resolution - to authorise the Directors to determine the remuneration of the Auditors

    The Brunner Investment Trust PLC Annual General Meeting, 18th March 2010 Resolution 9 - to authorise the Directors to determine the remuneration of the Auditors For Discretion Against Withheld 20,453,461 36,633 4,223 53,000 J130206/Brunner Investment Trust/JB/040209 28

  29. Slide 29: Resolution - to approve and adopt new Articles of Association

    The Brunner Investment Trust PLC Annual General Meeting, 18th March 2010 Resolution 10 - to approve and adopt new Articles of Association For Discretion Against Withheld 20,310,160 28,894 58,121 150,142 J130206/Brunner Investment Trust/JB/040209 29

  30. Slide 30: Resolution - to renew the Directors' authority to allot Ordinary Shares

    The Brunner Investment Trust PLC Annual General Meeting, 18th March 2010 Resolution 11 - to renew the Directors’ authority to allot Ordinary Shares For Discretion Against Withheld 20,465,294 28,894 53,129 0 J130206/Brunner Investment Trust/JB/040209 30

  31. Slide 31: Resolution - to disapply pre-emption rights

    The Brunner Investment Trust PLC Annual General Meeting, 18th March 2010 Resolution 12 - to disapply pre-emption rights For Discretion Against Withheld 20,293,904 28,894 205,763 18,756 J130206/Brunner Investment Trust/JB/040209 31

  32. Slide 32: Resolution - to authorise the Company to make market purchases of Ordinary Shares

    The Brunner Investment Trust PLC Annual General Meeting, 18th March 2010 Resolution 13 - to authorise the Company to make market purchases of Ordinary Shares For Discretion Against Withheld 20,430,651 28,894 81,939 5,833 J130206/Brunner Investment Trust/JB/040209 32

  33. Slide 33: Resolution - to convene a meeting on not less than 14 days' clear notice

    The Brunner Investment Trust PLC Annual General Meeting, 18th March 2010 Resolution 14 - to enable the Company to convene a meeting on not less than 14 days’ clear notice For Discretion Against Withheld 20,063,067 28,894 361,815 93,541 J130206/Brunner Investment Trust/JB/040209 33

  34. Slide 34: The Brunner Investment Trust PLC Presentation to the Annual General Meeting

    The Brunner Investment Trust PLC Presentation to the Annual General Meeting, 18th March 2010

The Brunner Investment Trust — Shareholder Meeting (March 2010) on 6ix