Investment Trust Analyst: 45 years of rising dividends as Brunner tilts away from the UK


Originally published at:

Fresh from becoming sole manager, Lucy MacDonald is increasingly evolving the portfolio away from the UK, as she contends with legacy structural debt to deliver alpha and continue Brunner’s 45 year record of rising dividends. Fast Facts Edwardian era trust established by the Brunner family Family maintain a large holding Invests globally including UK Aims…


I am amazed at a 45 year record of increasing dividends, that is quite something.

I am wondering if now might actually be a good time to buy Brunner before the Aviva share sale. Surely when they sell the discount will narrow further because doesn’t the market anticipate events ahead of time?

I think this would have a bigger beneficial effect than the maturing debt next January because the market knows the debt is maturing and has probably factored that in already, whereas the date of the Aviva sale no one but Aviva knows.


Yeah I think that makes sense @matts, the stock market begins to price in what it knows, not what it doesn’t know, and right now it doesn’t know when Aviva will sell.

I reckon the discount here, which is still too high, has come in because of the high debt that runs off later this year or next.
There’s no doubt Aviva will sell at some point so it’s not a bad idea to buy some Brunner shares and hold on for the ride baby.


Maybe there is scope for both the Aviva sale and the expiring debt to reduce the discount.

It’s really nice to see a woman fund manager at the helm of an investment trust, there’s too few of them around.


I’ve held a small holding in Brunner for a few years. Performance has been fairly respectable, nothing to shoot the lights out, but I’m not looking for that. I am quite encouraged after reading this, I think the omens look good here for the next few years ahead.

I think now is a good time to top up my holding to benefit from the dividends and NAV growth and a possible double whammy of a narrowing discount. You can never say when this will happen exactly, but it will happen swiftly when it does and if you don’t own it you’ll miss out.