Brunner’s 2025: 9% Total Return, Dividend Hero status extended to 54 years
Brunner Investment Trust has wrapped up a steady – if unspectacular – year. The net asset value (NAV) delivered a 9.0% total return, but the trust admits it lagged a benchmark flattered by a narrow surge in mega-cap tech. The headline, though, is income: the board proposes a total dividend of 25.0p for 2025, up 5.3%, marking a remarkable 54th consecutive increase.
If you own Brunner for a blend of global growth and dependable income, this update reinforces the “all-weather” proposition. If you wanted go-go AI momentum, you probably felt the underperformance versus a narrow market. Let’s unpack what matters.
Key numbers investors should know
| Metric | 2025 | 2024 |
|---|---|---|
| NAV per share | 1,543.2p | 1,438.8p |
| Total return (NAV) | 9.0% | not disclosed |
| Total dividend | 25.0p | 23.75p |
| Dividend growth | +5.3% | not disclosed |
| Revenue EPS | 27.86p | 27.37p |
| Revenue reserves (post proposed final) | 35.6p | 33.0p |
| Total net assets | £667.2 million | £618.2 million |
| Cash | £17.6 million | £4.8 million |
Quick jargon-buster: NAV is the portfolio’s per-share value. Total return includes dividends. Revenue reserves are retained earnings the trust can use to support future dividends.
Dividend clarity and dates you can bank
The board proposes a final dividend of 6.25p. Key dates:
- Ex-dividend: 26 February 2026
- Record date: 27 February 2026
- Payment: 3 April 2026
- DRIP last date: 13 March 2026
Income purists will like this: revenue EPS of 27.86p comfortably covers the 25.0p total dividend, and revenue reserves rise to 35.6p. The trust also reiterates its unusual policy of forecasting its dividend trajectory, supported by those reserves – a real differentiator when markets wobble.
Performance context: steady overall, behind a frothy benchmark
Brunner’s 9.0% NAV total return was positive in absolute terms, but the trust acknowledges it lagged its benchmark due to an “extraordinarily narrow” rally dominated by a handful of AI-adjacent mega-cap tech names. Capital gains were £46.4 million (2024: £87.5 million), reflecting a less buoyant tailwind from markets.
Why that matters: Brunner’s discipline explicitly avoids speculative, loss-making companies. In periods like 2025, when unprofitable high-growth stocks fly, a quality-biased approach can look pedestrian. The trade-off is intentional. Historically, these episodes of concentration tend to mean-revert – and Brunner’s board is betting its quality-and-cashflow tilt will be rewarded over the long run.
How Brunner is playing AI without chasing hype
AI was the market’s main event. Brunner emphasises participation “without speculation”, leaning into the infrastructure layer and durable cash generators. Notable holdings include:
- Taiwan Semiconductor (TSMC), ASML and Amphenol – essential picks-and-shovels for the AI buildout.
- Alphabet – exposure to large language models and custom AI chips.
At the top of the portfolio you’ll also find Microsoft (6.2% of funds) and Alphabet (5.3%). The managers highlight a useful Q4 reminder: as some AI leaders stumbled on elevated expectations, more value-oriented sectors, including healthcare, rallied. That supports Brunner’s diversified stance.
Portfolio shape: diversified by region and sector
Geographically, the trust remains global:
- North America: 44.5%
- United Kingdom: 25.7%
- Continental Europe: 20.5%
- Pacific Basin: 6.0%
- Japan: 3.3%
The top 20 holdings blend compounders and cyclicals: Microsoft, Alphabet, TSMC, Visa, Bank of Ireland Group, SSE, AIA, InterContinental Hotels, TotalEnergies, Thermo Fisher Scientific, ASML, Corpay, Shell, Charles Schwab, Schneider Electric, Auto Trader Group, Amazon, Itochu, GSK and AMETEK. That mix lines up with the “balanced diversification with no dominant style” that the board keeps hammering home.
Income engine ticking over
Income was essentially flat year-on-year at £15.2 million (2024: £15.2 million). Investment management fees and admin expenses were well-contained relative to portfolio size. Profit after tax came in at £55.6 million (2024: £96.1 million), reflecting the smaller capital gain in a less forgiving stock-pickers’ market.
Cash rose to £17.6 million, helped by a strong operating cash inflow (£26.9 million). The trust also repaid a £10.0 million revolving credit facility during the year – a tidy de-risking move – while long-term debt remains at £25.1 million.
Discount discipline and capital moves
Brunner continues to manage its share base pragmatically: small issuances during the year raised £8.1 million; modest buybacks into treasury totalled £0.1 million. No specific discount or premium figures are disclosed, but the board reiterates it will buy back shares when it considers it expedient.
Risks and how to think about them
The board flags three “red” areas to keep front of mind:
- Market volatility – macro shocks can hit valuations, income and gearing.
- Geopolitical uncertainty – from US-China tensions to conflicts in Ukraine and the Middle East.
- AI-driven disruption – rapid shifts in winners and losers across sectors.
In English: concentration risk is real, and geopolitics will continue to intrude. Brunner’s response is to double down on prudent diversification, quality balance sheets and cash generation, with active management within tight risk parameters. It won’t capture every manic rally – but it aims to protect capital and compound steadily.
Management bench strengthened
James Ashworth has been appointed co-lead manager alongside Julian Bishop (James had served as deputy since early 2024). Christian Schneider and Simon Gergel remain named deputies. Succession planning matters for a long-duration trust; this looks like a sensible evolution rather than a reset.
Why this update matters for shareholders
- Income predictability stands out: 25.0p total dividend, covered by earnings, with revenue reserves at 35.6p.
- Quality-first discipline is intact, even after a year when speculative growth led the line.
- AI exposure is meaningful but measured, anchored in infrastructure and cash generative names.
- Balance sheet looks sound: higher cash, RCF repayment, and steady long-term debt.
On the flip side, underperformance versus a narrow benchmark is frustrating, and the board itself puts market volatility and geopolitics in the “red” bucket. If you’re comfortable with Brunner’s deliberate trade-off – resilience over racy – the case for core portfolio status remains intact.
Dates for your diary: AGM and dividend
- AGM: 11.30 am on Tuesday 31 March 2026 at Trinity House, Trinity Square, Tower Hill, London, EC3N 4DH.
- Proposed final dividend of 6.25p: ex-div 26 February 2026; record 27 February 2026; pay date 3 April 2026.
Josh’s take
Brunner did what it says on the tin: preserved balance, grew income, and stayed disciplined when the market rewarded a narrow club of expensive winners. That cost relative performance this year, but strengthens the long-term compounding case. If you want a steady global core holding with a near “set-and-collect” dividend profile, this update is reassuring. If you’re chasing the hottest AI theme of the month, Brunner won’t be your thrill ride – and that’s precisely the point.
