Edison reviews The Brunner Investment Trust (BUT)

RNS Number : 5436H

Brunner Investment Trust PLC

15 November 2018

 

London, UK, 15 November 2018

Edison issues review on The Brunner Investment Trust (BUT)

The Brunner Investment Trust (BUT) is now a much more focused global equity proposition compared with mid-2016: there is a single manager, running a single portfolio (rather than one UK and one overseas), performance has improved and the board has paid off the trust's longstanding, high-cost debt. Manager Lucy Macdonald believes that the investment cycle is mature, characterised by peaks levels of liquidity, earnings growth and equity valuations, suggesting investors should gravitate towards quality companies that can generate above-average returns on investment. BUT has a distinguished dividend track record; its annual distribution has increased for the last 46 consecutive years.

BUT's current 11.1% share price discount to cum-income NAV (with debt at market value) is at the wider end of the 6.1% to 12.6% range of discounts over the last 12 months. Since early 2017, the discount has narrowed significantly, averaging 9.9% over one year compared with 12.8% over three years. There is scope for BUT's discount to narrow further given its simplified structure, which may be more appealing to investors. The trust has a progressive dividend policy; the annual distribution has increased for the last 46 consecutive years, and BUT's current yield is 2.5%. 

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