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Brunner Investment Trust hikes dividend 5.9% to 12.5p per share, extending 53-year growth streak despite market volatility and negative absolute returns.
This article covers information on Brunner Investment Trust PLC.
LON:BUTAgainst a backdrop of geopolitical tension and shifting market leadership, Brunner Investment Trust (BUT) has delivered something shareholders truly value: a dependable dividend hike. Today’s half-year report reveals a 5.9% increase in the interim dividend to 12.5p per share, continuing its remarkable 53-year streak of annual dividend growth. This isn’t just symbolism – it’s cold, hard cash returning to investors’ pockets when many are still feeling the pinch from inflation.
Let’s not sugarcoat it – absolute returns were negative over the six months to May 2025. The trust’s Net Asset Value (NAV) total return dipped 1.5%, slightly trailing its benchmark (-0.1%). Meanwhile, the share price total return fell 3.9%, reflecting a modest discount widening. Key figures tell the story:
The primary drag? US healthcare stocks. UnitedHealth became such an anchor that managers Julian Bishop and Christian Schneider fully exited the position, frankly admitting they held on too long as government policy squeezed profitability. Other healthcare names like Thermo Fisher and Align also wobbled.
It wasn’t all doom. European banks shone brightly – DNB (Norway) and Bank of Ireland delivered robust returns thanks to favourable rates and capital returns. Other standout performers included:
These winners highlight Brunner’s core strategy: seeking quality businesses with sustainable growth, but crucially, only when the price is right.
This is where Brunner flexes its investment trust muscles. Despite negative capital returns, revenue earnings grew (EPS up 1.2% to 17.3p). More importantly, those hefty revenue reserves – a key structural advantage of trusts – provide ample coverage. The board confidently declares:
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Chair Carolan Dobson explicitly states: “We have no current plans to pay dividends out of capital and foresee no need to do so in the foreseeable future.” That’s the sound of a dependable income stream locking into place.
Brunner wasn’t passive. Three significant new holdings entered the fray:
Significant sales included Nestlé (stagnant growth, high multiple), AbbVie (patent cliff fears), and the aforementioned UnitedHealth exit.
The managers don’t shy from the elephant in the room: Trump-era tariffs and expansive US fiscal policy. Their report is laced with historical parallels (even referencing 11th-century King Harthacnut!) and economic analysis:
Their conclusion? “Even kings can’t control the tide,” but Brunner’s balanced, valuation-aware global approach is built for such volatility.
Uncertainty remains Brunner’s constant companion – geopolitics, policy shifts, and inflation risks loom. Yet, the trust plays its core strengths:
Brunner isn’t promising smooth sailing, but it is delivering what income investors crave most: a reliable, growing dividend stream navigated through stormy markets by experienced hands focused on the long-term horizon. That 53-year track record isn’t maintained by accident.
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