Brunner Investment Trust: A Fact Sheet Deep Dive

The Brunner Investment Trust (BUT) is a publicly listed investment trust aiming to achieve long-term capital growth by investing in a portfolio of global equities. Understanding its fact sheet is crucial for potential and current investors to gauge performance, strategy, and associated risks.

Key Information Highlighted in the Fact Sheet

Investment Objective and Policy

The fact sheet clearly outlines BUT’s objective: long-term capital growth exceeding the benchmark. It details the investment policy, emphasizing a global, multi-cap approach. While predominantly equity-focused, it may indicate allocations to other asset classes like fixed income for diversification purposes. The sheet specifies the trust’s willingness to invest in emerging markets, smaller companies, and unlisted investments.

Performance Data

A vital section, performance data showcases historical returns over various periods (e.g., 1, 3, 5, and 10 years) compared to its benchmark (usually a global equity index). This allows for a quick assessment of how well the trust has performed relative to its peers and the market. Risk metrics such as volatility (standard deviation) and Sharpe ratio may also be included, offering insights into risk-adjusted returns. Past performance is not indicative of future results, but it’s a useful indicator of the manager’s skill.

Portfolio Composition

The fact sheet usually provides a snapshot of the portfolio’s composition, detailing the top holdings, sector allocation, and geographical exposure. This transparency helps investors understand the trust’s current positioning and its sensitivity to specific market factors. Examining the top holdings reveals the manager’s conviction in specific companies and sectors.

Charges and Expenses

Understanding the cost of investing is essential. The fact sheet details the ongoing charges figure (OCF), which represents the annual expenses incurred in running the trust as a percentage of net asset value. It includes management fees, administration costs, and other operating expenses. A lower OCF generally benefits investors. Transaction costs involved in buying and selling investments may be mentioned separately.

Gearing and Discount/Premium

Gearing (borrowing to invest) can amplify returns but also increases risk. The fact sheet discloses the trust’s gearing level, providing insight into the manager’s risk appetite. It also shows the discount or premium to Net Asset Value (NAV). If the share price is below NAV, it’s trading at a discount, potentially offering a buying opportunity. Conversely, a premium means the share price is higher than NAV.

Key Facts

This section summarizes essential information, including the trust’s launch date, market capitalization, dividend yield (if any), and the name of the fund manager. It provides a quick overview of the trust’s vital statistics.

Important Considerations

While the fact sheet offers a valuable overview, it’s crucial to consult the trust’s annual report and accounts for a more in-depth analysis. Investors should also consider their own investment objectives, risk tolerance, and time horizon before investing in Brunner Investment Trust.