Annual Report, 30 November 2025
A GLOBAL EQUITY INVESTMENT TRUST
The Brunner
Investment Trust PLC
Capital growth and dividends
The Brunner Investment Trust PLC (Brunner)
aims to provide growth in capital value and
dividends for investors over the long term
through investing in a portfolio of global and
UK equities.
The Key Performance Indicators (KPIs) on
page 16 show how effective the company
has been in delivering its strategy.
‘All-weather’ portfolio
The company provides a balanced
solution for investors looking for a global
and UK portfolio of equities and a quarterly
dividend. The company’s investment
policy is set out in the Strategic Report on
page 11.
Independence
Brunner has an independent board of
directors and no employees. Like many
other investment companies, it outsources
investment management and administration
to an investment management company
– Allianz Global Investors – and other third
parties to provide shareholders with an
efficient, competitive, cost-effective way
to gain wide equity investment exposure
through a single investment vehicle.
The Brunner Investment Trust PLC
Like many long-established investment
trusts, Brunner’s name reflects its history
rather than its investment strategy. Johannes
Brunner was born in Canton Zürich and
migrated to Lancashire in 1832. His son, Sir
John Brunner, Bart, was one of the most
successful industrialists of the nineteenth
century, and in politics an influential radical
Liberal MP until well into the twentieth
century. In 1873 he and the scientist Ludwig
Mond founded Brunner, Mond and Co,
the largest of the four companies which
came together to form ICI in 1926. The
following year the Brunner family chose
to sell its ICI shares and establish a broad,
long-term investment vehicle – so in 1927,
The Brunner Investment Trust was formed.
John Brunner was a passionate campaigner,
including for welfare reforms and free
trade, and used his wealth for philanthropic
purposes. Jim Sharp, a director of the
company, is connected to the Brunner
family by marriage and continues the
link between board and family. Brunner
family share ownership information is
included on pages 64 and 66.
A family investment from the beginning…
Benchmark
For the year under review the benchmark
against which the portfolio is measured was
a composite of 70% FTSE World Ex UK Index
and 30% FTSE All-Share Index.
Association of Investment Companies
Brunner is a member of the Association
of Investment Companies (AIC) and the
company’s shares are recognised by the
AIC as suitable for retail investors. AIC
Category: Global.
Risk and gearing
A statement explaining how the assets have
been invested to spread risk and how gearing
is managed is included under Investment
Policy on page 12.
Sir John BrunnerBrunner, Mond & Co. factory, worker cottages and Co-operative Society
A GLOBAL EQUITY INVESTMENT TRUST
1
Contents
WWW.BRUNNER.CO.UK
The fountain photograph on the cover of this report is inspired by the Arms of the Brunner family.
The family originated from Switzerland and ’Brunnen’ is German for spring, fountain or water well.
2
11
25
59
79
105
Overview
2 Financial highlights
5 Chair’s Statement
9 Performance – review of the year
10 Historical record
Strategic Report
12 Introduction
13 Section 172 report
16 Key Performance Indicators
18 Risk report
23 Environmental, Social and Governance (ESG) Issues
Investment Manager’s Review
27 Portfolio Managers’ report
43 Investment philosophy and stock selection process
45 Company engagement activities
46 Environmental, Social and Governance performance
47 Top twenty holdings
52 Portfolio analysis
54 Listed equity holdings
57 Distribution of invested funds
Governance
60 Directors, Manager and advisers
63 Directors’ Report
68 Corporate Governance Statement
70 Management Engagement Committee Report
71 Nomination Committee Report
72 Remuneration Committee Report
75 Audit and Risk Committee Report
78 Statement of Directors’ Responsibilities in respect
of the financial statements
Financial Statements
80 Independent auditors’ report to the members of
The Brunner Investment Trust PLC
86 Income Statement
87 Balance Sheet
88 Statement of Changes in Equity
89 Cash Flow Statement
90 Statement of Accounting Policies
92 Notes to the Financial Statements
Investor Information
106 Investor information (unaudited)
109 Notice of Meeting
112 Glossary
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
2
Financial highlights
For the year ended 30 November 2025
Dublin, Ireland
Bank of Ireland was the portfolio’s
top performer in the year
under review.
2
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
3
OVERVIEW
Discount – average in the year
2
3.7%
2024
4.6%
Earnings per ordinary share
27.9p
2024 27.4p
+1.8%
Dividend per ordinary share
3
25.0p
2024 23.75p
+5.3%
Net assets per ordinary share
1
Debt at fair value
2
1,565.8p
2024 1,459.6p
+7.3%
Share price total return
2 5
-2.0%
2025 1,406.0p
2024 1,460.0p
Net assets per ordinary share
1
Debt at Par
1,543.2p
2024 1,438.8p
+7.3%
Consumer price index
+3.3%
2025 139.5
2024 135.1
Benchmark total return index
4
+15.8%
2024
+23.6%
Net Asset Value total return
Debt at fair value
2
+9.0%
2024
+17.9%
Net Asset Value total return
Debt at par
2
+9.0%
2024
+18.2%
Revenue reserves per ordinary
share for the year
35.6p
2024
33.0p
All figures are UK GAAP unless they are stated to be Alternative Performance Measures. (Glossary page 112).
1
All references to Net Asset Value (NAV) in our commentary and the Strategic Report are to NAV with debt at fair value since this is the
measure that the board considers best reflects the value to shareholders. However, NAV with debt at par value is reported above and in
the Performance – review of the year on page 9.
2
Alternative Performance Measures (APM). See Glossary on page 112.
3
The dividend
per ordinary share includes the proposed final dividend of 6.25p.
4
The benchmark index of 70% FTSE World Ex UK Index and 30% FTSE All-
Share Index.
5
Share price total return is based on the movement in share price including dividends reinvested.
3
OVERVIEW
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
4
0.48p
1972
25.0p
5,208.3%
(CAGR 7.6%)
2
1,814.2%
2025
1
of continual
dividend growth
yrs
54
1973
Britain joins
the European
Community
1974
Bear market
1976
Britain borrows
money from
the IMF
1979
‘Winter of
Discontent’
1982
Economic
recession
leads to high
unemployment
in the UK
1984
12-month UK
miners’ strike
1986
‘Big Bang’
enhances
London’s status
as a financial
capital
1987
‘Black
Monday’
2000
Beginning of
the end of the
dotcom boom
2001
9/11
2003
The Second
Gulf War
2008
Financial crisis
2016
Brexit vote
2020
COVID-19
pandemic
2022
Invasion
of Ukraine
2025
President
Trump’s
second term
begins
Inflation growth of 1,814.2% over the period. RPI 1972-1986. CPI 1987-2025.
Total dividend: from 0.48p to 25.0p over the period
1
Final dividend for approval at the 2026 AGM.
Brunner dividend growth of 5,208.3% over the period.
2
Compound Annual Growth Rate (CAGR) of 7.6%.
4
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
5
Chair’s Statement
Board affirmation and conviction
In a world of accelerating change, and
more than a little turbulence, I would
like to open my statement for this year’s
accounts with a resolute affirmation for
Brunner, on behalf of myself, the other
members of your board, and all those
involved in running your trust.
We consider Brunner to be a valuable,
and enduring investment proposition.
This conviction is rooted in a combination
of factors that, we believe, differentiate
Brunner strongly from not only other
investment trusts, but also from a wider
universe of investment choices available
to you today.
These are the foundational pillars that
support our confidence in delivering
long-term capital growth, combined
with a predictable income: a balanced,
differentiated way of viewing global
equities; the predictability of income
we provide through our forecasted
dividend – a rarity in today’s market, but
backed by substantial revenue reserves;
the steadfast support of the Brunner
family, whose legacy is woven into the
fabric of our trust; and the commitment
of your board, now and in the future, for
the benefit of all shareholders. These
are the reasons we, as a board, “turn
up”, dedicated to the stewardship of
your capital.
We acknowledge that 2025 presented
challenges in relative performance
terms. The trust’s NAV lagged its
benchmark as the market concentrated
returns in a narrow group of mega-cap
technology stocks. However, the trust
delivered a positive absolute return of
9.0% on a total-return basis, and we
remain confident that the investment
philosophy that has guided Brunner
through numerous market cycles –
and delivered 53 consecutive years of
dividend increases – remains sound and
appropriate for long-term shareholders.
The investment landscape in 2025
The financial year was defined by two
powerful, and somewhat conflicting,
forces: a shift in monetary policy
by the US Federal Reserve and an
unprecedented concentration of returns
in a handful of technology stocks. After
a period of aggressive tightening, the
Federal Open Market Committee began
to ease policy, cutting the federal funds
rate three times to a final range of 3.5%
to 3.75%. This decision, while not without
internal division, provided a supportive
backdrop for equity valuations.
However, 2025 was anything but
ordinary. The market rally was
extraordinarily narrow, driven in the
main by a select group of technology
companies. The US market has hit
unprecedented levels of concentration,
with the most significant returns
driven by a handful of high-growth
technology stocks. This was driven by
a surge of capital into companies seen
by the market as best positioned to
capitalise on the artificial intelligence
investment cycle.
This concentration of returns in a
narrow set of stocks creates material
risk for investors. While such rallies can
be powerful in the near term, history
suggests they are typically followed
by periods of mean reversion and
volatility. Your Board remains focused
on protecting your capital through
a diversified approach that avoids
excessive concentration in any single
theme or style.
Artificial Intelligence –
opportunity and participation
without speculation
Artificial intelligence was the dominant
narrative driving equity markets in
2025. The transformative potential of
AI is undeniable, with some estimates
suggesting it could contribute as much
as $15.7 trillion to global GDP by 2030.
This has fuelled a surge in AI-related
investment – almost an ‘arms race’,
with the potential ‘cost’ of missing
out on being a leader in the space
seemingly justifying eye-watering levels
of investment.
However, the market’s enthusiasm for
AI has led to a significant expansion
of valuation multiples for a narrow
set of AI-related companies, with the
technology sector (and within that
sector a small subset of companies
actually driving the strong sector return)
significantly outperforming the broader
market. This has raised concerns about
a potential valuation bubble. While the
underlying technology is more mature
than in the speculative internet bubble
of the late 1990s, the risk of a material
correction in the most speculative
segments of the technology market
remains a key consideration for investors.
Brunner has chosen to participate in
the AI opportunity through a diversified
set of holdings that capture genuine
value creation without excessive
speculation. Rather than holding the
most speculative technology stocks,
the trust maintains large positions in
companies such as TSMC, ASML, and
Amphenol. These companies have
OVERVIEW
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
6
world’s fourth-largest economy. This has
significant implications for global supply
chains and represents a structural shift
in global economic power. The ongoing
conflict in Ukraine and the humanitarian
crisis in Sudan, which the International
Rescue Committee has for the third
consecutive year named the world’s
worst, further contributed to a climate of
geopolitical uncertainty.
Understanding the “all-weather”
investing approach
We recognise that for some shareholders,
the term “all-weather” may seem
abstract or unclear. We therefore feel it
is important that we articulate precisely
what we mean by this phrase and what it
delivers in practice.
The core principle
Brunner’s “all-weather” approach means
delivering consistent, steady returns
through a diversified portfolio positioned
to perform across a range of market
environments. This is not achieved by
chasing every trend or attempting to
predict or time markets. Rather, it is
achieved by maintaining a balanced
exposure to companies and sectors that
generate steady returns in aggregate
through varying economic or market
cycles. It is, in essence, a philosophy of
prudent diversification combined with
bottom-up stock selection.
The trade-off
Brunner maintains a quality-oriented
portfolio of global equities that aims for
a sensible approach to risk. This means
the trust has certain rules, including not
investing in speculative, loss-making or
unprofitable companies – a philosophy
of ‘cash is king’ – with solid free cash flow
that can be returned to shareholders
being the solid base that we build the
portfolio on.
performed well and are essential
to the AI infrastructure buildout.
Additionally, the trust holds a substantial
position in Alphabet (Google),
which is at the forefront of the large
language model race and is a leading
designer of its own AI chips. These
holdings have provided meaningful
exposure to the AI opportunity while
maintaining the portfolio’s quality and
diversification standards.
This positioning was vindicated in the
final quarter of the year, when some
technology leaders faltered on market
concerns on whether they could deliver
on elevated expectations, while value-
oriented sectors, even now including
healthcare, rallied. This underscores
the risk of over-concentration and the
importance of a diversified approach,
precisely the philosophy that has guided
Brunner for decades. Please do read
more about the detail of the investment
portfolio and how our philosophy has
been applied over the financial year in
the Portfolio Managers’ Report starting
on page 26.
Geopolitical fragmentation and the
global trade landscape
The geopolitical landscape in 2025
has been marked by continued
fragmentation. The US-China trade
relationship has remained a source
of volatility, with the continued use
of tariffs as a key instrument of trade
policy. While the stated goal is to
reshore manufacturing, the evidence
of effectiveness is mixed, with China’s
trade surplus continuing to grow to
record levels.
Beyond the US-China dynamic, the
global trade landscape is being reshaped
by the rise of new economic powers.
In 2025, India surpassed China as the
world’s most populous country and
also overtook Japan to become the
We recognise that this means the trust
will sometimes underperform in periods
when the market concentrates returns in
a narrow manner via outperformance
of a particular style, sector or fashion.
However, this trade-off is intentional and
deliberate. In 2025 for example, it was
these types of speculative, unprofitable
technology stocks that were one of the
key drivers of market performance. By
adhering to our investment philosophy,
Brunner did not fully participate in this
narrow, cyclically-driven upmarket.
History provides important context –
for example, the last time that quality
factors underperformed as significantly
as they have over the past year or so was
in 1999/2000, after which there was a
significant recovery and outperformance
by quality stocks. The same pattern
repeated, albeit with slightly lower
extremes, beginning in 2009. We believe
this historical pattern is relevant to
investors today, and we remain confident
that our discipline will prove its worth over
the long term.
Why this matters
In a market dominated by a handful
of stocks and vulnerable to sharp,
unpredictable rotations, the all-weather
approach is not just a marketing
phrase, it is a genuine advantage. You
are positioned to benefit from strong
businesses around the world, in a
multitude of different industries. Your
portfolio is diversified across geographies,
sectors, themes and industries, so you
are not concentrated in any single region
affected by geopolitical shocks. Neither
are you dependent on any single sector
or theme to drive returns.
The supporting pillars of
our approach
Our all-weather positioning is supported
by the following key factors:
Brunner’s “all-weather” approach means delivering
consistent, steady returns through a diversified
portfolio positioned to perform across a range of
market environments.
7
Balanced diversification with no
dominant style – exposure across
multiple geographies, sectors,
and themes means returns are
not dependent on any single area
performing well. We actively avoid
excessive concentration and ensure
our shareholders do not have all
their eggs in one basket. We have a
well-stated policy to triangulate the
best balance of ‘value’, ‘growth’ and
‘quality’ investment factors within the
portfolio. There is no significant stylistic
dominance, although quality factors
are favoured in portfolio stock picks due
to the inherent solidity provided to the
portfolio over the long term – dominant
market positions, strong competitive
moats, recurring revenue streams and
so on. These factors generally mean the
portfolio is less vulnerable to economic
shocks and provides better protection in
a downcycle.
Risk-managed balance of conviction
and active management – active
management melds art with science
and, within our risk management
framework, allows the manager to back
investment convictions, as well as adapt
flexibly as markets develop. We believe
this will have a net-positive outcome
over the long term, though one has to
accept occasional stock-pick failures.
We feel the long-term benefits outweigh
the occasional setback. Overall, prudent
positioning in less-levered, higher-
quality segments of each sector should
create natural downside protection in
market corrections. Position sizes are
managed closely to ensure portfolio risk
is appropriate to the outcome we are
trying to achieve for shareholders.
Income stability and predictability –
our dividend focus and policy means
shareholders should receive a steady
income regardless of market conditions,
combined with the growth potential
of a portfolio of global equities. Unlike
many investment trusts, Brunner
forecasts and declares its dividend
projection in advance each year and
maintains substantial reserves to support
income in difficult years. This provides
shareholders with genuine income
certainty, creating a useful combination
of risk-managed equity returns with an
almost fixed-income-like income stream
for shareholders. Our strong track record
of 53 years of consecutive dividend
increases, combined with steady
capturing of growth from equity markets,
demonstrates Brunner’s ability to deliver
consistent returns through multiple
market cycles, wars, recessions, and
crises. This is not a theoretical approach;
it is one that has been tested and proven
over almost a century.
Brunner family support – the ongoing
support of the Brunner family for the
trust signals a long-term commitment
and shared interests with all other
shareholders. We believe this alignment
is to the advantage of all shareholders
and a valuable feature of the trust,
providing a welcome stability in a
sometimes not-so-stable world.
Shareholder communications
and messaging
Shareholder communications and
messaging are important for the trust’s
continued success. The board wants to
ensure that the trust’s value proposition
is clearly understood by both existing
and prospective investors.
Our core message – as described
above – is that we deliver a balanced
strategy with a variety of themes
allowing Brunner to make money for
its shareholders over time. We aim
for a forecastable approach with our
dividend focus, thus providing steady
equity market returns but with a stability
of income provision for shareholders.
This is both our purpose and our key
differentiation. It demonstrates why
Brunner offers a unique proposition
for investors.
While we communicate this message
in depth through our various
communications channels, we recognise
the need for it to be even more
accessible and to ‘punch hard’ to garner
attention. Brunner undoubtedly has
a strong following of loyal investors,
however for the benefit of both existing
and new shareholders, we recognise the
benefits of bringing the trust into view
of new audiences and those not already
familiar. We need to demonstrate our
differentiated approach vigorously, not
just from other investment trusts, but
from other investment vehicles too.
Investment management
team changes
The board was pleased to announce
in December 2025 the appointment of
James Ashworth as co-lead manager
of Brunner alongside Julian Bishop,
who has co-led the management of the
The board was
pleased to announce
in December 2025 the
appointment of James
Ashworth as co-lead
manager of Brunner
alongside Julian Bishop.
OVERVIEW
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
8
portfolio for three years. James had been
a deputy since early 2024. Christian
Schneider and Simon Gergel will
continue to provide investment support
to the team as named deputy managers.
Earnings per share
Over the past year the portfolio’s
generation of income and earnings
grew once more, with earnings per
share for the year rising by 1.8%,
from 27.4p to 27.9p. Brunner is again
able to cover our increased dividend
payment to shareholders and still
contribute to revenue reserves to help
smooth dividend growth during any
future years when earning income is
more challenging.
Dividend
The proposed final dividend of 6.25p, if
approved by shareholders, will be paid
on 2 April 2026 to shareholders on the
register on 27 February 2026, with an
ex-dividend date of 26 February 2026.
For those shareholders in the Dividend
Reinvestment Plan (DRIP), the last date
for this will be 13 March 2026. In line with
board’s dividend policy, which is outlined
on page 16, the total dividend for 2025,
including the proposed final dividend,
will be 25.0p. This represents an increase
of 5.3% over the 2024 dividend which
was 23.75p and means Brunner will now
reach 54 years of consecutive dividend
increases, remaining in place near the
top of the AIC’s ‘Dividend Heroes’ list.
Revenue reserves will remain strong at
35.6p (2024: 33.0p) after the payment of
the proposed final dividend.
Outlook
The new financial year has begun
with as much uncertainty as the
last. Geopolitical tensions remain
elevated, with ongoing conflicts and
realignments of global powers creating
a fragile backdrop. While the two
main geopolitical ‘events’ of the year
so far (Venezuela and Iran) are having
relatively muted impact on markets thus
far, it is the implications of the US actions
in Venezuela in terms of potential
future actions, not only by the US, but
potentially by other emboldened powers
that is causing more consternation.
While inflation has moderated from its
recent peaks, the path ahead is also
by no means clear. In this environment,
we believe that our managers’ focus on
bottom-up stock selection, identifying
world-class businesses with resilient
earnings, is the most prudent course
for an investment trust aiming to be
at the core of an individual investor’s
own portfolio. The world continues
to offer a wealth of opportunities for
those with a discerning eye and a
long-term perspective.
We believe that the key benefit we offer
our shareholders is the consistency of
the strategy that engineers a well-
diversified portfolio of companies which
delivers steady performance under a
myriad of possible global conditions
– the reason behind our “all-weather”
tagline as we outline above. Amidst
all the macro uncertainty, the portfolio
remains constructed from bottom-up
stock picks, seeking diverse opportunities
from individual companies. We remain
cognisant of the effect that external
factors could have on that portfolio
of companies, but we are not trying to
predict outcomes or have investment
decisions guided in a wholesale fashion
by those factors.
Annual General Meeting
It was a pleasure to see so many of you
at our last Annual General Meeting.
We look forward to welcoming you
again this year at Trinity House, Trinity
Square, Tower Hill, London, EC3N 4DH,
at 11.30 am on Tuesday 31 March 2026.
Attending shareholders will, as usual,
receive a presentation from the portfolio
managers before the formal business
takes place. It is always a valuable
opportunity for the Board and our
portfolio managers to hear your views
and answer your questions directly. We
would be delighted to see you there.
Shareholders can send any questions
to be answered at the AGM by the
board and portfolio managers care of
the company secretary at investment-
trusts@allianzgi.com or in writing to the
registered office, and we will publish
questions and answers on the website
after the meeting. We encourage all
shareholders to exercise their votes in
advance of the meeting by completing
and returning the form of proxy.
Carolan Dobson
Chair
11 February 2026
Brunner will now reach
54 years of consecutive
dividend increases,
remaining in place near
the top of the AIC’s
‘Dividend Heroes’ list.
9
Performance – review of the year
Revenue
Year ended 30 November 2025 2024 % change
Income available for ordinary dividend (£’000s) £12,046 £11,686 +3.1
Earnings per ordinary share 27.9p 27.4p +1.8
Dividends per ordinary share 25.0p 23.75p +5.3
Consumer price index 139.5 135.1 +3.3
Assets
As at 30 November
2025 2024
Capital return
% change
Total return
1
% change
Net Asset Value per ordinary share with debt at fair value 1,565.8p 1,459.6p +7.3 +9.0
Net Asset Value per ordinary share with debt at par 1,543.2p 1,438.8p +7.3 +9.0
Share price 1,406.0p 1,460.0p -3.7 -2.0
Total net assets with debt at fair value (£’000s)
2
£676,985 £627,112 +8.0 -
Total net assets with debt at par (£’000s) £667,223 £618,182 +7.9 -
Ongoing charges
3
0.61% 0.63% - -
Net Asset Value with debt at fair value
4
relative to benchmark
5
Capital return Total return
1
Change in Net Asset Value +7.3% +9.0%
Change in benchmark +13.1% +15.8%
Percentage point performance against benchmark -5.8 -6.8
A Glossary of Alternative Performance Measures (APMs) can be found on page 112.
1
Total return is based on the capital Net Asset Value, including dividends reinvested. (APM).
2
Total net assets with debt at fair value. (APM).
3
The ongoing charges percentage is calculated in accordance with the explanation given on page 112. (APM).
4
The board prefers to measure performance using Net Asset Value with debt at fair value in line with industry practice, as demonstrated in the Chair’s statement
on page 5. (APM).
5
For the financial year under review the benchmark was 70% FTSE World Ex UK Index and 30% FTSE All-Share Index.
OVERVIEW
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
10
Historical record
Net Asset Value total return with debt at fair value and debt at par
Brunner debt at par
Brunner debt at fair value
Benchmark
Re-based to 100. Source: AllianzGI/Thomson Reuters DataStream. Benchmark: 70% FTSE World Ex UK Index and 30% FTSE All-Share Index.
Alternative Performance Measure (APM). See Glossary on page 112.
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenue
Total income (£000s)
9,996 11,000 10,968 11,505 9,195 11,487 12,623 14,426
15,233 15,244
Earnings per share
16.40p 18.40p 19.67p 21.66p 15.96p 20.35p 22.66p 26.35p
27.37p 27.86p
Dividend per share
15.80p 16.50p 18.15p 19.98p 20.06p 20.15p 21.50p 22.70p
23.75p 25.00p
Capital
Total net assets (£ms)
1
318.3 368.0 360.3 403.8 422.1 502.4 497.1 528.2 618.2
667.2
Total net assets (£ms)
2
307.7 359.2 361.1 400.2 416.5 497.5 503.2 537.3 627.1
677.0
Net Asset Value per ordinary share
1
742.8p 862.0p 843.9p 945.8p 988.7p 1,176.9p 1,164.4p 1,237.2p
1,438.8p 1,543.2p
Net Asset Value per ordinary share
2
718.0p 841.4p 845.8p 937.4p 975.5p 1,165.4p 1,178.7p 1,258.6p
1,459.6p 1,565.8p
Share price
591.8p 785.0p 745.0p 862.0p 842.0p 1,050.0p 1,020.0p 1,065.0p
1,460.0p 1,406.0p
Year end discount %
2
18 7 12 8 14 10 14 15
0 10
1
Debt at par.
2
Debt at fair value.
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Net Asset Value Return %
30
25
20
15
10
5
0
11
Strategic
Report
12 Introduction
13 Section 172 Report
16 Key Performance Indicators
18 Risk report
23 Environmental, Social
and Governance (ESG) Issues
Norwegian bank DNB,
headquartered in Oslo,
Norway, was another significant
contributor to performance.
11
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
12
new investors and investor groups,
particularly individuals with smaller
portfolios held either directly or in self-
invested pension plans for whom we can
provide a balanced solution for equity
investment. It is also our objective to
provide good value for shareholders
and ensure that the costs of running
the company are reasonable and
competitive. Information on Revenue
and Invested Funds in the year is
summarised on page 63.
Brunner has an independent board
of non-executive directors and no
employees or premises of its own.
Like other investment companies, it
outsources investment management,
accounting, company secretarial and
other administration services to an
investment management company –
Allianz Global Investors UK Ltd – and to
other parties, including HSBC Bank plc
as depositary and custodian, and MUFG
as registrar. This enables Brunner to
provide shareholders with a competitive,
cost-effective and high-quality way to
gain wide investment exposure through
a single investment vehicle.
The company has a main market
listing on the London Stock Exchange.
In addition to annual and half-yearly
financial reports, the company
announces Net Asset Values per share
daily and provides further information
monthly to the market, in order for
investors and market professionals to
compare its performance with its peer
group. The investment manager also
issues a monthly update on investment
performance which is posted on the
company’s website and is available
by email.
Manager’s investment style
The essence of the investment style
which we ask the investment manager
to follow is to select the best stocks in a
‘bottom up’ approach, before any sector
or country consideration. The portfolio
is concentrated into 52 stocks at 30
November 2025 (2024: 55 stocks). Within
that concentration modest gearing –
employing the company’s borrowings
to invest – is within guidelines set by
the board.
Introduction
Purpose
Our purpose is to provide the company’s
shareholders with growth in capital
value and dividends over the long term
through investing in a portfolio of global
and UK equities. The company aims to
achieve a return higher than that of our
benchmark, after costs, and to achieve
steady dividend growth in real terms.
Strategy review
We hold an annual strategy meeting
outside the normal timetable of board
meetings. At the most recent meeting the
topics covered included:
– The changing environment, conditions
and marketplace for investment trusts
and the trust’s purpose
– Marketing strategy and the focus
for 2026.
Business model
The Brunner Investment Trust PLC carries
on business as an investment company
and follows the investment policy
described below.
By pursuing our investment objective
we aim to appeal to a broad range
of investors and to ensure that the
company’s shares are attractive to
Investment Policy
Investment objective
The Brunner Investment Trust PLC aims
to provide growth in capital value and
dividends for investors over the long
term through investing in a portfolio of
global and UK equities.
The benchmark against which
performance is measured is 70% FTSE
World Ex UK Index and 30% FTSE
All-Share Index.
Risk diversification
The company aims to achieve a spread
of investments across geographies and
sectors. The maximum holding in any
single stock is limited to 10% of gross
assets at the time of investment and
the portfolio will consist of at least 50
stocks. The company will not invest
more than 15% of its gross assets in
other UK listed investment companies.
Gearing
The company seeks to enhance
returns over the long term through
appropriate gearing. The board
monitors the gearing, which is
employed within the guidelines
set from time to time by the board.
Gearing in any case will not exceed
20% of net assets at the time
of borrowing.
In the investment policy above, gross assets means the company’s assets before deduction of all debt and other obligations,
net assets means the company’s assets after deduction of all debt and other obligations based on the fair value of the long-
term debt and preference shares.
13
Section 172 report
Engagement with key stakeholders
Engagement with the company’s stakeholders enables the company to fulfil its strategies and to promote the success of the
company for the benefit of the shareholders as a whole. In the year under review the Annual General Meeting (AGM) was held
as an in-person event which was well attended. Set out below are some examples of the ways in which Brunner has interacted
with key stakeholders to demonstrate how the board and its agents have considered stakeholders in pursuit of the success of the
company and the promotion of that success for the long-term:
Stakeholders and how they are
taken into account Activity in the year Outcome
Shareholders are identified as the
primary stakeholders as the investors
in the company. The company’s
objective is to provide growth in
capital value and dividends for
investors over the long term. The
the company’s strategy is to provide
shareholders with the desired returns
whilst diversifying to take into account
risk appetite.
Participation in investor conferences
and webinars, together with videos
and podcasts on the website informs
shareholders of the investment
management activity and
performance of the company.
The further use of new presentation
styles to engage investors such as
audio (podcasts), video and the Turtl
platform to distribute information
to shareholders and the wider
investment community, including in
shorter, more digestible formats.
Jim Sharp’s relationship to the
Brunner family shareholders provides
further insight for the board into the
views of investors to be used for the
advantage of all.
The investment team with co-leads
Julian Bishop and James Ashworth
continues to engage constructively
with shareholders, journalists
and industry commentators. The
investment team has multiple skill
sets (including Income, Growth,
Global and UK) and has an increasing
recognition in the investment
trust arena.
The discount, one of the company’s
KPIs, having been at a premium
earlier in the year, had widened in
2025. The movement of the discount
over the year is shown on page 17.
Since the year end the company’s
shares have continued to trade at
a discount. Modest share buyback
activity to manage the discount was
commenced in November 2025.
Readers of communications including
our shareholders and other investors,
looking for information about the
company on the website and in online
media coverage.
The user experience on the website
continued to be developed during
the year. The manager has worked
with other publications, such as
Citywire, to provide more information
about the trust online, keeping it fresh
with new video content, interviews
and podcasts.
Continual enhancements and
improvements to the website
including both helpful background
and educational material. We strive
to keep information as relevant and
current as possible.
The company’s shareholders are its primary stakeholders. Other stakeholders include service
providers and the companies in which it invests. The board’s strategy is facilitated by the
manager interacting on its behalf with a wide range of stakeholders through meetings,
seminars, presentations and publications and through contacts made through our suppliers
and intermediaries.
STRATEGIC REPORT
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
14
Stakeholders and how they are
taken into account Activity in the year Outcome
Public Relations and media – the
company continues to work with
public relations advisers to ensure
information about the company,
its strategies and performance can
reach a wide audience to update
shareholders and potential investors
through press articles and online
media coverage.
There is an Integrated PR
programme. Investment managers
Julian Bishop and James Ashworth
provide interviews, presentations
and record podcasts to inform
and educate.
We work with a third party, Lansons
Communications, and the campaign
work is aligned with AllianzGI’s
marketing activity.
PR activity (generating exposure
in consumer finance titles and the
national press) is crucial in providing
information for self-directed investors
through the platform market. Reports
to the board show there is a direct
correlation between press articles
appearing and ‘spikes’ of interest and
purchases of the company’s shares.
Following feedback that people want
bite-sized, shorter presentations, the
majority of content for engagement
is in short form, with longer form
content accessible for those who
want to delve deeper.
Service providers – the company’s
stakeholders need to be assured of
good governance and controls in
the company.
As well as the management company,
the board has appointed a depositary,
a custodian and a registrar to provide
specialist services.
In addition to regular contact
and assurance testing that sound
and effective controls are in place
from all of these service providers,
there is a rolling programme of
due diligence visits to suppliers of
third party services by AllianzGI’s
investment trust team to ensure
that the company is getting good
quality services with robust and fit for
purpose internal controls.
AllianzGI’s investment trust team and
supporting operations also receive
detailed due diligence assessments
by direct suppliers, for example,
looking at NAVs and the pricing
process and on general controls, by
HSBC, the company’s depositary
and custodian. A monitoring visit
took place in early 2026, with HSBC’s
annual assessment of the AllianzGI
UK Ltd entity as the AIFM, and no
issues were raised.
Assurances from direct service
providers on their internal controls
are given formally to the company
twice yearly but day-to-day contact
with the investment trust team
ensures that issues are quickly
identified and acted upon and that
any necessary remedial action can
take place.
15
Stakeholders and how they are
taken into account Activity in the year Outcome
Potential new investors are an
important stakeholder group and
getting key information to the
investment market so that investors
both current and prospective can
make informed investment choices is a
significant activity.
Research platforms and distribution
partnerships are employed to reach a
wider audience of investors.
The marketing team also works on
events and campaigns with other
research and marketing companies,
including Edison and Kepler.
Resources were allocated by the
board during the year for publishing
research and event participation.
‘Direct to consumer’, for self-directed
investment, is primarily driven by
platforms. Platforms essentially give
convenient access to the majority of
the investment universe for investors.
The board has encouraged activity
to increase recognition by those
operating the platforms through
influencers (including through PR,
video recordings with Asset TV and
the company’s digital marketing
strategy). ‘Influencing’ activity involves
sponsored content, advertising and
client events, targeting the platforms
themselves alongside the key
research platforms.
In the past two years the board has
consistently described the trust as an
‘all-weather’ global equity portfolio,
setting out clearly what Brunner
offers its investors.
Outcome: Analysis is in the form of
detailed investor group feedback
and in considering the metrics of key
activity over the year: in particular
the board can see the effectiveness
of communicating with investors by
monitoring daily traffic on the website
and investment through ‘spikes’
of investment on platforms after
publications and events throughout
the year. Interest in Brunner is also
tracked through search engine
optimisation (SEO).
The board continues to believe that
the best approach for Brunner is to
follow a steady path and to be an
‘all-weather’ global equity portfolio
for investors, aiming for long-term
stability of capital returns and
provision of a steadily rising dividend
to shareholders.
STRATEGIC REPORT
Source: AllianzGI/Thomson Reuters DataStream. Benchmark: 70% FTSE World
Ex UK Index and 30% FTSE All-Share Index. Alternative Performance Measure
(APM). See Glossary on page 112.
Debt at
fair value
Debt
at par
Benchmark Percentage point
relative return
Percentage point
relative return
2025 +9.0% +9.0% +15.8% -6.8 -6.8
2024 +17.9% +18.2% +23.6% -5.7 -5.4
2023 +8.7% +8.2% +5.5% +3.2 +2.7
Performance against the benchmark index
Dividends
Net Asset Value total return with debt at fair value and debt at par
Includes the proposed final dividend.
This is the most important KPI by which
performance is judged. The principal
objective is to achieve a return higher
than that of the benchmark index over
the long term, after absorbing costs.
For this indicator, we measure the
performance against the benchmark
using NAV with debt at fair value, in line
with industry practice. We have also
disclosed here the performance against
the benchmark using NAV with debt
at par value for information purposes.
Capital returns are shown on page
9 and in the Chair’s Statement.
The board aims to pay an increased
dividend each year, taking into account
inflation and the ability to achieve this
subject to general earnings growth
and dividends received in the portfolio.
Dividends paid in the past ten years are
set out in the Historical Record table on
page 10, and in the graphic on page
4, which show that dividends have
risen in every year since 1972 and have
increased by 5.3% this year.
%
20242023 2025
25.0p
Annual dividend
25.0
20.0
15.0
10.0
5.0
0.0
Key Performance Indicators
The board uses the following Key Performance Indicators (KPIs) to monitor and evaluate
the performance of the company in executing its strategy.
23.75p
22.7p
20242023 2025
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
16
PREMIUM
DISCOUNT
Share ownership
Percentage of issued capital held by wealth managers and investment platforms
The marketing programme targets
professional and retail investors
and aims to create ongoing and
sustained demand for Brunner shares.
A successful marketing strategy
stands to benefit all of the company’s
shareholders by increasing liquidity.
We look at the growth of share
holdings of clients of wealth managers
and of investment platforms to see
the impact of retail demand for the
company’s shares.
1
including Brunner family members
2
including beneficial owners not known
Ongoing charges
Ongoing charges are operating
expenses incurred in the running
of the company, whether charged
to revenue or capital but excluding
financing costs. The ongoing charge
is calculated in accordance with the
AIC’s recommended methodology
(See Glossary on page 112). This
figure does not include costs incurred
from trading activities, as these are
capitalised within the investment
valuation (Note 8 on page 95) which
amount to a further 0.05% of net assets
(2024: 0.05%). Ongoing charges are
published by the AIC.
0.61%
Discount
The company’s shares currently trade
at a discount to the Net Asset Value
per share and during the year had
traded at a premium from time to time,
averaging at a discount of 3.7%. The
share price depends on a number of
factors, including sentiment towards the
company and towards investments in
equities in general. The board monitors
the discount with the aim in normal
markets of being not out of step with
comparable trusts in the sector.
The board gives authority in certain
circumstances to buy back shares and
either cancel the shares or hold them
in treasury, which would be likely to
result in a temporary narrowing of the
discount. In other circumstances, if the
shares trade at a premium the board
instructs the issuance of new shares to
manage the premium and help provide
liquidity to the market.
10
5
0
-5
-10
-15
-20
%
Nov 2022 Nov 2023 Nov 2024 Nov 2025
2024 2025
Financial
institutions
5.3%
Others
2
3.0%
Direct
holdings
1
27.9%
Investment
platforms
Wealth
managers
22.5%
41.3%
3.7%
1.7%
27.7%
21.9%
45.0%
0.63%
0.64%
20242023 2025
STRATEGIC REPORT
17
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
18
As reported to shareholders in the half-yearly report in 2025, the macroeconomic and
geopolitical backdrop continues to stress test the business models of all companies.
The board has maintained its close contact with the manager and other third party service providers to understand their responses
to the macroeconomic and geopolitical situation and in particular actions taken to mitigate the effects of these risks on the
company and its business. The likelihood of both ‘Market volatility’ and ‘Geopolitical uncertainty’ remain ‘almost certain’ this year
as they were last year, as shown in the heat map below.
Risk management policy
The board operates a risk management policy to ensure that the level of risk taken in pursuit of the board’s objectives and in
implementing its strategy are understood. The principal risks identified by the board are set out in the tables on pages 19 to
21, together with the actions taken to mitigate these risks. The process by which the directors monitor risk is described in the
Audit and Risk Committee Report on page 75, and includes a review of a more detailed version of these tables, in the form of a
risk matrix, at least twice yearly.
Risk appetite
The directors assess the likelihood of occurrence and perceived impact of each risk after mitigating actions and consider the
extent to which the resulting residual risk is acceptable, which is defined as the board’s risk appetite. The results of this exercise are
shown in the heat map below:
Risk report
IMPACT
LIKELIHOOD
low moderate high very high
rare unlikely moderate likely almost certain
2.3
Investment
performance
3.3
Accounting /
legal/regulatory
3.4
Corporate
governance
3.7
Reputational
2.1
Investment
strategy
3.1
Organisational
set-up / process
2.2
Shareholder
relations
3.2
Outsourcing /
third party
1.3
Counterparty
2.6
Market
demand
3.6
Financial
Crime/Fraud,
Cyber and AI
3.5
Key persons
2.4
Financial
1.2
Market
liquidity and
pricing
1.4
Currency
2.5
Liquidity and
gearing
Risk is acceptable, no
additional measures needed
Risk is of concern but
sufficient measures are
defined and have been or are
being implemented
Risk is of concern, sufficient
mitigation measures
not possible
The controls and mitigation of
portfolio and business risk will
continue to operate, however,
there remains a risk that the
level of volatility and impact of
emerging risks may be such that
the level of portfolio earnings
cannot be mitigated by factors
within the board’s control.
1.1
Market
volatility
4.1
Geopolitical
uncertainty
4.2
Impact of AI
on the portfolio
19
Investment and portfolio risks
Principal risks identified Controls and mitigation
1.1 Market volatility
Significant market movements may adversely
impact the investments held by the company
increasing the risk of loss or challenges to the
investment strategy, reduction of dividends
across the market affecting the portfolio yield
and the ability to pay in line with dividend policy.
Macroeconomic factors could also cause
significant market falls, unexpected volatility,
threat to income or increase in gearing.
The board meets with the portfolio managers and considers asset
allocation, stock selection and levels of gearing on a regular
basis and has set investment restrictions and guidelines that are
monitored and reported on by AllianzGI. The board monitors yields
and can modify investment parameters and consider a change to
dividend policy.
Macroeconomic factors and their causes may mean mitigation may
not be possible for significant market movements caused by factors
outside the board’s control.
1.2 Market liquidity and pricing
Failure of investments.
The board receives reports from the manager on the stress testing of
the portfolio at least twice each year and contact is made with the
Chair and board if necessary between board meetings.
1.3 Counterparty risk
Non-delivery of stock by a counterparty.
The manager operates on a delivery versus payment system,
reducing the risk of counterparty default.
1.4 Currency
Exposure to significant exchange rate
volatility could affect the performance of the
investment portfolio.
Currency movements are monitored closely and are reported to
the board.
Business and strategic risks
Principal risks identified Controls and mitigation
2.1 Investment strategy
An inappropriate investment strategy e.g., asset
allocation or the level of gearing may lead
to underperformance against the company’s
benchmark index and peer group companies,
resulting in the company’s shares trading on a
wider discount.
The board manages these risks by diversification of investments
through its investment restrictions and guidelines which are
monitored and on which the board receives reports at every meeting.
The board monitors the implementation and results of the investment
process with the investment managers, who attend all board
meetings, and reviews data which shows risk factors and how they
affect the portfolio.
The manager employs the company’s gearing tactically within a
strategic range set by the board. The board also meets annually
specifically to discuss strategy, including investment strategy.
2.2 Shareholder relations
The investment objectives, or views on decisions
such as gearing, discount management, dividend
policy, of existing shareholders may not coincide
with those of the board leading investors to sell
their shares.
Reports on shareholder sentiment are received from the manager
and brokers and reviewed by the board. Shareholders are actively
encouraged to make their views known.
The board reviews and assesses the company’s strategy regularly to
ensure it remains suitable and continuously monitors performance.
2.3 Investment performance
Persistent poor performance against the
benchmark or other trusts in our peer group
leads to decline in attractiveness of the company
to investors.
The investment manager attends all board meetings to discuss
performance with the directors. The board manages these risks by
giving investment guidelines which are monitored at each meeting.
The board reviews the investment performance of the company
against the benchmark and peer group.
STRATEGIC REPORT
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
20
2.4 Financial
Range of risks including incorrect calculation of
NAV, inaccurate revenue forecasts, incorrectly
calculated management fees, issues with title to
investment holdings.
A rolling income forecast (including special dividends), balance sheet
and expenses are reviewed at every board meeting. Reporting from
the custodian covering internal controls in place over custody of
investments and over appointment and monitoring of sub-custodians
is produced and reviewed at least annually. The board’s investment
restrictions are input in trading systems to impose a pre-trade check.
2.5 Liquidity and gearing
Insufficient income generated by the portfolio
and due to stock market falls, gearing increases
to levels unacceptable to shareholders and the
market which in extreme circumstances results in a
breach of loan covenants.
The board meets with the portfolio managers and considers asset
allocation, stock selection and levels of gearing on a regular basis.
Investment restrictions and guidelines are monitored and reported
on by AllianzGI. Regular compliance information is prepared on
covenant requirements.
2.6 Market demand
The level of discount of the share price to the
NAV moves to unacceptable levels, threatening
confidence in the company’s shares and exposing
the company to acquisitions of stakes in the
company by predatory or hostile shareholders.
The board regularly reviews the level of premium and discount and
existing shares can be bought back by the company when the board
considers this expedient.
Operational risks
Principal risks identified Controls and mitigation
3.1 Organisation set up and process
Failure in the operational set up of the company,
through people, processes, systems or external
events could result in financial loss to the company
or its inability to operate.
The manager and the other key service providers report on business
continuity plans and the resilience of their response to extreme
situations. Third party internal controls reports are also received from
these service providers.
3.2 Outsourcing and third party
Risk of inadequate procedures for the
identification, evaluation and management of
risks at outsourced providers including AllianzGI
and its outsourced administration provider, State
Street Bank & Trust Company, HSBC Bank plc
(Depositary and Custodian) and MUFG Corporate
Markets (Registrar).
AllianzGI carries out regular monitoring of outsourced administration
functions, which includes compliance visits and risk reviews where
necessary. Results of these reviews are monitored by the board.
Additional assurances on business resilience and cyber security are
obtained by the board. Agreed Service Level Agreements (SLAs)
and Key Performance Indicators (KPIs) are in place and the board
receives reports against these.
3.3 Regulatory
Failure to be aware of or comply with legal,
accounting and regulatory requirements which
could result in censure, financial penalty or loss of
investment company status.
The board maintains close relations with its advisers and makes
preparations for mitigation of these risks as and when they are known
or can be anticipated.
3.4 Corporate governance
Weak adherence to best practice in corporate
governance can result in shareholder discontent
and potential reputational damage to
the company.
The board is highly experienced and knowledgeable about
corporate governance best practice and includes directors who are
board members of other UK plcs and other investment companies.
The board takes regular advice on best practice.
21
3.5 Key person
Departure of one or both of the co-leads, certain
professional individuals, and/or board members,
may impact the management of the portfolio,
the achievement of the company’s investment
objective and/or disruption to its operations.
Manager and board succession plans are in place. Cover is available
for core members of the relevant teams of the manager, and work
can be carried out by other team members should the need arise.
3.6 Financial crime, fraud, cyber security and AI
That the company and the manager’s firm, its
employees, or clients are subject to financial
crime or breach elements of the Bribery Act. Risk
of increased cyber attacks. Risk from traditional
and generative Artificial Intelligence (AI) in respect
of malicious AI, its rapid growth and the lack
of regulation.
AllianzGI has anti-fraud, anti-bribery policies and robust procedures
in place. The board is alert to the risks of financial crime and threat of
cyber attacks and reviews how third party service providers handle
these threats. These reports confirm that all systems are secure and
are updated in response to any new threats as they arise.
The board asks for and receives assurance from key suppliers on
information security and AI developments and threats.
3.7 Reputational
Association with poor governance in portfolio
companies and operational issues in service
providers which can affect the reputation of
the company.
The portfolio management team is in constant interaction with
AllianzGI’s Environmental, Social and Governance (ESG) and
Stewardship function and actively engages with investee companies
on ESG issues and makes investments incorporating ESG factors
in the decision process. Service providers are monitored and the
manager provides oversight.
External risks
Principal risks identified Controls and mitigation
4.1 Geopolitical uncertainty
Geopolitical uncertainties including changing
membership of international alliances and other
Middle–Eastern conflicts in recent times including
Iran-Israel, the ongoing invasion of Ukraine by
Russia, tensions caused by the US-China trade
relationship and volatile US foreign policies, in
particular the ongoing tariffs trade war. Any of
which could cause significant market falls, threat
to income or increase in gearing.
The board carries out horizon scanning by keeping informed through
its manager and advisers on the political, economic and legal
landscape, and reviews updates received on regulatory changes that
affect the company.
4.2 Impact of AI on the investment portfolio
The rapidly changing landscape for the tech sector
and impact of disruptive use of AI on other sectors
which could cause significant shifts in valuations of
companies in the portfolio.
The board carries out horizon scanning by keeping informed through
its manager and advisers on the political, economic and legal
landscape, and reviews updates received on regulatory changes that
affect the company.
The manager reports on its consideration of AI developments and
threats in its oversight of investments.
STRATEGIC REPORT
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
22
Going Concern
The directors have considered the company’s investment
objective and capital structure both in general terms and in
the context of the current macroeconomic background. The
portfolio, which is constructed by the portfolio manager on a
bottom up basis, consists mainly of securities which are readily
realisable. The directors have also continued to consider the
risks and consequences of external factors on the operational
aspects of the company and have concluded that the company
has the ability to continue in operation and meet its objectives
for the foreseeable future. For this reason the directors
continue to adopt the going concern basis in preparing the
financial statements.
Viability Statement
Brunner is an investment company and has operated as an
investment vehicle since 1927 with the aim of offering a return
to investors over the long term. The directors have formally
assessed the prospects of the company for a period of longer
than a year. The directors believe that five years is the suitable
outlook period for this review as there is a realistic prospect
that the company will continue to be viable whilst seeking
to achieve its aim to provide growth in capital value and
dividends over the long term. This reflects the longevity of the
company and the expectation that investors will want to hold
on to their shares for some time. The board also notes that as a
high conviction investor, the portfolio manager has a five year
view on stocks in the portfolio.
The board has assessed the long-term viability of the company
against the principal risks faced by the company, outlined in
the reporting under Risk Management Policy on page 18.
Many of these matters are subject to ongoing review and the
final assessment, to enable this statement to be made, has
been formally reviewed by the board.
The factors considered at each board meeting are:
– The company’s investment strategy and the long-term
performance of the company, together with the board’s view
that it can continue to provide attractive returns to investors;
– As an investment company Brunner is able to put aside
revenue reserves in years of good income to cover a smooth
payment of growing dividends in years when there are
challenges to portfolio revenues;
– The financial position of the company, including the impact
of foreseeable market movements on future earnings and
cash flows. The board monitors the financial position in detail
at each board meeting and at least twice each year it stress-
tests the portfolio against significant market falls;
– In the current environment the board is reviewing earnings
prospects, gearing and debt covenants on a continuous
basis with the managers; and
– The liquidity of the portfolio, and the company’s ability to
pay dividends and to meet the budgeted expenses, including
interest payments, of running the company.
Based on the results of this assessment, the directors have
a reasonable expectation that the company will be able to
continue in operation and meet its liabilities as they fall due
over the five year period of their review.
The future
The future attractiveness of Brunner as an investment
proposition with relevance to a wide variety of investors is
something we debate and evaluate continuously. We have
to consider the investment environment and wider economic
considerations, such as increasing inflationary pressures, and
take soundings on the prospects for our markets, the returns on
assets, economic growth and numerous other factors. Taking
all this into account the board continues to believe that there
is a place for Brunner in the range of options available to the
investor and that the company remains viable for the five year
period here under review.
The strategy for the future
The development of the company is dependent on the success
of the company’s investment strategy against the economic
environment and market developments. I give my view in the
Chair’s Statement on page 5 and the portfolio managers
discuss their view of the outlook for the company’s portfolio in
their review starting on page 27.
On behalf of the board
Carolan Dobson
Chair
11 February 2026
Environmental, Social and Governance research
and stewardship
Active stewardship is an integral component of our investment
manager’s investment approach. This can help to unlock
potential in companies, as well as protect companies from
downside risks.
AllianzGI’s approach to ESG analysis
Brunner’s portfolio managers follow AllianzGI’s proprietary ESG
methodology which is designed to enhance risk management
and engagement. The main objective of integrating ESG
analysis is to develop an assessment of the financially material
ESG risks and opportunities within a broader investment case.
AllianzGI’s approach also fosters active engagement with
company management. Active proxy voting is an important
part of the ESG process. Our manager has a firm-wide
exclusion of controversial weapons and companies relying
to some extent on coal extraction. Sustainability research
and stewardship analysts may further support the ESG
process by providing a framework of company, sector and
thematic research.
The board considers that it is for the benefit of the company and its stakeholders that the
investment managers are aware of and consider environmental, social and governance
factors when they select and hold investments in the portfolio. Details of the company’s policy
on ESG are set below.
Environmental, Social and Governance (ESG) Issues
How it works in practice
AllianzGI employs 45 sustainability professionals. The process
of integrating ESG analysis involves AllianzGI’s investment
teams reviewing both ESG scores and financially material
qualitative information for each holding or company of
interest. The investment teams then make an assessment of the
ESG risk or opportunity that supports the broader investment
case. AllianzGI’s investment professionals have access to both
quantitative tools and qualitative ESG research.
AllianzGI’s investment professionals generate in-depth research
of companies they own or believe to be of interest and often
closely follow these companies over long periods of time.
Therefore, they can interact with the companies that will benefit
from the engagement. AllianzGI’s Sustainability Research &
Stewardship analysts further support the process by providing
company, sector and/or thematic research. All ESG research
and engagement notes are documented on AllianzGI’s internal
Global Collaboration Platform. This creates a high degree of
transparency and provides portfolio managers with an easy
way to monitor ESG risk in their portfolios.
Proxy voting 1 December 2024 to 30 November 2025
In the year there were 58 shareholder meetings for companies
in the portfolio and the manager voted on the company’s
behalf at 55 of these. The company voted on 95% of all
resolutions. Source: AllianzGI.
Company meeting voting record
Number of meetings voted
with management: 5
Number of meetings with
at least one vote Against,
Withhold or Abstain: 50
Vote distribution
Number of votes for: 76%
Number of votes against: 15%
Number of votes abstain: 1%
Number of votes withhold: <1%
Not voted: 7%
Active proxy voting engagement for clients is seen as a
core element of fiduciary responsibilities and the manager
provides total voting coverage. This active, global approach
to the exercise of voting rights is aimed at improving
governance standards.
23
STRATEGIC REPORT
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
24
ESG reporting
The board receives information on ESG scores for the portfolio
and this is published in the company’s monthly factsheets. This
is also included on page 46.
A summary of the many engagements with portfolio
companies on E,S and G matters is set out on page 45.
Brunner’s ESG policy and web links
A summary of the board’s policy on ESG can be found with the
company’s details on the Association of Investment Companies’
website, where there is also more information on ESG for
investors:
https://www.theaic.co.uk/esg-and-investment-companies
Sustainability
The portfolio managers talk about the importance of
sustainability in the assessment of the quality of portfolio
companies in their Investment Philosophy explanation on
page 43.
Company engagement
The investment manager conducts regular meetings with
companies which:
– enriches investment analysis and decision making;
– helps assess company leadership and culture and build trust;
– facilitates active involvement from portfolio managers and
sector analysts in company engagements;
– focuses on material issues in a case-by-case approach; and
– provides an organic link to Proxy Voting decisions.
Investment
research
Proxy
voting
Company
engagement
Engagement success is part of delivering
investment performance
More information can be found at:
https://uk.allianzgi.com/en-gb/our-firm/sustainable-investing
25
New investment MonotaRO is
headquartered in Amagasaki,
Hyogo, Japan.
Investment
Manager’s
Review
27 Portfolio Managers’ report
43 Investment philosophy
and stock selection process
45 Company engagement activities
46 Environmental, Social
and Governance performance
47 Top twenty holdings
52 Portfolio analysis
54 Listed equity holdings
57 Distribution of invested funds
25
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
26
It’s all psychological. You yell, ‘Barracuda!’,
everybody says, ‘Huh? What?’ You yell, ‘Shark!’…
we’ve got a panic on our hands on the Fourth of July.
LAWRENCE VAUGHN, MAYOR OF AMITY ISLAND.
27
Portfolio Managers’ report
“It’s all psychological. You yell,
‘Barracuda!’, everybody says, ‘Huh?
What?’ You yell, ‘Shark!’… we’ve got a
panic on our hands on the Fourth of July.”
So says Mayor Vaughn of Amity Island
in the 1975 classic ‘Jaws’ as he ignores
his advisors and keeps beaches open
over the lucrative summer period, with
tragic results. Fifty years later, over 600
economists and business leaders warned
President Trump against his so-called
‘liberation day’ tariffs, which were
announced in April. Their warnings, like
those of Mayor Vaughn’s advisors, fell on
deaf ears and President Trump pressed on
with his plans. The tariffs he announced
initially caused panic in markets and
large equity market declines. Faced with
rising market turmoil, President Trump
rapidly struck trade deals, and tariffs
on many countries and products were
quickly reduced. Investors quickly decided
it was ‘safe to go back in the water’, but
nonetheless inflation remains stubbornly
above target, and most forms of business
investment remain subdued.
At a market level, the insidious macro-
economic impact of the tariffs isn’t
obvious. As in 2024, markets were
driven by a singular trade associated
with artificial intelligence infrastructure
spending. Several hundred billion dollars
were spent in 2025, with the expectation
of even more next year. Given the limited
revenues being generated by artificial
intelligence applications, let alone profits,
there is a very legitimate and healthy
debate about the existence or otherwise
of an AI bubble. In the meantime,
growth for the hardware companies that
enable AI is off the charts. Whether this
expenditure can be sustained is a critical
question which will determine many
investment outcomes in the years to come.
2025 was therefore a year of contrasting
fortunes. The AI boom was an island
surrounded by circling sharks, picking off
the victims of a weak economy. In the US,
the S&P 500 was up 14% for the Brunner
financial year (ending November 2025),
giving an impression of broad strength.
Yet the average American stock fell and
the equal-weighted S&P 500 (which
gives the smaller companies the same
index clout as the largest) barely rose at
all. In other words, the market remained
narrow with most of the gains generated
by a few large technology stocks and
certain distinct sub-sectors. Whilst many
of the tech giants are recycling their vast
profits into AI infrastructure, much of the
rest of the economy is moribund. Some
have argued that if we exclude the vast
investments in AI data centres, the US was
probably in recession during the year.
James AshworthJulian Bishop
Source: Bloomberg, 3 January 2023 to 28 November 2025.
S&P 500 Equal weight S&P 500
S&P 500 performance compared to the equal weighted S&P 500
US stock market gains have been driven by a small number of large companies
2023 2024 2025
100
80
60
40
20
0
-20
INVESTMENT MANAGER’S REVIEW
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
28
revenues, let alone profits, fared better
still. When speculative mania takes
hold, the imagined often lords it over
the actual.
Quality investments (defined as
enduring, consistently profitable, less
cyclical businesses with strong balance
sheets) had their worst period of relative
performance since the peak of the
dotcom bubble, a trend that started in
mid 2024 and has been persistent ever
since. Although we balance quality, value
and growth factors in our investments,
Brunner still has a bias to quality that
is typical for any investor prioritising
The picture with the US consumer was
also very mixed. Lower income consumers
suffered from cuts to benefits and the
regressive impact of inflation, whilst higher
income consumers have been buoyed by
tax cuts and stock market gains.
Gamified retail participation in markets
continues to be widespread. Companies
with high stock price volatility and low
nominal share prices outperformed.
Options trading – particularly on one
day price moves – is buoyant. Even
within the tech-heavy Nasdaq Index,
unprofitable businesses outperformed
the profitable. Businesses with no
prudence, downside protection and
reliability. Over the longer run this has
served us well, but for the second year
in a row it was a hindrance to relative
performance. Whilst we saw the NAV
grow strongly in absolute terms we once
again failed to keep up with a market
which often seemed unconcerned with
any reasonable notion of fair value. We
take some solace from the fact that the
last time quality underperformed to this
extent, nearly thirty years ago, it roared
back with a vengeance the following
year as the dotcom bubble burst.
Return analysis: pre-revenue firms and the Magnificent 7 on top
Average total return per category (USD)
6-month relative returns of S&P 500 Quality (%)Quality relative to the broader market
Relative underperformance of quality stocks
Source: Bloomberg, as of 30 November 2025, Nasdaq Composite Index and S&P 500, all categories equally weighted. Companies are classified as having no
revenue if their revenue over the last 12 months is less than or equal to zero. Unprofitable constituents are defined as those that reported no profits as of 30
November 2025.
32.4%
29.1%
7.9%
5.6%
2.6%
2.0%
Nasdaq no revenues Magnificent 7 Nasdaq unprofitable S&P 493 Nasdaq with revenues Nasdaq profitable
Source: AllianzGI, Bloomberg, 3 June 2024 to 28 November 2025. Source: Bloomberg, 5 January 1996 to 28 November 2025.
MSCI World Quality Net Total Return USD Index Price Quality stocks outperforming the market
MSCI World Quality Net Total Return USD Index /
MSCI World Net Return USD Index (rebased)
Quality stocks underperforming the market
125
120
115
110
105
100
95
90
85
25
20
15
10
5
0
-5
-10
-15
1996 2000 2005 2010 2015 2020 2025
18.9%, March 2001
-9.6%
-10.0%, April 1999
07/24 01/25 03/25
10/24
07/25 10/25
29
Above, we give two examples of
stocks within the automotive sector
from two different continents that we
think exemplify some of the extreme
valuations evident in markets. At year
end, Tesla had a market ascribed
enterprise value of $1.4 trillion. This is
about 86x more (times, not percent) than
South Korean automaker Kia, a new
Brunner holding. Whilst counsel is clearly
leading the witness, we ask you to guess
which company makes more actual
profit. For those who protest that Tesla
is growing faster, we note that Tesla’s
volumes have been declining for two
years. For those who protest that Tesla
has a nascent business in humanoid
robots, we point out that Kia owns a
large stake in leading robot company
Boston Dynamics.
As we highlighted last year, the US market
now suffers from significant concentration
risk. The S&P 500, like most major stock
market indices, is weighted by market
capitalisation. The top 10 stocks in the
US account for around 40% of the S&P
500’s total value making it significantly
more concentrated than the Brunner
Investment Trust, for example. Most of
these stocks are tech-related and most
of those are driven by AI narratives. As
such, the US market looks and behaves
more like a high-octane technology fund
than a broad, diversified representation
of American industry. At the very least,
investors should be aware of the risks.
The notion that buying the index is
definitively a lower risk, better diversified
proposition than buying a fund or trust is
demonstrably no longer valid.
The current nature of markets warrants a
brief discussion about risk. In investment,
we can distinguish between relative and
absolute risk. Relative risk refers to risk
relative to the market or benchmark.
Fund managers are generally measured
by their relative performance, so for them
this is synonymous with career risk. For
shareholders and investors, relative risk
equates to opportunity cost. As famed
value investor Ben Graham noted, this
can be the price of prudency.
Relative risk neglects the existence of
absolute risk. In the S&P 500, the weight
of the largest index constituent, Nvidia,
is now almost 8%. US investors can
eliminate their relative risk by buying an
8% position. But clearly having an 8%
position in any one company, particularly
Top 10 largest S&P 500 weights as % of index
Tesla and Kia ($bn)
Examples of extreme valuation
Rising US stock market concentration
Source: Bloomberg, as of 28 November 2025. Net income from prior twelve months adjusted to USD. Numbers may not sum precisely due to rounding.
Source: AllianzGI, 31 March 1988 to 30 November 2025.
1600
1200
800
400
0
40
35
30
25
20
15
Tesla Kia
Net income
5.3 5.7
Enterprise value
1,404
16
x86
1990 1995 2000 2005 2010 2015 2020 2025
INVESTMENT MANAGER’S REVIEW
Kia was a new holding for the
Trust during the year. One of
the world’s largest automobile
manufacturers, it trades at a tiny
fraction of the value of Tesla,
despite generating more profits.
PHOTO © KIA
30
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
31
a cyclical one a rapidly changing
end market, is a fundamentally risky
proposition. This is absolute risk. This is
actual risk; the one that really matters
when it comes to your money. Because of
constraints on relative risk, however, many
fund managers are effectively forced to
own these large stocks irrespective of
their investment merit. As the market as
a whole has become more concentrated,
the tracking error (a measure of relative
risk) that fund managers run by not
owning the largest stocks has ballooned:
not holding the largest 10 S&P 500 stocks
today brings a tracking error around
4x historical average. Many are not
allowed or do not want to run this level of
(relative) risk. Passive funds, too, blindly
buy in accordance with size. This is not a
healthy way to allocate capital.
UCITs regulations, which determine the
structure of European investment funds,
cap position sizes at 10% to protect
investors from insufficient diversification
for this reason. Pity, then, the manager
of a Taiwanese Equity fund. There, 44%
of the TAIEX benchmark is accounted
for by just one stock: TSMC (Taiwan
Semiconductor – a core Brunner holding).
The ‘neutral’ position size at which relative
risk is zero is therefore 44%. Obviously,
this is a very large amount to have
invested in a single company. Similarly,
at its peak in 2000, Nokia accounted
for 70% of the Helsinki market. Investors
who held 70% of their money in Nokia
may have eliminated relative risk, but
the subsequent decline in the share price
from €55 to €1.50 would have eliminated
most of their wealth whilst delivering
a salutary lesson about what real
financial risk is. Nokia’s fate also serves
as a healthy reminder of how fragile
leadership can be in parts of the brutally
competitive tech hardware sector.
While being very aware of risks of
a possible AI bubble, Brunner has
nonetheless had some very successful
investments that have benefitted from
AI-related spending over the last year.
TSMC, Amphenol, ASML and Alphabet
have all delivered stellar returns.
However, we did not have enough to
keep up with the concentrated market
and the enormous gains seem in some
of the lower quality, more speculative
AI names. In our judgement, to have
owned more would have breached
good practice regarding absolute risk,
even if doing so would have reduced
relative risk. These more speculative AI
names often lack proven business models
and have untested barriers to entry,
whilst our holdings are well established,
profitable, diversified and with what
we believe are clear and sustainable
competitive advantages.
The AI debate continues and is well
discussed in the media. AI is remarkable
technology that we expect will change
many parts of our lives, but there are
still few good answers as to how much
revenues and profits it may ultimately
generate. Many previous technological
advances revolutionised the world but
failed to generate significant wealth
for those involved at the start, including
canals, railways, automobiles, radio,
television and the physical internet.
Nonetheless, all saw vast amounts of
capital invested for little return by what
author William Bernstein has dubbed
“capitalism’s unwitting philanthropists”. It
is unclear whether the huge capex binge
on AI infrastructure will be sustained,
given the cash-burn we are seeing. It is
also unclear who the ultimate winners will
be. Recently, Google’s Gemini appears
to have gained an upper hand over AI
ringleader OpenAI at a structurally lower
cost. We therefore do not want to go
all in on AI hardware and recommend
you don’t either. The market is all in. The
market is therefore risky.
2025 also delivered a lesson about
‘radical uncertainty’; a form of risk ever
present in equity markets. Some risks
are knowable. Others aren’t. In the run
up to the invasion of Iraq, US Secretary
of Defence Donald Rumsfield famously
talked of known knowns, known
unknowns and unknown unknowns.
Radical uncertainty refers to the unknown
unknowns. Radical uncertainty is an
ever-present feature of equity markets.
Just because we cannot know or guess
what the risks are, there are still risks
there – they are simply beyond our
imagination. This contrasts with knowable
risks. For example, if you play roulette at
the casino, you take risk but you know
the probabilities of landing on 27 Red. If
you were to introduce radical uncertainty
to the game of roulette, you could land
on 27 Red but you could also land on 82
Blue or a banana. You simply wouldn’t
know about the possible outcomes or the
associated probabilities in advance.
In equities, restaurant stocks have been
hurt by a pill that quells your appetite.
Viruses and volcanoes have caused
AI is remarkable
technology that we
expect will change many
parts of our lives, but
there are still few good
answers as to how much
revenues and profits it
may ultimately generate.
INVESTMENT MANAGER’S REVIEW
In the first half of the year we
added Tesco to the portfolio.
The market leader’s share of the
UK grocery market is around
29%, almost double that of its
nearest competitor.
PHOTO © SHUTTERSTOCK/1000 WORDS
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
32
33
planes to be grounded. Talc? Apparently
cancerous. Procter and Gamble, which
owns Gillette, once cited Movember in a
profit warning. Badly worded financial
updates have ended in a bank run.
Thinking machines can now write their
own software.
Radical uncertainty is integral to equities.
This year markets were blindsided by the
possible impact of AI on a whole range
of intellectual property rich businesses. If
AI brings cheap, ubiquitous intelligence,
will it replace businesses which provide
it? Do the efficiencies brought to coding
by AI render many incumbent software
businesses obsolete? Are companies
that gather, present and analyse
information now worthless? The threat of
disruption is a material one for equities.
If perceived risks go up, prices go down
like an aeroplane tilting its wings. Many
software companies have seen very
weak share prices even as they have
continued to deliver strong results.
Equities are long duration assets and
any threats to terminal profitability are
therefore impactful. The mere threat is
sufficient to do real damage. The threat
of the threat will make some sell. Whilst
markets can be prone to mania they can
also be deeply paranoid.
Technological revolutions, by definition,
imply risk. When Steve Jobs unveiled the
first iPhone at Apple’s keynote in 2007,
he expressed his disdain for Blackberry’s
‘plastic little keys’ and unveiled a ‘new
technology called multi-touch’. The
audience audibly gasped as he swiped
across the screen to turn it on for the first
time. Rapid change and leapfrogging
has always been a feature of the
technology industry. Who is today’s
Nokia or Blackberry? Whose products
have features that are no longer good
enough to compete? It’s an important
question yet one that is impossible
to answer with clarity today. But we
know that capitalism invents furiously
and destroys the inadequate. Once
the design of a new paradigm is made
visible the imagination of a vast number
of potential engineers, designers and
entrepreneurs is fired. New entrants, in
other words, native to the new world.
Whilst most new entrants will fail, some
will succeed, upending the status quo.
The only constant, so the cliché goes, is
change. We need to ensure we are not
on the wrong side of it. The market may
be hallucinating at the moment, seeing
risks or profit pools which are not really
there, in which case opportunities will
arise. But it would be deeply naïve to
assume that things go on unchanged.
Perhaps because of this, we have found
solace in physical and financial assets
this year. Intangible assets, often a focus
of more profitable businesses, have
been widely reassessed as vulnerable.
Semiconductors have fared better
than software. Financially capital
intensive banks like DNB and Bank
of Ireland have continued to perform
well, supported by very high cash yields,
whilst financial information companies
have been weak. Holdings like Tesco,
GE Aerospace (jet engines) and Kia,
all firmly rooted in the physical world,
have flourished. This is counter to the
long-running fashion for intellectual
property rich, asset-light businesses
which required little capital to grow
and helps partially explain the
underperformance of the quality factor
we mentioned earlier.
Market review
Looking around the world, the best
performing region was Emerging
Markets, largely thanks to the
performance of Asian technology
companies including TSMC, a core
Brunner holding. In sterling, the MSCI
Emerging Market index returned 25% for
the year to end 2025.
Europe was the next best performing
region, up 23% in sterling, buoyed by
a strong Euro and multiple expansion
from low levels. Banks, particularly, fared
well. Japan was up a similar amount.
The story in the UK was much the
same; the FTSE All-Share was up 20% in
local currency.
The US was a relative laggard this year,
with the S&P 500 up just 10% once
dollar weakness was factored in. As a
reminder, the US dominates the global
index, accounting for around two thirds
of the total. The equal weight S&P 500,
which removes the distortions of market
concentration, was only up 4% in sterling
terms, demonstrating the narrowness
of overall returns. As highlighted earlier,
the average American stock was down
during the year for British investors.
Overall, the FTSE All World ex UK (which
makes up 70% of Brunner’s composite
benchmark alongside the UK FTSE All-
Share) was up 14%.
Looking around
the world, the best
performing region was
Emerging Markets,
largely thanks to the
performance of Asian
technology companies
including TSMC, a core
Brunner holding.
INVESTMENT MANAGER’S REVIEW
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
34
Looking by sector, leadership came from
Technology and Financials; the same as
in 2024. Whilst Tech was up 27% overall,
within the sector there was a violent split
between AI and the semiconductors
that enable it, which fared well, and
incumbent software companies which
were viewed as possibly vulnerable
in the new paradigm. Financials were
up 18%. This was led by banks, which
continue to generate and return lots
of cash and which have enjoyed a
substantial increase in the multiples
of profits investors are willing to pay
(often assessed via the P/E ratio). We are
pleased to have participated in this rally
via holdings such as DNB in Norway and
Bank of Ireland.
The next best sectors were Basic
Materials and Utilities, up 16% and 14%
respectively. Strange as it may seem, this
also reflects the 2025 AI mono-trade.
AI requires vast amounts of electricity
to power it (modern data centres are
measured in gigawatts of capacity;
nuclear power plant Sizewell B, for
reference, has an output of 1.2 GW)
and thus AI has reinvigorated growth
in demand for electricity, something
which hasn’t grown in the West for
twenty years. Most copper is used in
the generation and transmission of
electricity, so this had fed through to
the miners. The correlated risks related
to the AI boom are broader than you
might think.
All other sectors underperformed.
Industrials were up 8%. Within this
anything AI related (including our
holding in Amphenol) or aerospace
related (including our holding GE
Aerospace) fared well but general
industrial activity remains muted.
‘Liberation Day’ tariffs introduced
unhelpful uncertainty. Short-term
interest rates are being cut but weak
fiscal positions in most of the developed
world mean that long-term rates remain
stubbornly but understandably high,
depressing economic activity. Lead
indicators in most parts of the world
imply contraction.
Other laggards were Healthcare, +4%,
where US political attacks plus a biotech
downcycle conspired to limit returns.
Consumer Staples (+3%) and Consumer
Discretionary (+6%) also lagged. Both
sectors suffered from moribund demand
growth, with middle and lower income
consumers hamstrung by the cost-of-
living crisis. Energy was also weak (+4%)
with oil prices continuing to drift south.
Real Estate (-1%) was held back by high
long term interest rates, which continue
to hobble valuations.
Looking at styles, the MSCI World
Growth index was up 17%, far outpacing
the Value index which was up just 8%.
Quality and High Dividend benchmarks
also lagged; up just 7% each in
sterling terms, markedly behind the
overall benchmark.
Portfolio review
Whilst our sector and regional
weightings didn’t particularly affect
relative performance this year, our
stylistic bents did. As discussed earlier,
we have a skew towards quality that
was unhelpful. We also have an
income requirement. We regard with
suspicion some of the valuations and
questionable quality in the growthier
part of the market, which meant we
were underweight the factor which drove
the highest returns during the year. In
addition there were a few stocks that
disappointed for more idiosyncratic
reasons. Whilst it is inevitable in any
fifty-plus stock portfolio that a few
stocks will disappoint in any one year
and whilst it is hard to separate this
from the narrowness of the market and
the stylistic headwinds we alluded to,
this is clearly regrettable. Overall the
NAV grew 9.0%, someway short of the
benchmark’s 15.8%.
Looking at the biggest positive
contributors to performance during the
year, Bank of Ireland was the standout.
The stock more than doubled and the
large position size meant it contributed
almost 2% to performance. Banks are
enjoying Goldilocks conditions at present
with optimal interest rates and benign
credit losses leading to substantial free
cash generation. Given the low starting
valuations, the market has rewarded
bank investors with higher multiples
(Bank of Ireland’s P/E ratio expanded
from 6x to 10x during the year). We
suspect that this process is now more
or less complete and would not expect
similarly strong returns going forward.
Norwegian bank DNB also performed
well, although its 31% return was far
short of Bank of Ireland’s 112%. In
Geographic and sector performance during the 2025 Financial Year
Source: LSEG in sterling terms as of 30 November 2025. All figures use the total return index.
Performance of global equity markets by sector % Performance of major indices %
FTSE World Technology +27 MSCI Emerging Markets +25
FTSE World Financials +18 Nikkei 225 Stock Average +24
FTSE World Basic Materials +16 FTSE World Europe ex UK +24
FTSE World Utilities +15 FTSE All-Share +20
FTSE World Telecom +14 Nasdaq Composite +17
FTSE World Industrials +8 S&P 500 Composite +10
FTSE World Consumer Discretionary +6 MSCI World High Dividend Yield +8
FTSE World Energy +4 MSCI Pacific ex Japan +7
FTSE World Health Care +4
FTSE World Consumer Staples +3
FTSE World Real Estate -1
FTSE World £ 14
New addition Amazon is the
largest retailer in the world
by value of goods sold. Its
Amazon Web Services division
is a significant contributor to
group profits and the market
leader in the cloud computing
services sector.
PHOTO © AMAZON
35
INVESTMENT MANAGER’S REVIEW
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
Alphabet, parent company of
Google, was the second largest
contributor to performance.
PHOTO © ISTOCK/400TMAX
36
European bank stress tests, DNB gets
very high scores financial resiliency. It is
markedly less financially levered than
many banks, which limited upside in this
cyclical upswing but will prove important
when or if times become tougher. When
we talk about prudency and quality, this
is an example of how it is woven into
the portfolio, even in sectors which have
historically been seen as lower quality.
After Bank of Ireland, Alphabet was the
next largest contributor to performance.
Alphabet is the parent company of
Google, Deepmind, YouTube and
autonomous driving company Waymo.
The stock was up 82% in the year. Bear in
mind what we said earlier about relative
position sizing. Because Alphabet
is a large index weight, our relative
position size (1.6% on average) was
smaller than the absolute position size
(3.6% on average) limiting the relative
performance contribution to a still very
decent 1%.
Alphabet started the year perceived as
an AI loser; a Blackberry to ChatGPT’s
iPhone. During the year, they responded
by launching AI mode in search and
ever-improving variants of their flagship
AI model, Gemini. By using internally
developed TPU semiconductors which
are far cheaper than GPUs from Nvidia
and their own cloud hosting capabilities
they may have also established a
substantial cost advantage to ChatGPT;
vital in a capital intensive industry like
AI. Data now clearly shows that Gemini
is rapidly regaining the small amounts
of search type volume it initially lost to
ChatGPT when it first launched.
Three other AI-related companies were
major contributors to performance
in 2025. Taiwan Semiconductor
Manufacturing Co was up over 50%,
contributing 1% to relative performance.
As a reminder, TSMC, as its known, has
a virtual monopoly manufacturing
bleeding edge semiconductors including
GPUs for Nvidia, TPUs for Google, and
the chips that power Apple iPhones. As
such it is an agnostic winner in the AI
space irrespective of the form of silicon
that ultimately emerges as best suited
and most cost efficient for AI. Anther top
10 contributor was ASML which provides
TSMC and others with the extraordinarily
complex lithography machines used
in the semiconductor manufacturing
process. Again, ASML are a de facto
monopolist for this part of the workflow.
In general, we like companies that don’t
face competition – another hallmark of
quality investments. Finally, Amphenol
was up 87% and contributed about
0.5% to performance. Amphenol make,
amongst other things, the connectors
used in data centres and have enjoyed
explosive demand as a result.
Equity returns can be broken down
into three factors; dividends, growth in
earnings per share and the multiple
placed on those earnings. Alphabet, for
example, does pay a small dividend,
but it’s trivial in the great scheme of
things. In the most recent quarter (Sept
2025) earnings per share grew an
impressive 35% year on year, but the
stock’s performance was augmented by
substantial P/E multiple expansion from
18x to 27x forward profit estimates. This
is often the case when a stock sees an
New holdings Complete sales
Amazon Abbvie
Federal Signal Align Technology
Kia Diageo
MonotaRO Nestle
Paycom Software RELX
Tesco SThree
UnitedHealth
After Bank of Ireland,
Alphabet was the next
largest contributor
to performance.
Alphabet is the parent
company of Google,
Deepmind, YouTube and
autonomous driving
company Waymo. The
stock was up 82% in
the year.
37
INVESTMENT MANAGER’S REVIEW
Spanish electricity company
Iberdrola was a notable
contributor to performance,
buoyed by growing demand.
PHOTO © IBERDROLA
38
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
39
explosive rally in a short period of time.
Whilst this will handicap future returns, it
remains in the realm of the sane.
Our two utilities stocks performed well
this year, too. UK listed SSE and Spanish
Iberdrola have both been buoyed by
growing demand for electricity and
contributed 30bps each to performance.
Expectations for strong demand allow
both to grow their ‘regulated asset
base’; the capital stock of investments in
generation, transmission and distribution
upon which regulators allow them to
generate a return. SSE now expect 7-9%
earnings per share growth through to
2030, at which point 80% of profitability
will be CPI linked – a very desirable
financial characteristic.
The final contributors to our top 10
are GE Aerospace (jet engines) which
was up another 60% in the year and
London Stock Exchange, which we do
not hold but is a substantial part of the
UK portion of our benchmark. LSE is a
diversified information services company
these days and is typical of the type of
stock that has been decimated by fears
relating to AI disruption.
Turning to the top ten detractors, whilst
we didn’t hold LSE, we held a few
businesses which suffered the same
fate which appeared in our top ten
detractors. Whilst very different to LSE
at first glance, Auto Trader and the
similar Baltic Classifieds Group both
cost us dearly. The bear thesis is that
AI will somehow allow consumers to
more conveniently or more accurately
search for a used car than they can
do using the Auto Trader app today.
Having wracked our brains about this,
we cannot envisage how this might be
so. Nevertheless, the stock performed
poorly. Despite unchanged profit
forecasts, Auto Trader stock was down
23% as the P/E multiple contracted from
23x to 17x. Baltic Classifieds, a smaller
position thanks to profit taking last year,
was down over 40%. The combined
positions cost us 1.75%.
We think similar fears around AI
disruption were behind declines in our
holdings Paycom, which makes payroll
processing software, and Corpay,
which deals with corporate payments.
Both were down around 25% despite
no change to profit forecasts, showing
how changes to sentiment can have a
large impact in the short run. Plenty of
similar businesses we don’t own, like
LSE and any number of other software
companies, suffered a comparable
fate; as mentioned earlier, the average
American stock was down during the
year. Whilst we don’t want to be naïve,
we think there may be opportunities
amongst the wreckage. Many of the
barriers to entry these businesses enjoy
are unlikely to be breached in our
opinion. Time alone will tell what the fate
of these businesses is, but periodic frights
like this are not uncommon in equity
markets. Whilst some correctly diagnose
an imminent problem, there are also
many false alarms which provide an
opportunity to buy great companies at
very reasonable prices.
As noted earlier, the Healthcare sector
was weak this year. One of the Trust’s
longest standing holdings, United
Health, was our largest contributor to
underperformance costing us 1.8%.
United Health has grown in complexity
since we purchased it and had
become too reliant on the provision
of government services. As a financial
(the company’s core business is health
insurance) it is hard to know precisely
what is happening under the hood, but
profit margins are low and they appear
to have made mistakes in new customer
selection. Profit forecasts have been
substantially reduced. Whilst we reduced
our position before their first profit
warning, we did not do so by enough.
The decision was costly. We have since
exited the position.
Elsewhere in healthcare, Cooper, which
makes contact lenses, and Align, which
makes Invisalign dental treatments, were
also poor. Both are somewhat sensitive
to consumer sentiment as both are
bought out of pocket, and this weighed
on results at the margin. We have
retained our position in Cooper but sold
our position in Align, concerned about
rising levels of competition and whether
the market opportunity was as big as
we believed.
Other negative contributors of note
include not owning Broadcom, another
AI semiconductor company which has
become a large index weight. As our top
ten contributors show, we had plenty
of AI exposure elsewhere. Instead, we
held a company called Microchip which
makes far more basic semiconductors
used in all manner of applications, from
cars to dishwashers. This company saw
the continuation of a down cycle that
Our two utilities stocks
performed well this
year, too. UK-listed SSE
and Spanish Iberdrola
have both been buoyed
by growing demand
for electricity and
contributed 30bps each
to performance.
INVESTMENT MANAGER’S REVIEW
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
40
began two years ago. These cycles are a
natural part of business for companies
such as these and we chose to retain our
holding, viewing it as par for the course.
We expect a cyclical rebound in 2026
now that excess inventories have been
flushed from the system.
Finally, Partners Group rounded out the
top 10 detractors. Partners is a private
equity fund manager. A lacklustre IPO
market made it difficult for Partners to
sell past investments, while rising interest
rates limited the prices others would
pay for these assets. Fewer realisations
reduced the performance fees Partners
earned on successful investments during
the year. Whilst we continue to believe in
the sector’s long term growth potential
and Partners’ robust business model, it
is understandable that the stock slipped.
In many ways Partners is a hedge for our
holding in banks, which generally prefer
higher interest rates.
Looking ahead
What of the future? We note that
valuations are somewhat elevated,
particularly in the US, where multiples
remain at historical highs. We like our
unusual benchmark (70% global, 30%
UK) in this context, as it skews us to the
better value on offer on this side of the
Atlantic. It is also probably telling that our
leverage is low at present – just 3%. We
don’t think it’s time to go all-in, but we
remain ready to take on debt (a helpful
feature of the investment trust structure)
should market conditions change.
There is disconcerting hype in certain
areas. We have discussed AI. Many other
cyclicals – particularly banks – have
re-rated. We have measured exposure
to AI and retain some exposure to banks,
which continue to generate lots of cash,
but we augment this with an eclectic
range of sensibly judged investments
that deliberately provide a wide range of
uncorrelated risks.
By owning Brunner, you invest in car
insurance, crop insurance, supermarkets,
AI chip manufacturing, cloud computing,
regulated electricity transmission,
Asian life insurance, hotels, airports, jet
engines, payment processing, natural
gas production, used car classifieds,
Norwegian and Irish banks, wooden
pallet networks, Japanese convenience
stores, lithography machines, electron
microscopes, vaccines, cancer drugs,
contact lenses, lock makers, line-painting
trucks, Korean cars, YouTube, Google,
Microsoft, Marmite and more. Each of
these businesses generates cash and
has an enviable market position. It is that
which ultimately gives businesses value
and has allowed Brunner to increase
its dividend for over fifty consecutive
years. We believe a balanced focus on
a wide range of reliable and growing
cash-flow streams is a timeless approach
to investment that transcends fashions.
We resolutely refuse to put all our eggs
in one basket. We also refuse to buy
stocks simply because they are big or
because other people believe they are
valuable despite the absurd assumptions
necessary to make that so. Whilst we
want to be forward-looking, we are
not naïve.
We place no store in our ability to predict
the next twelve months. Our belief is that
if you invest in a range of good quality,
growing businesses generating plentiful
cash flow then investment outcomes will
be good. Even though this was another
year where NAV growth lagged the
benchmark, we believe the portfolio to
be well positioned with an appropriate
level of absolute risk.
Investment activity
We make investments with the intention
to own the companies for a long time -
ideally, forever. However, the world is not
static and so we shouldn’t be either.
There are three primary reasons we end
up selling investments.
1. A change to the original
investment case:
The world often evolves in ways we did
not anticipate and, unfortunately, we
are not immune from making mistakes.
Whilst we tend to focus on higher quality
businesses which are more resilient,
sometimes adverse developments mean
we believe an investment is no longer
warranted. We aim to have ‘strong
opinions, loosely held’.
2. Valuation:
Market prices are more volatile than
business values. In the case of the FTSE
100, the average stock hit a high for the
year that was more than 60% above that
company’s low for the year. For smaller
companies, the volatility is often even
more extreme. Where we cannot justify
the valuation we may look to sell.
We believe a balanced
focus on a wide range
of reliable and growing
cash-flow streams is
a timeless approach
to investment that
transcends fashions.
41
3. Making room for something new:
As with most things in life, there are
trade-offs. When we uncover a fresh
investment idea, we need to sell
something to release capital. We are
always looking to improve the portfolio,
so positions may be sold to make way
for new ideas.
Portfolio turnover in 2025 was around
24%, implying an average holding period
of around four years.
We added six new names to the
portfolio during the year. Three in the
first half and three in the second half. In
the first half we purchased new positions
in Amazon, Kia and Tesco. For details
of these, please see our Half Yearly
Financial Report, 31 May 2025.
In the second half we acquired new
shareholdings in Paycom Software,
Federal Signal, and MonotaRO.
Paycom
Paycom is a leading vendor of human
resources management software for
mid-market firms. Where many of its
competitors have separate tools and
databases for different HR functions
such as employee records, payroll and
shift management, Paycom has a single
technology stack that provides ‘a single
source of truth’. While competitors have
typically been built through acquisition,
Paycom has built everything in house.
The result is a superior customer
experience resulting in very high
customer satisfaction levels relative to
competitors. Over time, Paycom has
significantly outgrown the market and
there remains a long runway for future
growth given the fragmented nature of
the end market. The company has many
of the quality characteristics that we like:
happy customers that stick around, high
profit margins, strong management (the
Founder remains CEO, and owns 11% of
the company) and a very strong balance
sheet. While in recent months the stock
has been caught up in waves of concern
about AI disruption and weakness in the
labour market for mid-market firms, we
expect the company to deliver strong
revenue and profit growth for many
years to come.
Federal Signal
Federal Signal is a good example
of the maxim that value accrues in
niches. The company is a leading
manufacturer of specialty industrial
vehicles and integrated safety and
warning equipment. Products include
unglamorous municipal vehicles
including street sweepers, sewage
vacuum trucks and road-marking
equipment, as well as law-enforcement
vehicle lights and industrial safety sirens.
The company is present in around 10
niche end markets and has built #1 or #2
positions in each. The products they sell
are non-discretionary and Federal Signal
benefits from an extensive distribution
network for both new product sales
and for aftermarket spare parts and
maintenance. As the largest player
across these niches, Federal Signal can
outspend competitors on R&D, resulting
in superior product quality, features and
reliability. This in turn results in higher
pricing, as customers pay an upfront
price premium to access a lower total
cost of ownership.
MonotaRO
Japanese industrial distributor
MonotaRO was the third new addition
in the second half. The company is
doing for industrial parts in Japan what
Amazon has done for books in many
Western markets. They offer a vast
choice of items at compelling prices,
with rapid delivery. MonotaRO lists
22 million parts from more than 2,000
suppliers, with the most popular 750,000
items held in stock ready for immediate
dispatch. Delivery is quick: around 2/3 of
the Japanese population is covered by
next morning delivery on in-stock items.
The Japanese industrial parts sector has
been slow to move online, with three
quarters still done via traditional physical
distributors. As a result, despite revenue
growth of more than 20% a year for the
past 15 years, MonotaRO still represents
only a small fraction of the total market.
Management targets 15% growth for the
mid-to-long term.
Japanese investments often suffer
from weak corporate governance
and inefficient capital allocation. With
MonotaRO we have fewer concerns
on this front: leading US industrial
distributor WW Grainer founded and
still owns almost 50% of the company.
Consequently, disclosure is good, and
the company pays an (admittedly
modest) dividend.
Full sales during the first half were
Nestle (consumer goods), Abbvie
(pharmaceuticals) and UnitedHealth
Group (US health insurer). Please see our
half year report for details.
In the second half we exited six small,
lower conviction, positions. In aggregate
these positions represented around just
4% of the portfolio.
Diageo, the premium spirits
manufacturer, failed to deliver the
revenue or volume growth that we had
anticipated, and consequently profit
margins came under pressure.
Although the position was never very
large, after two and a half years we
accepted there was no sign of a recovery
on the horizon and decided to move on.
We also sold SThree, the STEM
recruitment specialist. Profits have been
under significant pressure from a weak
hiring environment in their specialty
end markets. We considered our capital
would be better deployed elsewhere.
We had held Accenture, the technology
services giant, since 2014. Whilst
technological change has been of
benefit to the firm in the past, we worry
that their focus on labour-intensive
work will come under pressure from
AI technologies and tools. We began
selling the position in the first half of
the year and exited it entirely during
the second.
We also sold Relx, the UK-based
information services provider. We had
been reducing the shareholding over the
prior year on account of the elevated
valuation. As AI disruption concerns
increased we felt the margin of safety in
the business was too limited, and exited
the position entirely.
Creative software vendor Adobe
was another sale in the second half.
We felt the economic moat was
narrowing, driven by rising competition
from upstarts such as Canva, plus a
wide range of AI image and video
generation tools.
Dental devices firm Align Technologies,
which makes Invisalign clear aligners,
was also sold during the second half of
the year. The company has suffered from
increased competition and pressure on
consumer spending. Whilst the former
may eventually recover, the growing
competitive intensity appears to be
structural. We decided to invest our
funds elsewhere.
INVESTMENT MANAGER’S REVIEW
New addition Federal Signal, a
specialist in industrial vehicles
and integrated safety and
warning equipment, holds first or
second position in each of its 10
niche markets.
42
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
43
Long-term focus
Our focus is on understanding how a business evolves and
creates value over the long term. It is only over longer periods
that the fundamental attributes of a businesses or industry
reveal themselves. It is also over longer periods that the
power of compounding takes place. A small cohort of high
return, growth businesses are able to deliver exceptional
outcomes for shareholders over time. Patience is a prerequisite
for participation.
Factually, most equities are long duration assets, whose present
value is derived from cash flows expected well into the future.
We therefore believe it is sensible to align our analytical
timeframe with that reality. Our attention is skewed to factors
such as returns on invested capital, sustainable competitive
advantages, barriers to entry, long term growth rates, capital
allocation policies and leverage. Ultimately, considerations
such as these will determine the quantity, trajectory and
riskiness of the cash flows that the trust will receive from its
holdings. We believe the stock market remains excessively
focused on the short term. Through detailed research and
analysis focused on what truly matters, we seek to deliver
superior investment returns.
A balanced, diversified portfolio
Drawing on the full resource of AllianzGI’s global platform, we
look across all industries and geographies to select the most
attractive investment ideas for the trust’s portfolio. We believe
in building a balanced portfolio that is diversified across a wide
range of idiosyncratic opportunities and risks. In this way the
portfolio can be relied upon to deliver a steady and consistent
capital and income return.
Research intensive, focus on cash flow
AllianzGI’s research platform combines a large global
team of equity and credit portfolio managers and analysts,
environmental, social and governance specialists and our
own Grassroots* market research organisation. Collectively,
these provide Brunner’s fund managers with thoughtful, high
quality analysis of a wide range of businesses and industries,
augmented by insights into structural and cyclical trends. Our
research emphasises the analysis of sustainable company
cash flows, which we believe provides the truest measure of
corporate performance.
*Grassroots
SM
is a division of AllianzGI.
Investment philosophy and stock selection process
Quality: stable above average returns
– Long term competitive advantage
– Strong balance sheets
– High barriers to entry
– Management quality
– Stable/improving ROCE/RoE
– Sound on ESG issues
We seek to identify
this universe through
fundamental research
Quality
Growth Valuation
Secular growth
– Addressable market growth
– Sustainable growth – technology, brand
– Long term, through-cycle approach
– Avoid structural decline
Value, not just ‘cheap’
– Reverse Discounted Cash Flow
– Enterprise Value vs. Cash returns
– Price/Book vs. Return on Equity
– Dividends – an output not input
INVESTMENT MANAGER’S REVIEW
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
44
Stock selection – focus on quality, growth
and valuation
Our stock selection process blends assessments of business
quality, long-term growth potential and valuation, resulting in
a holistic view of a company, the risk factors and, ultimately, the
drivers of shareholder value.
Quality is about understanding the intrinsic attributes of a
business model. High quality companies are those with high
returns on invested capital supported by long-term competitive
advantages, shareholder friendly management teams, sound
ESG and strong balance sheets.
Such companies tend to be highly profitable, generating
substantial cash flow that can be used to fund further, value-
creative growth or returned to shareholders as dividends or
buybacks. Business quality can vary enormously across and
within industries. Fortunately, as global investors with a large
investible universe, we can afford to be highly selective.
To assess long-term growth potential, it is important to
understand the secular forces that are shaping the economy
and society, such as demographics, electrification and
digitalisation. This provides the context in which to assess
broader industry drivers as well as a company’s position within
the industry. Particular emphasis is placed on differentiating
between structural and cyclical growth. Whilst we will invest
in cyclical companies, a much greater value is placed on the
structural element. The combination of a high-quality business
model and long-term growth is a particularly powerful driver of
shareholder value. Most of the world’s truly great equities have
enjoyed these twin attributes.
Company valuation seeks to determine whether there is
sufficient upside to warrant investing. We look for companies
where the quality and/or long-term growth potential is not fully
appreciated. We want to anticipate rather than react and are
careful not to overpay, for example by identifying companies
with structural growth masked by a cyclical downturn or those
where we believe business quality is improving. We employ
a wide range of valuation tools, such as reverse DCFs (which
allow us to determine currently discounted assumptions),
free cash flow yields and relative multiples. At all times we
are intellectually honest, recognising that the valuation of
unknown future cash flows is inherently uncertain. We prefer to
be directionally correct, rather than precisely wrong.
ESG considerations straddle these three factors. Good
governance influences quality, for example. Environmental
factors will present opportunities for growth and threats to
terminal value. AllianzGI’s sustainability research team is fully
integrated into the broader investment research platform,
allowing us to develop a deep understanding of these risks and
opportunities. As long-term investors, these considerations are
critical to our investment process.
Our ultimate goal is to provide a balanced portfolio, which
optimises for aggregate quality, growth and value.
Selling stocks
Despite taking a long-term approach, we are still active
managers. In general, there are three situations where stocks
will be sold from the portfolio:
– Where there has been a material change to the investment
case. Whilst we work hard to minimise mistakes, we
recognise that we can make errors of judgement. Businesses
can evolve in an adverse direction, despite our best efforts to
avoid investments in those that do.
– Where the valuation has reached uncomfortably high
levels and implies expectations that clearly exceed what we
believe to be reasonable.
– Where a sale is required to raise cash for a superior
investment opportunity elsewhere.
Portfolio construction
The portfolio consists of a minimum of 50 holdings that
are selected on their individual merits whilst taking into
consideration the exposure to individual industries,
geographies, themes, factors and other idiosyncratic risk
factors, ensuring that the overall portfolio remains well
balanced and diversified.
The size of each individual holding reflects the level of
conviction. Typically, this reflects our balanced judgement
regarding the quality, growth and value of each investment,
with additional considerations related to the likely range of
outcomes (a proxy for risk) and liquidity.
At the portfolio level, the objective is to ensure that stock
specific risk – the risk which results from our stock selection
decisions – is the primary driver of the portfolio’s returns.
Residual risks such as currency, style, geography or
macroeconomic are monitored and managed to ensure that
they are not driving the overall portfolio’s returns. Ultimately,
the aim is to optimise the portfolio to achieve the dual objective
of consistent benchmark outperformance combined with an
attractive and growing income.
45
Several issues may be covered in each meeting.
Company engagement activities
Our investment process does not end with purchases of shares. We believe that we have an important duty to engage with the
boards and executive management teams of the companies in the portfolio. This is not purely about holding management
to account, but also about influencing company strategy and promoting effective governance, to help improve long term
performance. In particular, we focus on the sustainability of the business model and factors such as the environmental impact of
the business, social policies and capital management. The table shows the number of our engagements with businesses last year,
and breaks this down into different categories and by sector.
Communication
Services
Consumer
Discretionary
Consumer
Staples
Energy
Financials
Health Care
Industrials
Technology
Utilities
Total
Audit &
accounting
1
Business conduct
and culture
1
Capital
management
2
Corporate
governance
18
Environmental
risks or impacts
10
Financial
performance
0
Operational
performance
2
Risk
management
1
Social risks
or impacts
7
Strategy or
business model
8
Transparency
and disclosure
4
INVESTMENT MANAGER’S REVIEW
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
46
AllianzGI does considerable proprietary work in ESG analysis and at the moment also uses research provided by MSCI to help
identify Environmental, Social and Governance factors that can impact the businesses of the companies in the portfolio. The
charts below show that the Brunner portfolio’s ESG ratings compare well against the benchmark’s ESG ratings. They show the
rating of the Brunner portfolio on Environment, Social and Governance risks and combined ESG risk measurements compared
to the rating of the Benchmark (70% FTSE World Ex UK Index and 30% FTSE All-Share Index) scored on a scale of 1-10 (where
10 is high) on a quarterly basis from 1 January 2017 to 31 December 2025.
Source: MSCI/AllianzGI.
Environmental, Social and Governance
performance
8.0
4.0
Q1 17 Q4 25 Q1 17 Q4 25
8.0
4.0
8.0
4.0
Q1 17 Q4 25 Q1 17 Q4 25
8.0
4.0
Brunner ESG MSCI Environment BM ESG MSCI Environment Brunner ESG MSCI Governance BM ESG MSCI Governance
Brunner ESG MSCI Social BM ESG MSCI Social Brunner ESG MSCI Aggregate BM ESG MSCI Aggregate
Environmental performance v benchmark
Social performance v benchmark
Governance performance v benchmark
ESG performance v benchmark
47
Taiwan Semiconductor Manufacturing Company (TSMC) is
the world’s leading semiconductor ‘foundry’ with an exclusive
focus on manufacturing products for clients such as Apple,
Nvidia and Broadcom. TSMC has dominant market share for
the most complex, ‘leading edge’ chips (e.g., the iPhone’s A19
chip, which squeezes 25bn transistors into 1cm
2
). In 2024 TSMC
manufactured 11,878 different products for 522 customers
across a wide range of end markets, from AI to automotive.
Sector: Software & Computer Services
Headquarters: North America
Value of holding: £42.1m
Percentage of portfolio: 6.2%
Sector: Technology Hardware & Equipment
Headquarters: North America
Value of holding: £25.6m
Percentage of portfolio: 3.8%
Sector: Software & Computer Services
Headquarters: North America
Value of holding: £36.0m
Percentage of portfolio: 5.3%
Sector: Industrial Support Services
Headquarters: North America
Value of holding: £24.1m
Percentage of portfolio: 3.6%
Alphabet is the parent company of Google, YouTube, Android
and Google Cloud. It is increasingly seen as a potential winner
in AI, a space where it has long been active, including through
Waymo (autonomous driving) and Deepmind (general AI).
Google’s distribution, vast research and financial resources, and
ability to integrate AI-generated answers into search results
make it a powerful competitor to OpenAI’s ChatGPT. Google’s
proprietary semiconductors are also increasingly seen as a
viable alternative to Nvidia’s flagship GPUs.
Visa operates the world’s largest consumer payment system.
The company’s extraordinary network consists of 4.9bn cards
in circulation, issued by around 14,500 financial institutions
which can be used at over 175 million merchant locations in
more than 220 countries and territories. In 2025 the company
processed an average of more than 700m transactions per day
with a total value of $16 trillion.
Alphabet
Visa
Microsoft
Taiwan Semiconductor
1
3
2
4
Microsoft is one of the world’s leading technology companies,
with a unique position in enterprise software. Under the
leadership of CEO Satya Nadella, the company has shifted
away from a traditional ‘on-premise’ model to focus on its
Azure cloud computing platform. The company’s Office 365
suite has over four hundred million users and its Windows
operating system continues to dominate the PC market. The
company is an early leader in artificial intelligence applications
through its shareholding in OpenAI.
Top twenty holdings
INVESTMENT MANAGER’S REVIEW
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
48
AIA is the leading pan-Asian life and health insurer. Operating
across 18 markets, with #1 market positions in half of these, it
provides vital health, protection, and savings solutions to over
43 million individual policyholders. AIA is a strong beneficiary
of rising economic prosperity and relatively weak social safety
nets in many Asian countries. AIA leverages its leading agency
sales force to deliver the company’s mission of helping millions
live “Healthier, Longer, Better Lives”.
Sector: Banks
Headquarters: Ireland
Value of holding: £21.9m
Percentage of portfolio: 3.2%
Sector: Life Insurance
Headquarters: Hong Kong
Value of holding: £19.2m
Percentage of portfolio: 2.8%
Sector: Electricity
Headquarters: United Kingdom
Value of holding: £19.5m
Percentage of portfolio: 2.9%
Sector: Travel & Leisure
Headquarters: United Kingdom
Value of holding: £19.0m
Percentage of portfolio: 2.8%
Intercontinental Hotels Group is one of the world’s largest hotel
companies with 6,800 hotels and a further 2,300 in its pipeline.
The business model is asset light; a franchise or management
fee is charged to hotel property owners who licence its systems
and brands – including Holiday Inn, Intercontinental and Six
Senses – under long-term contracts. Low capital requirements
mean it generates lots of free cash which is returned to
shareholders via generous dividends and buybacks.
SSE
Intercontinental Hotels
Bank Of Ireland Group
AIA
5
7
6
8
Like many European banks, Bank of Ireland has spent much of
the time since the financial crisis rebuilding and strengthening
its balance sheet. Significant improvements to lending
standards and a less competitive Irish banking landscape
have seen returns improve, leverage fall and large cash returns
begin in earnest. Credit conditions permitting, we expect
these to continue, providing shareholders with dividends and
buybacks that dwarf those on offer in most other sectors.
SSE, formerly Scottish and Southern Energy, is a diversified
energy company. The company is largely focused on electricity
transmission and distribution networks in Scotland and
England and has built a leading UK portfolio of renewable
power assets. SSE has announced plans to invest £33 billion in
regulated electricity networks and renewables over the next
five years.
49
Netherlands-based ASML is a critical provider of advanced
lithography machines used in semiconductor manufacturing.
Their Extreme Ultra-Violet (EUV) technology uses complex
lasers and hyper-flat mirrors to etch circuits at a scale many
times finer than a human hair. ASML is the only company with
the know-how to produce EUV machines, which are essential
for manufacturing cutting edge chips sold by Nvidia, Apple
and others.
Sector: Oil, Gas & Coal
Headquarters: France
Value of holding: £18.4m
Percentage of portfolio: 2.7%
Sector: Technology Hardware & Equipment
Headquarters: Netherlands
Value of holding: £18.0m
Percentage of portfolio: 2.7%
Sector: Medical Equipment & Services
Headquarters: North America
Value of holding: £18.2m
Percentage of portfolio: 2.7%
Sector: Industrial Support Services
Headquarters: North America
Value of holding: £17.0m
Percentage of portfolio: 2.5%
Thermo Fisher Scientific is the world leader in serving the
science industry, with annual revenue of $44 billion. With a
mission to enable customers ‘to make the world healthier,
cleaner and safer’, they provide a wide range of products and
services that enable life sciences research. These range from
relatively basic laboratory supplies to electron microscopes,
CRISPR gene editing machines, clinical research services and
the production of complex pharmaceutical ingredients.
Corpay is a global leader in corporate payments, helping
businesses manage expenses with precision. Their
sophisticated platform streamlines fuel, lodging, and accounts
payable costs through digital payment cards and automated
workflows. By replacing inefficient paper-based systems
with real-time data and integrated fintech solutions, Corpay
provides its customers with essential control and transparency.
Thermo Fisher Scientific
Corpay
TotalEnergies
ASML Holding
9
11
10
12
TotalEnergies is a French multi-energy leader transitioning from
oil to a diversified power giant. Operating in 120 countries, the
firm balances low-cost oil and LNG production with aggressive
growth in renewable power generation. With a “more energy,
less emissions” strategy, the company aims to produce 100
TWh of annual electricity by 2030, mostly from renewables.
INVESTMENT MANAGER’S REVIEW
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
50
France-based Schneider Electric is a global leader in digital
energy management and industrial automation, and a
beneficiary of the increasing electrification of transportation
and rising energy demands of datacentres. The company
integrates world-class software and hardware, enabling
homes, datacentres, and industries to optimize energy usage
and deliver maximum reliability. Having been founded in
1836, today Schneider has 160,000 employees and one million
partners in over 100 countries.
Sector: Oil, Gas & Coal
Headquarters: United Kingdom
Value of holding: £16.6m
Percentage of portfolio: 2.5%
Sector: Electronic & Electrical Equipment
Headquarters: France
Value of holding: £14.9m
Percentage of portfolio: 2.2%
Sector: Investment Banking & Brokerage
Headquarters: North America
Value of holding: £16.6m
Percentage of portfolio: 2.4%
Sector: Software & Computer Services
Headquarters: United Kingdom
Value of holding: £14.3m
Percentage of portfolio: 2.1%
Charles Schwab is the largest discount brokerage in the US,
serving both individual investors and registered investment
advisors. Charles Schwab’s vast size and extensive use of
scalable technology results in low costs per customer, allowing
it to offer lower fees than most competitors whilst still making
a healthy profit. 38 million customers trust Schwab with nearly
$12 trillion of assets, with client assets having grown at a rate
of 12% a year since 2003.
Auto Trader Group operates the UK’s largest digital
marketplace for second hand cars. Over 75% of all minutes
spent by UK consumers on automotive marketplace websites
were spent on Auto Trader, attracted by the vast vehicle
inventory and user-friendly website. Growth comes from
increased revenue per retailer as the company adds new
features and increases listing prices. The company’s financials
are exceptional, with no debt, minimal physical assets, and
profit margins of around 70%.
Charles Schwab
Auto Trader Group
Shell
Schneider Electric
13
15
14
16
Leading integrated energy company Shell has strength in
natural gas, which is used in conjunction with renewable
sources to provide uninterrupted power when wind and solar
generation is low. Liquefied natural gas (LNG) has also proved
useful replacing Russian gas and is being used to substitute
coal, a more polluting fuel. The company is increasing
investment in low-carbon energy solutions such as EV charging
and hydrogen and is committed to being net zero by 2050.
51
Total value of top twenty holdings: £397.0m Percentage of portfolio: 58.6%
GSK is a British biopharma leader. The company focuses on
vaccines, speciality medicines in areas such as HIV, respiratory
illnesses and oncology, and some general medicines. Many of
these areas, particularly vaccines, have lower patent expiry risk
than general pharmaceuticals. We see an underappreciated
improvement in performance in recent years, with GSK twice
increasing its 2031 sales projection since setting it in 2021.
Sector: Retailers
Headquarters: North America
Value of holding: £14.1m
Percentage of portfolio: 2.1%
Sector: Pharmaceuticals & Biotechnology
Headquarters: United Kingdom
Value of holding: £13.7m
Percentage of portfolio: 2.0%
Sector: General Industrials
Headquarters: Japan
Value of holding: £13.9m
Percentage of portfolio: 2.1%
Sector: Electronic & Electrical Equipment
Headquarters: North America
Value of holding: £13.6m
Percentage of portfolio: 2.0%
Itochu is a leading Japanese general trading company, with
a 160-year history. It operates a diverse global portfolio, with
nearly 150 major subsidiaries and associated companies
across sectors including textiles, machinery, food, and energy.
Unlike a passive investor, Itochu sends its own executives into
the companies it owns to drive performance improvements,
behaving more like an operational private equity firm than a
traditional trading house.
AMETEK is a global manufacturer of electronic instruments
and electromechanical devices serving a diverse range of niche
markets and applications. Broad end market exposure reduces
dependence of any single market, technology or customer
and the focus on niches allows the company to differentiate
via technology and innovation. Many of their businesses are
aligned with secular growth trends including health care,
energy, aerospace and industrial automation.
Itochu
AMETEK
Amazon
GSK
17
19
18
20
Amazon is a global titan that evolved from an online bookstore
into a retail and cloud computing powerhouse. Its retail
segment combines unmatched selection from numerous
vendors with rapid delivery via Amazon’s proprietary logistics
business. Meanwhile, Amazon Web Services (AWS) is the
world’s largest cloud provider, used by more than 90% of
Fortune 100 companies.
INVESTMENT MANAGER’S REVIEW
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
52
Geographical distribution (%)
Historical geographical distribution (%)
Portfolio analysis
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
North America United Kingdom Continental Europe Pacific Basin Japan
50
40
30
20
10
0
50
40
30
20
10
0
North America
United Kingdom
Europe
Pacific Basin
Japan
25.73
44.49
20.52
5.97
3.29
Data as at 30 November each year
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
2024 2025
27.30
48.74
19.76
2.37
1.83
52
53
Sector distribution (%)
Sector breakdown by country (%)
25
20
15
10
5
0
2025
Technology Industrials Financials Consumer Goods Health Care Energy Utilities
Consumer
Staples
North America
19.73 11.07 7.82 2.08 3.79 - - -
United Kingdom
2.82 0.79 5.90 4.97 2.66 2.45 2.88 3.26
Other
2.66 10.67 7.60 3.54 1.19 2.71 1.41 -
25
20
15
10
5
0
Technology Industrials Financials Consumer Goods Health Care Energy Utilities
Consumer
Staples
2025
25.21 22.53 21.32 10.59 7.64 5.16 4.29 3.26
2024
24.27 24.30 20.49 7.33 13.70 4.02 2.45 3.44
53
INVESTMENT MANAGER’S REVIEW
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
54
Top twenty holding.
Added during the year.
Name Sector Value (£’000s)
% of
invested
funds
North America
Microsoft Software & Computer Services 42,119 6.21
Alphabet Software & Computer Services 35,982 5.31
Taiwan Semiconductor Technology Hardware & Equipment 25,583 3.77
Visa Industrial Support Services 24,120 3.56
Thermo Fisher Scientific Medical Equipment & Services 18,246 2.69
Corpay Industrial Support Services 16,980 2.51
Charles Schwab Investment Banking & Brokerage 16,567 2.44
Amazon Retailers 14,128 2.08
AMETEK Electronic & Electrical Equipment 13,644 2.01
S&P Global Finance & Credit Services 12,816 1.89
Federal Signal Industrial Transportation 11,731 1.73
American Financial Group Non-Life Insurance 11,449 1.69
Microchip Technology Technology Hardware & Equipment 9,172 1.35
General Electric Aerospace & Defence 8,568 1.26
Cooper Medical Equipment & Services 7,470 1.10
Paycom Software Software & Computer Services 7,121 1.05
Arthur J. Gallagher & Co. Non-Life Insurance 7,100 1.05
Amphenol Technology Hardware & Equipment 6,998 1.03
Roper Technologies Software & Computer Services 6,785 1.01
CME Group Investment Banking & Brokerage 5,114 0.75
301,693 44.49
Listed equity holdings
at 30 November 2025
55
Top twenty holding.
Added during the year.
Name Sector Value (£’000s)
% of
invested
funds
United Kingdom
Bank Of Ireland Group Banks 21,945 3.24
SSE Electricity 19,523 2.88
Intercontinental Hotels Travel & Leisure 19,025 2.81
Shell Oil, Gas & Coal 16,591 2.45
Auto Trader Group Software & Computer Services 14,300 2.11
GSK Pharmaceuticals & Biotechnology 13,748 2.03
Tesco Personal Care, Drug & Grocery 11,213 1.65
Unilever Personal Care, Drug & Grocery 10,909 1.61
IG Group Investment Banking & Brokerage 9,719 1.43
Admiral Group Non-Life Insurance 8,351 1.23
Barratt Redrow Household Goods & Home Construction 7,369 1.09
Inchcape Retailers 7,253 1.07
DCC Industrial Support Services 5,285 0.79
Baltic Classifieds Software & Computer Services 4,823 0.71
Haleon Pharmaceuticals & Biotechnology 4,299 0.63
174,353 25.73
INVESTMENT MANAGER’S REVIEW
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
56
Name Sector Value (£’000s)
% of
invested
funds
Continental Europe
TotalEnergies Oil, Gas & Coal (France) 18,354 2.71
ASML Holding Technology Hardware & Equipment (Netherlands) 18,040 2.66
Schneider Electric Electronic & Electrical Equipment (France) 14,941 2.20
Assa Abloy Construction & Materials (Sweden) 13,488 1.99
DNB Bank Banks (Norway) 13,246 1.95
Aena Industrial Transportation (Spain) 12,047 1.78
Partners Group Investment Banking & Brokerage (Switzerland) 10,766 1.60
Iberdrola Electricity (Spain) 9,552 1.41
Munich Re Non-Life Insurance (Germany) 8,169 1.21
Roche Holdings Pharmaceuticals & Biotechnology (Switzerland) 8,095 1.19
Atlas Copco Industrial Engineering (Sweden) 8,021 1.18
Jumbo Leisure Goods (Greece) 4,330 0.64
139,049 20.52
Pacific Basin
AIA Life Insurance (Hong Kong) 19,245 2.84
KIA Automobiles & Parts (Korea) 11,350 1.67
Brambles General Industrials (Australia) 9,888 1.46
40,483 5.97
Japan
Itochu General Industrials 13,931 2.06
MonotaRO Retailers 8,342 1.23
22,273 3.29
Total Invested Funds 677,851 100.00
Top twenty holding.
Added during the year.
57
Distribution of invested funds
at 30 November 2025
United
Kingdom
%
North
America
%
Other
countries
%
2025
total
%
Composite
benchmark
sector
weighting*
2024
total
%
Technology
Software & Computer Services 2.82 13.58 - 16.40 11.36 16.64
Technology Hardware & Equipment - 6.15 2.66 8.81 13.04 7.63
2.82 19.73 2.66 25.21 24.40 24.27
Industrials
Aerospace & Defence - 1.26 - 1.26 3.21 2.19
Construction & Materials - - 1.99 1.99 1.05 1.75
Electronic & Electrical Equipment - 2.01 2.20 4.21 1.35 3.78
General Industrials - - 3.52 3.52 1.63 3.53
Industrial Engineering - - 1.18 1.18 1.06 1.38
Industrial Support Services 0.79 6.07 - 6.86 2.98 9.67
Industrial Transportation - 1.73 1.78 3.51 1.36 2.00
0.79 11.07 10.67 22.53 12.64 24.30
Financials
Banks 3.24 - 1.95 5.19 9.27 3.85
Finance & Credit Services - 1.89 - 1.89 0.83 1.60
Investment Banking & Brokerage 1.43 3.19 1.60 6.22 3.89 7.36
Life Insurance - - 2.84 2.84 1.29 0.67
Non-Life Insurance 1.23 2.74 1.21 5.18 1.72 7.01
5.90 7.82 7.60 21.32 17.00 20.49
Consumer Goods
Automobiles & Parts - - 1.67 1.67 1.79 -
Consumer Services - - - - 0.79 -
Household Goods & Home Construction 1.09 - - 1.09 0.41 1.23
Leisure Goods - - 0.64 0.64 0.55 0.57
Media - - - - 1.10 1.11
Personal Goods - - - - 0.70 -
Retailers 1.07 2.08 1.23 4.38 4.34 1.12
Travel & Leisure 2.81 - - 2.81 1.61 3.30
4.97 2.08 3.54 10.59 11.29 7.33
Health Care
Health Care Providers - - - - 0.62 4.18
Medical Equipment & Services - 3.79 - 3.79 1.93 5.41
Pharmaceuticals & Biotechnology 2.66 - 1.19 3.85 7.34 4.11
2.66 3.79 1.19 7.64 9.89 13.70
INVESTMENT MANAGER’S REVIEW
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
58
United
Kingdom
%
North
America
%
Other
countries
%
2025
total
%
Composite
benchmark
sector
weighting*
2024
total
%
Energy
Alternative Energy - - - - 0.15 -
Oil, Gas & Coal 2.45 - 2.71 5.16 4.83 4.02
2.45 - 2.71 5.16 4.98 4.02
Utilities
Electricity
2.88 - 1.41 4.29 1.65 2.45
Gas, Water & Multi-Utilities - - - - 1.46 -
Waste & Disposal Services - - - - 0.16 -
2.88 - 1.41 4.29 3.27 2.45
Consumer Staples
Beverages - - - - 1.38 0.51
Food Producers - - - - 0.86 1.02
Personal Care, Drug & Grocery 3.26 - - 3.26 3.21 1.91
Tobacco - - - - 1.58 -
3.26 - - 3.26 7.03 3.44
Basic Materials
Chemicals - - - - 0.82 -
Industrial Materials - - - - 0.08 -
Industrial Metals & Mining - - - - 2.14 -
Precious Metals & Mining - - - - 0.64 -
- - - - 3.68 -
Real Estate
Real Estate Investment & Services - - - - 0.42 -
Real Estate Investment Trusts - - - - 1.59 -
- - - - 2.01 -
Telecommunications
Telecommunications Equipment - - - - 0.78 -
Telecom Service Providers - - - - 1.38 -
- - - - 2.16 -
Not classified - - - - 1.65 -
Total 25.73 44.49 29.78 100.00 100.00 100.00
* The classifications and prior year comparatives have been updated, where required, to reflect recent changes in The Industry
Classification Benchmark (ICB) standard.
59
Governance
60 Directors, Manager and advisers
63 Directors’ Report
68 Corporate Governance Statement
70 Management Engagement
Committee Report
71 Nomination Committee Report
72 Remuneration Committee Report
75 Audit and Risk Committee Report
78 Statement of directors’ responsibilities
in respect of the financial statements
Seoul, South Korea.
Car manufacturer
Kia, a new addition
to the portfolio, is
headquartered in
the city.
59
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
60
Amanda Aldridge BSc FCACarolan Dobson
BSc Chartered FCSI*
Joined the board in December 2019.
Amanda is a non-executive director
and audit committee chair of Staffline
Group PLC and a non-executive director
of Helical plc and AGS Airports Group
Holdings Limited. She also chairs the
audit and risk committee of The Low
Carbon Contracts Company and The
Electricity Settlements Company. She
was formerly a partner at KPMG LLP and
during her career she was Head of the
Retail Sector practice before becoming
Head of Contract Governance in the
Risk-Consulting Division. Amanda is
a Fellow of the Institute of Chartered
Accountants in England and Wales.
Experience:
Amanda brings senior experience in
accounting practice, with specialisms
including risk, and has non-executive
director and audit committee
chair experience on other public
company boards.
Reasons for the recommendation
for re-election:
Amanda has evident skills and
experience both from her background as
a chartered accountant and as an audit
committee chair.
Joined the board in December 2013
and has been Chair since the AGM in
March 2016. She is Chair of BlackRock
Latin American Investment Trust plc and
previous Chair of JPMorgan European
Discovery Trust plc, Baillie Gifford UK
Growth Trust plc and Aberdeen Smaller
Companies Income Trust plc. Carolan is
current Chair of ABB Ltd Pension Fund,
independent non-executive director of
Columbia Threadneedle Fund Managers
and Independent Investment Adviser to
a number of large Local Government
Pension Schemes. Carolan was previously
head of UK equities at Abbey Asset
Managers, Head of Investment Trusts at
Murray Johnstone and was the portfolio
manager of two investment trusts.
Experience:
Carolan is an experienced fund manager
and has held key roles in the investment
management industry and in advisory
roles and she chairs both investment
trusts and other organisations.
Reasons for the recommendation
for re-election:
Carolan’s wise and effective leadership
of the board and wide knowledge
and experience of the industry provide
strength to the trust. Carolan will be
handing over to her successor after the
AGM in 2027 following the recruitment
of a chair-elect during the current year.
Elizabeth Field MA
Joined the board in December 2022.
Elizabeth recently retired as a partner
at Stephenson Harwood. Elizabeth
was a corporate lawyer for 35 years
with extensive experience of advising
public and private companies on a wide
range of corporate transactions across
a variety of sectors, specifically including
investment trusts.
Experience:
Elizabeth is a lawyer and has experience
of providing legal and corporate
governance advice to investment
trusts, asset managers and investment
trust sponsors.
Reasons for the recommendation
for re-election:
Elizabeth’s legal knowledge and
negotiating skills are valuable to the
board and she has wide knowledge of
the industry.
Directors, Manager and advisers
*
Independent on appointment as Chair.
Chair of the audit and risk committee
Board Chair. Chair of the management
engagement committee and the
nomination committee
61
Andrew Hutton MA, CFA
Joined the board in April 2020. He is
owner and director of A.J.Hutton Ltd, an
investment advisory practice established
in 2007. Andrew started his career in
1979 at J.P. Morgan where, over 18
years, he held investment and business
management positions in London,
New York, Singapore and Australia. He
was subsequently head of investment
management at Coutts Group and co-
CEO of RBS Asset Management. Andrew
has served as Senior Independent
Director of Baillie Gifford UK Growth
Fund and Chairman of JPMorgan Global
Emerging Markets Income Trust.
Experience:
Andrew is an asset management
professional with senior management
and money management experience.
Reasons for the recommendation
for re-election:
Andrew brings to the board a
deep understanding of portfolio
management.
Jim Sharp MA
Joined the board in January 2014. He
began his career in corporate finance
with J.Henry Schroder & Co. Limited from
1992 to 2002 where he was a director.
He is Chair of The Cotswold Company
and Monica Vinader.
Experience:
Jim has a background in financial
services and in addition to experience
in running businesses and insight into
marketing and promotion he brings
a connection to the largest group
of shareholders.
Reasons for the recommendation
for re-election:
Jim’s broad commercial and operational
experience and knowledge and
understanding of marketing and
promotion are valuable and his
connection to a key stakeholder helps
the board’s understanding of the
requirements of shareholders.
Senior Independent Director, Chair of
the remuneration committee.
Committee memberships
All directors are non-executive and
independent of the manager.
All directors are members of the
management engagement committee
and the nomination committee.
All directors, with the exception of
the Chair, Carolan Dobson, and Jim
Sharp, are members of the audit and
risk committee.
All directors, with the exception of Jim
Sharp, are members of the remuneration
committee.
Further details can be found on
page 69.
GOVERNANCE
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
62
The Manager or Alternative
Investment Fund
Manager (AIFM)
Allianz Global Investors UK Limited
(AllianzGI UK) is incorporated in the
UK and its registered office is at 199
Bishopsgate, London EC2M 3TY. It is
authorised by the Financial Conduct
Authority (FCA).
Allianz Global Investors GmbH
(AllianzGI) is an active asset manager
operating across nineteen markets
with specialised in-house research
teams around the globe, managing
assets for individuals, families and
institutions worldwide.
As at 30 September 2025, AllianzGI
had €580 billion of assets under
management worldwide.
Through its predecessors, AllianzGI
has a heritage of investment trust
management expertise in the UK
reaching back to the nineteenth century
and as at 31 December 2025 had £3.8
billion assets under management in a
range of investment trusts.
Website: allianzgi.co.uk
Head of Investment Trusts
Stephanie Carbonneil
Email: stephanie.carbonneil@
allianzgi.com
Investment Manager
Julian Bishop and James Ashworth,
Co-Lead managers, representing
Allianz Global Investors UK Limited,
199 Bishopsgate, London EC2M 3TY
(the manager).
Company Secretary and
Registered Office
Kirsten Salt ACG
199 Bishopsgate, London EC2M 3TY
Telephone: 020 3246 7513
Email: kirsten.salt@allianzgi.com
Registered number
00226323
Bankers and Custodian
HSBC Bank plc
Depositary
HSBC Securities Services
Solicitors
Dickson Minto W.S.
Herbert Smith Feehills Kramer
Independent auditors
PricewaterhouseCoopers LLP
Registrars
MUFG Corporate Markets
(full details on page 108)
Stockbrokers
J.P. Morgan Cazenove
63
Directors’ Report
The directors present their Report which
incorporates the audited financial
statements for the year ended 30
November 2025.
Share capital
Details of the company’s share capital
are set out in Note 11 on page 97.
During the year 283,991 new ordinary
shares of 25p were issued to J.P. Morgan
Securities under the shareholder
authority granted at the AGM in 2024 for
a total consideration of £4,176,000, at an
average price of 1,462.25p. 10,496 shares
were bought back by the company and
held in treasury under the shareholder
authority granted at the AGM for a total
consideration of £146,000.
Since the year end and up to 10 February
2026, a further 4,669 ordinary shares
of 25p were bought back to be held
in treasury for a total consideration
of £65,937.80, at an average price
of 1,412.25p.
A resolution to renew the authority
to issue new shares will be put to
shareholders at the AGM, together with
a resolution to renew the authority to
purchase shares for cancellation or
holding in treasury. The full text of the
resolutions is set out in the notice of
meeting on page 109.
Independent auditors
A resolution to approve the re-
appointment of PricewaterhouseCoopers
LLP as auditors of the company will
be proposed at the annual general
meeting, together with a resolution
authorising the directors to determine the
auditors’ remuneration.
Each of the directors at the date of
approval of this report confirms that:
1. so far as the director is aware, there
is no relevant audit information of
which the company’s auditors are
unaware; and
2. the director has taken all the steps
that he/she ought to have taken
as a director to make himself/
herself aware of any relevant audit
information and to establish that
the company’s auditors are aware of
that information.
This confirmation is given and should
be interpreted in accordance with
the provisions of section 418 of the
Companies Act 2006.
Related party transactions
During the financial year no transactions
with related parties have taken place
which would materially affect the
financial position or the performance of
the company.
Management contract and
management fee
The main expense of the company and
therefore the most significant element
of the ongoing charges is the investment
management fee and the board is keen
to ensure this fee remains competitive.
The manager’s performance under the
contract and the contract terms are
reviewed annually by the management
engagement committee. The committee’s
report is on page 70.
Under the Alternative Investment
Fund Managers Directive (AIFMD) the
company appointed AllianzGI UK as the
designated Alternative Investment Fund
Manager (AIFM) for the company on
the terms and subject to the conditions
of the management and administration
agreement between the company and
AllianzGI UK (the management contract).
AllianzGI UK is authorised and regulated
by the Financial Conduct Authority with
its registered office at 199 Bishopsgate,
London EC2M 3TY.
The management contract provides
for a management fee based on
0.45% per annum of the value of the
company’s assets after the deduction
of current liabilities, short-term loans
with an initial duration of less than one
year and the value of the company’s
investments in any other funds managed
by the manager. The contract can be
terminated with six months’ notice.
Revenue
The revenue earnings attributable
to ordinary shareholders for the year
amounted to £12,046,000 or 27.86p per
ordinary share (2024: £11,686,000 or
27.37p per ordinary share).
The first two quarterly dividends of
6.25p (£5,406,000) were paid during
the company’s financial year to 30
November 2025 and the board declared
a third quarterly dividend of 6.25p
(£2,702,000) per ordinary share which
was paid on 11 December 2025. The
board recommends a final dividend for
the year ended 30 November 2025 of
6.25p (£2,702,000), payable on 2 April
2026, making a total distribution for
the year of 25.0p per ordinary share.
The next quarterly dividend payment is
expected to be made in July 2026.
Invested funds
The market value of the company’s
investments at 30 November 2025
was £677.9m (2024: £644.7m). Sales
of investments during the year resulted
in net gains of £46.4m (2024: gains of
£87.4m). Provisions contained in the
Finance Act 2010 exempt approved
investment trusts from corporation tax
on their chargeable gains.
Details of the total return of the
company and the split between revenue
and capital returns are shown in the
Income Statement on page 86. The
revenue and capital split is explained
in more detail in the Statement of
Accounting Policies on page 90 under
‘Investment management fee and
administrative expenses’ and on page
93 under ‘Finance costs’.
The following disclosures are made in
accordance with Part 6 of Schedule 7 of
the Large and Medium sized Companies
and Groups (Accounts and Reports)
Regulations 2008.
Capital structure
The company’s capital structure is set out
in Note 11 on page 97.
Listing Rule UKLR 6.6.1R
There are no matters requiring disclosure
under this Rule, other than on share
capital which is set out above on
this page.
GOVERNANCE
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
64
Voting rights in the company’s shares
As at 10 February 2026, the company’s ordinary share capital consisted of:
Share class
Number of
shares issued
Voting rights
per share
Total
voting rights
Ordinary shares of 25p 43,247,727 1 43,247,727
Ordinary shares held in treasury 15,165 0 0
Total 43,232,562 43,247,727
Common Reporting
Standards (CRS)
CRS is a global standard for the
automatic exchange of information
commissioned by the Organisation
for Economic Cooperation and
Development and incorporated into UK
law by the International Tax Compliance
Regulations 2015. CRS requires the
company to provide certain additional
details to HMRC in relation to UK
resident foreign investment holders. The
Registrars, MUFG Corporate Markets,
have been engaged to collate such
information and file the reports with
HMRC on behalf of the company.
Interests in the company’s
share capital
As at 9 February 2026, the company was
aware of the following interests in the
company’s share capital greater than
3%: Freeths Trustees Limited (as trustees
for members of the Brunner Connected
Parties) 13.00% (included in which
TD Breadin is a co-trustee for 9.34%);
Rathbones Investment Management
Limited 3.36%.
Members of the extended Brunner
family, outside the Connected Parties
group described on page 66, hold
around 4.65% of the issued ordinary
share capital.
Internal control
The directors have overall responsibility
for the company’s system of internal
control. Whilst acknowledging their
responsibility for the system of internal
control, the directors are aware that
such a system is designed to manage
rather than eliminate the risk of failure
to achieve business objectives and
can provide only reasonable but not
absolute assurance against material
misstatement or loss.
The board has established an ongoing
process for identifying, evaluating and
managing the significant risks faced
by the company. This process has been
fully in place throughout the year under
review and up to the date of the signing
of this Annual Report.
The key elements of the process are
as follows:
– In addition to the review of the
principal risks (see pages 18 to
21), the directors regularly review
all the risks on the Internal Risk Matrix
and every six months the board
receives from the manager a formal
report which details any known
internal controls failures, including
those that are not directly the
responsibility of the manager.
– Allianz Global Investors UK Limited
(AllianzGI UK), as the appointed
manager, provides investment
management, accounting and
company secretarial services to the
company. The manager therefore
maintains the internal controls
associated with the day-to-day
operation of the company. These
responsibilities are included in the
Management and Administration
Agreement between the company and
the manager. The manager’s systems
of internal control are regularly
evaluated by its management and
monitored by internal auditors.
– There is a regular review by the
board of asset allocation and any risk
implications. There are also regular
and comprehensive reviews by the
board of management accounting
information, including revenue and
expenditure projections, actual
revenue against projections and
performance comparisons.
– Authorisation and exposure limits are
set and maintained by the board.
– The board meets with senior
representatives of AllianzGI and
also receives an Internal Controls
Report from the manager, together
with a report on compliance with the
manager’s anti-bribery policy.
– The audit and risk committee on
behalf of the board reviews the
Internal Controls Reports of other third
party service providers, including those
of AllianzGI and all other providers of
administrative and custodian services
to AllianzGI or directly to the company.
The directors confirm that the audit
and risk committee has reviewed
the effectiveness of the system of
internal control, which it has found to
be appropriate.
In the Annual Report for the year
commencing 1 December 2026 the
board will be required to report on
the effectiveness of material controls.
There is no expectation that making this
declaration will require any significant
change to the processes or procedures
already performed by the board.
Accountability and Audit
The Statement of Directors’
Responsibilities in respect of the financial
statements is on page 78 and a
statement of going concern is on page
22. The Independent Auditors’ Report
can be found on page 80.
The UK Stewardship Code and
exercise of voting powers
The board has delegated the exercise
of voting powers on its behalf to
discharge its responsibilities in respect
of investments, including the exercise
of voting powers on its behalf to the
manager, AllianzGI, and receives regular
reports on voting activity. There is more
information on company engagement
in the Strategic Report starting on page
11, and in the Investment Manager’s
Review on page 45.
Sustainability
disclosure requirements
The Financial Conduct Authority (FCA)
has introduced a sustainability disclosure
requirements and investment labels
regime (SDR) to address concerns about
65
misleading environmental claims. The
SDR has several dimensions, including
an ‘anti-greenwashing’ rule, designed
to increase trust and confidence in the
sustainable investment market and to
combat providers exploiting demand
for sustainable products by making
unsupported environmental claims.
The company’s website https://www.
brunner.co.uk/en-gb/about-us/esg notes
that Brunner’s investment process only
includes consideration of ESG factors,
not Socially Responsible Investment
(SRI) (i.e., building sustainable portfolios
by delivering sustainable financial
returns based on the assessment of
ESG practices) nor impact aspects (i.e.,
promoting social and environmental
goals and/or/outcomes alongside
financial returns).
TCFD
The board continues to look at the
carbon footprint of the portfolio which
is reported in the monthly factsheets.
Whereas as an investment company we
do not report following the requirements
of the Task Force on Climate-related
Financial Disclosures (TCFD) we take an
interest in how the portfolio compares
against available indexed data. On
page 46 we look at various ESG MSCI
performance metrics against those of
the benchmark.
In accordance with the requirements
of the TCFD, AllianzGI UK as AIFM has
prepared a product level report for
the company. The TCFD report for the
company is available on the company’s
website brunner.co.uk.
Greenhouse gas emissions
As an investment company, the
company’s own direct environmental
impact is minimal. The company has
no greenhouse gas emissions to report
from its operations, nor does it have
responsibility for any other emissions
producing sources under the Companies
Act 2006 (Strategic Report and Directors’
Reports) Regulations 2013. For the
same reasons, the company considers
itself to be a low energy user under
the Streamlined Energy & Carbon
Reporting regulations and therefore
is not required to disclose energy and
carbon information.
Modern Slavery Act 2015
The company does not provide goods or
services in the normal course of business,
and as a financial investment vehicle
does not have customers. The directors
therefore consider that the company is
not required to make a statement under
the Modern Slavery Act 2015 in relation
to slavery or human trafficking.
Bribery Act 2010
The board has a zero tolerance policy in
relation to bribery and corruption and
has received assurance through internal
controls reporting from the company’s
main third party service providers that
adequate safeguards are in place to
protect against any such potentially
illegal behaviour by employees
or agents.
Annual General Meeting business
Directors’ Re-election
The plans for board succession, including
the arrangements for the retirements
of the directors with over nine years’
service, are described on page 71.
Carolan Dobson, Amanda Aldridge,
Elizabeth Field, Andrew Hutton and
Jim Sharp each retire in accordance
with the board policy on the annual
re-election of directors and offer
themselves for re-election at the AGM
in 2026. Biographical details of the
directors are on page 60 together
with the reasons why the board supports
and recommends their re-election.
Directors serving during the year and
their interests in the share capital of the
company as at 30 November 2025 are
set out in the Directors’ Remuneration
Report on page 72.
The board’s view is that each director
who is retiring and offering themselves
to be re-elected at the AGM continues
to make a valuable and effective
contribution and remains committed in
the role. The board has also considered
the number of boards on which
each director sits and the other time
commitments for each board member
and is satisfied that each director has
the capacity to devote all the time and
attention needed to fulfil their role and
duties to the company.
Allotment of new shares
A resolution authorising the directors
to allot new share capital was passed
at the annual general meeting of the
company on 2 April 2025 under section
551 of the Companies Act 2006. The
current authority will expire on 1 July
2026 and approval is therefore sought
for the renewal of this authority, which
will last until the conclusion of the
annual general meeting in 2027 or 1 July
2027 if earlier.
This authority is limited to a maximum
number of 14,415,909 ordinary shares,
representing approximately one third of
the existing ordinary share capital of the
company as at the date of this report,
provided that there is no change in the
issued share capital between the date
of this report and the annual general
meeting to be held on 31 March 2026.
Disapplication of pre-emption rights
A resolution was passed at the annual
general meeting of the company held
on 2 April 2025 under section 570 of
the Companies Act 2006, to authorise
the directors to allot ordinary shares
for cash other than pro rata to existing
shareholders. The current authority will
expire on 1 July 2026 and approval
is therefore sought for the renewal
of this authority, which will last until
the conclusion of the annual general
meeting in 2027 or 1 July 2027 if earlier.
This authority is limited to a maximum
number of 4,324,772 ordinary shares,
representing approximately 10% of the
existing ordinary share capital of the
company as at the date of this report,
provided that there is no change in the
issued share capital between the date
of this report and the annual general
meeting to be held on 31 March 2026.
Accordingly resolution 12 as set out in
the notice of meeting on page 109 will
be proposed as an ordinary resolution
and resolution 13 will be proposed as a
special resolution.
The directors do not currently intend to
allot shares under these authorities other
than to take advantage of opportunities
in the market as they arise and only if
they believe it would be advantageous
to the company’s existing shareholders
to do so. The directors confirm that no
allotments of new shares will be made
unless the lowest market offer price of
the ordinary shares is at least equal to or
at a premium to Net Asset Value.
Share buy back programme
The board is proposing the renewal
of the company’s authority under
section 701 of the Companies Act 2006,
to purchase ordinary shares in the
market for cancellation. In addition to
renewing its powers to buy back shares
for cancellation, the board will seek
GOVERNANCE
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
66
shareholder authority to repurchase
shares for holding in treasury for sale
and reissue at a later date.
This authority will give the company the
ability to reissue treasury shares quickly
and cost-effectively (including pursuant
to the authority under resolution 13, see
above) and provides the company with
additional flexibility in the management
of its capital base. Such shares may be
resold for cash but all rights attaching
to them, including voting rights and any
right to receive dividends are suspended
whilst they are held in treasury. If the
board exercises the authority conferred
by resolution 14, which will be proposed
as a special resolution, the company
will have the option of either holding in
treasury or of cancelling any of its shares
purchased pursuant to this authority and
will decide at the time of purchase which
option to pursue.
The board believes that such purchases
in the market at appropriate times
and prices may be a suitable method
of enhancing shareholder value. The
company would make either a single
purchase or a series of purchases, when
market conditions are suitable, with
the aim of maximising the benefits to
shareholders and within guidelines
set from time to time by the board.
Additionally, the board believes that the
company’s ability to purchase its own
shares should create additional demand
for the ordinary shares in the market
and that this should assist shareholders
wishing to sell their ordinary shares.
Where purchases are made at prices
below the prevailing Net Asset Value of
the ordinary shares, the Net Asset Value
per share for the remaining shareholders
is enhanced. It is therefore intended
that purchases will only be made at
prices below the prevailing Net Asset
Value at the time of purchase, with
the purchases to be funded from the
realised capital profits of the company
(which are currently in excess of £622m).
The rules of the UK Listing Authority
limit the price which may be paid by the
company to 105% of the average middle
market quotation for an ordinary share
on the five business days immediately
preceding the date of the relevant
purchase. The minimum price to be paid
will be 25p per ordinary share (being the
nominal value).
Under the Financial Conduct Authority’s
Listing Rules, a company is permitted
to purchase up to 14.99% of its equity
share capital through market purchases
pursuant to a general authority granted
by shareholders in general meeting.
The current authority which permits
the company to purchase up to 14.99%
of the ordinary shares, expires at the
conclusion of the forthcoming annual
general meeting. The board believes
that the company should continue
to have authority to make market
purchases of its own ordinary shares
for cancellation or additionally for
holding in treasury. Accordingly, a special
resolution to authorise the company to
make market purchases of up to 14.99%
of the company’s issued ordinary share
capital will be proposed. Provided there
is no change in the issued share capital
between the date of this report and the
annual general meeting to be held on 31
March 2026 such authority is equivalent
to 6,482,834 ordinary shares.
The authority will last until the annual
general meeting of the company to
be held in 2027 or until 1 July 2027,
whichever is the earlier. The authority will
be subject to renewal by shareholders at
subsequent annual general meetings.
The Brunner family
Since the establishment of the company
in 1927, various members of the
extended Brunner family have held
shares in the company. Jim Sharp,
director, is connected by marriage to the
Brunner family.
Following discussions in 2013,
agreement was reached with the
Takeover Panel that for the purposes
of the City Code on Takeovers and
Mergers (the Code), Sir Hugo Brunner
and Mr TBH Brunner, together with their
children (and their spouses) and related
trusts (the Connected Parties) will be
treated as acting in concert for the
purposes of the Code. The Connected
Parties currently hold 9,571,319 shares,
representing 22.13% of the ordinary
share capital of the company. If the
proposed buy back authority were to be
used in full, the repurchase of ordinary
shares could result in the Connected
Parties holding 26.03% of the reduced
ordinary share capital of the company
(assuming that the Connected Parties
did not sell any ordinary shares).
The board and the Annual Report
Following the process reported in the
Audit and Risk Committee Report, on
page 75, the board is able to state
that it considers that the Annual Report,
taken as a whole, is fair, balanced
and understandable.
By order of the board
Kirsten Salt
Company Secretary
11 February 2026
67
Statement of the Depositary’s
Responsibilities in Respect
of The Brunner Investment
Trust PLC provided by HSBC
Securities Services, depositary to
the company.
‘The Depositary must ensure that the
company is managed in accordance
with the Financial Conduct Authority’s
Investment Funds Sourcebook, (the
Sourcebook), the Alternative Investment
Fund Managers Directive (AIFMD)
(together the Regulations) and the
company’s Articles of Association.
The Depositary must in the context of its
role act honestly, fairly, professionally,
independently and in the interests of the
company and its investors.
The Depositary is responsible for
the safekeeping of the assets of
the company in accordance with
the Regulations.
The Depositary must ensure that:
– the company’s cash flows are
properly monitored and that cash
of the company is booked into the
cash accounts in accordance with
the Regulations;
– the sale, issue, repurchase, redemption
and cancellation of shares are
carried out in accordance with
the Regulations;
– the assets under management
and the Net Asset Value per share
of the company are calculated in
accordance with the Regulations;
– any consideration relating to
transactions in the company’s assets
is remitted to the company within the
usual time limits;
– that the company’s income is
applied in accordance with the
Regulations; and
– the instructions of the Alternative
Investment Fund Manager (the AIFM)
are carried out (unless they conflict
with the Regulations).
The Depositary also has a duty to take
reasonable care to ensure that the
company is managed in accordance
with the Articles of Association in relation
to the investment and borrowing powers
applicable to the company.
Report of the Depositary to the
Shareholders of The Brunner
Investment Trust PLC (the company) for
the year ended 30 November 2025.
Having carried out such procedures
as we consider necessary to discharge
our responsibilities as Depositary of
the company, it is our opinion, based
on the information available to us and
the explanations provided, that in all
material respects the company, acting
through the AIFM, has been managed
in accordance with the rules in the
Sourcebook, the Articles of Association
of the company and as required by
the AIFMD.’
HSBC Securities Services
12 December 2025
Further information about the
relationship with the Depositary is on
page 106.
GOVERNANCE
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
The board reports against the AIC Code of
Corporate Governance (AIC Code) 2019.
As confirmed by the Financial Reporting
Council, following the AIC Corporate
Governance Guide enables investment
company boards to meet their obligations
under the UK Corporate Governance Code
and Listing Rules.
Board composition
There are five directors on the board. We
aim to have two investment professionals,
an accountant, a lawyer and a director
with commercial expertise, one of which
preferably has a connection with the
Brunner family, to provide a balanced
board. The optimum number of directors is
therefore five, but the number could fall to
four and go as high as six to cover periods
of recruitment, transition and retirement.
The board has a plan for the retirement
of directors to ensure that an orderly
process of recruitment can take place
and that the board’s balance of skills and
relevant experience is maintained. This
may mean that directors might be on
the board for longer than nine years to
allow for continuity of experience and a
smooth transition.
The biographies of the directors are set out
on pages 60 and 61 together with the
skills and experience each director brings
to the board for the long-term sustainable
success of the company.
No contracts of significance in which
directors are deemed to have been
interested have subsisted during the year
under review. Contracts of employment
are not entered into with the directors,
who hold office in accordance with the
company’s Articles of Association.
Board evaluation
The board and its committees were
subject to an externally-facilitated
performance appraisal during the course
of the year. This was conducted by means
of a detailed questionnaire facilitated
by Lintstock Limited, an external service
provider. Lintstock then reported to
the Chair, and the Senior Independent
Director relating to the review of the chair,
on the outcome of the evaluation and
the effectiveness of the board, the chair,
the individual directors and the board
committees and the results were shared
with the whole board. The findings of
the evaluation included confirmation
that the board is effective and that
each director continues to be effective,
has the appropriate skills and has
demonstrated commitment and devoted
the necessary time to his or her role. All
directors attended all board and relevant
committee meetings during the year. The
directors all provide challenge in board
meetings and each offers useful guidance
from their own areas of expertise.
The Senior Independent Director
conducted an appraisal of the Chair
as part of the externally facilitated
board evaluation process. This exercise
confirmed that the Chair demonstrates
effective leadership, makes an excellent
contribution to the company and is
assiduous in her engagements with the
company’s stakeholders.
Gender and ethnic diversity
The board is supportive of the FCA’s Listing
Rules (LR 6.6.6) to encourage greater
diversity on listed company boards and
has implemented the FCA’s disclosure
requirements. The board recognises the
importance of having a range of skilled,
experienced individuals with the right
knowledge represented on the board.
The board will continue to ensure that all
appointments are made on the basis of
merit against the specification prepared
for each appointment.
The board has chosen to align its
diversity reporting reference date with
the company’s financial year end and
proposes to maintain this alignment for
future reporting periods. The company
has met one of the targets on board
diversity as at its chosen reference date,
30 November 2025 as at least 40% of the
individuals on its board of directors are
women. The board did not at the reference
date and does not at the date of this
report have any directors from a minority
ethnic background. Further details on the
company’s appointment process can be
found under Board Composition, above,
and Succession on page 71. As required
under LR 6.6.6, further detail in respect
of the targets outlined above as at 30
November 2025 and as at date that the
Annual Report was approved is disclosed
in the tables below.
As an externally managed investment
company, the company has no executive
directors, employees or internal
operations. Therefore, columns relating
to executive management have been
removed from the tables below.
Corporate Governance Statement
Number of
Board members
Percentage
of the Board
Number of Senior
Positions on the
Board*
Gender
Men 2 40% 1
Women 3 60% 1
Other - - -
Not specified/prefer not to say - - -
Ethnicity
White British or other white background 5 100% 2
Mixed/Multiple Ethnic Groups - - -
Asian/Asian British - - -
Black/African/Caribbean/Black British - - -
Other ethnic group, including Arab - - -
Not specified/prefer not to say - - -
* The company only has two of the senior roles specified by the Listing Rules, that is the
position of chair and SID. One of these roles is occupied by a man and one by a woman.
The roles of chief executive and chief financial officer are not applicable to the company,
However, the company considers that the chair of the audit and risk committee, nomination
committee and remuneration committee is a senior position. Of these three senior roles,
two are performed by a woman and one by a man.
68
Conflicts of Interest
Under the Companies Act 2006 directors
must avoid a situation where they have,
or can have, a direct or indirect interest
that conflicts, or possibly may conflict,
with the company’s interests. The board
reports annually on the company’s
procedures for ensuring that its powers
of authorisation of conflicts are operated
effectively and that the procedures have
been followed.
Each of the directors has provided a
statement of all conflicts of interest and
potential conflicts of interest relating to
the company. These statements have
been considered and approved by the
board. The directors have undertaken to
notify the Chair and Company Secretary
of any proposed new appointments and
new conflicts or potential conflicts for
consideration, if necessary, by the board.
The board has agreed that only directors
who have no interest in the matter being
considered will be able to participate in
taking the relevant decision and that in
taking the decision the directors will act
in a way they consider, in good faith, will
be most likely to promote the company’s
success. The board can impose limits or
conditions when giving authorisation if
it thinks this is appropriate. For example,
a director with a potential conflict might
be asked to step out of the meeting
room or will be permitted to remain
in the room but not participate in the
discussion or take part in a vote on a
course of action.
The board confirms that its powers of
authorisation are operating effectively
and that the agreed procedures have
been followed.
Directors’ indemnities
Directors’ and Officers’ liability insurance
cover is held by the company and was in
place for the whole of the financial year.
As permitted by the company’s Articles
of Association, the company has granted
indemnities to the directors.
Board committees
Audit and risk committee
The Audit and Risk Committee Report is
on page 75.
Nomination committee
The nomination committee meets
as needed – at least once each year
– and makes recommendations on
board succession planning and the
appointment of new directors and
considers the composition and balance
of the board. The committee is chaired
by Carolan Dobson, the Chair of the
board, and met once in the last year
when it considered the re-election of
directors at the annual general meeting
and the plans for new recruitment
to the board. The members of the
committee met separately under the
leadership of the Senior Independent
Director to review the tenure of the
Chair and consider the plans for
succession. All directors serve on the
nomination committee and consider
nominations made in accordance with
an agreed procedure.
It is the board’s policy to use external
agencies to draw up lists of candidates
as part of the recruitment of new
directors. The brief to the recruitment
consultant includes the request that the
shortlist should include a diverse range
of candidates. In the current search to
recruit a chair-elect during the course of
2026, four firms were invited to pitch for
the role and as a result of this exercise
Spencer Stuart was appointed to
conduct the process.
The Nomination Committee Report is on
page 71.
Management
engagement committee
The management engagement
committee met once in the year
to review the Management and
Administration Agreement and the
manager’s performance and a report
of management fees. It has defined
terms of reference and consists of all
the directors. It is chaired by Carolan
Dobson, the Chair of the board.
The Management Engagement
Committee Report is on page 70.
Remuneration committee
The remuneration committee met
once in the year and consists of all
the directors except Jim Sharp. The
committee is chaired by Andrew
Hutton. The committee determines the
company’s remuneration policy and
determines the remuneration of each
director within the terms of that policy.
The Directors’ Remuneration Report is on
page 72.
The terms of reference for each of
the committees may be viewed by
shareholders on request and are
published on the company’s website
brunner.co.uk in the Information/Legal
Documents section.
Board attendance
Attendance by the directors at formal board and committee meetings during the year was as follows:
Director Board
Board
strategy
day
Audit
and risk
committee
Remuneration
committee
Nomination
committee
Management
engagement
committee
No. of meetings 6 1 2 1 1 1
Carolan Dobson 6 1 2
1
1 1 1
Amanda Aldridge 6 1 2 1 1 1
Elizabeth Field 6 1 2 1 1 1
Andrew Hutton 6 1 2 1 1 1
Jim Sharp 6 1 2
1
1
1
1 1
1
Invited to attend meetings, although not a committee member.
69
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70
Management Engagement Committee Report
Role of the committee
The Management Engagement
Committee reviews the investment
management agreement and monitors
the performance of the Manager for
the investment, secretarial, financial,
administration, marketing and support
services that it provides under that
agreement. It also reviews the terms of
the agreement including the level and
structure of fees payable, the length
of notice period and best practice
provisions generally.
Composition of the committee
All the directors are members of the
committee. Its terms of reference can be
found on the website at brunner.co.uk.
Manager evaluation process
The committee met once during the year
for the purpose of the formal evaluation
of the manager’s performance.
For the purposes of its ongoing
monitoring, the board receives
detailed reports and views from the
portfolio manager on investment
policy and strategies, asset allocation,
stock selection, attributions, portfolio
characteristics, gearing and risk. The
board also assesses the manager’s
performance against the investment
controls set by the board.
The manager also reported to the
board on its succession plans for the key
individuals, including the members of the
portfolio management team.
Performance information is set out on
page 9.
AIFM
Details of the current AIFM, Allianz
Global Investors UK Limited (‘AllianzGI
UK’), are on page 106.
AllianzGI UK is authorised and regulated
by the Financial Conduct Authority with
its registered office at 199 Bishopsgate,
London EC2M 3TY.
Manager reappointment
The annual evaluation that took place in
December 2025 included a presentation
from the portfolio managers and
AllianzGI’s Head of Investment Trusts.
This covered the work done with the
board on the provision of investment
and support services, including the
promotion and distribution of the trust,
succession planning and the ambitions
for 2026; the dividend strategy; the
investment strategy; and the sales
and marketing activity, covering the
work with investment platforms and
wealth managers. The evaluation
also considered the manager’s fee
in relation to the peer group. The
committee met in a private session
following the presentation. As part of
the externally facilitated evaluation of
the board described in the Nomination
Committee report on page 71, the
individual directors had considered the
relationship with and the performance
of the manager over the year and the
results of this were considered in the
evaluation. Following the discussions in
this meeting it was concluded that in its
opinion the continuing appointment of
the manager on the terms agreed was in
the interests of shareholders as a whole
and recommended this to the board.
Note 2 to the Financial Statements on
page 92 provides detailed information
in relation to the management fee.
Committee evaluation
The activities of the Management
Engagement committee were
considered as part of the board
evaluation process completed in
accordance with standard governance
arrangements as summarised on page
68. The conclusion from the process
was that the committee was operating
effectively, with the right balance of
membership and skills.
Carolan Dobson
Management engagement
committee Chair
11 February 2026
71
Nomination Committee Report
Role of the committee
The Nomination Committee leads the
process for board appointments and
makes nomination recommendations
to the board. The committee reviews
and makes recommendations on board
structure, size and composition, the
balance of knowledge, experience,
skill ranges and diversity and considers
succession planning and tenure policy.
Composition of the committee
All directors are members of the
committee and its terms of reference can
be found on the website at brunner.co.uk
Activities of the committee
The committee met during the year
and considered, in accordance with its
terms of reference the structure, size
and composition of the board and
satisfied itself with regard to succession
planning, making recommendations to
the board. The committee reviewed the
succession plan, as mentioned below,
and recommended it to the board.
The committee also discussed the
results of the board and committee
evaluation exercise, which covered the
structure and size of the board and its
composition, particularly in terms of
succession planning, and the experience
and skills of the individual directors and
the topic of board diversity and inclusion.
The AIC guidelines on directors serving
on the board for more than nine years
are considered in the evaluation of the
individual skills and contributions of the
directors. The table on page 68 shows
the current board composition.
Succession
Succession planning is considered
regularly by the committee.
The members of the committee met
separately under the leadership of the
Senior Independent Director to review
the tenure of the Chair and consider the
plans for succession. Notwithstanding
her length of service on the board,
the directors are unanimously agreed
that Carolan Dobson continues to be
independent and remains a highly
effective Chair with strong leadership
of the board. Taking this into account
and as the board has a majority of
independent directors, it was agreed
that Carolan Dobson’s tenure as the
Chair of the board should continue until
the AGM in 2027.
There is a plan in place to recruit a new
director in advance of the Chair stepping
down and an externally facilitated
evaluation of the Chair, the board, the
individual directors and committees
was conducted in 2025 in which there
was a brief to consider this succession
plan in detail. Following this exercise
the board invited recruitment firms to
make proposals and in January 2026,
Spencer Stuart was appointed to assist
with the search. The process was led
by the Senior Independent Director,
Andrew Hutton.
Committee evaluation
The activities of the Nomination
Committee were considered as part of
the board evaluation process completed
in accordance with standard governance
arrangements as summarised on page
68. The conclusion from the process
was that the committee was operating
effectively, with the right balance of
membership and skills.
Carolan Dobson
Nomination committee Chair
11 February 2026
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72
Remuneration Committee Report
Composition
All the directors are members of the committee, with the exception of Jim Sharp, and
its terms of reference can be found on the website at brunner.co.uk.
Role
The Remuneration Committee leads the process for fixing directors’ remuneration
and makes recommendations to the board.
Activities
The committee’s activities are set out in the report from the committee which follows.
Directors’ Remuneration Report
This is the Directors’ Remuneration Report for the year. The report is submitted in
accordance with Schedule 8 of the Large and Medium sized Companies and Groups
(Accounts and Reports) Regulations 2008, as amended August 2013, for the year
ended 30 November 2025.
An ordinary resolution for the approval of the Directors’ Remuneration Policy Report
was first put to a binding shareholder vote at the annual general meeting in 2014
and was placed before shareholders for approval at the AGM in 2023. The results of
the vote at the 2023 AGM for this resolution were as follows: In favour 99.85%, against
0.15% and 136,291 shares were withheld (in aggregate, 14,567,534 votes). It will now
be put to shareholders at the AGM on 31 March 2026.
The Directors’ Remuneration Implementation Report is to be put to the AGM,
annually, as an advisory shareholder vote. The results of the advisory vote at the
2025 AGM for the resolution to approve the Implementation Report were as follows:
In favour 99.59%, against 0.41% and 63,183 shares were noted as votes withheld (in
aggregate 14,565,900 votes).
The information provided in this part of the Directors’ Remuneration Report is not
subject to audit unless specified below.
The Board
The board of directors is composed solely of non-executive directors. The
determination of the directors’ fees is guided by the remuneration policy (see below)
and the recommendations of the remuneration committee which is made up of the
independent directors and is chaired by Andrew Hutton.
Directors’ interests (audited)
The directors are required to hold 2,000 shares in the company under the company’s
Articles. Pursuant to Article 19 of the EU Market Abuse Regulations the directors’
interests in the share capital of the company are shown in the table below.
Ordinary shares of 25p
2025
beneficial
2025
non-beneficial
2024
beneficial
2024
non-beneficial
Carolan Dobson 4,750 - 4,750 -
Amanda Aldridge 4,000 - 4,000 -
Elizabeth Field 4,000 - 4,000 -
Andrew Hutton 10,000 - 6,000 -
Jim Sharp 132,064 651,956 131,814 651,956
As chair of the
remuneration committee,
I am pleased to present
the committee’s report
for year ended 30
November 2025.
73
Directors retire and offer themselves for re-election annually. No director has a service contract with the company. The company’s
policy is for the directors to be remunerated in the form of fees, payable monthly in arrears. In accordance with the AIC Code of
Corporate Governance, there are no long term incentive schemes and fees are not related to the individual director’s performance,
nor to the performance of the board as a whole. No exit payments are made when a director leaves the board.
Directors’ remuneration policy
The board’s policy, subject to the overall limit in the Articles, is to determine the level of directors’ fees having regard to the level of
fees payable to non-executive directors in the investment trust industry generally, the rate of inflation, the increasing requirements
in the nature of the role that individual directors fulfil, and the time committed to the company’s affairs. These requirements are
particularly relevant to the Chair and the Chair of the audit and risk committee. The board believes that levels of remuneration
should be sufficient to attract and retain non-executive directors with the relevant experience and skills to oversee the company. The
company’s Articles currently limit the aggregate fees payable to the board of directors to a total of £300,000 per annum.
The company’s Articles also provide that additional discretionary payments can be made for services which in the opinion of the
directors are outside the scope of the ordinary duties of a director. Directors are entitled to be reimbursed for any reasonable
expenses properly incurred by them in connection with the performance of their duties and attendance at meetings. Directors
are not eligible for bonuses, pension benefits, share options or other incentives or benefits. There are no agreements between the
company and its directors concerning compensation for loss of office.
This directors’ remuneration policy is the same in all material respects as that currently followed by the board and summarised in the
last Directors’ Remuneration Report and approved by shareholders at the annual general meeting held in 2023.
The company has no employees and consequently has no policy on the remuneration of employees.
The board will consider, where raised, shareholders’ views on directors’ remuneration.
Implementation Report
The policy is to review directors’ fee rates from time to time, but reviews will not necessarily result in a change to the rates. In the
year under review the directors were paid at a rate of £32,000 per annum and the Chair at a rate of £50,000 per annum, with an
additional £6,400 for the Chair of the audit and risk committee, and an additional £2,100 for the Senior Independent Director. The
current fees have been effective since 1 December 2024.
The fees were reviewed during the year and the committee compared industry reports and other independent data. It was
noted that fees had fallen against the market. With further board recruitment planned it was agreed that it was important to
make relatively modest increases to remain competitive. It was determined that the following fees would apply with effect from
1 December 2025: Chair £52,500, directors £34,000, with an additional unchanged £6,400 to the Chair of the audit and risk
committee, and an additional unchanged £2,100 for the Senior Independent Director.
Directors’ emoluments (audited)
The directors received directors’ fees and no other remuneration or additional discretionary payments during the year and
therefore the directors’ emoluments during the year and in the previous year are as follows:
2025
base salary
£
2025
taxable expenses
£
2025
* total
£
2024
base salary
£
2024
taxable expenses
£
2024
* total
£
Carolan Dobson 50,000 6,158 56,158 47,000 5,417 52,417
Amanda Aldridge 38,400 - 38,400 35,600 - 35,600
Elizabeth Field 32,000 - 32,000 29,200 - 29,200
Andrew Hutton 34,100 - 34,100 31,300 - 31,300
Jim Sharp 32,000 - 32,000 29,200 - 29,200
Total 186,500 6,158 192,658 172,300 5,417 177,717
* Taxable travel and subsistence expenses incurred in attending Board and Committee meetings, gross pre-tax amounts.
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THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
74
2025
£
% change
2024 to
2025
2024
£
% change
2023 to
2024
2023
£
% change
2022 to
2023
2022
£
% change
2021 to
2022
2021
£
Base salary
Board Chair 50,000 6.4 47,000 5.6 44,500 6.0 42,000 7.7 39,000
Audit Chair 38,400 7.7 35,600 3.2 34,500 6.2 32,500 1.6 32,000
Senior Independent Director 34,100 8.9 31,300 3.6 30,200 6.0 28,500 1.8 28,000
Independent Director 32,000 9.6 29,200 3.9 28,100 6.0 26,500 1.9 26,000
Expenses
Carolan Dobson 6,158 13.7 5,417 -15.2 6,386 585.9 931 311.9 226
Any increase in pay was effective from 1 December in any given year.
Analysis of pay against distributions
A table showing actual expenditure by the company on remuneration and distributions to shareholders for the year and the prior
year is below:
Expenditure by the company on remuneration and distributions to the shareholders
2025
£
2024
£
Remuneration paid to all directors 186,500 172,300
Distributions paid during the financial year 10,541,000 9,990,098
This disclosure is a statutory requirement. The directors, however, do not consider that the comparison of directors’ remuneration
with distributions to shareholders is a meaningful measure of the company’s overall performance.
Performance graph
The performance graph below measures the company’s share price and Net Asset Value performance on a total return basis
against the benchmark index: 70% FTSE World Ex UK Index and 30% FTSE All-Share Index. An explanation of the company’s
performance is given in the Chair’s Statement and the Investment Manager’s Review.
The Brunner Investment Trust PLC
30 November 2020 – 30 November 2025
Andrew Hutton
Remuneration committee Chair
11 February 2026
Benchmark +85%
Share Price +84%
NAV debt at fair value +75%
Source: AllianzGI/Thomson Reuters DataStream
2020 2021 2022 2023 2024 2025
200
180
160
140
120
100
%
75
Audit and Risk Committee Report
As chair of the audit
and risk committee,
I am delighted to present
the committee’s report
for the year ended 30
November 2025.
Composition
Andrew Hutton and Elizabeth Field
served on the committee throughout
the year. The Chair of the board and
Jim Sharp are invited to attend audit
and risk committee meetings, as are
representatives of the manager.
As you will see from my biography on
page 60, I am a Chartered Accountant
and until 2017, I was an audit and
advisory partner, at KPMG, London. I
also chair the audit committee of two
other listed companies. During the year
the board reviewed the composition
of the audit and risk committee and it
considers that, collectively, its members
have sufficient recent and relevant
financial experience to discharge their
responsibilities fully.
Role
The principal role of the committee is
to assist the board in relation to the
reporting of financial information, review
of financial controls and management
of risk. The committee has defined
terms of reference and duties and the
terms of reference are published on
the company’s website, brunner.co.uk.
These include:
– responsibility for the review of the
Annual Report and the half-yearly
Financial Report;
– consideration of the nature and scope,
independence and effectiveness of
the external audit and of the auditors’
findings and recommendations; and
– review of the terms of appointment
of the auditors, including their
remuneration and the provision of any
non-audit services by them.
Activities
The committee meets twice each year.
These meetings are attended by the
auditors and also by representatives of
the manager, including both risk and
compliance officers. It is the practice of
the committee to meet with the auditor
without management present at least
once each year.
At the scheduled meetings in respect
of the year ended 30 November 2025
the committee reviewed the company’s
accounting policies and confirmed
their appropriateness and reviewed
in detail the annual and half-yearly
financial reports and in each case
recommended them for adoption by
the board. At the meeting for the half
year the auditors presented the audit
plan for the year ending 30 November
2025. In the meeting relating to the
year end the committee considered
the auditors’ report on the annual
financial statements.
At each meeting the committee received
a report on the operation of controls
relating to the company and the proper
conduct of its business in accordance
with the regulatory environment in which
both the company and the manager
operate. The committee has also
received reports from the company’s
service providers on their continuing
response to cyber security risks and
related business continuity updates.
Risk
Although the board has ultimate
responsibility for the management of
risk, the audit and risk committee assists
by monitoring the formal reports from
the manager and third-party service
providers on risk and internal controls.
During the year the committee reviewed
the risk management framework and
concluded that existing processes were
adequate to ensure that its assessment
of risk is robust and of sufficient
frequency, namely carried out at each
committee meeting and twice annually
by the board as follows:
– A matrix of risks is reviewed at each
audit and risk committee meeting. We
consider whether new risks should be
added or previously identified risks
removed, assess their likelihood of
occurring and potential scale, review
the mitigating actions and assess
the residual risk against what we
regard as acceptable – ‘risk appetite’.
Economic and political volatility,
including continued international
conflict and tensions and the impact
of tariffs and trade wars have all been
considered by the board in this review.
– Assurance over mitigating actions in
relation to these risks is provided in
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THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
76
a series of reports from all the third
party service providers.
– Resulting from the work of the audit
and risk committee, the principal
risks and uncertainties are identified
for disclosure and discussion in our
annual report. The committee also
assesses residual risks after controls
and mitigating actions have been
applied, and evaluates whether these
fall within our risk appetite. The risks
identified, together with mitigating
actions, and the results of the risk
appetite assessment are set out in the
Strategic Report on page 11.
Viability Statement
Taking into account this review of risk
the committee reviewed a paper that
supported the board’s conclusion, set out
on page 22 in the Strategic Report,
of their reasonable expectation that the
company is viable in the longer term,
assessed as the next five years.
The audit, its effectiveness and
the terms of appointment of
the auditor
The committee reviewed the terms of
appointment of the auditor, monitored
the audit process, assessed the auditors’
independence and objectivity as well as
the effectiveness of the audit process. It
was noted that there were no non-audit
services provided by the audit firm, and
that none are planned in the financial
year to 30 November 2026.
This is PricewaterhouseCoopers’ eighth
year as our auditor and under current
FRC guidance, the next audit tender
will be required in respect of the year
ending 30 November 2028. Until
then, we will continue to monitor the
auditor’s performance and make any
appropriate recommendations.
As part of our review of the performance
of the auditor, the members of the
committee and those representatives
of the manager involved in the audit
process reviewed and considered a
number of areas including:
– the reputation and standing of the
audit firm including annual reports
from the auditor’s regulator;
– the skills, experience and
specialist knowledge of the audit
team, particularly relating to
investment trusts;
– audit communication including
details of planning, information on
relevant accounting and regulatory
developments, and recommendations
on corporate reporting;
– the audit processes, evidence of
oversight by the audit lead; and
– the reasonableness of audit fees;
The committee sought comments from
representatives of the manager on the
provision of services by the auditor and
the effectiveness of the external audit for
the year ended 30 November 2025 and
considered whether the audit team as
a whole demonstrated an appropriate
level of challenge to the Board and the
manager in fulfilling their role.
Based on all of the above, the committee
concluded that we have no concerns
with the performance of the auditor and
has recommended to the board that a
resolution proposing the re-appointment
of the auditor is put to shareholders at
the annual general meeting.
Financial report and
significant Issues
The significant issues identified for
the review of the financial statements
this year, that is, those identified as
presenting the greatest risks, were
the valuation and existence of the
investments in the portfolio; and the
accuracy, occurrence and completeness
of dividend income. These and other
matters, identified as posing lesser risk,
were considered and discussed with the
manager and the auditor as part of the
year end process.
Valuation and existence of the
investments in the portfolio
Listed investments are valued using stock
exchange prices provided by third party
financial data vendors. We discussed
the work done by the auditor on the
valuation of investments and received
assurance that there were no concerns
regarding valuation of the investments.
The manager confirms to us the
existence and ownership of portfolio
investments. The manager receives
information from the custodian which
is reconciled with the portfolio list.
The auditor conducts an independent
verification exercise which was
satisfactorily concluded.
Based on this the committee concluded
that the valuation and existence of
the investments in the portfolio is
appropriately recorded in the annual
report and accounts,
Accuracy, occurrence and completeness
of dividend income
During the year, income reports and
forecasts are reviewed in detail with the
manager at each meeting of the board,
including yield information. Changes to
the forecast for each portfolio stock from
meeting to meeting are also scrutinised.
The auditor conducts an independent
analysis of the expected income stream
from the investment portfolio for the
year. We discussed the outcome of this
analysis and were satisfied based on
this and that the dividend income was
appropriately recorded in the annual
report and accounts.
In addition we reviewed the manner in
which expenses are allocated between
capital and income and noted historic
returns as an indicator of future returns.
It was concluded that the ratio of 70:30
remains appropriate since it broadly
reflects our investment policy and split
of prospective capital and income
returns. This area will be kept under
regular review.
We also confirmed, as stated in the
Statement of Accounting Policies
on page 90, that there are no
judgements, estimates, and assumptions
about the carrying amounts of assets
and liabilities that are not readily
apparent from other sources.
The committee considered the audit
materiality and error reporting
thresholds in the audit plan and
confirmed that they were satisfied with
these. As in previous years, the auditor
set the materiality threshold as 1% of
Net Asset Value to align closely with
comparable companies, but continues
to report to the committee on matters
below that level on qualitative grounds.
The audit and risk committee and the
whole board reviewed the entire annual
report and noted all of the supporting
information received. It then considered
whether the annual report satisfactorily
reflected a true picture of the company
and its activities and performance in
the year, with a clear link between the
relevant sections of the report and
concluded that it did so. The directors
were then able to confirm that the
annual report, taken as a whole, is fair,
balanced and understandable and
provides the information necessary for
shareholders to assess the company’s
performance, business model
and strategy.
77
Internal control and
internal audit
AllianzGI has decided to transition its
back office services to a new service
provider. The committee will be
receiving regular additional reporting
on the management and controls of
the transition from AllianzGI to gain
additional assurance during this change.
The audit and risk committee’s view
continues to be that the company does
not require an internal audit function
of its own as it delegates its day-to-day
operations to third parties from whom
it receives internal control assurance
reports. Reports from third party auditors
on the internal controls maintained on
behalf of the company by AllianzGI and
by other key providers of administrative
and custodian services to AllianzGI or
directly to the company were reviewed
during the year. No issues of concern
relating to the company were raised in
the reports.
Whistleblowing
As the company has no employees
it does not have a formal policy
concerning the raising, in confidence,
of any concerns about improprieties for
appropriate independent investigation.
The audit and risk committee has
received and noted the manager’s
policy on whistleblowing. Any matters
concerning the company should
be raised with the Chair or Senior
Independent Director.
Amanda Aldridge
Audit and risk committee Chair
11 February 2026
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78
Statement of Directors’ Responsibilities
in respect of the financial statements
The directors are responsible for
preparing the Annual Report and the
financial statements in accordance with
applicable law and regulation.
Company law requires the directors
to prepare financial statements for
each financial year. Under that law the
directors have prepared the financial
statements in accordance with United
Kingdom Generally Accepted Accounting
Practice (United Kingdom Accounting
Standards, comprising FRS 102 ‘The
Financial Reporting Standard applicable
in the UK and Republic of Ireland’, and
applicable law).
Under company law directors must not
approve the financial statements unless
they are satisfied that they give a true
and fair view of the state of affairs of the
company and of the profit or loss of the
company for that period. In preparing
these financial statements, the directors
are required to:
– select suitable accounting policies and
then apply them consistently;
– state whether applicable United
Kingdom Accounting Standards,
comprising FRS 102 have been
followed, subject to any material
departures disclosed and explained in
the financial statements;
– make judgements and accounting
estimates that are reasonable and
prudent; and
– prepare the financial statements on
the going concern basis unless it is
inappropriate to presume that the
company will continue in business.
The directors are responsible for
safeguarding the assets of the company
and hence for taking reasonable steps
for the prevention and detection of fraud
and other irregularities.
The directors are also responsible for
keeping adequate accounting records
that are sufficient to show and explain
the company’s transactions and disclose
with reasonable accuracy at any time
the financial position of the company
and enable them to ensure that the
financial statements and the Directors’
Remuneration Report comply with the
Companies Act 2006.
The directors are responsible for the
maintenance and integrity of the
company’s website. Legislation in
the United Kingdom governing the
preparation and dissemination of
financial statements may differ from
legislation in other jurisdictions.
Directors’ confirmations
Each of the directors, whose names
and functions are listed in Directors,
Manager and Advisers on pages 60
to 61, confirm that, to the best of
their knowledge:
– the company’s financial statements,
which have been prepared in
accordance with United Kingdom
Accounting Standards, comprising FRS
102, give a true and fair view of the
assets, liabilities, financial position and
profit of the company; and
– the Strategic Report includes a fair
review of the development and
performance of the business and the
position of the company, together with
a description of the principal risks and
uncertainties that it faces.
In the case of each director in office
at the date the directors’ report
is approved:
– so far as the director is aware, there
is no relevant audit information of
which the company’s auditors are
unaware; and
– they have taken all the steps that they
ought to have taken as a director in
order to make themselves aware of
any relevant audit information and to
establish that the company’s auditors
are aware of that information.
This responsibility statement was
approved by the board of directors on
11 February 2026 and signed on its
behalf by:
Carolan Dobson
Chair
79
Electricity company
and notable
performer Iberdrola
is headquartered in
Bilbao, Spain.
Financial
Statements
80 Independent auditors’ report
86 Income Statement
87 Balance Sheet
88 Statement of Changes in Equity
89 Cash Flow Statement
90 Statement of Accounting Policies
92 Notes to the Financial Statements
79
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
80
Independent auditors’ report to the members of
The Brunner Investment Trust PLC
Report on the audit of the financial statements
Opinion
In our opinion, The Brunner Investment Trust PLC’s financial statements:
– give a true and fair view of the state of the company’s affairs as at 30 November 2025 and of its profit and cash flows for the
year then ended;
– have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards, including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and
applicable law); and
– have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements, included within the Annual Report, which comprise:
– the Balance Sheet as at 30 November 2025;
– the Income Statement, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended;
– the Statement of Accounting Policies; and
– the notes to the financial statements.
Our opinion is consistent with our reporting to the Audit and Risk Committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (‘ISAs (UK)’) and applicable law. Our
responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements
section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Independence
We remained independent of the company in accordance with the ethical requirements that are relevant to our audit of the
financial statements in the UK, which includes the FRC’s Ethical Standard, as applicable to listed public interest entities, and we
have fulfilled our other ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard were
not provided.
We have provided no non-audit services to the company in the period under audit.
Our audit approach
Overview
Audit scope
– The company is a standalone Investment Trust company and engages Allianz Global Investors UK Limited (the ‘Investment
Manager’) to manage its assets.
– We conducted our audit of the financial statements using information from State Street Bank & Trust Company (the
‘Administrator’) to whom the Investment Manager has, with the consent of the directors, delegated the provision of certain
administrative functions.
– We tailored the scope of our audit taking into account the types of investments within the company, the involvement of the third
parties referred to above, the accounting processes and controls, and the industry in which the company operates.
– We obtained an understanding of the control environment in place at both the Investment Manager and the Administrator and
adopted a fully substantive testing approach using information obtained from the Administrator.
Key audit matters
– Valuation and existence of investments
– Accuracy, occurrence and completeness of Income from investments
Materiality
– Overall materiality: £6,672,230 (2024: £6,181,824) based on 1% of Net Asset Value.
– Performance materiality: £5,004,173 (2024: £4,636,368).
81
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial
statements. In particular, we looked at where the directors made subjective judgements, for example in respect of significant
accounting estimates that involved making assumptions and considering future events that are inherently uncertain.
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in the audit of the
financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not
due to fraud) identified by the auditors, including those which had the greatest effect on: the overall audit strategy; the allocation
of resources in the audit; and directing the efforts of the engagement team. These matters, and any comments we make on the
results of our procedures thereon, were addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
The key audit matters below are consistent with last year.
Key audit matter How our audit addressed the key audit matter
Valuation and existence of investments
The investment portfolio at the year-end comprised listed
equity investments valued at £677.9m.
We focused on the valuation and existence of investments
because investments represent the principal element of the
Net Asset Value as disclosed on the Balance Sheet in the
financial statements.
We tested the valuation of the listed equity investments by
agreeing the prices used in the valuation to independent
third party sources.
We tested the existence of the investment portfolio
by agreeing investment holdings to an independent
custodian confirmation.
We have no matters to report as a result of this testing.
Accuracy, occurrence and completeness of Income
from investments
Income from investments consists primarily of
dividend income.
We focused on the accuracy, occurrence and completeness
of investment income recognition as incomplete or
inaccurate income could have a material impact on the
company’s Net Asset Value and dividend cover.
We also focused on the accounting policy for investment
income recognition and its presentation in the Income
Statement for compliance with the requirements of
The Association of Investment Companies Statement
of Recommended Practice (the ‘AIC SORP’), as
incorrect application could indicate a misstatement in
income recognition.
We assessed the accounting policy for investment income
recognition for compliance with accounting standards
and the AIC SORP and performed testing to check that
income had been accounted for in accordance with this
stated accounting policy. We found that the accounting
policies implemented were in accordance with accounting
standards and the AIC SORP, and that income has
been accounted for in accordance with the stated
accounting policy.
We tested the accuracy of dividend income by agreeing
the dividend rates from investments to independent
market data.
To test for completeness, we tested that all dividends
declared in the market by investment holdings had
been recorded.
We tested occurrence by testing that all dividends
recorded in the year had been declared in the market by
investment holdings.
We also tested the allocation and presentation of dividend
income between the revenue and capital return columns
of the Income Statement in line with the requirements
set out in the AIC SORP by determining reasons behind
dividend distributions.
We have no matters to report as a result of this testing.
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial
statements as a whole, taking into account the structure of the company, the accounting processes and controls, and the industry
in which it operates.
All audit procedures were led by a UK audit team. We tested and examined information using sampling and other auditing
techniques, to the extent we considered necessary to provide a reasonable basis for us to form our own judgements.
FINANCIAL STATEMENTS
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
82
The impact of climate risk on our audit
In planning our audit, we made enquiries of the directors and manager to understand the extent of the potential impact of
climate change on the company’s financial statements.
The Directors and Investment Manager concluded that the impact on the measurement and disclosures within the financial
statements is not material because the company’s investment portfolio is made up of Level 1 quoted securities which are valued at
fair value based on market prices. We found this to be consistent with our understanding of the company’s investment activities.
We also considered the consistency of the climate change disclosures included in the Strategic Report, Investment Manager’s
Review and Directors’ Report with the financial statements and our knowledge from our audit.
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality.
These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of
our audit procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements,
both individually and in aggregate on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Overall company materiality
£6,672,230 (2024: £6,181,824).
How we determined it
1% of Net Asset Value
Rationale for benchmark applied
We have applied this benchmark, which is a generally accepted auditing practice
for investment trust audits.
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and
undetected misstatements exceeds overall materiality. Specifically, we use performance materiality in determining the scope
of our audit and the nature and extent of our testing of account balances, classes of transactions and disclosures, for example
in determining sample sizes. Our performance materiality was 75% (2024: 75%) of overall materiality, amounting to £5,004,173
(2024: £4,636,368) for the company financial statements.
In determining the performance materiality, we considered a number of factors - the history of misstatements, risk assessment
and aggregation risk and the effectiveness of controls - and concluded that an amount at the upper end of our normal range
was appropriate.
We agreed with the Audit and Risk Committee that we would report to them misstatements identified during our audit
above £333,612 (2024: £309,091) as well as misstatements below that amount that, in our view, warranted reporting for
qualitative reasons.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the company’s ability to continue to adopt the going concern basis of
accounting included:
– evaluating the directors’ updated risk assessment and considering whether it addressed relevant threats to the company;
– evaluating the directors’ assessment of potential operational impacts, considering their consistency with other available
information and our understanding of the business and assessed the potential impact on the financial statements;
– reviewing the directors’ assessment of the company’s financial position in the context of its ability to meet future expected
operating expenses and debt repayments, their assessment of liquidity as well as their review of the operational resilience of the
company and oversight of key third-party service providers; and
– assessing the implication of significant reductions in Net Asset Value as a result of market performance on the ongoing ability of
the company to operate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period of at
least twelve months from when the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the company’s
ability to continue as a going concern.
In relation to the directors’ reporting on how they have applied the UK Corporate Governance Code, we have nothing material to
add or draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered
it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of
this report.
83
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’
report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the
other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this
report, any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained
in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material
misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial
statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there
is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on
these responsibilities.
With respect to the Strategic report and Directors’ Report, we also considered whether the disclosures required by the UK
Companies Act 2006 have been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and
matters as described below.
Strategic report and Directors’ Report
In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and Directors’
Report for the year ended 30 November 2025 is consistent with the financial statements and has been prepared in accordance
with applicable legal requirements.
In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we did not
identify any material misstatements in the Strategic report and Directors’ Report.
Directors’ Remuneration
In our opinion, the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the
Companies Act 2006.
Corporate governance statement
The Listing Rules require us to review the directors’ statements in relation to going concern, longer-term viability and that part of
the corporate governance statement relating to the company’s compliance with the provisions of the UK Corporate Governance
Code specified for our review. Our additional responsibilities with respect to the corporate governance statement as other
information are described in the Reporting on other information section of this report.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate
governance statement is materially consistent with the financial statements and our knowledge obtained during the audit, and we
have nothing material to add or draw attention to in relation to:
– The directors’ confirmation that they have carried out a robust assessment of the emerging and principal risks;
– The disclosures in the Annual Report that describe those principal risks, what procedures are in place to identify emerging risks
and an explanation of how these are being managed or mitigated;
– The directors’ statement in the financial statements about whether they considered it appropriate to adopt the going concern
basis of accounting in preparing them, and their identification of any material uncertainties to the company’s ability to continue
to do so over a period of at least twelve months from the date of approval of the financial statements;
– The directors’ explanation as to their assessment of the company’s prospects, the period this assessment covers and why the
period is appropriate; and
– The directors’ statement as to whether they have a reasonable expectation that the company will be able to continue in
operation and meet its liabilities as they fall due over the period of its assessment, including any related disclosures drawing
attention to any necessary qualifications or assumptions.
Our review of the directors’ statement regarding the longer-term viability of the company was substantially less in scope than
an audit and only consisted of making inquiries and considering the directors’ process supporting their statement; checking that
the statement is in alignment with the relevant provisions of the UK Corporate Governance Code; and considering whether the
statement is consistent with the financial statements and our knowledge and understanding of the company and its environment
obtained in the course of the audit.
In addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements of the
corporate governance statement is materially consistent with the financial statements and our knowledge obtained during
the audit:
FINANCIAL STATEMENTS
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
84
– The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and understandable,
and provides the information necessary for the members to assess the company’s position, performance, business model
and strategy;
– The section of the Annual Report that describes the review of effectiveness of risk management and internal control
systems; and
– The section of the Annual Report describing the work of the Audit and Risk Committee.
We have nothing to report in respect of our responsibility to report when the directors’ statement relating to the company’s
compliance with the Code does not properly disclose a departure from a relevant provision of the Code specified under the Listing
Rules for review by the auditors.
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Statement of Directors’ Responsibilities in respect of the financial statements, the directors are
responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied
that they give a true and fair view. The directors are also responsible for such internal control as they determine is necessary to
enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which
our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and
regulations related to the ongoing qualification as an Investment Trust under the Corporation Tax Act 2010, and we considered
the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and
regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management’s
incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls),
and determined that the principal risks were related to posting of inappropriate journal entries to increase income or to overstate
the value of investments and increase the Net Asset Value of the company. Audit procedures performed by the engagement
team included:
– discussions with the Directors, the Investment Manager and the Administrator, including consideration of known or suspected
instances of non-compliance with laws and regulation and fraud;
– reviewing relevant meeting minutes, including those of the Audit and Risk Committee;
– evaluating the controls implemented by the Investment Manager and the Administrator designed to prevent and
detect irregularities;
– assessing the company’s compliance with the requirements of section 1158 of the Corporation Tax Act 2010, including
recalculation of numerical aspects of the eligibility conditions;
– identifying and testing journal entries, in particular year end journal entries that met our fraud criteria posted by the
Administrator during the preparation of the financial statements; and
– designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-
compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.
Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error,
as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditing
techniques. However, it typically involves selecting a limited number of items for testing, rather than testing complete populations.
85
We will often seek to target particular items for testing based on their size or risk characteristics. In other cases, we will use audit
sampling to enable us to draw a conclusion about the population from which the sample is selected.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.
uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with
Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume
responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save
where expressly agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
– we have not obtained all the information and explanations we require for our audit; or
– adequate accounting records have not been kept by the company, or returns adequate for our audit have not been received
from branches not visited by us; or
– certain disclosures of directors’ remuneration specified by law are not made; or
– the financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with the
accounting records and returns.
We have no exceptions to report arising from this responsibility.
Appointment
We were first appointed by the company for the financial year ended 30 November 2018. Our uninterrupted engagement covers
8 financial years.
Iain Kirkpatrick (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Edinburgh
11 February 2026
FINANCIAL STATEMENTS
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
86
Income Statement
for the year ended 30 November 2025
Notes
2025
Revenue
£’000s
2025
Capital
£’000s
2025
Total Return
£’000s
2024
Revenue
£’000s
2024
Capital
£’000s
2024
Total Return
£’000s
Gains on investments held at fair value through
profit or loss
8 - 46,435 46,435 - 87,450 87,450
Losses on foreign currencies - (164) (164) - (209) (209)
Income 1 15,244 - 15,244 15,233 - 15,233
Investment management fee 2 (875) (2,041) (2,916) (823) (1,919) (2,742)
Administration expenses 3 (923) (6) (929) (954) (3) (957)
Profit before finance costs and taxation 13,446 44,224 57,670 13,456 85,319 98,775
Finance costs: interest payable and similar charges 4 (332) (718) (1,050) (434) (954) (1,388)
Profit on ordinary activities before taxation 13,114 43,506 56,620 13,022 84,365 97,387
Taxation 5 (1,068) - (1,068) (1,336) - (1,336)
Profit after taxation attributable to ordinary
shareholders
12,046 43,506 55,552 11,686 84,365 96,051
Earnings per ordinary share (basic and diluted) 7 27.86p 100.62p 128.48p 27.37p 197.57p 224.94p
Dividends to be distributed in respect of the financial year ended 30 November 2025 total 25.0p (2024: 23.75p), amounting to
£10,810,620 (2024: £10,155,919). Details are set out in Note 6 on page 94.
The total return column of this statement is the profit and loss account of the company.
The supplementary revenue return and capital return columns are both prepared under the guidance published by the Association
of Investment Companies.
All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or
discontinued in the year.
Profit after taxation attributable to ordinary shareholders disclosed above represents the company’s total comprehensive income.
The Statement of Accounting Policies on pages 90 and 91 and the Notes on pages 92 to 104 form an integral part of
these Financial Statements.
87
Notes
2025
£’000s
2025
£’000s
2024
£’000s
Fixed assets
Investments held at fair value through profit or loss 8 677,851 644,737
Current assets
Other receivables 9 1,919 5,471
Cash at bank and in hand 9 17,603 4,812
19,522 10,283
Current liabilities
Other payables 9 (5,029) (11,727)
Net current assets (liabilities) 14,493 (1,444)
Total assets less current liabilities 692,344 643,293
Creditors: amounts falling due after more than one year 10 (25,121) (25,111)
Total net assets 667,223 618,182
Capital and reserves
Called up share capital 11 10,812 10,741
Share premium account 12 7,945 3,840
Capital redemption reserve 12 5,327 5,327
Capital reserve 12 622,356 578,996
Revenue reserve 12 20,783 19,278
Total shareholders funds 13 667,223 618,182
Net Asset Value per ordinary share 13 1,543.2p 1,438.8p
The financial statements of The Brunner Investment Trust PLC, company number 00226323, as set out in pages 86 to 104, were
approved and authorised for issue by the Board of Directors on 11 February 2026 and signed on its behalf by:
Carolan Dobson
Chair
Balance Sheet
at 30 November 2025
The Statement of Accounting Policies on pages 90 and 91 and the Notes on pages 92 to 104 form an integral part of
these Financial Statements.
FINANCIAL STATEMENTS
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
88
Statement of Changes in Equity
for the year ended 30 November 2025
Notes
Called up
share
capital
£’000s
Share
premium
account
£’000s
Capital
redemption
reserve
£’000s
Capital
reserve
£’000s
Revenue
reserve
£’000s
Total
£’000s
Net assets as at 1 December 2023 10,673 - 5,327 494,631 17,579 528,210
Revenue profit - - - - 11,686 11,686
Shares issued during the year 11 68 3,840 - - - 3,908
Dividends on ordinary shares 6 - - - - (9,990) (9,990)
Unclaimed dividends - - - - 3 3
Capital profit - - - 84,365 - 84,365
Net assets as at 30 November 2024 10,741 3,840 5,327 578,996 19,278 618,182
Net assets as at 1 December 2024 10,741 3,840 5,327 578,996 19,278 618,182
Revenue profit - - - - 12,046 12,046
Shares repurchased into treasury during the year 11 - - - (146) - (146)
Shares issued during the year 11 71 4,105 - - - 4,176
Dividends on ordinary shares 6 - - - - (10,541) (10,541)
Capital profit - - - 43,506 - 43,506
Net assets as at 30 November 2025 10,812 7,945 5,327 622,356 20,783 667,223
The Statement of Accounting Policies on pages 90 and 91 and the Notes on pages 92 to 104 form an integral part of
these Financial Statements.
89
Notes
2025
£’000s
2024
£’000s
Operating activities
Profit before finance costs and taxation* 57,670 98,775
Less: gains on investments held at fair value through profit or loss (46,435) (87,450)
Less: overseas tax suffered (1,068) (1,336)
Add: losses on foreign currency 164 209
Purchase of fixed asset investments held at fair value through profit or loss (144,803) (121,281)
Sales of fixed asset investments held at fair value through profit or loss 161,587 117,371
(Increase) decrease in other receivables (356) 99
Increase in other payables 98 127
Net cash inflow from operating activities 26,857 6,514
Financing activities
Interest paid and similar charges (1,283) (1,349)
Repayment of revolving credit facility (10,000) -
Dividend paid on cumulative preference stock (23) (22)
Dividends paid on ordinary shares 6 (10,541) (9,990)
Unclaimed dividends over 12 years - 3
Shares repurchased into treasury during the year (139) -
Share issue proceeds 8,084 -
Net cash outflow from financing activities (13,902) (11,358)
Increase (decrease) in cash and cash equivalents 12,955 (4,844)
Cash and cash equivalents at the beginning of the year 4,812 9,865
Effect of foreign exchange rates (164) (209)
Cash and cash equivalents at the end of the year 17,603 4,812
Comprising:
Cash at bank 17,603 4,812
* Cash inflow from dividends was £13,739,000 (2024: £13,372,000) and cash inflow from interest was £85,000 (2024: £161,000).
Cash Flow Statement
for the year ended 30 November 2025
The Statement of Accounting Policies on pages 90 and 91 and the Notes on pages 92 to 104 form an integral part of
these Financial Statements.
FINANCIAL STATEMENTS
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
90
Statement of Accounting Policies
for the year ended 30 November 2025
The company is incorporated in the United Kingdom
under the Companies Act. The company is a public
company limited by shares and is registered in England
and Wales. The address of the company’s registered
office is shown on page 62. The principal activity of
the company and the nature of its operations are set
out in the Strategic Report on page 11. The company
conducts its business so as to qualify as an investment
trust company within the meaning of sub-section 1158 of
the Corporation Tax Act 2010. The principal accounting
policies are summarised below. They have all been applied
consistently throughout the year and to the preceding year.
1 Basis of preparation – The financial statements have been
prepared under the historical cost convention, except for
the revaluation of financial instruments held at fair value
through profit or loss and in accordance with applicable
United Kingdom law and UK Accounting Standards
(UK GAAP), including Financial Reporting Standard
102 - the Financial Reporting Standard applicable in
the United Kingdom and Republic of Ireland (FRS 102),
the requirements of the Companies Act 2006 and in line
with the Statement of Recommended Practice ‘Financial
Statements of Investment Trust Companies and Venture
Capital Trusts’ issued by the Association of Investment
Companies (AIC SORP) in July 2022.
In order to better reflect the activities of an investment trust
company, and in accordance with guidance issued by the
AIC, supplementary information which analyses the Income
Statement between items of revenue and capital nature
has been presented alongside the Income Statement.
The directors believe that it is appropriate to continue to
adopt the going concern basis in preparing the financial
statements as the assets of the company consist mainly
of securities, which are readily realisable and significantly
exceed liabilities. Accordingly, the directors believe that the
company has adequate financial resources to continue
in operational existence for the foreseeable future. The
company’s business, the principal risks and uncertainties
it faces, together with the factors likely to affect its future
development, performance and position are set out in the
Strategic Report on page 11.
2 Income – Dividends received on equity shares are
accounted for on an ex-dividend basis. Foreign dividends
are grossed up at the appropriate rate of withholding tax.
Special dividends are recognised on an ex-dividend basis
and treated as a capital or revenue item depending
on the facts and circumstances of each dividend. The
board reviews special dividends and their treatment at
each meeting.
Where the company has elected to receive its dividends
in the form of additional shares rather than in cash,
the equivalent of the cash dividend is recognised as
income. Any excess in the value of the shares received
over the amount of the cash dividend is recognised in
capital reserves.
Deposit interest receivable is accounted for on an
accruals basis.
3 Investment management fee and administrative
expenses – The investment management fee is calculated
on the basis set out in Note 2 to the financial statements
and is charged to capital and revenue in the ratio 70:30 to
reflect the company’s investment policy and prospective
capital and income growth. Other administrative expenses
are charged in full to revenue, except custodian handling
charges on investment transactions which are charged to
capital. All expenses are on an accruals basis.
4 Investments – As the company’s business is investing in
financial assets with a view to profiting from their total
return in the form of increases in fair value, financial assets
are held at fair value through profit or loss in accordance
with FRS 102 Section 11: ‘Basic Financial Instruments’ and
Section 12: ‘Other Financial Instruments’. The company
manages and evaluates the performance of these
investments on a fair value basis in accordance with its
investment strategy, and information about investments is
provided on this basis to the board.
Investments held at fair value through profit or loss are
initially recognised at fair value. After initial recognition,
these continue to be measured at fair value, which for
quoted investments is either the bid price or the last traded
price depending on the convention of the exchange on
which they are listed. Gains or losses on investments are
recognised in the capital column of the Income Statement.
Purchases and sales of financial assets are recognised on
the trade date, being the date which the company commits
to purchase or sell assets.
91
5 Finance costs – In accordance with the FRS 102 Section
11: ‘Basic Financial Instruments’ and Section 12 ‘Other
Financial Instruments’, long term borrowings are stated
at the amortised cost being the amount of net proceeds
on issue plus accrued finance costs to date. Finance costs
are calculated over the term of the debt on the effective
interest rate basis.
Finance costs net of amortised premiums are charged to
capital and revenue in the ratio 70:30 to reflect the board’s
investment policy and prospective split of capital and
revenue returns.
Dividends payable on the 5% cumulative preference stock
are classified as an interest expense and are charged in full
to revenue.
6 Taxation – Where expenses are allocated between capital
and revenue, any tax relief obtained in respect of those
expenses is allocated between capital and revenue using
the marginal method and the company’s effective rate
of corporation tax for the accounting period. Deferred
taxation is recognised in respect of all timing differences
that have originated but not reversed at the balance
sheet date, where transactions or events that result in an
obligation to pay more tax or a right to pay less tax in the
future have occurred. Timing differences are differences
between the company’s taxable profits and its results as
stated in the financial statements.
A deferred tax asset is recognised when it is more likely
than not that the asset will be recoverable. Deferred tax
is measured on a non-discounted basis at the rate of
corporation tax that is expected to apply when the timing
differences are expected to reverse.
7 Shares repurchased for cancellation and for holding in
treasury – Share capital is reduced by the nominal value of
the shares repurchased, and the capital redemption reserve
is correspondingly increased in accordance with Section
733 Companies Act 2006. The full cost of the repurchase
is charged to the capital reserve within Gains (Losses) on
Sales of Investments.
For shares repurchased for holding in treasury, the full cost
is charged to the capital reserve.
8 Shares sold (reissued) from treasury – Proceeds received
from the sale of shares held in treasury are treated as
realised profits in accordance with Section 731 of the
Companies Act 2006. Proceeds equivalent to the original
cost, calculated by applying a weighted average price, are
credited to the capital reserve; proceeds in excess of the
original cost are credited to the share premium account.
9 Shares issued – Share capital is increased by the nominal
value of shares issued. The proceeds in excess of the
nominal value of shares net of expenses are allocated to
the share premium account.
10 Dividends – In accordance with FRS 102 Section 32: ‘Events
After the End of the Reporting Period’, the final dividend
proposed on ordinary shares is recognised as a liability
when approved by shareholders. Interim dividends are
recognised only when paid. Dividends are paid from the
revenue reserve.
11 Foreign currency – In accordance with FRS 102 Section
30: ‘Foreign Currency Translation’, the company is required
to nominate a functional currency, being the currency in
which the company predominately operates. The functional
and reporting currency is pounds sterling, reflecting the
primary economic environment in which both the company
and its shareholders predominantly operate and in which
its expenses are generally paid. Transactions in foreign
currencies are translated into pounds sterling at the rates
of exchange ruling on the date of the transaction. Foreign
currency monetary assets and liabilities are translated
into pounds sterling at the rates of exchange ruling at
the balance sheet date. Profits and losses thereon are
recognised in the capital column of the income statement
and taken to the capital reserve.
12 Significant judgements, estimates and assumptions –
In the application of the company’s accounting policies,
which are described above, the directors are required to
make judgements, estimates, and assumptions about
the carrying amounts of assets and liabilities that are
not readily apparent from other sources. The investment
portfolio currently consists of listed investments and
therefore no significant estimates have been made in
valuing these securities.
There are no significant judgements, estimates,
and assumptions.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
if the revision affects only that period, or in the period of
the revision and future periods if the revision affects both
current and future periods.
FINANCIAL STATEMENTS
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
92
Notes to the Financial Statements
for the year ended 30 November 2025
1. Income
2025
£’000s
2024
£’000s
Income from Investments*
Equity income from UK investments
†
4,890 4,778
Equity income from overseas investments
††
10,269 10,294
15,159 15,072
Other Income
Deposit interest 85 161
85 161
Total income 15,244 15,233
* All dividend income is derived from listed investments.
†
Includes special dividends of £156,000 (2024: £nil).
††
Includes special dividends of £760,000 (2024: £701,000).
2. Investment management fee
2025
Revenue
£’000s
2025
Capital
£’000s
2025
Total
£’000s
2024
Revenue
£’000s
2024
Capital
£’000s
2024
Total
£’000s
Investment management fee 875 2,041 2,916 823 1,919 2,742
Under the terms of the Management and Administration Agreement the company’s manager is Allianz Global Investors UK Ltd.
The agreement was restated in July 2014, with the appointment of AllianzGI as the Alternative Investment Fund Manager. On 30
May 2023 the Agreement was novated from Allianz Global Investors GmbH to Allianz Global Investors UK Limited (AllianzGI UK).
In both cases the terms of the agreement were unchanged: it provides for a management fee based on 0.45% per annum of the
value of the assets after deduction of current liabilities, short-term loans under one year and other funds managed by Allianz
Global Investors GmbH, calculated monthly. The fee is charged in the ratio 70:30 between capital and revenue as set out in the
Statement of Accounting Policies.
The provision of investment management services, company administrative and secretarial services by AllianzGI UK under the
Management and Administration Agreement may be terminated by either the company or AllianzGI UK on not less than six
months’ notice.
93
3. Administration expenses
2025
£’000s
2024
£’000s
Auditors’ remuneration
for audit services 48 45
VAT on auditors’ remuneration 10 9
58 54
Other administration expenses
Directors' fees
1
179 174
Depositary fees 73 64
Custody fees 47 44
Registrars' fees 52 55
Association of Investment Companies fees 24 22
Marketing costs 373 370
Printing and postage 46 43
Directors' and officers' liability insurance 18 18
Professional and advisory fees 12 28
Stock Exchange fees 39 29
Stock Exchange block listing fee 23 25
Other 96 77
VAT recovered (117) (49)
923 954
1
Directors’ fees are set out in the Directors’ Remuneration Report on page 72.
The above expenses include value added tax where applicable.
Custodian handling charges of £6,000 were charged to capital (2024: £3,000).
4. Finance costs: interest payable and similar charges
2025
Revenue
£’000s
2025
Capital
£’000s
2025
Total
£’000s
2024
Revenue
£’000s
2024
Capital
£’000s
2024
Total
£’000s
On 5% Cumulative Preference Stock repayable
after more than five years
23 - 23 22 - 22
On 2.84% Fixed Rate Notes 2048 repayable after
more than five years
216 504 720 213 498 711
On revolving credit facility 92 214 306 196 456 652
On sterling overdraft 1 - 1 3 - 3
332 718 1,050 434 954 1,388
FINANCIAL STATEMENTS
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
94
5. Taxation
2025
Revenue
£’000s
2025
Capital
£’000s
2025
Total
£’000s
2024
Revenue
£’000s
2024
Capital
£’000s
2024
Total
£’000s
Overseas taxation 1,068 - 1,068 1,336 - 1,336
Total tax 1,068 - 1,068 1,336 - 1,336
Reconciliation of tax charge
Profit before taxation 13,114 43,506 56,620 13,022 84,365 97,387
Tax on profit at 25.00% (2024: 25.00%) 3,279 10,877 14,156 3,256 21,091 24,347
Effects of
Non taxable income (3,790) - (3,790) (3,770) - (3,770)
Non taxable capital gains - (11,568) (11,568) - (21,810) (21,810)
Disallowable expenses - 1 1 - 1 1
Overseas tax suffered 1,068 - 1,068 1,336 - 1,336
Excess of allowable expenses over taxable income 511 690 1,201 514 718 1,232
Total tax 1,068 - 1,068 1,336 - 1,336
The company’s taxable income is exceeded by its tax allowable expenses, which include both the revenue and capital elements of
the management fee and finance costs.
As at 30 November 2025, the company had accumulated surplus expenses of £119.4 million (2024: 114.6 million) and eligible
unrelieved foreign tax of £nil (2024: £nil).
The company has not recognised a deferred tax asset of £29.8 million (2024: £28.7 million) in respect of these expenses, based on
a prospective corporation tax rate of 25% (2024: 25%) because there is no reasonable prospect of recovery.
6. Dividends on ordinary shares
2025
£’000s
2024
£’000s
Dividends paid on ordinary shares
Third interim dividend – 5.90p paid 12 December 2024 (2023: 5.55p) 2,519 2,369
Final dividend – 6.05p paid 4 April 2025 (2024: 6.05p) 2,616 2,583
First interim dividend – 6.25p paid 24 July 2025 (2024: 5.90p) 2,703 2,519
Second interim dividend – 6.25p paid 19 September 2025 (2024: 5.90p) 2,703 2,519
10,541 9,990
Dividends payable at the year end are not recognised as a liability under FRS 102 Section 32 ‘Events After the End of the
Reporting Period’ (see page 90: Statement of Accounting Policies). Details of these dividends are set out below.
2025
£’000s
2024
£’000s
Third interim dividend – 6.25p paid 11 December 2025 (2024: 5.90p) 2,702 2,519
Final proposed dividend – 6.25p payable 2 April 2026 (2025: 6.05p) 2,702 2,599
5,404 5,118
The proposed final dividend accrued is based on the number of shares in issue at the year end. However, the dividend payable will
be based on the numbers of shares in issue on the record date and will reflect any changes in the share capital between the year
end and the record date.
All dividends disclosed in the tables above have been paid or are payable from the revenue reserves.
95
7. Earnings per ordinary share
2025
Revenue
£’000s
2025
Capital
£’000s
2025
Total
£’000s
2024
Revenue
£’000s
2024
Capital
£’000s
2024
Total
£’000s
Profit after taxation attributable to ordinary
shareholders
12,046 43,506 55,552 11,686 84,365 96,051
Earnings per ordinary share 27.86p 100.62p 128.48p 27.37p 197.57p 224.94p
The earnings per ordinary share is based on a weighted number of shares 43,240,399 (2024: 42,701,544) ordinary shares in issue.
8. Investments held at fair value through profit or loss
2025
£’000s
2024
£’000s
Opening book cost 394,630 355,553
Opening investments holding gains 250,107 197,824
Opening market value 644,737 553,377
Additions at cost 148,266 121,281
Disposals proceeds received (161,587) (117,371)
Gains on investments 46,435 87,450
Market value of investments held at 30 November 2025 677,851 644,737
Closing book cost 442,142 394,630
Closing investment holding gains 235,709 250,107
Closing market value 677,851 644,737
Gains on investments
Gains on investments 46,435 87,450
Gains on investments 46,435 87,450
The company received £161,587,000 (2024: £117,371,000) from investments sold in the year. The book cost of these investments
when they were purchased was £100,754,000 (2024: £82,204,000).
These investments have been revalued over time and until they were sold any unrealised gains/losses were included in the fair
value of the investments.
Transaction costs and stamp duty on purchases amounted to £270,000 (2024: £268,000) and transaction costs on sales amounted
to £28,000 (2024: £27,000).
FINANCIAL STATEMENTS
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
96
9. Other receivables, cash at bank and in hand and other payables
2025
£’000s
2024
£’000s
Other receivables
Shares issued - 3,908
Accrued income 1,857 1,511
Prepayments 62 52
1,919 5,471
Cash at bank and in hand
Current account 17,603 4,812
17,603 4,812
Other payables: amounts falling due within one year
Shares repurchased 7 -
Purchases for future settlement 3,463 -
Other payables 1,245 1,147
Interest on borrowings (see below) 314 314
Revolving credit facility (i) - 10,266
5,029 11,727
The carrying amount of other receivables, cash and cash equivalents and other payables: amounts falling due within one year,
each approximate their fair value.
2025
£’000s
2024
£’000s
Interest on outstanding borrowings consists of:
5% Cumulative preference stock 11 11
2.84% Fixed Rate Note 2048 303 303
314 314
(i) On 27 June 2022 the company entered into a revolving credit facility agreement of £10m (replacing an existing facility of £10m).
The revolving credit facility was repaid and terminated on 27 June 2025.
10. Creditors: amounts falling due after more than one year
2025
£’000s
2024
£’000s
5% Cumulative preference stock (i) 450 450
2.84% Fixed Rate Note 2048 (ii) 24,671 24,661
25,121 25,111
(i) The 5% Cumulative Preference Stock is recognised as a creditor due after more than one year under the provisions of FRS102
Section 11: ’Basic Financial Instruments’ and Section 12: ’Other Financial Instruments’. The right of the preference stockholders to
receive payments is not calculated by reference to the company’s profits and, in the event of a return of capital are limited to a
specific amount, being £450,000. Dividends on the preference stock are payable on 30 June and 31 December each year.
(ii) The Fixed Rate Notes of £25,000,000 is stated at £24,671,000 (2024: £24,661,000) being the net proceeds of £24,602,000 (2024:
£24,602,000) plus accrued finance costs of £69,000 (2024: £59,000).
The Note is repayable on 28 June 2048 and carries interest at 2.84% per annum on the principal amount. Interest is payable in
June and December each year. The effective interest rate of the loan inclusive of the issue costs is 2.94%.
97
11. Called up share capital
2025
£’000s
2024
£’000s
Allotted and fully paid
43,247,727 ordinary shares of 25p each (2024: 42,963,736)* 10,812 10,741
* Inclusive of 10,496 (2024: nil) Ordinary shares held in treasury for reissuance into the market or cancellation at a future date. Shares held in
treasury are non-voting and not eligible for dividends.
2025
Number
2025
£’000s
2024
Number
2024
£’000s
Allotted 25p ordinary shares
Brought forward 42,963,736 10,741 42,692,727 10,673
Shares issued during the year 283,991 71 271,009 68
Shares repurchased into treasury during the year (10,496) (3) - -
Carried forward 43,237,231 10,809 42,963,736 10,741
2025
Number
2024
Number
Treasury shares
Brought forward - -
Shares repurchased into treasury during the year 10,496 -
Carried forward 10,496 -
Total ordinary shares in issue and in treasury at the end of the year 43,247,727 42,963,736
The directors are authorised by an ordinary resolution passed on 2 April 2025 to allot relevant securities, in accordance with section
551 of the Companies Act 2006, up to a maximum of 14,401,493 ordinary shares of 25p each. This authority expires on 1 July 2026
and accordingly a renewed authority will be sought at the annual general meeting on 31 March 2026.
During the year 283,991 shares were issued (2024: 271,009) for a total consideration of £4,176,000 (2024: £3,908,000), net of issue
costs of £8,000 (2024: £7,000).
During the year 10,496 (2024: nil) ordinary shares were repurchased into treasury by the company. The aggregate purchase price of
these shares, amounting to £146,000 (2024: £nil) was charged to the capital reserve, within gains on sales of investments (see Note 12).
Since the year end a further 4,669 shares have been repurchased into treasury for a total consideration of £66,000, net of
purchase costs of £70, as at 10 February 2026.
FINANCIAL STATEMENTS
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
98
12. Reserves
Capital Reserve
Share
premium
account
£’000s
Capital
redemption
reserve
£’000s
Gains (losses)
on sales of
Investments
£’000s
Investment
holding
gains (losses)
£’000s
Revenue
reserve
£’000s
Balance at 1 December 2024 3,840 5,327 329,635 249,361 19,278
Gains on realisation of investments - - 131,276 - -
Transfer on disposal of investments - - (70,443) 70,443 -
Movement in investment holding losses - - - (84,841) -
Losses on foreign currency - - - (164) -
Shares repurchased into treasury during the year - - (146) - -
Issue of ordinary shares 4,105 - - - -
Investment management fee - - (2,041) - -
Finance costs of borrowings - - (718) - -
Other capital expenses - - (6) - -
Dividends appropriated in the year - - - - (10,541)
Profit retained for the year - - - - 12,046
Balance at 30 November 2025 7,945 5,327 387,557 234,799 20,783
All paid or payable dividends for the year are payable from the revenue reserve (2024: same).
13. Net Asset Value total return
The net asset value total return for the year is the percentage movement from the capital net asset value as at 30 November 2024
to the net asset value, on a total return basis as at 30 November 2025. The net asset value total return with debt at fair value is
9.0% (2024: 17.9%) and the net asset value total return with debt at par is 9.0% (2024: 18.2%). The net asset value per ordinary
share is based on 43,237,231 ordinary shares in issue at the year end (2024: 42,963,736). The method of calculation of the net asset
value with debt at fair value is described in Note 15(c) on page 103.
The Net Asset Value per ordinary share was as follows:
Debt at
fair value
2025
Debt
at par
2025
Debt at
fair value
2024
Debt
at par
2024
Net Asset Value per ordinary share attributable 1,565.8p 1,543.2p 1,459.6p 1,438.8p
Effect of dividends reinvested on the respective ex-dividend dates 25.0p 25.0p 23.8p 23.8p
Net Asset Value total return 1,590.8p 1,568.2p 1,483.4p 1,462.6p
Net Asset Value attributable £676,985 £667,223 £627,112 £618,182
14. Contingent liabilities, capital commitments and guarantees
At 30 November 2025 there were no contingent liabilities, capital commitments or guarantees (2024: £nil).
15. Financial risk management policies and procedures
The company invests in equities and other investments in accordance with its investment objective as stated in the Strategic Report
on page 12. In pursuing its investment objective, the company is exposed to certain inherent risks that could result in either a
reduction in the company’s net assets or a reduction in the profits available for distribution by way of dividends.
The main risks arising from the company’s financial instruments are market risk (comprising market price risk, market yield risk,
foreign currency risk and interest rate risk), liquidity risk and credit risk. The directors determine the objectives and agree policies for
managing each of these risks, as set out below. The manager, in close cooperation with the directors, implements the company’s
risk management policies. These policies have remained substantially unchanged during the current and preceding year.
99
(a) Market risk
The manager assesses the exposure to market risk when making each investment decision, and monitors the risk on the investment
portfolio on an ongoing basis. Market risk comprises market price risk (price and yield), foreign currency risk and interest rate risk.
(i) Market price risk
Market price risk arises mainly from the uncertainty about future prices of financial instruments held. It represents the potential loss
the company might suffer through holding market positions in the face of price movements. An analysis of the company’s portfolio
begins on page 52.
Market price risk sensitivity
The value of the company’s listed equities which were exposed to market price risk as at 30 November 2025 and 30 November
2024 was as follows:
2025
£’000s
2024
£’000s
Listed equity investments held at fair value through profit or loss 677,851 644,737
The following illustrates the sensitivity of the return after taxation for the year and the net assets to an increase or decrease of 30%
(2024: 30%) in the fair values of the company’s quoted equities. This level of change is considered to be reasonably possible based
on observation of market conditions in recent years. The sensitivity analysis on the profit after taxation and net assets is based on
the impact of a 30% increase or decrease in the value of the company’s listed investments at each closing balance sheet date and
the consequent impact on the investment management fees for the year, with all other variables held constant.
2025
30% increase
in fair value
£’000s
2025
30% decrease
in fair value
£’000s
2024
30% increase
in fair value
£’000s
2024
30% decrease
in fair value
£’000s
Revenue earnings
Investment management fee (275) 275 (261) 261
Capital earnings
Gains (losses) on investments at fair value 203,355 (203,355) 193,421 (193,421)
Investment management fee (641) 641 (609) 609
Change in net earnings and net assets 202,439 (202,439) 192,551 (192,551)
Management of market price risk
The directors meet regularly to review the asset allocation of the portfolio recommended by the manager, in order to minimise the
risk associated with particular countries or industry sectors. Dedicated fund managers have the responsibility for monitoring the
existing portfolio selection in accordance with the company’s investment objectives and seek to ensure that individual stocks meet
an acceptable risk reward profile.
(ii) Market yield risk
Market yield risk arises from the uncertainty about the company’s ability to maintain its income objectives due to a systematic
decline in corporate dividend levels.
Management of market yield risk
The directors regularly review the current and projected yield of the investment portfolio, and discuss with the manager the extent
to which it will enable the company to meet its investment income objective. The board has also committed to using the strong
revenue reserve if required.
(iii) Foreign currency risk
Foreign currency risk is the risk of the movement in the values of overseas financial instruments as a result of fluctuations in
exchange rates.
Management of foreign currency risk
Transactions in foreign currencies are translated into sterling at the rates of exchange ruling on the date of the transaction. Foreign
currency assets and liabilities are translated into sterling at the rates of exchange ruling at the balance sheet date.
The company does not currently hedge against foreign currency exposure.
The table below summarises in sterling terms the foreign currency risk exposure:
FINANCIAL STATEMENTS
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
100
2025
Investments
£’000s
2025
Other net assets
(liabilities)
£’000s
2025
Total currency
exposure
£’000s
2024
Investments
£’000s
2024
Other net assets
(liabilities)
£’000s
2024
Total currency
exposure
£’000s
Pound sterling 152,407 (12,471) 139,936 151,361 (27,963) 123,398
Australian dollar 9,888 - 9,888 10,940 - 10,940
Danish krone - 26 26 - 31 31
Euro 107,378 421 107,799 75,745 277 76,022
Hong Kong dollar 19,245 - 19,245 4,320 - 4,320
Japanese yen 22,272 134 22,406 11,813 128 11,941
Norwegian krone 13,246 85 13,331 12,305 81 12,386
South Korean won 11,351 - 11,351 - - -
Swedish krona 21,510 8 21,518 20,190 7 20,197
Swiss franc 18,861 787 19,648 31,666 582 32,248
US dollar 301,693 382 302,075 326,397 302 326,699
Total 677,851 (10,628) 667,223 644,737 (26,555) 618,182
The following table details the company’s sensitivity to a 20% increase and decrease in sterling against the relevant foreign
currencies and the resultant impact that any such increase or decrease would have on net return and net assets. The sensitivity
analysis includes only outstanding foreign currency denominated items and adjusts their translation at the year end for a 20%
change in foreign currency rates.
2025
20% decrease in
sterling against
foreign currencies
£’000s
2025
20% increase in
sterling against
foreign currencies
£’000s
2024
20% decrease in
sterling against
foreign currencies
£’000s
2024
20% increase in
sterling against
foreign currencies
£’000s
Australian dollar 2,472 (1,648) 2,735 (1,823)
Danish krone 7 (4) 8 (5)
Euro 26,950 (17,967) 19,006 (12,670)
Hong Kong dollar 4,811 (3,208) 1,080 (720)
Japanese yen 5,602 (3,734) 2,985 (1,990)
Norwegian krona 3,333 (2,222) 3,096 (2,064)
South Korean won 2,838 (1,892) - -
Swedish krona 5,380 (3,586) 5,049 (3,366)
Swiss franc 4,912 (3,275) 8,062 (5,375)
US dollar 75,519 (50,346) 81,675 (54,450)
Total 131,824 (87,882) 123,696 (82,463)
(iv) Interest rate risk
Interest rate risk is the risk of movements in the value of financial instruments as a result of fluctuations in interest rates.
Interest rate exposure
The table below summarises in sterling terms the financial assets and financial liabilities whose values are directly affected by
changes in interest rates.
101
2025
Fixed
rate
interest
£’000s
2025
Floating
rate
interest
£’000s
2025
Nil
Interest
£’000s
2025
Total
£’000s
2024
Fixed
rate
interest
£’000s
2024
Floating
rate
interest
£’000s
2024
Nil
Interest
£’000s
2024
Total
£’000s
Financial assets
- 17,603 677,851 695,454 - 4,812 644,737 649,549
Financial liabilities
(25,121) - - (25,121) (25,111) - - (25,111)
Net financial (liabilities) assets
(25,121) 17,603 677,851 670,333 (25,111) 4,812 644,737 624,438
Short term receivables and payables - - -
(3,110) - - - (6,256)
Net (liabilities) assets per balance sheet
(25,121) 17,603 677,851 667,223 (25,111) 4,812 644,737 618,182
As at 30 November 2025, the interest rates received on cash balances, or paid on bank overdrafts respectively, is approximately
2.60% and 5.00% per annum (2024: 2.55% and 5.75% per annum).
The fixed rate interest bearing liabilities bear the following coupon and effective rates as at 30 November 2025 and 30
November 2024:
2025
Maturity
date
Amount
borrowed
£’000s
Coupon
rate
Effective
rate since
inception*
5% Cumulative Preference Stock n/a 450 5.00% n/a
2.84% Fixed Rate Note 2048 28/06/2048 25,000 2.84% 2.94%
2024
Maturity
date
Amount
borrowed
£’000s
Coupon
rate
Effective
rate since
inception*
5% Cumulative Preference Stock n/a 450 5.00% n/a
2.84% Fixed Rate Note 2048 28/06/2048 25,000 2.84% 2.94%
* The effective rates are calculated in accordance with FRS 102 Section 12: ‘Other Financial Instruments’ as detailed in the Statement of
Accounting Policies on page 90.
The weighted average effective rate of the company’s fixed interest bearing liabilities (excluding the 5% cumulative preference
stock) is 2.94% (2024: 2.94%) and the weighted average period to maturity of these liabilities is 22.5 years (2024: 23.5 years).
The above year end amounts are reasonably representative of the exposure to interest rates during the year, as the level of
exposure does not change materially. The company’s profit after tax and net assets, is not significantly affected by changes in
interest rates.
Management of interest rate risk
The company invests mainly in equities, the values of which are not directly affected by changes in prevailing market interest rates.
The company finances its operations through a mixture of share capital, retained earnings and long term borrowings which are
subject to fixed rates. Movement in interest rates will not materially affect the finance costs of the company.
The company is considered to have low direct exposure to interest rate risk.
(b) Liquidity risk
Liquidity risk relates to the capacity to meet liabilities as they fall due and is dependent on the liquidity of the underlying assets.
Maturity of financial liabilities
The table below presents the future cash flows payable by the company in respect of its financial liabilities.
Cash flows in respect of the principal and interest on the 2.84% Fixed Rate Note 2048 reflect the maturity dates set out in Note 10
on page 96. Cash flows in respect of the 5% cumulative preference stock, which has no fixed repayment date, assume maturity
of 20 years from the balance sheet date. Cash flows have not been discounted.
FINANCIAL STATEMENTS
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
102
2025
Three
months
or less
£’000s
Between
three months
and one year
£’000s
Between
one and
five years
£’000s
More than
five years
£’000s
Total
£’000s
Other payables
Finance costs of borrowing 366 366 - - 732
Other payables 4,715 - - - 4,715
Creditors: amounts falling due after more than one year
Maturity of borrowings - - - 25,450 25,450
Finance costs of borrowing - - 2,930 13,118 16,048
5,081 366 2,930 38,568 46,945
2024
Three
months
or less
£’000s
Between
three months
and one year
£’000s
Between
one and
five years
£’000s
More than
five years
£’000s
Total
£’000s
Other payables
Finance costs of borrowing 366 366 - - 732
Revolving credit facility 304 10,000 - - 10,304
Other payables 1,148 - - - 1,148
Creditors: amounts falling due after more than one year
Maturity of borrowings - - - 25,450 25,450
Finance costs of borrowing - - 2,930 13,828 16,758
1,818 10,366 2,930 39,278 54,392
Other creditors include trade creditors only, no accrued finance costs included.
Management of liquidity risk
Liquidity risk is not considered to be significant as the company’s assets mainly comprise realisable securities, which can be sold to meet
funding requirements. Short-term flexibility can be achieved through the use of overdraft facilities, where necessary. The company has
an undrawn committed borrowing facility of £5 million (2024: £5 million).
(c) Credit risk
Credit risk is the risk of default by a counterparty in discharging its obligations under transactions that could result in the company
suffering a loss. There were no impaired assets as of 30 November 2025 (30 November 2024: nil). The counterparties which the
company engages with are regulated entities and are of high credit quality.
Management of credit risk
Outstanding settlements are subject to credit risk. Credit risk is mitigated by the company through its decision to transact with
counterparties of high credit quality. The company only buys and sells investments through brokers which are approved counterparties,
thus minimising the risk of default during settlement. The credit ratings of brokers are reviewed quarterly by the manager.
The company is also exposed to credit risk through the use of banks for its cash position. Bankruptcy or insolvency of banks may cause
the company’s rights with respect to cash held by banks to be delayed or limited. The company’s cash balance is held by HSBC Bank
plc, rated A1 by Moody’s rating agency. The directors believe the counterparties the company has chosen to transact with are of high
credit quality, therefore the company has minimal exposure to credit risk.
In summary, the exposure to credit risk at 30 November 2025 and 2024 was as follows:
2025
£’000s
2024
£’000s
Other receivables:
Share issue - 3,908
Accrued income 1,857 1,511
Prepayments 62 52
1,919 5,471
Cash at bank and in hand 17,603 4,812
19,522 10,283
103
Fair values of financial assets and financial liabilities
Investments are designated as held at fair value through profit or loss in accordance with FRS 102 sections 11 and 12.
FRS 102 sets out three fair value levels.
Level 1 – The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the
measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable (i.e., developed using market data) for the
asset or liability, either directly or indirectly.
Level 3 – Inputs are unobservable (i.e., for which market data is unavailable) for the asset or liability.
With the exception of those financial liabilities measured at amortised cost, all other financial assets and financial liabilities are
either carried at their fair value or the balance sheet amount is a reasonable approximation of their fair value.
As at 30 November 2025 the financial assets at fair value through profit and loss of £677,851,000 (2024: £644,737,000) are
categorised as follows:
2025
£’000s
2024
£’000s
Level 1 677,851 644,737
Level 2 - -
Level 3 - -
677,851 644,737
There were no transfers between levels for financial assets and financial liabilities during the year recorded at fair value as at 30
November 2025 and 30 November 2024.
The financial liabilities measured at amortised cost have the following fair values:*
2025
Book value
£’000s
2025
Fair value
£’000s
2024
Book value
£’000s
2024
Fair value
£’000s
5% Cumulative Preference Stock 450 394 450 411
2.84% Fixed Rate Note 2048 24,671 14,965 24,661 15,770
25,121 15,359 25,111 16,181
The Net Asset Value per ordinary share with the debt at fair value is calculated as follows:
2025
£’000s
2024
£’000s
Net assets per balance sheet 667,223 618,182
Add: financial liabilities at book value 25,121 25,111
Less: financial liabilities at fair value* (15,359) (16,181)
Net assets (debt at fair value) 676,985 627,112
Net Asset Value per ordinary share (debt at fair value) 1,565.8p 1,459.6p
* The fair value has been derived from the closing market value as at 30 November 2025 and 30 November 2024.
The fair value of the long-term debt is calculated with reference to the nearest relevant gilt based on the repayment date. A
margin is added to the yield of the relevant reference gilt to calculate the fair value. This margin is derived from the excess of UK
corporate bond yields over gilt yields.
The Net Asset Value per ordinary share is based on 43,237,231 ordinary shares in issue at 30 November 2025 (2024: 42,963,736).
FINANCIAL STATEMENTS
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
104
16. Capital management policies and procedures
The company’s objective is to provide growth in capital value and dividends over the long term through investing in a portfolio of
UK and international securities.
The company’s capital at 30 November comprised:
2025
£’000s
2024
£’000s
Debt
Revolving credit facility - 10,266
Creditors: amounts falling due after more than one year 25,121 25,111
25,121 35,377
Equity
Called up share capital 10,812 10,741
Share premium account and other reserves 656,411 607,441
667,223 618,182
Total capital 692,344 653,559
Debt as a percentage of total capital 3.6% 5.4%
The board, with the assistance of the manager, monitors and reviews the broad structure of the company’s capital on an ongoing
basis. The level of gearing is monitored, taking into account the manager’s view on the market and the future prospects of the
company’s performance. Capital management also involves reviewing the difference between the Net Asset Value per share and
the share price (i.e., the level of share price discount or premium) to assess the need to repurchase shares for cancellation.
The company is subject to several externally imposed capital requirements. The company has an overdraft facility of £5m (2024:
£5m) available, hence any amounts drawn under this facility should not exceed £5m, and as a public company the minimum
share capital is £50,000. The company’s objective, policies and processes for managing capital are unchanged from the preceding
accounting period, and the company has complied with them. The terms of the debt instruments have various covenants which
prescribe that moneys borrowed should not exceed 33% of the adjusted Net Asset Value. These are measured in accordance with
the policies used in the annual financial statements. The company has complied with these.
17. Transactions with the Investment Manager and related parties
The amounts paid to the investment manager together with details of the investment management contract are disclosed in note
2 on page 92. The existence of an independent board of directors demonstrates that the company is free to pursue its own
financial and operating policies and therefore, under FRS102 Section 33: ‘Related Party Disclosures’, the investment manager is
not considered to be a related party.
The company’s related parties are its directors. Fees paid to the company’s board are disclosed in the Directors’ Remuneration
Report on page 72.
There are no other identifiable related parties at the year end, and as of 10 February 2026.
18. Post Balance Sheet Events
Since the year end a further 4,669 shares have been repurchased into treasury for a total consideration of £66,000, net of
purchase costs of £70, as at 10 February 2026.
105
Investor
Information
106 Investor information (unaudited)
109 Notice of Meeting
112 Glossary
Online payroll and
human resources
software specialist
Paycom, another new
addition to the portfolio,
is based in Oklahoma
City, Oklahoma.
105
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
106
AIFM and Depositary
Allianz Global Investors UK Limited (AllianzGI UK) is designated as the Alternative Investment Fund Manager (AIFM). AllianzGI
UK is authorised to act as an AIFM and to conduct its activities by the Financial Conduct Authority (FCA) in accordance with
AIFMD and FCA requirements. The management fee and the notice period are unchanged in the restated management and
administration agreement (details in Note 2 on page 92).
The company has appointed HSBC Bank PLC as its depositary and custodian in accordance with AIFMD under an agreement
between the company, AllianzGI UK and HSBC. Depositary fees are charged in addition to custody fees and are calculated on the
basis of net assets.
Leverage and risk policies under AIFMD
Details of leverage and risk policies required under AIFMD are published on the website brunner.co.uk under Literature/Trust
Documents/Disclosures to Investors under AIFMD. These policies represent no change to the board’s policies in existence prior to
AIFMD and are in place to ensure that these limits would not be breached under any foreseeable circumstances.
Remuneration disclosure of the AIFM
The following table shows that total amount of remuneration granted to the employees of AllianzGI UK in the prior financial
year divided into fixed and variable components. It is also broken down by material risk takers, members of management/senior
management function (SMF) holders without control function, members of management/SMF with control function and other
risk takers.
Number of employees: 310
All employees
thereof
Material
Risk Takers
thereof
Board
Members/
SMF
thereof
Other Material
Risk Takers
Fixed remuneration 38,208,950 3,773,014 3,773,014 N/A
Variable remuneration 35,897,533 8,614,518 8,614,518 N/A
Total remuneration 74,106,484 12,387,532 12,387,532 N/A
Note: All Material Risk Takers are performing a Senior Management Function.
The information on employee remuneration does not include remuneration paid by delegated managers to their employees.
AllianzGI UK does not pay remuneration to employees of delegated companies directly from the fund.
Setting the remuneration
AllianzGI UK is subject to certain requirements applicable to investment management companies with regard to structuring the
remuneration system.
The board of directors of AllianzGI UK has set up a remuneration committee. It has the overall responsibility for overseeing the
implementation of the remuneration policy and practices. Working in close cooperation with control functions as well as with
external advisers and in conjunction with the management, the human resources department has developed AllianzGI UK’s
remuneration policy. The remuneration committee ensures that on a regular basis the implementation of the remuneration policy
is subject to a central and independent internal review.
Remuneration structure
The primary components of monetary remuneration are the basic salary, which typically reflects the scope, responsibilities and
experience required in a particular role, and an annual variable remuneration. The total amount of the variable remuneration
payable throughout AllianzGI UK depends on the performance of the business and on the company’s risk position and will
therefore vary every year. In this respect, the allocation of specific amounts to particular employees will depend on the
performance of the employee and their department during the period under review. Variable remuneration includes an annual
bonus paid in cash following the end of the financial year. In the case of employees whose variable remuneration exceeds a
certain threshold, a substantial portion of the annual variable remuneration is deferred for a period of three years. The deferred
portions increase in line with the level of the variable remuneration. Half of the deferred amount is linked to the performance of
AllianzGI UK, and the other half is invested in funds managed by AllianzGI UK. The amounts ultimately distributed depend on the
company’s business performance or the performance of shares in certain investment funds over several years. In addition, the
deferred remuneration elements may be withheld under the terms of the plan.
Investor information (unaudited)
107
Performance evaluation
The level of pay awarded to employees of AllianzGI UK is
linked to both quantitative and qualitative performance
indicators. For investment managers, whose decisions make
a real difference in achieving AllianzGI’s clients’ investment
goals, quantitative indicators are geared towards sustainable
investment performance. For portfolio managers in particular,
the quantitative element is aligned with the benchmark of
the client portfolios they manage or with the client’s expected
return, measured over a period of one year and three years. For
client-facing employees, goals also include client satisfaction,
which is measured independently. The remuneration of
employees in controlling functions is not directly linked to the
business performance of individual departments monitored by
the controlling function.
Risk takers
The following groups of employees of AllianzGI UK were
qualified as risk takers: members of management/Senior
Management Function holders without control function,
members of management/Senior Management Function
holders with control function and other risk takers.
Risk avoidance
AllianzGI UK has comprehensive risk reporting in place,
which covers both current and future risks of its business
activities. Risks which exceed the organisation’s risk appetite
are presented to the global remuneration committee, which
will decide, if necessary, on the adjustments to the total
remuneration pool. Individual variable compensation may
also be reduced or withheld in full if employees violate our
compliance policies or take excessive risks on behalf of
AllianzGI UK.
Annual review and material changes to the
remuneration system
The board of AllianzGI UK approved the remuneration
policy which was implemented in accordance with the
remuneration regulations.
Key Investor Information Document (KID)
The Key Investor Information (KID) is a standardised pan-
European document that contains product, risk, charges and
other information. It is a regulatory requirement that you are
provided with a KID before you invest, and you will be required
to declare that you have seen the latest KID when you make
your investment.
The Brunner Investment Trust KID is available under
Information/Documents at brunner.co.uk. However, your
chosen platform provider or stockbroker should provide you
with a copy before accepting your investment instructions.
Please note that existing investors do not need to review
the KID unless planning to add to an investment. The KID’s
standardised format is intended to allow potential investors
to compare funds easily, on a like-for-like basis. The KID now
includes the same ongoing charge figure as we disclose in
this report (in line with the AIC methodology described in
the Glossary at the back of this document). There is also now
a narrative statement within that document, as well as on
our monthly factsheets, which reminds prospective investors
and shareholders that the ‘charges’ disclosed are already
accounted for within the NAV and therefore also the price
paid – investors do not have to pay any further charges to their
investment trust or its manager after purchasing shares.
Financial calendar
Year end 30 November.
Full year results announced and Annual Report posted to
shareholders in February.
Annual General Meeting held in March/April.
Half year results announced and half-yearly Financial Report
posted to shareholders in July.
Ordinary dividends
It is anticipated that dividends will be paid as follows:
1st quarterly June/July
2nd quarterly September
3rd quarterly December
Final March/April
Preference dividends
Payable half-yearly 30 June and 31 December.
Benchmark
For the year under review the benchmark was 70% FTSE
World Ex UK Index / 30% FTSE All-Share Index. For further
information, the FTSE 100 Index was 9,720.51 at 30 November
2025, compared to 8,287.30 at 30 November 2024, an increase
of 17.3%.
Market and portfolio information
The company’s ordinary shares are listed on the London
Stock Exchange. The market price range, gross yield and Net
Asset Value are shown daily in the Financial Times and The
Daily Telegraph under the headings ‘Investment Companies’
and ‘Investment Trusts’, respectively. The Net Asset Value
of the ordinary shares is calculated daily and published on
the London Stock Exchange Regulatory News Service. The
geographical spread of investments and ten largest holdings
are published monthly on the London Stock Exchange
Regulatory News Service. They are also available from the
manager’s Investors Helpline on 0800 389 4696 or via the
company’s website: brunner.co.uk.
Website
Further information about The Brunner Investment
Trust PLC, including monthly factsheets, daily share
price and performance, is available on the company’s
website: brunner.co.uk.
How to Invest
Information is available from AllianzGI UK either via Investor
Services on 0800 389 4696 or on the company’s website:
brunner.co.uk. A list of providers can be found on the company’s
website: brunner.co.uk/about-us/how-to-invest.
Dividend
The board is recommending a final dividend of 6.25p to
be paid on 2 April 2026 to shareholders on the Register of
Members at the close of business on 27 February 2026, with
an ex-dividend date of 26 February 2026, making a total
INVESTOR INFORMATION
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
108
distribution of 25.0p per share for the year ended 30 November
2025, an increase of 5.3% over last year’s distribution.
A Dividend Reinvestment Plan (DRIP) is available for this
dividend and the relevant Election Date is 13 March 2026.
Cash dividends will be sent by cheque to first-named
shareholders at their registered address. Dividends may be
paid directly into shareholders’ bank accounts. Details of how
this may be arranged can be obtained from MUFG Corporate
Markets. Dividends mandated in this way are paid via Bankers’
Automated Clearing Services (BACS).
Registrars
MUFG Corporate Markets, Central Square, 29 Wellington
Street, Leeds LS1 4DL. Telephone: 0371 664 0300. Lines are
open 9.00 a.m. to 5.30 p.m. (UK time) Monday to Friday.
Email:shareholderenquiries@cm.mpms.mufg.com
Website: https://eu.mpms.mufg.com
Shareholder enquiries
In the event of queries regarding their holdings of shares,
lost certificates, dividend payments, registered details, etc.,
shareholders should contact the registrars on 0371 664 0300.
Lines are open 9.00 a.m. to 5.30 p.m. (UK time) Monday to
Friday. Calls to the helpline number from outside the UK are
charged at applicable international rates. Different charges
may apply to calls made from mobile telephones and calls
may be recorded and monitored randomly for security and
training purposes.
Changes of name and address must be notified to the
registrars in writing. Any general enquiries about the company
should be directed to the Company Secretary, The Brunner
Investment Trust PLC, 199 Bishopsgate, London EC2M 3TY.
Telephone: 020 3246 7513.
Dividend Reinvestment Plan for ordinary
shareholders (DRIP)
The registrars offer a DRIP which gives ordinary shareholders
the opportunity to use their cash dividend to buy further shares
in the company under a low-cost dealing arrangement. Terms
and Conditions and an application form are enclosed with
each dividend payment. For more information please email
sharedeal@cm.mpms.mufg.com or call 0371 664 0381.
Share dealing services
MUFG Corporate Markets operate an online and telephone
dealing facility for UK resident shareholders with share
certificates. Stamp duty and commission may be payable
on transactions.
For further information on these services please contact:
sharedeal@cm.mpms.mufg.com for online dealing or 0371 664
0445 for telephone dealing. Lines are open 8.00 a.m. to 4.30
p.m. (UK time) Monday to Friday. Calls to the helpline number
from outside the UK are charged at applicable international
rates. Different charges may apply to calls made from mobile
telephones and calls may be recorded and monitored
randomly for security and training purposes.
Investor Centre
Shareholders can vote electronically via the Investor Centre,
a free app for smartphone and tablet provided by MUFG
Corporate Markets (the company’s registrar). It allows you to
securely manage and monitor your shareholdings in real time,
take part in online voting, keep your details up to date, access
a range of information including payment history and much
more. The app is available to download on both the Apple App
Store and Google Play, or by scanning the relevant QR code
below. Alternatively, you may access the Investor Centre via a
web browser at: https://uk.investorcentre.mpms.mufg.com/.
International payment services
MUFG Corporate Markets operate an international payment
service for shareholders, whereby they can elect either for
their dividend to be paid by foreign currency draft or they can
request an international bank mandate. This service is only
available for dividend payments of £10 or more and a small
administration fee per dividend payment applies.
For further information on this service please contact: 0371 664
0385. Lines are open between 9.00am and 5.30pm (UK time),
Monday to Friday.
Shareholder proxy voting
Shareholders may submit their proxy electronically using the
Investor Centre app or at https://uk.investorcentre.mpms.mufg.
com/. Further details on voting via the Investor Centre or by
post using the personalised proxy card provided, are contained
within the Notice of Meeting Notes on page 110.
CREST proxy voting
Shares held in uncertificated form (i.e., in CREST) may be
voted through the CREST Proxy Voting Service in accordance
with the procedures set out in the CREST manual. Voting
via the Proxymity platform is also available to institutional
shareholders. Further details are contained within the Notice of
Meeting Notes on page 110.
Association of Investment Companies (AIC)
The company is a member of the AIC, the trade body of the
investment trust industry, which provides a range of literature
including fact sheets and a monthly statistical service. Copies of
these publications can be obtained from the AIC, 9th Floor, 24
Chiswell Street, London EC1Y 4YY, or at theaic.co.uk.
AIC Category: Global.
109
Notice is hereby given that the ninety-ninth annual general
meeting of The Brunner Investment Trust PLC will be held at
Trinity House, Trinity Square, Tower Hill, London EC3N 4DH
on Tuesday 31 March 2026 at 11.30 a.m. to transact the
following business:
Ordinary business
1. To receive and adopt the Directors’ Report and the
Financial Statements for the year ended 30 November
2025 with the Auditors’ Report thereon.
2. To declare a final dividend of 6.25p per ordinary share.
3. To re-elect Carolan Dobson as a director.
4. To re-elect Amanda Aldridge as a director.
5. To re-elect Elizabeth Field as a director.
6. To re-elect Andrew Hutton as a director.
7. To re-elect Jim Sharp as a director.
8. To approve the Directors’ Remuneration Policy
9. To approve the Directors’ Remuneration
Implementation Report.
10. To re-appoint PricewaterhouseCoopers LLP as the auditor
of the company.
11. To authorise the directors to determine the remuneration of
the auditor.
Special business
To consider and, if thought fit, pass the following resolutions
of which resolution 12 will be proposed as an ordinary
resolution and resolutions 13 and 14 will be proposed as
special resolutions:
12. That the directors be and are hereby generally and
unconditionally authorised pursuant to section 551 of the
Companies Act 2006 to allot relevant securities (within
the meaning of section 551 of that Act) provided that
this power shall be limited to the allotment of relevant
securities up to an aggregate nominal amount of
£3,603,977 (14,415,909 ordinary shares) and shall expire at
the conclusion of the next annual general meeting of the
company held after the meeting at which this resolution
is passed or 1 July 2027 if earlier, save that the directors
may before such expiry make an offer or agreement which
would or might require relevant securities to be allotted
after such expiry and the directors may allot relevant
securities in pursuance of such offer or agreement as if the
power conferred hereby had not expired.
13. That the directors be and are hereby empowered, pursuant
to section 570 of the Companies Act 2006, to allot equity
securities (as defined in section 560 of that Act) pursuant
to the authority conferred by resolution 12 above or by
way of a sale of treasury shares as if section 561 of that
Act did not apply to any such allotment, provided that this
power shall be limited to the allotment of equity securities
for cash of an aggregate maximum nominal amount of
£1,081,193 (4,324,773 ordinary shares) and shall expire at
the conclusion of the next annual general meeting of the
company held after the meeting at which this resolution
is passed or 1 July 2027, if earlier, save that the directors
may before such expiry make an offer or agreement which
would or might require equity securities to be allotted after
such expiry and the directors may allot equity securities
in pursuance of such offer or agreement as if the power
conferred had not expired.
14. That the company be and is hereby generally and
unconditionally authorised in accordance with section
701 of the Companies Act 2006 (the Act) to make market
purchases (within the meaning of section 693(4) of the
Act) of ordinary shares of 25p each in the capital of the
company (ordinary shares) either for retention as treasury
shares or for cancellation, provided that:
(i) the maximum number of ordinary shares hereby
authorised to be purchased shall be 6,482,834;
(ii) the minimum price which may be paid for an ordinary
share is 25p;
(iii) the maximum price which may be paid for an ordinary
share is an amount equal to 105% of the average of the
middle market quotations for an ordinary share taken
from the London Stock Exchange Official List for the 5
business days immediately preceding the day on which
the ordinary share is purchased or such other amount
as may be specified by the London Stock Exchange
from time to time;
(iv) the authority hereby conferred shall expire at the
conclusion of the annual general meeting of the
company in 2027 or 1 July 2027 if earlier, unless such
authority is renewed prior to such time; and
(v) the company may make a contract to purchase
ordinary shares under the authority hereby conferred
prior to the expiry of such authority which will or may
be executed wholly or partly after the expiration of
such authority and may make a purchase of ordinary
shares pursuant to any such contract.
By order of the board
Kirsten Salt
Company Secretary
11 February 2026
199 Bishopsgate, London EC2M 3TY
Notice of Meeting
INVESTOR INFORMATION
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
110
Notes:
The following notes explain your general rights as a
shareholder and your right to attend and vote at this Meeting
or to appoint someone else to vote on your behalf.
1. To be entitled to attend and vote at the Meeting (and for
the purpose of the determination by the company of the
number of votes they may cast), shareholders must be
registered in the register of members of the company at
close of trading on Friday 27 March 2026 (the record date).
Changes to the register of members after the relevant
deadline shall be disregarded in determining the rights of
any person to attend and vote at the Meeting.
2. Shareholders are entitled to appoint another person as
a proxy to exercise all or part of their rights to attend
and to speak and vote on their behalf at the Meeting. A
shareholder may appoint more than one proxy in relation
to the Meeting provided that each proxy is appointed to
exercise the rights attached to a different ordinary share or
ordinary shares held by that shareholder. A proxy need not
be a shareholder of the company.
3. A personalised form of proxy which may be used to make
such appointment and give proxy instructions accompanies
this Notice. If you do not have a form of proxy and believe
that you should have one, or if you require additional forms,
please contact the registrar of the company whose contact
details are provided in note 6 below.
4. In the case of joint holders, where more than one of
the joint holders purports to appoint a proxy, only the
appointment submitted by the most senior holder will be
accepted. Seniority is determined by the order in which
the names of the joint holders appear in the company’s
Register of Members in respect of the joint holding (the first
named being the most senior).
5. A vote withheld is not a vote in law, which means that the
vote will not be counted in the calculation of votes for
or against the resolution. If no voting indication is given,
your proxy will vote or abstain from voting at his or her
discretion. Your proxy will vote (or abstain from voting) as
he or she thinks fit in relation to any other matter which is
put before the Meeting.
6. To be valid, any form of proxy or other instrument
appointing a proxy, must be returned by no later than
11.30 a.m. on Friday 27 March 2026 through any one of the
following methods:
(i) by post, courier or (during normal business hours only)
hand to the company’s registrar at:
MUFG Corporate Markets
PXS 1
Central Square
29 Wellington Street
Leeds
LS1 4DL
(ii) electronically through the website of the company’s
registrar at https://uk.investorcentre.mpms.mufg.com/
or via the Investor Centre app.
(see note 8 below).
(iii) via Proxymity (see note 9 below).
(v) in the case of shares held through CREST, via the CREST
system (see notes below).
7. If you return more than one proxy appointment, either
by paper or electronic communication, the appointment
received last by the Registrar before the latest time for the
receipt of proxies will take precedence. You are advised to
read the terms and conditions of use carefully. Electronic
communication facilities are open to all shareholders and
those who use them will not be disadvantaged.
8. Shareholders can vote electronically via the Investor Centre,
a free app for smartphone and tablet provided by MUFG
Corporate Markets (the company’s registrar). It allows
you to securely manage and monitor your shareholdings
in real time, take part in online voting, keep your details
up to date, access a range of information including
payment history and much more. The app is available to
download on both the Apple App Store and Google Play,
or by scanning the relevant QR code below. Alternatively,
you may access the Investor Centre via a web browser at:
https://uk.investorcentre.mpms.mufg.com/.
Apple App Store Google Play
9. If you are an institutional investor, you may be able to
appoint a proxy electronically via the Proxymity platform,
a process which has been agreed by the company
and approved by the Registrar. For further information
regarding Proxymity, please go to www.proxymity.io. Your
proxy must be lodged by 11.30 a.m. on Friday 27 March
2026 in order to be considered valid or, if the meeting is
adjourned, by the time which is 48 hours before the time
of the adjourned meeting. Before you can appoint a proxy
via this process you will need to have agreed to Proxymity’s
associated terms and conditions. It is important that you
read these carefully as you will be bound by them and they
will govern the electronic appointment of your proxy. An
electronic proxy appointment via the Proxymity platform
may be revoked completely by sending an authenticated
message via the platform instructing the removal of your
proxy vote.
10. The return of a completed form of proxy, electronic voting
online or via the app or any CREST Proxy Instruction (as
described in note 13 below) or the appointment of a proxy
via Proxymity will not prevent a shareholder from attending
the Meeting and voting in person if he/she wishes to do so.
11. CREST members who wish to appoint a proxy or proxies
through the CREST electronic proxy appointment service
may do so for the Meeting (and any adjournment of the
Meeting) by using the procedures described in the CREST
Manual (available from www.euroclear.com). CREST
Personal Members or other CREST sponsored members,
and those CREST members who have appointed a service
111
provider(s), should refer to their CREST sponsor or voting
service provider(s), who will be able to take the appropriate
action on their behalf.
12. In order for a proxy appointment or instruction made
by means of CREST to be valid, the appropriate CREST
message (a ‘CREST Proxy Instruction’) must be properly
authenticated in accordance with Euroclear UK &
International Limited’s specifications and must contain the
information required for such instructions, as described in
the CREST Manual. The message must be transmitted so
as to be received by the issuer’s agent (ID RA10) by 11.30
a.m. on Friday 27 March 2026. For this purpose, the time
of receipt will be taken to mean the time (as determined
by the timestamp applied to the message by the CREST
application host) from which the issuer’s agent is able to
retrieve the message by enquiry to CREST in the manner
prescribed by CREST. After this time, any change of
instructions to proxies appointed through CREST should be
communicated to the appointee through other means.
13. CREST members and, where applicable, their CREST
sponsors or voting service providers should note that
Euroclear UK & International Limited does not make
available special procedures in CREST for any particular
message. Normal system timings and limitations will,
therefore, apply in relation to the input of CREST Proxy
Instructions. It is the responsibility of the CREST member
concerned to take (or, if the CREST member is a CREST
personal member, or sponsored member, or has appointed
a voting service provider(s), to procure that his CREST
sponsor or voting service provider(s) take(s)) such action as
shall be necessary to ensure that a message is transmitted
by means of the CREST system by any particular time. In
this connection, CREST members and, where applicable,
their CREST sponsors or voting system providers are
referred, in particular, to those sections of the CREST
Manual concerning practical limitations of the CREST
system and timings. The company may treat as invalid
a CREST Proxy Instruction in the circumstances set out
in Regulation 35(5)(a) of the Uncertificated Securities
Regulations 2001.
14. Unless otherwise indicated on the Form of Proxy, CREST
voting, Proxymity or any other electronic voting channel
instruction, the proxy will vote as they think fit or, at their
discretion, withhold from voting.
15. Corporate representatives are entitled to attend and vote
on behalf of the corporate member in accordance with
section 323 of the Companies Act 2006. Pursuant to the
Companies (Shareholders’ Rights) Regulations 2009 (SI
2009/1632), multiple corporate representatives appointed
by the same corporate member can vote in different ways
provided they are voting in respect of different shares.
16. As at 9 February 2026, (being the latest practicable
business day prior to the publication of this Notice), the
total number of shares in the company in respect of
which members are entitled to exercise voting rights was
43,232,562 ordinary shares, of 25p each. Each ordinary
share carries the right to one vote however shares bought
back and held in treasury have no voting rights. Therefore
the total number of voting rights in the company on 9
February 2026 is 43,232,562. The 5% cumulative preference
shares do not ordinarily have any voting rights.
17. The right to appoint a proxy does not apply to persons
whose shares are held on their behalf by another person
and who have been nominated to receive communications
from the company in accordance with section 146 of the
Companies Act 2006 (nominated persons). Nominated
persons may have a right under an agreement with the
registered shareholder who holds the shares on their behalf
to be appointed (or to have someone else appointed) as
a proxy. Alternatively, if nominated persons do not have
such a right, or do not wish to exercise it, they may have
a right under such an agreement to give instructions to
the person holding the shares as to the exercise of voting
rights. Nominated persons should contact the registered
member by whom they were nominated in respect of
these arrangements.
18. Members have a right under section 319A of the
Companies Act 2006 to require the company to answer any
question raised by a member at the AGM, which relates to
the business being dealt with at the meeting, although no
answer need be given: (a) if to do so would interfere unduly
with the preparation of the meeting or involve disclosure of
confidential information; (b) if the answer has already been
given on the company’s website; or (c) it is undesirable
in the best interests of the company or the good order of
the meeting.
19. Members satisfying the thresholds in section 527 of the
Companies Act 2006 can require the company, at its
expense, to publish a statement on the company website
setting out any matter which relates to the audit of the
company’s financial statements that are to be laid before
the meeting. Any such statement must also be sent to
the company’s auditor no later than the time it is made
available on the website and must be included in the
business of the meeting.
20. Further information regarding the meeting which the
company is required by section 311A of the Companies Act
2006 to publish on a website in advance of the meeting
(including this notice), can be accessed at brunner.co.uk.
21. Contracts of services are not entered into with the directors,
who hold office in accordance with the Articles.
INVESTOR INFORMATION
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
112
UK GAAP performance measures
Net Asset Value is the value of total assets less all liabilities. The Net Asset Value, or NAV, per ordinary share is calculated by dividing
this amount by the total number of ordinary shares in issue. The debt in the company used in the calculation is measured at par value,
that is, the net proceeds on issue plus accrued finance costs to date. As at 30 November 2025, the NAV with debt at par value was
£667,223,000 (2024: £618,182,000) and the NAV per share was 1,543.2p (2024: 1,438.8p).
Earnings per ordinary share is the profit after taxation, divided by the weighted average number of shares in issue for the period. For
the year ended 30 November 2025 earnings per ordinary share was 27.86p (2024: 27.37p), calculated by taking the profit after tax of
£12,046,000 (2024: £11,686,000), divided by the weighted average shares in issue of 43,240,399 (2024: 42,701,544).
Alternative Performance Measures (APMs)
Net Asset Value, debt at fair value is the value of total assets less all liabilities, with the company’s debt measured at the fair value
at the time of calculation. The Net Asset Value, or NAV, per ordinary share with debt at fair value is calculated by dividing this amount
by the total number of ordinary shares in issue (see page 98). As at 30 November 2025, the NAV with debt at fair value was
£676,985,000 (2024: £627,112,000) and the NAV per share with debt at fair value was 1,565.8p (2024: 1,459.6p). (Further details can be
found in Note 15(c) on page 102).
Net Asset Value per ordinary share, total return represents the theoretical return on NAV per ordinary share, assuming that dividends
paid to shareholders were reinvested at the NAV per ordinary share at the close of business on the day the shares were quoted ex
dividend (see Note 13 on page 98).
Share price Total Return the theoretical return to a shareholder, on a closing market price basis, assuming that all dividends received
were reinvested, without transaction costs, into the ordinary shares of the company at the close of business on the day the shares
were quoted ex dividend (see page 3). The share price as at 30 November 2025 was 1,406.0p, a decrease of 54.0p from the
price of 1,460.0p as at 30 November 2024. The decrease in share price of 54.0p plus the dividends declared for the year of 25.0p are
divided by the opening share price of 1,460.0p to arrive at the share price total return for the year ended 30 November 2025 of -2.0%
(2024: +39.3%).
Benchmark Total Return is the return on the benchmark, on a closing market price basis, assuming that all dividends received were
reinvested into the shares of the underlying companies at the time their shares were quoted ex dividend (see page 3).
Discount or premium is the amount by which the stock market price per ordinary share is lower (discount) or higher (premium) than
the Net Asset Value, or NAV, with either debt at par or debt at market value, per ordinary share. The discount/premium is normally
expressed as a percentage of the NAV per ordinary share (see page 2).
Ongoing charges are operating expenses incurred in the running of the company, whether charged to revenue or capital, but
excluding financing costs. These are expressed as a percentage of the average Net Asset Value during the year and this is calculated in
accordance with guidance issued by the Association of Investment Companies (see page 17).
2025
£
2024
£
Management fee 2,916,000 2,742,000
Administration expenses 923,000 954,000
Total expenses (A) 3,839,000 3,696,000
Average Net Asset Value with debt at market value (B) 624,927,000 585,576,000
Ongoing charge (A/B) 0.61% 0.63%
The ongoing charge differs from the ongoing charge in the company’s KID, which is calculated in accordance with the PRIIPs regulations
and includes finance costs.
Yield represents dividends declared in the past year as a percentage of share price.
2025 2024
Dividends declared for the year 25.0p 23.75p
Share price at year end 1,406.0p 1,460.0p
Annual dividend as a percentage of share price 1.8% 1.6%
Gearing is the amount of debt as a percentage of the net assets (see Note 16 on page 104).
Revenue reserve per ordinary share of 35.6p (2024: 33.0p) is the revenue reserve per the balance sheet of £20,783,000 (2024:
£19,278,000) less the third dividend and final proposed dividend in respect of the year (Note 6) of £5,404,000 (2024: £5,118,000),
payable after the year end, divided by the total number of ordinary shares in issue of 43,237,231 (2024: 42,963,736).
Glossary
Warning to Shareholders
We are aware that some shareholders may have received unsolicited telephone calls or correspondence concerning
investment matters. These are typically from overseas based organisations who target UK shareholders offering to sell them,
what often turn out to be, worthless or high risk shares in US or UK investments or encourage them to dispose of UK shares.
They can be extremely persistent and persuasive. Shareholders are therefore advised to be very wary of any unsolicited
advice or offers.
Please note that it is most unlikely that either the company or the company’s Registrar, MUFG Corporate Markets, would
make unsolicited telephone calls to shareholders. Any such calls would only ever relate to official documentation already
circulated to shareholders and never in respect of investment ‘advice’.
If you are in any doubt about the veracity of an unsolicited telephone call, please call the Company Secretary on +44 (0)800
389 4696 or the Registrar on +44 (0) 371 664 0300.
THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025
4
The Brunner Investment Trust PLC
199 Bishopsgate
London
EC2M 3TY
+44 (0)203 246 7000
www.brunner.co.uk