## The Brunner ## Investment Trust PLC ## A GLOBAL EQUITY INVESTMENT TRUST ## Annual Report, 30 November 2025 ## The Brunner Investment Trust PLC ### A GLOBAL EQUITY INVESTMENT TRUST | Capital growth and dividends | ‘All-weather’ portfolio | Independence | | --- | --- | --- | | The Brunner Investment Trust PLC (Brunner) | The company provides a balanced | Brunner has an independent board of | | aims to provide growth in capital value and | solution for investors looking for a global | directors and no employees. Like many | | dividends for investors over the long term | and UK portfolio of equities and a quarterly | other investment companies, it outsources | | through investing in a portfolio of global and | dividend. The company’s investment | investment management and administration | | UK equities. | policy is set out in the Strategic Report on | to an investment management company | | | page 11. | – Allianz Global Investors – and other third | The Key Performance Indicators (KPIs) on parties to provide shareholders with an page 16 show how effective the company efficient, competitive, cost-effective way has been in delivering its strategy. to gain wide equity investment exposure through a single investment vehicle. | Risk and gearing | Benchmark | Association of Investment Companies | | --- | --- | --- | | A statement explaining how the assets have | For the year under review the benchmark | Brunner is a member of the Association | | been invested to spread risk and how gearing | against which the portfolio is measured was | of Investment Companies (AIC) and the | | is managed is included under Investment | a composite of 70% FTSE World Ex UK Index | company’s shares are recognised by the | | Policy on page 12. | and 30% FTSE All-Share Index. | AIC as suitable for retail investors. AIC | Category: Global. ## A family investment from the beginning… | Like many long-established investment | century. In 1873 he and the scientist Ludwig | John Brunner was a passionate campaigner, | | --- | --- | --- | | trusts, Brunner’s name reflects its history | Mond founded Brunner, Mond and Co, | including for welfare reforms and free | | rather than its investment strategy. Johannes | the largest of the four companies which | trade, and used his wealth for philanthropic | | Brunner was born in Canton Zürich and | came together to form ICI in 1926. The | purposes. Jim Sharp, a director of the | | migrated to Lancashire in 1832. His son, Sir | following year the Brunner family chose | company, is connected to the Brunner | | John Brunner, Bart, was one of the most | to sell its ICI shares and establish a broad, | family by marriage and continues the | | successful industrialists of the nineteenth | long-term investment vehicle – so in 1927, | link between board and family. Brunner | | century, and in politics an influential radical | The Brunner Investment Trust was formed. | family share ownership information is | | Liberal MP until well into the twentieth | | included on pages 64 and 66. | Sir John BrunnerBrunner, Mond & Co. factory, worker cottages and Co-operative Society ### WWW.BRUNNER.CO.UK ## Contents Overview 2 Financial highlights ## 2 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 ## 11 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 25 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 ## 59 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 ## 79 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 ## 105 Investor Information 106 Investor information (unaudited) 109 Notice of Meeting 112 Glossary 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. 1 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## 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 2 OVERVIEW OVERVIEW 4 | Net Asset Value total return | | Net Asset Value total return | | Benchmark total return index | | --- | --- | --- | --- | --- | | | 2 | | 2 | | | Debt at fair value | | Debt at par | | | ## +9.0% +9.0% +15.8% ### 2024 2024 2024 ## +17.9% +18.2% +23.6% 1 1 2 5 Net assets per ordinary share Net assets per ordinary share Share price total return 2 Debt at fair value Debt at Par ## 1,565.8p 1,543.2p -2.0% ### 2024 1,459.6p 2024 1,438.8p 2025 1,406.0p ## +7.3% +7.3% 2024 1,460.0p 3 Earnings per ordinary share Dividend per ordinary share Revenue reserves per ordinary share for the year ## 27.9p 25.0p 35.6p ### 2024 27.4p 2024 23.75p 2024 ## +1.8% +5.3% 33.0p 2 Consumer price index Discount – average in the year ## 3.7% +3.3% ### 2024 2025 139.5 ### 2024 135.1 ## 4.6% 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 2 3 the Performance – review of the year on page 9. Alternative Performance Measures (APM). See Glossary on page 112. The dividend 4 per ordinary share includes the proposed final dividend of 6.25p. The benchmark index of 70% FTSE World Ex UK Index and 30% FTSE All- 5 Share Index. Share price total return is based on the movement in share price including dividends reinvested. 3 3 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 | 1973 | 1974 | 1976 | 1979 | 1982 | 1984 | 1986 | 1987 | | --- | --- | --- | --- | --- | --- | --- | --- | | Britain joins | Bear market | Britain borrows | ‘Winter of | Economic | 12-month UK | ‘Big Bang’ | ‘Black | | the European | | money from | Discontent’ | recession | miners’ strike | enhances | Monday’ | | Community | | the IMF | | leads to high | | London’s status | | | | | | | unemployment | | as a financial | | | | | | | in the UK | | capital | | 1 ## 2025 ## yrs ## 25.0p ## 54 ## 5,208.3% 2 ### (CAGR 7.6%) ## of continual ## dividend growth ## 1,814.2% ## 1972 ## 0.48p Inflation growth of 1,814.2% over the period. RPI 1972-1986. CPI 1987-2025. 1 Total dividend: from 0.48p to 25.0p over the period Final dividend for approval at the 2026 AGM. 2 Brunner dividend growth of 5,208.3% over the period. Compound Annual Growth Rate (CAGR) of 7.6%. | 2000 | 2001 | 2003 | 2008 | 2016 | 2020 | 2022 | 2025 | | --- | --- | --- | --- | --- | --- | --- | --- | | Beginning of | 9/11 | The Second | Financial crisis | Brexit vote | COVID-19 | Invasion | President | | the end of the | | Gulf War | | | pandemic | of Ukraine | Trump’s | | dotcom boom | | | | | | | second term | begins 4 4 OVERVIEW ## Chair’s Statement Board affirmation and conviction philosophy that has guided Brunner excessive concentration in any single through numerous market cycles – theme or style. In a world of accelerating change, and more than a little turbulence, I would and delivered 53 consecutive years of Artificial Intelligence – like to open my statement for this year’s dividend increases – remains sound and opportunity and participation accounts with a resolute affirmation for appropriate for long-term shareholders. without speculation Brunner, on behalf of myself, the other Artificial intelligence was the dominant members of your board, and all those The investment landscape in 2025 narrative driving equity markets in involved in running your trust. The financial year was defined by two 2025. The transformative potential of powerful, and somewhat conflicting, We consider Brunner to be a valuable, AI is undeniable, with some estimates forces: a shift in monetary policy and enduring investment proposition. suggesting it could contribute as much by the US Federal Reserve and an This conviction is rooted in a combination as $15.7 trillion to global GDP by 2030. unprecedented concentration of returns of factors that, we believe, differentiate This has fuelled a surge in AI-related in a handful of technology stocks. After Brunner strongly from not only other investment – almost an ‘arms race’, a period of aggressive tightening, the investment trusts, but also from a wider with the potential ‘cost’ of missing Federal Open Market Committee began universe of investment choices available out on being a leader in the space to ease policy, cutting the federal funds to you today. seemingly justifying eye-watering levels rate three times to a final range of 3.5% of investment. These are the foundational pillars that to 3.75%. This decision, while not without support our confidence in delivering However, the market’s enthusiasm for internal division, provided a supportive long-term capital growth, combined AI has led to a significant expansion backdrop for equity valuations. with a predictable income: a balanced, of valuation multiples for a narrow However, 2025 was anything but differentiated way of viewing global set of AI-related companies, with the ordinary. The market rally was equities; the predictability of income technology sector (and within that extraordinarily narrow, driven in the we provide through our forecasted sector a small subset of companies main by a select group of technology actually driving the strong sector return) dividend – a rarity in today’s market, but companies. The US market has hit significantly outperforming the broader backed by substantial revenue reserves; unprecedented levels of concentration, market. This has raised concerns about the steadfast support of the Brunner with the most significant returns a potential valuation bubble. While the family, whose legacy is woven into the | fabric of our trust; and the commitment | driven by a handful of high-growth | underlying technology is more mature | | --- | --- | --- | | of your board, now and in the future, for | technology stocks. This was driven by | than in the speculative internet bubble | | the benefit of all shareholders. These | a surge of capital into companies seen | of the late 1990s, the risk of a material | | are the reasons we, as a board, “turn | by the market as best positioned to | correction in the most speculative | | up”, dedicated to the stewardship of | capitalise on the artificial intelligence | segments of the technology market | | your capital. | investment cycle. | remains a key consideration for investors. | | We acknowledge that 2025 presented | This concentration of returns in a | Brunner has chosen to participate in | | challenges in relative performance | narrow set of stocks creates material | the AI opportunity through a diversified | | terms. The trust’s NAV lagged its | risk for investors. While such rallies can | set of holdings that capture genuine | | benchmark as the market concentrated | be powerful in the near term, history | value creation without excessive | | returns in a narrow group of mega-cap | suggests they are typically followed | speculation. Rather than holding the | | technology stocks. However, the trust | by periods of mean reversion and | most speculative technology stocks, | | delivered a positive absolute return of | volatility. Your Board remains focused | the trust maintains large positions in | | 9.0% on a total-return basis, and we | on protecting your capital through | companies such as TSMC, ASML, and | | remain confident that the investment | a diversified approach that avoids | Amphenol. These companies have | 5 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## Brunner’s “all-weather” approach means delivering ## consistent, steady returns through a diversified ## portfolio positioned to perform across a range of ## market environments. | performed well and are essential | world’s fourth-largest economy. This has | We recognise that this means the trust | | --- | --- | --- | | to the AI infrastructure buildout. | significant implications for global supply | will sometimes underperform in periods | | Additionally, the trust holds a substantial | chains and represents a structural shift | when the market concentrates returns in | | position in Alphabet (Google), | in global economic power. The ongoing | a narrow manner via outperformance | | which is at the forefront of the large | conflict in Ukraine and the humanitarian | of a particular style, sector or fashion. | | language model race and is a leading | crisis in Sudan, which the International | However, this trade-off is intentional and | | designer of its own AI chips. These | Rescue Committee has for the third | deliberate. In 2025 for example, it was | | holdings have provided meaningful | | these types of speculative, unprofitable | consecutive year named the world’s exposure to the AI opportunity while technology stocks that were one of the worst, further contributed to a climate of maintaining the portfolio’s quality and key drivers of market performance. By geopolitical uncertainty. diversification standards. adhering to our investment philosophy, Brunner did not fully participate in this This positioning was vindicated in the Understanding the “all-weather” narrow, cyclically-driven upmarket. | final quarter of the year, when some | investing approach | | | --- | --- | --- | | technology leaders faltered on market | We recognise that for some shareholders, | History provides important context – | | concerns on whether they could deliver | the term “all-weather” may seem | for example, the last time that quality | | on elevated expectations, while value- | abstract or unclear. We therefore feel it | factors underperformed as significantly | | oriented sectors, even now including | is important that we articulate precisely | as they have over the past year or so was | | healthcare, rallied. This underscores | what we mean by this phrase and what it | in 1999/2000, after which there was a | | the risk of over-concentration and the | | significant recovery and outperformance | delivers in practice. importance of a diversified approach, by quality stocks. The same pattern The core principle precisely the philosophy that has guided repeated, albeit with slightly lower Brunner for decades. Please do read Brunner’s “all-weather” approach means extremes, beginning in 2009. We believe more about the detail of the investment delivering consistent, steady returns this historical pattern is relevant to portfolio and how our philosophy has through a diversified portfolio positioned investors today, and we remain confident been applied over the financial year in to perform across a range of market that our discipline will prove its worth over the Portfolio Managers’ Report starting environments. This is not achieved by the long term. on page 26. chasing every trend or attempting to Why this matters predict or time markets. Rather, it is Geopolitical fragmentation and the In a market dominated by a handful achieved by maintaining a balanced global trade landscape of stocks and vulnerable to sharp, exposure to companies and sectors that The geopolitical landscape in 2025 unpredictable rotations, the all-weather generate steady returns in aggregate has been marked by continued approach is not just a marketing through varying economic or market fragmentation. The US-China trade phrase, it is a genuine advantage. You cycles. It is, in essence, a philosophy of relationship has remained a source are positioned to benefit from strong prudent diversification combined with of volatility, with the continued use businesses around the world, in a bottom-up stock selection. of tariffs as a key instrument of trade multitude of different industries. Your policy. While the stated goal is to The trade-off portfolio is diversified across geographies, reshore manufacturing, the evidence Brunner maintains a quality-oriented sectors, themes and industries, so you of effectiveness is mixed, with China’s portfolio of global equities that aims for are not concentrated in any single region trade surplus continuing to grow to a sensible approach to risk. This means affected by geopolitical shocks. Neither record levels. the trust has certain rules, including not are you dependent on any single sector investing in speculative, loss-making or or theme to drive returns. Beyond the US-China dynamic, the | global trade landscape is being reshaped | unprofitable companies – a philosophy | | | --- | --- | --- | | by the rise of new economic powers. | of ‘cash is king’ – with solid free cash flow | The supporting pillars of | | In 2025, India surpassed China as the | that can be returned to shareholders | our approach | | world’s most populous country and | being the solid base that we build the | Our all-weather positioning is supported | | also overtook Japan to become the | portfolio on. | by the following key factors: | 6 OVERVIEW Balanced diversification with no demonstrates Brunner’s ability to deliver dominant style – exposure across consistent returns through multiple multiple geographies, sectors, market cycles, wars, recessions, and and themes means returns are crises. This is not a theoretical approach; not dependent on any single area it is one that has been tested and proven performing well. We actively avoid over almost a century. excessive concentration and ensure Brunner family support – the ongoing our shareholders do not have all support of the Brunner family for the their eggs in one basket. We have a trust signals a long-term commitment well-stated policy to triangulate the and shared interests with all other best balance of ‘value’, ‘growth’ and shareholders. We believe this alignment ‘quality’ investment factors within the is to the advantage of all shareholders portfolio. There is no significant stylistic and a valuable feature of the trust, dominance, although quality factors providing a welcome stability in a are favoured in portfolio stock picks due sometimes not-so-stable world. to the inherent solidity provided to the portfolio over the long term – dominant Shareholder communications market positions, strong competitive and messaging moats, recurring revenue streams and Shareholder communications and so on. These factors generally mean the messaging are important for the trust’s portfolio is less vulnerable to economic continued success. The board wants to shocks and provides better protection in ## ensure that the trust’s value proposition The board was a downcycle. is clearly understood by both existing ## pleased to announce Risk-managed balance of conviction and prospective investors. and active management – active ## in December 2025 the management melds art with science Our core message – as described ## and, within our risk management above – is that we deliver a balanced appointment of James framework, allows the manager to back strategy with a variety of themes ## allowing Brunner to make money for Ashworth as co-lead investment convictions, as well as adapt flexibly as markets develop. We believe its shareholders over time. We aim ## manager of Brunner this will have a net-positive outcome for a forecastable approach with our ## over the long term, though one has to dividend focus, thus providing steady alongside Julian Bishop. accept occasional stock-pick failures. equity market returns but with a stability We feel the long-term benefits outweigh of income provision for shareholders. the occasional setback. Overall, prudent This is both our purpose and our key positioning in less-levered, higher- differentiation. It demonstrates why quality segments of each sector should Brunner offers a unique proposition create natural downside protection in for investors. market corrections. Position sizes are While we communicate this message managed closely to ensure portfolio risk in depth through our various is appropriate to the outcome we are communications channels, we recognise trying to achieve for shareholders. the need for it to be even more Income stability and predictability – accessible and to ‘punch hard’ to garner our dividend focus and policy means attention. Brunner undoubtedly has shareholders should receive a steady a strong following of loyal investors, income regardless of market conditions, however for the benefit of both existing combined with the growth potential and new shareholders, we recognise the of a portfolio of global equities. Unlike benefits of bringing the trust into view many investment trusts, Brunner of new audiences and those not already forecasts and declares its dividend familiar. We need to demonstrate our projection in advance each year and differentiated approach vigorously, not maintains substantial reserves to support just from other investment trusts, but income in difficult years. This provides from other investment vehicles too. shareholders with genuine income | certainty, creating a useful combination | Investment management | | --- | --- | | of risk-managed equity returns with an | team changes | | almost fixed-income-like income stream | The board was pleased to announce | | for shareholders. Our strong track record | in December 2025 the appointment of | | of 53 years of consecutive dividend | James Ashworth as co-lead manager | | increases, combined with steady | of Brunner alongside Julian Bishop, | | capturing of growth from equity markets, | who has co-led the management of the | 7 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 | portfolio for three years. James had been | world-class businesses with resilient | | --- | --- | | a deputy since early 2024. Christian | earnings, is the most prudent course | | Schneider and Simon Gergel will | for an investment trust aiming to be | | continue to provide investment support | at the core of an individual investor’s | | to the team as named deputy managers. | own portfolio. The world continues | to offer a wealth of opportunities for Earnings per share those with a discerning eye and a Over the past year the portfolio’s long-term perspective. generation of income and earnings We believe that the key benefit we offer grew once more, with earnings per our shareholders is the consistency of share for the year rising by 1.8%, the strategy that engineers a well- from 27.4p to 27.9p. Brunner is again diversified portfolio of companies which able to cover our increased dividend delivers steady performance under a payment to shareholders and still myriad of possible global conditions contribute to revenue reserves to help – the reason behind our “all-weather” smooth dividend growth during any tagline as we outline above. Amidst future years when earning income is all the macro uncertainty, the portfolio more challenging. remains constructed from bottom-up ## Brunner will now reach stock picks, seeking diverse opportunities Dividend from individual companies. We remain ## 54 years of consecutive The proposed final dividend of 6.25p, if cognisant of the effect that external approved by shareholders, will be paid factors could have on that portfolio ## dividend increases, | | on 2 April 2026 to shareholders on the | of companies, but we are not trying to | | --- | --- | --- | | remaining in place near | register on 27 February 2026, with an | predict outcomes or have investment | | | ex-dividend date of 26 February 2026. | decisions guided in a wholesale fashion | ## the top of the AIC’s | | For those shareholders in the Dividend | by those factors. | | --- | --- | --- | | ‘Dividend Heroes’ list. | Reinvestment Plan (DRIP), the last date | | | | for this will be 13 March 2026. In line with | Annual General Meeting | board’s dividend policy, which is outlined It was a pleasure to see so many of you on page 16, the total dividend for 2025, at our last Annual General Meeting. including the proposed final dividend, We look forward to welcoming you will be 25.0p. This represents an increase again this year at Trinity House, Trinity of 5.3% over the 2024 dividend which Square, Tower Hill, London, EC3N 4DH, was 23.75p and means Brunner will now at 11.30 am on Tuesday 31 March 2026. reach 54 years of consecutive dividend Attending shareholders will, as usual, increases, remaining in place near the receive a presentation from the portfolio top of the AIC’s ‘Dividend Heroes’ list. managers before the formal business Revenue reserves will remain strong at takes place. It is always a valuable 35.6p (2024: 33.0p) after the payment of opportunity for the Board and our the proposed final dividend. portfolio managers to hear your views and answer your questions directly. We Outlook would be delighted to see you there. The new financial year has begun Shareholders can send any questions with as much uncertainty as the to be answered at the AGM by the last. Geopolitical tensions remain board and portfolio managers care of elevated, with ongoing conflicts and the company secretary at investment- realignments of global powers creating trusts@allianzgi.com or in writing to the a fragile backdrop. While the two registered office, and we will publish main geopolitical ‘events’ of the year questions and answers on the website so far (Venezuela and Iran) are having after the meeting. We encourage all relatively muted impact on markets thus shareholders to exercise their votes in far, it is the implications of the US actions advance of the meeting by completing in Venezuela in terms of potential and returning the form of proxy. future actions, not only by the US, but potentially by other emboldened powers Carolan Dobson that is causing more consternation. Chair While inflation has moderated from its 11 February 2026 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 8 OVERVIEW # 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. 9 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## Historical record 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 1 Total net assets (£ms) 318.3 368.0 360.3 403.8 422.1 502.4 497.1 528.2 618.2 667.2 2 Total net assets (£ms) 307.7 359.2 361.1 400.2 416.5 497.5 503.2 537.3 627.1 677.0 1 Net Asset Value per ordinary share 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 2 Net Asset Value per ordinary share 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 2 | Year end discount % | | 18 7 12 8 14 10 14 15 | 0 10 | | --- | --- | --- | --- | | 1 | 2 | | | | Debt at par. | Debt at fair value. | | | 30 25 20 15 10 Net Asset Value Return % 5 10 Re-based to 100. Source: AllianzGI/Thomson Reuters DataStream. Benchmark: 70% FTSE World Ex UK Index and 30% FTSE All-Share Index. Brunner debt at par Brunner debt at fair value Alternative Performance Measure (APM). See Glossary on page 112. Net Asset Value total return with debt at fair value and debt at par 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Benchmark 0 Norwegian bank DNB, headquartered in Oslo, Norway, was another significant contributor to performance. ## Strategic ## Report 12 Introduction 13 Section 172 Report 16 Key Performance Indicators 18 Risk report 23 Environmental, Social and Governance (ESG) Issues 11 11 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## Introduction Purpose Our purpose is to provide the company’s new investors and investor groups, In addition to annual and half-yearly shareholders with growth in capital particularly individuals with smaller financial reports, the company value and dividends over the long term portfolios held either directly or in self- announces Net Asset Values per share through investing in a portfolio of global invested pension plans for whom we can daily and provides further information provide a balanced solution for equity monthly to the market, in order for and UK equities. The company aims to investment. It is also our objective to investors and market professionals to achieve a return higher than that of our provide good value for shareholders compare its performance with its peer benchmark, after costs, and to achieve and ensure that the costs of running group. The investment manager also steady dividend growth in real terms. the company are reasonable and issues a monthly update on investment competitive. Information on Revenue performance which is posted on the Strategy review and Invested Funds in the year is company’s website and is available We hold an annual strategy meeting summarised on page 63. by email. outside the normal timetable of board meetings. At the most recent meeting the Brunner has an independent board Manager’s investment style topics covered included: of non-executive directors and no The essence of the investment style employees or premises of its own. – The changing environment, conditions which we ask the investment manager Like other investment companies, it and marketplace for investment trusts to follow is to select the best stocks in a outsources investment management, and the trust’s purpose ‘bottom up’ approach, before any sector accounting, company secretarial and – Marketing strategy and the focus or country consideration. The portfolio other administration services to an for 2026. is concentrated into 52 stocks at 30 investment management company – November 2025 (2024: 55 stocks). Within Allianz Global Investors UK Ltd – and to that concentration modest gearing – Business model other parties, including HSBC Bank plc employing the company’s borrowings The Brunner Investment Trust PLC carries as depositary and custodian, and MUFG to invest – is within guidelines set by on business as an investment company as registrar. This enables Brunner to the board. provide shareholders with a competitive, and follows the investment policy cost-effective and high-quality way to described below. gain wide investment exposure through By pursuing our investment objective a single investment vehicle. we aim to appeal to a broad range The company has a main market of investors and to ensure that the listing on the London Stock Exchange. company’s shares are attractive to ## Investment Policy | Investment objective | Risk diversification | Gearing | | --- | --- | --- | | The Brunner Investment Trust PLC aims | The company aims to achieve a spread | The company seeks to enhance | | to provide growth in capital value and | of investments across geographies and | returns over the long term through | | dividends for investors over the long | sectors. The maximum holding in any | appropriate gearing. The board | | term through investing in a portfolio of | single stock is limited to 10% of gross | monitors the gearing, which is | | global and UK equities. | assets at the time of investment and | employed within the guidelines | | | the portfolio will consist of at least 50 | set from time to time by the board. | The benchmark against which stocks. The company will not invest Gearing in any case will not exceed performance is measured is 70% FTSE more than 15% of its gross assets in 20% of net assets at the time World Ex UK Index and 30% FTSE other UK listed investment companies. of borrowing. All-Share Index. 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. 12 STRATEGIC REPORT ### Section 172 report ## Engagement with key stakeholders ### 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. 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 Participation in investor conferences The investment team with co-leads primary stakeholders as the investors and webinars, together with videos Julian Bishop and James Ashworth in the company. The company’s and podcasts on the website informs continues to engage constructively objective is to provide growth in shareholders of the investment with shareholders, journalists capital value and dividends for management activity and and industry commentators. The investors over the long term. The performance of the company. investment team has multiple skill the company’s strategy is to provide sets (including Income, Growth, The further use of new presentation shareholders with the desired returns Global and UK) and has an increasing styles to engage investors such as whilst diversifying to take into account recognition in the investment audio (podcasts), video and the Turtl risk appetite. trust arena. platform to distribute information to shareholders and the wider The discount, one of the company’s investment community, including in KPIs, having been at a premium shorter, more digestible formats. earlier in the year, had widened in 2025. The movement of the discount Jim Sharp’s relationship to the over the year is shown on page 17. Brunner family shareholders provides Since the year end the company’s further insight for the board into the shares have continued to trade at views of investors to be used for the a discount. Modest share buyback advantage of all. activity to manage the discount was commenced in November 2025. Readers of communications including The user experience on the website Continual enhancements and our shareholders and other investors, continued to be developed during improvements to the website looking for information about the the year. The manager has worked including both helpful background company on the website and in online with other publications, such as and educational material. We strive media coverage. Citywire, to provide more information to keep information as relevant and about the trust online, keeping it fresh current as possible. with new video content, interviews and podcasts. 13 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 Stakeholders and how they are taken into account Activity in the year Outcome Public Relations and media – the There is an Integrated PR PR activity (generating exposure company continues to work with programme. Investment managers in consumer finance titles and the public relations advisers to ensure Julian Bishop and James Ashworth national press) is crucial in providing information about the company, provide interviews, presentations information for self-directed investors its strategies and performance can and record podcasts to inform through the platform market. Reports reach a wide audience to update and educate. to the board show there is a direct shareholders and potential investors correlation between press articles We work with a third party, Lansons through press articles and online appearing and ‘spikes’ of interest and Communications, and the campaign media coverage. purchases of the company’s shares. work is aligned with AllianzGI’s marketing activity. 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 In addition to regular contact Assurances from direct service stakeholders need to be assured of and assurance testing that sound providers on their internal controls good governance and controls in and effective controls are in place are given formally to the company the company. from all of these service providers, twice yearly but day-to-day contact there is a rolling programme of with the investment trust team As well as the management company, due diligence visits to suppliers of ensures that issues are quickly the board has appointed a depositary, third party services by AllianzGI’s identified and acted upon and that a custodian and a registrar to provide investment trust team to ensure any necessary remedial action can specialist services. that the company is getting good take place. 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. 14 STRATEGIC REPORT Stakeholders and how they are taken into account Activity in the year Outcome Potential new investors are an The marketing team also works on Outcome: Analysis is in the form of important stakeholder group and events and campaigns with other detailed investor group feedback getting key information to the research and marketing companies, and in considering the metrics of key investment market so that investors including Edison and Kepler. activity over the year: in particular both current and prospective can the board can see the effectiveness Resources were allocated by the make informed investment choices is a of communicating with investors by board during the year for publishing significant activity. monitoring daily traffic on the website research and event participation. and investment through ‘spikes’ Research platforms and distribution ‘Direct to consumer’, for self-directed of investment on platforms after partnerships are employed to reach a investment, is primarily driven by publications and events throughout wider audience of investors. platforms. Platforms essentially give the year. Interest in Brunner is also convenient access to the majority of tracked through search engine the investment universe for investors. optimisation (SEO). The board has encouraged activity The board continues to believe that to increase recognition by those the best approach for Brunner is to operating the platforms through follow a steady path and to be an influencers (including through PR, ‘all-weather’ global equity portfolio video recordings with Asset TV and for investors, aiming for long-term the company’s digital marketing stability of capital returns and strategy). ‘Influencing’ activity involves provision of a steadily rising dividend sponsored content, advertising and to shareholders. 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. 15 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 # 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. ## Performance against the benchmark index Net Asset Value total return with debt at fair value and debt at par | | 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 | ![img-0.jpeg](img-0.jpeg) 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. 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. ## Dividends Annual dividend ![img-1.jpeg](img-1.jpeg) Includes the proposed final dividend. 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. 16 STRATEGIC REPORT ### Share ownership Percentage of issued capital held by wealth managers and investment platforms The marketing programme targets 2024 2025 professional and retail investors 45.0% and aims to create ongoing and 41.3% sustained demand for Brunner shares. A successful marketing strategy stands to benefit all of the company’s 27.7% 27.9% shareholders by increasing liquidity. 21.9% 22.5% We look at the growth of share holdings of clients of wealth managers 5.3% and of investment platforms to see 3.7% 3.0% 1.7% the impact of retail demand for the company’s shares. 2 | Investment | Direct | | Wealth | Financial | Others | | | --- | --- | --- | --- | --- | --- | --- | | | | 1 | | | | 1 | | platforms | holdings | | managers | institutions | | including Brunner family members | 2 including beneficial owners not known The company’s shares currently trade at a discount to the Net Asset Value ### Discount per share and during the year had traded at a premium from time to time, averaging at a discount of 3.7%. The 10 share price depends on a number of factors, including sentiment towards the 5 company and towards investments in PREMIUM equities in general. The board monitors % 0 DISCOUNT the discount with the aim in normal markets of being not out of step with -5 comparable trusts in the sector. -10 The board gives authority in certain circumstances to buy back shares and -15 either cancel the shares or hold them in treasury, which would be likely to -20 result in a temporary narrowing of the Nov 2022 Nov 2023 Nov 2024 Nov 2025 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. ### Ongoing charges Ongoing charges are operating expenses incurred in the running 0.64% 0.63% 0.61% 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 20242023 2025 (2024: 0.05%). Ongoing charges are published by the AIC. 17 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 # Risk report 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: ![img-2.jpeg](img-2.jpeg) 18 STRATEGIC REPORT Investment and portfolio risks Principal risks identified Controls and mitigation 1.1 Market volatility The board meets with the portfolio managers and considers asset Significant market movements may adversely allocation, stock selection and levels of gearing on a regular impact the investments held by the company basis and has set investment restrictions and guidelines that are increasing the risk of loss or challenges to the monitored and reported on by AllianzGI. The board monitors yields investment strategy, reduction of dividends and can modify investment parameters and consider a change to across the market affecting the portfolio yield dividend policy. and the ability to pay in line with dividend policy. Macroeconomic factors and their causes may mean mitigation may Macroeconomic factors could also cause not be possible for significant market movements caused by factors significant market falls, unexpected volatility, outside the board’s control. threat to income or increase in gearing. 1.2 Market liquidity and pricing The board receives reports from the manager on the stress testing of Failure of investments. 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 | | The manager operates on a delivery versus payment system, | | --- | --- | --- | | | Non-delivery of stock by a counterparty. | reducing the risk of counterparty default. | | 1.4 Currency | | Currency movements are monitored closely and are reported to | | | Exposure to significant exchange rate | the board. | volatility could affect the performance of the investment portfolio. Business and strategic risks Principal risks identified Controls and mitigation 2.1 Investment strategy The board manages these risks by diversification of investments An inappropriate investment strategy e.g., asset through its investment restrictions and guidelines which are allocation or the level of gearing may lead monitored and on which the board receives reports at every meeting. to underperformance against the company’s The board monitors the implementation and results of the investment benchmark index and peer group companies, process with the investment managers, who attend all board resulting in the company’s shares trading on a meetings, and reviews data which shows risk factors and how they wider discount. 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 Reports on shareholder sentiment are received from the manager The investment objectives, or views on decisions and brokers and reviewed by the board. Shareholders are actively such as gearing, discount management, dividend encouraged to make their views known. policy, of existing shareholders may not coincide The board reviews and assesses the company’s strategy regularly to with those of the board leading investors to sell ensure it remains suitable and continuously monitors performance. their shares. 2.3 Investment performance The investment manager attends all board meetings to discuss Persistent poor performance against the performance with the directors. The board manages these risks by benchmark or other trusts in our peer group giving investment guidelines which are monitored at each meeting. leads to decline in attractiveness of the company The board reviews the investment performance of the company to investors. against the benchmark and peer group. 19 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 2.4 Financial A rolling income forecast (including special dividends), balance sheet Range of risks including incorrect calculation of and expenses are reviewed at every board meeting. Reporting from NAV, inaccurate revenue forecasts, incorrectly the custodian covering internal controls in place over custody of calculated management fees, issues with title to investments and over appointment and monitoring of sub-custodians investment holdings. 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 The board meets with the portfolio managers and considers asset Insufficient income generated by the portfolio allocation, stock selection and levels of gearing on a regular basis. and due to stock market falls, gearing increases Investment restrictions and guidelines are monitored and reported to levels unacceptable to shareholders and the on by AllianzGI. Regular compliance information is prepared on market which in extreme circumstances results in a covenant requirements. breach of loan covenants. 2.6 Market demand The board regularly reviews the level of premium and discount and The level of discount of the share price to the existing shares can be bought back by the company when the board NAV moves to unacceptable levels, threatening considers this expedient. confidence in the company’s shares and exposing the company to acquisitions of stakes in the company by predatory or hostile shareholders. Operational risks Principal risks identified Controls and mitigation 3.1 Organisation set up and process The manager and the other key service providers report on business Failure in the operational set up of the company, continuity plans and the resilience of their response to extreme through people, processes, systems or external situations. Third party internal controls reports are also received from events could result in financial loss to the company these service providers. or its inability to operate. 3.2 Outsourcing and third party AllianzGI carries out regular monitoring of outsourced administration Risk of inadequate procedures for the functions, which includes compliance visits and risk reviews where identification, evaluation and management of necessary. Results of these reviews are monitored by the board. risks at outsourced providers including AllianzGI Additional assurances on business resilience and cyber security are and its outsourced administration provider, State obtained by the board. Agreed Service Level Agreements (SLAs) Street Bank & Trust Company, HSBC Bank plc and Key Performance Indicators (KPIs) are in place and the board (Depositary and Custodian) and MUFG Corporate receives reports against these. Markets (Registrar). 3.3 Regulatory The board maintains close relations with its advisers and makes Failure to be aware of or comply with legal, preparations for mitigation of these risks as and when they are known accounting and regulatory requirements which or can be anticipated. could result in censure, financial penalty or loss of investment company status. 3.4 Corporate governance The board is highly experienced and knowledgeable about Weak adherence to best practice in corporate corporate governance best practice and includes directors who are governance can result in shareholder discontent board members of other UK plcs and other investment companies. and potential reputational damage to The board takes regular advice on best practice. the company. 20 STRATEGIC REPORT 3.5 Key person Manager and board succession plans are in place. Cover is available Departure of one or both of the co-leads, certain for core members of the relevant teams of the manager, and work professional individuals, and/or board members, can be carried out by other team members should the need arise. may impact the management of the portfolio, the achievement of the company’s investment objective and/or disruption to its operations. 3.6 Financial crime, fraud, cyber security and AI AllianzGI has anti-fraud, anti-bribery policies and robust procedures That the company and the manager’s firm, its in place. The board is alert to the risks of financial crime and threat of employees, or clients are subject to financial cyber attacks and reviews how third party service providers handle crime or breach elements of the Bribery Act. Risk these threats. These reports confirm that all systems are secure and of increased cyber attacks. Risk from traditional are updated in response to any new threats as they arise. and generative Artificial Intelligence (AI) in respect The board asks for and receives assurance from key suppliers on of malicious AI, its rapid growth and the lack information security and AI developments and threats. of regulation. 3.7 Reputational The portfolio management team is in constant interaction with Association with poor governance in portfolio AllianzGI’s Environmental, Social and Governance (ESG) and companies and operational issues in service Stewardship function and actively engages with investee companies providers which can affect the reputation of on ESG issues and makes investments incorporating ESG factors the company. 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 The board carries out horizon scanning by keeping informed through Geopolitical uncertainties including changing its manager and advisers on the political, economic and legal membership of international alliances and other landscape, and reviews updates received on regulatory changes that Middle–Eastern conflicts in recent times including affect the company. 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. 4.2 Impact of AI on the investment portfolio The board carries out horizon scanning by keeping informed through The rapidly changing landscape for the tech sector its manager and advisers on the political, economic and legal and impact of disruptive use of AI on other sectors landscape, and reviews updates received on regulatory changes that which could cause significant shifts in valuations of affect the company. companies in the portfolio. The manager reports on its consideration of AI developments and threats in its oversight of investments. 21 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 Going Concern The future The directors have considered the company’s investment The future attractiveness of Brunner as an investment objective and capital structure both in general terms and in proposition with relevance to a wide variety of investors is the context of the current macroeconomic background. The something we debate and evaluate continuously. We have portfolio, which is constructed by the portfolio manager on a to consider the investment environment and wider economic bottom up basis, consists mainly of securities which are readily considerations, such as increasing inflationary pressures, and realisable. The directors have also continued to consider the take soundings on the prospects for our markets, the returns on risks and consequences of external factors on the operational assets, economic growth and numerous other factors. Taking aspects of the company and have concluded that the company all this into account the board continues to believe that there has the ability to continue in operation and meet its objectives is a place for Brunner in the range of options available to the for the foreseeable future. For this reason the directors investor and that the company remains viable for the five year continue to adopt the going concern basis in preparing the period here under review. financial statements. The strategy for the future Viability Statement The development of the company is dependent on the success Brunner is an investment company and has operated as an of the company’s investment strategy against the economic investment vehicle since 1927 with the aim of offering a return environment and market developments. I give my view in the to investors over the long term. The directors have formally Chair’s Statement on page 5 and the portfolio managers assessed the prospects of the company for a period of longer discuss their view of the outlook for the company’s portfolio in than a year. The directors believe that five years is the suitable their review starting on page 27. outlook period for this review as there is a realistic prospect On behalf of the board 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 Carolan Dobson company and the expectation that investors will want to hold Chair on to their shares for some time. The board also notes that as a 11 February 2026 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. 22 STRATEGIC REPORT ## Environmental, Social and Governance (ESG) Issues ### 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 research How it works in practice and stewardship AllianzGI employs 45 sustainability professionals. The process Active stewardship is an integral component of our investment of integrating ESG analysis involves AllianzGI’s investment manager’s investment approach. This can help to unlock teams reviewing both ESG scores and financially material potential in companies, as well as protect companies from qualitative information for each holding or company of downside risks. interest. The investment teams then make an assessment of the ESG risk or opportunity that supports the broader investment AllianzGI’s approach to ESG analysis case. AllianzGI’s investment professionals have access to both quantitative tools and qualitative ESG research. Brunner’s portfolio managers follow AllianzGI’s proprietary ESG methodology which is designed to enhance risk management AllianzGI’s investment professionals generate in-depth research and engagement. The main objective of integrating ESG of companies they own or believe to be of interest and often analysis is to develop an assessment of the financially material closely follow these companies over long periods of time. ESG risks and opportunities within a broader investment case. Therefore, they can interact with the companies that will benefit AllianzGI’s approach also fosters active engagement with from the engagement. AllianzGI’s Sustainability Research & company management. Active proxy voting is an important Stewardship analysts further support the process by providing part of the ESG process. Our manager has a firm-wide company, sector and/or thematic research. All ESG research exclusion of controversial weapons and companies relying and engagement notes are documented on AllianzGI’s internal to some extent on coal extraction. Sustainability research Global Collaboration Platform. This creates a high degree of and stewardship analysts may further support the ESG transparency and provides portfolio managers with an easy process by providing a framework of company, sector and way to monitor ESG risk in their portfolios. thematic research. ### Proxy voting 1 December 2024 to 30 November 2025 Active proxy voting engagement for clients is seen as a In the year there were 58 shareholder meetings for companies core element of fiduciary responsibilities and the manager in the portfolio and the manager voted on the company’s provides total voting coverage. This active, global approach behalf at 55 of these. The company voted on 95% of all to the exercise of voting rights is aimed at improving resolutions. Source: AllianzGI. governance standards. Company meeting voting record Vote distribution Number of meetings voted Number of votes for: 76% with management: 5 Number of votes against: 15% Number of meetings with Number of votes abstain: 1% at least one vote Against, Withhold or Abstain: 50 Number of votes withhold: <1% Not voted: 7% 23 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 Sustainability ESG reporting The portfolio managers talk about the importance of The board receives information on ESG scores for the portfolio sustainability in the assessment of the quality of portfolio and this is published in the company’s monthly factsheets. This companies in their Investment Philosophy explanation on is also included on page 46. page 43. A summary of the many engagements with portfolio companies on E,S and G matters is set out on page 45. Company engagement The investment manager conducts regular meetings with Brunner’s ESG policy and web links companies which: A summary of the board’s policy on ESG can be found with the – enriches investment analysis and decision making; company’s details on the Association of Investment Companies’ – helps assess company leadership and culture and build trust; website, where there is also more information on ESG for – facilitates active involvement from portfolio managers and investors: sector analysts in company engagements; https://www.theaic.co.uk/esg-and-investment-companies – 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 24 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 25 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## 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. 26 INVESTMENT MANAGER’S REVIEW ## Portfolio Managers’ report James AshworthJulian Bishop | “It’s all psychological. You yell, | it was ‘safe to go back in the water’, but | 2025 was therefore a year of contrasting | | --- | --- | --- | | ‘Barracuda!’, everybody says, ‘Huh? | nonetheless inflation remains stubbornly | fortunes. The AI boom was an island | | What?’ You yell, ‘Shark!’… we’ve got a | above target, and most forms of business | surrounded by circling sharks, picking off | | panic on our hands on the Fourth of July.” | investment remain subdued. | the victims of a weak economy. In the US, | the S&P 500 was up 14% for the Brunner So says Mayor Vaughn of Amity Island At a market level, the insidious macro- financial year (ending November 2025), in the 1975 classic ‘Jaws’ as he ignores economic impact of the tariffs isn’t giving an impression of broad strength. his advisors and keeps beaches open obvious. As in 2024, markets were Yet the average American stock fell and over the lucrative summer period, with driven by a singular trade associated the equal-weighted S&P 500 (which tragic results. Fifty years later, over 600 with artificial intelligence infrastructure gives the smaller companies the same economists and business leaders warned spending. Several hundred billion dollars index clout as the largest) barely rose at President Trump against his so-called were spent in 2025, with the expectation all. In other words, the market remained ‘liberation day’ tariffs, which were of even more next year. Given the limited narrow with most of the gains generated announced in April. Their warnings, like revenues being generated by artificial by a few large technology stocks and those of Mayor Vaughn’s advisors, fell on intelligence applications, let alone profits, certain distinct sub-sectors. Whilst many deaf ears and President Trump pressed on there is a very legitimate and healthy of the tech giants are recycling their vast with his plans. The tariffs he announced debate about the existence or otherwise profits into AI infrastructure, much of the initially caused panic in markets and of an AI bubble. In the meantime, rest of the economy is moribund. Some large equity market declines. Faced with growth for the hardware companies that have argued that if we exclude the vast rising market turmoil, President Trump enable AI is off the charts. Whether this investments in AI data centres, the US was rapidly struck trade deals, and tariffs expenditure can be sustained is a critical probably in recession during the year. on many countries and products were question which will determine many quickly reduced. Investors quickly decided investment outcomes in the years to come. US stock market gains have been driven by a small number of large companies S&P 500 performance compared to the equal weighted S&P 500 100 80 60 40 20 0 2023 2024 2025 -20 S&P 500 Equal weight S&P 500 Source: Bloomberg, 3 January 2023 to 28 November 2025. 27 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 Return analysis: pre-revenue firms and the Magnificent 7 on top Average total return per category (USD) 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: 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. The picture with the US consumer was revenues, let alone profits, fared better prudence, downside protection and also very mixed. Lower income consumers still. When speculative mania takes reliability. Over the longer run this has suffered from cuts to benefits and the hold, the imagined often lords it over served us well, but for the second year regressive impact of inflation, whilst higher the actual. in a row it was a hindrance to relative income consumers have been buoyed by performance. Whilst we saw the NAV Quality investments (defined as tax cuts and stock market gains. grow strongly in absolute terms we once enduring, consistently profitable, less again failed to keep up with a market Gamified retail participation in markets cyclical businesses with strong balance which often seemed unconcerned with continues to be widespread. Companies sheets) had their worst period of relative any reasonable notion of fair value. We with high stock price volatility and low performance since the peak of the take some solace from the fact that the nominal share prices outperformed. dotcom bubble, a trend that started in last time quality underperformed to this Options trading – particularly on one mid 2024 and has been persistent ever extent, nearly thirty years ago, it roared day price moves – is buoyant. Even since. Although we balance quality, value back with a vengeance the following within the tech-heavy Nasdaq Index, and growth factors in our investments, year as the dotcom bubble burst. unprofitable businesses outperformed Brunner still has a bias to quality that the profitable. Businesses with no is typical for any investor prioritising Relative underperformance of quality stocks 6-month relative returns of S&P 500 Quality (%)Quality relative to the broader market 125 25 18.9%, March 2001 | 120 | 20 | | --- | --- | | 115 | 15 | | 110 | 10 | | 105 | 5 | | 100 | 0 | | 95 | -5 | -9.6% 90 -10 -10.0%, April 1999 85 -15 07/24 01/25 03/25 10/24 07/25 10/25 1996 2000 2005 2010 2015 2020 2025 MSCI World Quality Net Total Return USD Index Price Quality stocks outperforming the market MSCI World Quality Net Total Return USD Index / Quality stocks underperforming the market MSCI World Net Return USD Index (rebased) Source: AllianzGI, Bloomberg, 3 June 2024 to 28 November 2025. Source: Bloomberg, 5 January 1996 to 28 November 2025. 28 INVESTMENT MANAGER’S REVIEW Examples of extreme valuation Tesla and Kia ($bn) 1600 1,404 1200 800 x86 400 16 5.3 5.7 0 Enterprise value Net income Tesla Kia Source: Bloomberg, as of 28 November 2025. Net income from prior twelve months adjusted to USD. Numbers may not sum precisely due to rounding. | Above, we give two examples of | As we highlighted last year, the US market | The current nature of markets warrants a | | --- | --- | --- | | stocks within the automotive sector | now suffers from significant concentration | brief discussion about risk. In investment, | | from two different continents that we | risk. The S&P 500, like most major stock | we can distinguish between relative and | | think exemplify some of the extreme | market indices, is weighted by market | absolute risk. Relative risk refers to risk | | valuations evident in markets. At year | capitalisation. The top 10 stocks in the | relative to the market or benchmark. | | end, Tesla had a market ascribed | US account for around 40% of the S&P | Fund managers are generally measured | | enterprise value of $1.4 trillion. This is | 500’s total value making it significantly | by their relative performance, so for them | | about 86x more (times, not percent) than | more concentrated than the Brunner | this is synonymous with career risk. For | shareholders and investors, relative risk South Korean automaker Kia, a new Investment Trust, for example. Most of equates to opportunity cost. As famed Brunner holding. Whilst counsel is clearly these stocks are tech-related and most value investor Ben Graham noted, this leading the witness, we ask you to guess of those are driven by AI narratives. As can be the price of prudency. | which company makes more actual | such, the US market looks and behaves | | | --- | --- | --- | | profit. For those who protest that Tesla | more like a high-octane technology fund | Relative risk neglects the existence of | | is growing faster, we note that Tesla’s | than a broad, diversified representation | absolute risk. In the S&P 500, the weight | | volumes have been declining for two | of American industry. At the very least, | of the largest index constituent, Nvidia, | | years. For those who protest that Tesla | investors should be aware of the risks. | is now almost 8%. US investors can | | has a nascent business in humanoid | The notion that buying the index is | eliminate their relative risk by buying an | | robots, we point out that Kia owns a | definitively a lower risk, better diversified | 8% position. But clearly having an 8% | | large stake in leading robot company | proposition than buying a fund or trust is | position in any one company, particularly | | Boston Dynamics. | demonstrably no longer valid. | | Rising US stock market concentration Top 10 largest S&P 500 weights as % of index 40 35 30 25 20 15 1990 1995 2000 2005 2010 2015 2020 2025 Source: AllianzGI, 31 March 1988 to 30 November 2025. 29 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 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 INVESTMENT MANAGER’S REVIEW a cyclical one a rapidly changing names often lack proven business models end market, is a fundamentally risky and have untested barriers to entry, proposition. This is absolute risk. This is whilst our holdings are well established, actual risk; the one that really matters profitable, diversified and with what when it comes to your money. Because of we believe are clear and sustainable constraints on relative risk, however, many competitive advantages. fund managers are effectively forced to The AI debate continues and is well own these large stocks irrespective of discussed in the media. AI is remarkable their investment merit. As the market as technology that we expect will change a whole has become more concentrated, many parts of our lives, but there are the tracking error (a measure of relative still few good answers as to how much risk) that fund managers run by not revenues and profits it may ultimately owning the largest stocks has ballooned: generate. Many previous technological not holding the largest 10 S&P 500 stocks advances revolutionised the world but today brings a tracking error around failed to generate significant wealth 4x historical average. Many are not for those involved at the start, including allowed or do not want to run this level of canals, railways, automobiles, radio, (relative) risk. Passive funds, too, blindly television and the physical internet. buy in accordance with size. This is not a Nonetheless, all saw vast amounts of healthy way to allocate capital. capital invested for little return by what UCITs regulations, which determine the author William Bernstein has dubbed ## AI is remarkable structure of European investment funds, “capitalism’s unwitting philanthropists”. It cap position sizes at 10% to protect is unclear whether the huge capex binge ## technology that we investors from insufficient diversification on AI infrastructure will be sustained, ## for this reason. Pity, then, the manager expect will change many given the cash-burn we are seeing. It is of a Taiwanese Equity fund. There, 44% also unclear who the ultimate winners will ## parts of our lives, but of the TAIEX benchmark is accounted be. Recently, Google’s Gemini appears ## for by just one stock: TSMC (Taiwan there are still few good to have gained an upper hand over AI Semiconductor – a core Brunner holding). ringleader OpenAI at a structurally lower ## answers as to how much The ‘neutral’ position size at which relative cost. We therefore do not want to go risk is zero is therefore 44%. Obviously, ## all in on AI hardware and recommend revenues and profits it this is a very large amount to have you don’t either. The market is all in. The ## invested in a single company. Similarly, may ultimately generate. market is therefore risky. at its peak in 2000, Nokia accounted | for 70% of the Helsinki market. Investors | 2025 also delivered a lesson about | | --- | --- | | who held 70% of their money in Nokia | ‘radical uncertainty’; a form of risk ever | | may have eliminated relative risk, but | present in equity markets. Some risks | | the subsequent decline in the share price | are knowable. Others aren’t. In the run | | from €55 to €1.50 would have eliminated | up to the invasion of Iraq, US Secretary | | most of their wealth whilst delivering | of Defence Donald Rumsfield famously | | a salutary lesson about what real | talked of known knowns, known | | financial risk is. Nokia’s fate also serves | unknowns and unknown unknowns. | | as a healthy reminder of how fragile | Radical uncertainty refers to the unknown | | leadership can be in parts of the brutally | unknowns. Radical uncertainty is an | | competitive tech hardware sector. | ever-present feature of equity markets. | Just because we cannot know or guess While being very aware of risks of what the risks are, there are still risks a possible AI bubble, Brunner has there – they are simply beyond our nonetheless had some very successful imagination. This contrasts with knowable investments that have benefitted from risks. For example, if you play roulette at AI-related spending over the last year. the casino, you take risk but you know TSMC, Amphenol, ASML and Alphabet the probabilities of landing on 27 Red. If have all delivered stellar returns. you were to introduce radical uncertainty However, we did not have enough to to the game of roulette, you could land keep up with the concentrated market on 27 Red but you could also land on 82 and the enormous gains seem in some Blue or a banana. You simply wouldn’t of the lower quality, more speculative know about the possible outcomes or the AI names. In our judgement, to have associated probabilities in advance. owned more would have breached good practice regarding absolute risk, In equities, restaurant stocks have been even if doing so would have reduced hurt by a pill that quells your appetite. relative risk. These more speculative AI Viruses and volcanoes have caused 31 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 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 32 INVESTMENT MANAGER’S REVIEW planes to be grounded. Talc? Apparently there, in which case opportunities will cancerous. Procter and Gamble, which arise. But it would be deeply naïve to owns Gillette, once cited Movember in a assume that things go on unchanged. profit warning. Badly worded financial Perhaps because of this, we have found updates have ended in a bank run. solace in physical and financial assets Thinking machines can now write their this year. Intangible assets, often a focus own software. of more profitable businesses, have Radical uncertainty is integral to equities. been widely reassessed as vulnerable. This year markets were blindsided by the Semiconductors have fared better possible impact of AI on a whole range than software. Financially capital of intellectual property rich businesses. If intensive banks like DNB and Bank AI brings cheap, ubiquitous intelligence, of Ireland have continued to perform will it replace businesses which provide well, supported by very high cash yields, it? Do the efficiencies brought to coding whilst financial information companies by AI render many incumbent software have been weak. Holdings like Tesco, businesses obsolete? Are companies GE Aerospace (jet engines) and Kia, that gather, present and analyse all firmly rooted in the physical world, information now worthless? The threat of have flourished. This is counter to the disruption is a material one for equities. long-running fashion for intellectual If perceived risks go up, prices go down property rich, asset-light businesses like an aeroplane tilting its wings. Many which required little capital to grow software companies have seen very and helps partially explain the weak share prices even as they have underperformance of the quality factor ## continued to deliver strong results. we mentioned earlier. Looking around Equities are long duration assets and ## the world, the best any threats to terminal profitability are Market review therefore impactful. The mere threat is Looking around the world, the best ## performing region was sufficient to do real damage. The threat performing region was Emerging ## of the threat will make some sell. Whilst Markets, largely thanks to the Emerging Markets, markets can be prone to mania they can performance of Asian technology ## largely thanks to the also be deeply paranoid. companies including TSMC, a core ## Brunner holding. In sterling, the MSCI performance of Asian Technological revolutions, by definition, Emerging Market index returned 25% for imply risk. When Steve Jobs unveiled the ## technology companies the year to end 2025. first iPhone at Apple’s keynote in 2007, ## he expressed his disdain for Blackberry’s Europe was the next best performing including TSMC, a core ‘plastic little keys’ and unveiled a ‘new region, up 23% in sterling, buoyed by ## Brunner holding. | technology called multi-touch’. The | a strong Euro and multiple expansion | | --- | --- | | audience audibly gasped as he swiped | from low levels. Banks, particularly, fared | | across the screen to turn it on for the first | well. Japan was up a similar amount. | | time. Rapid change and leapfrogging | The story in the UK was much the | | has always been a feature of the | same; the FTSE All-Share was up 20% in | | technology industry. Who is today’s | local currency. | Nokia or Blackberry? Whose products The US was a relative laggard this year, have features that are no longer good with the S&P 500 up just 10% once enough to compete? It’s an important dollar weakness was factored in. As a question yet one that is impossible reminder, the US dominates the global to answer with clarity today. But we index, accounting for around two thirds know that capitalism invents furiously of the total. The equal weight S&P 500, and destroys the inadequate. Once which removes the distortions of market the design of a new paradigm is made concentration, was only up 4% in sterling visible the imagination of a vast number terms, demonstrating the narrowness of potential engineers, designers and of overall returns. As highlighted earlier, entrepreneurs is fired. New entrants, in the average American stock was down other words, native to the new world. during the year for British investors. Whilst most new entrants will fail, some Overall, the FTSE All World ex UK (which will succeed, upending the status quo. makes up 70% of Brunner’s composite The only constant, so the cliché goes, is benchmark alongside the UK FTSE All- change. We need to ensure we are not Share) was up 14%. on the wrong side of it. The market may be hallucinating at the moment, seeing risks or profit pools which are not really 33 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 Geographic and sector performance during the 2025 Financial Year 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 Source: LSEG in sterling terms as of 30 November 2025. All figures use the total return index. | Looking by sector, leadership came from | holding in Amphenol) or aerospace | we have a skew towards quality that | | --- | --- | --- | | Technology and Financials; the same as | related (including our holding GE | was unhelpful. We also have an | | in 2024. Whilst Tech was up 27% overall, | Aerospace) fared well but general | income requirement. We regard with | | within the sector there was a violent split | industrial activity remains muted. | suspicion some of the valuations and | | between AI and the semiconductors | ‘Liberation Day’ tariffs introduced | questionable quality in the growthier | | that enable it, which fared well, and | unhelpful uncertainty. Short-term | part of the market, which meant we | | incumbent software companies which | interest rates are being cut but weak | were underweight the factor which drove | | were viewed as possibly vulnerable | fiscal positions in most of the developed | the highest returns during the year. In | | in the new paradigm. Financials were | world mean that long-term rates remain | addition there were a few stocks that | | up 18%. This was led by banks, which | stubbornly but understandably high, | disappointed for more idiosyncratic | | continue to generate and return lots | depressing economic activity. Lead | reasons. Whilst it is inevitable in any | | of cash and which have enjoyed a | indicators in most parts of the world | fifty-plus stock portfolio that a few | | substantial increase in the multiples | imply contraction. | stocks will disappoint in any one year | | of profits investors are willing to pay | | and whilst it is hard to separate this | Other laggards were Healthcare, +4%, (often assessed via the P/E ratio). We are from the narrowness of the market and where US political attacks plus a biotech pleased to have participated in this rally the stylistic headwinds we alluded to, downcycle conspired to limit returns. via holdings such as DNB in Norway and this is clearly regrettable. Overall the Consumer Staples (+3%) and Consumer Bank of Ireland. NAV grew 9.0%, someway short of the Discretionary (+6%) also lagged. Both benchmark’s 15.8%. | The next best sectors were Basic | sectors suffered from moribund demand | | | --- | --- | --- | | Materials and Utilities, up 16% and 14% | growth, with middle and lower income | Looking at the biggest positive | | respectively. Strange as it may seem, this | consumers hamstrung by the cost-of- | contributors to performance during the | | also reflects the 2025 AI mono-trade. | living crisis. Energy was also weak (+4%) | year, Bank of Ireland was the standout. | | AI requires vast amounts of electricity | with oil prices continuing to drift south. | The stock more than doubled and the | | to power it (modern data centres are | Real Estate (-1%) was held back by high | large position size meant it contributed | | measured in gigawatts of capacity; | long term interest rates, which continue | almost 2% to performance. Banks are | | nuclear power plant Sizewell B, for | to hobble valuations. | enjoying Goldilocks conditions at present | | reference, has an output of 1.2 GW) | | with optimal interest rates and benign | Looking at styles, the MSCI World and thus AI has reinvigorated growth credit losses leading to substantial free Growth index was up 17%, far outpacing in demand for electricity, something cash generation. Given the low starting the Value index which was up just 8%. which hasn’t grown in the West for valuations, the market has rewarded Quality and High Dividend benchmarks twenty years. Most copper is used in bank investors with higher multiples also lagged; up just 7% each in the generation and transmission of (Bank of Ireland’s P/E ratio expanded sterling terms, markedly behind the electricity, so this had fed through to from 6x to 10x during the year). We overall benchmark. the miners. The correlated risks related suspect that this process is now more to the AI boom are broader than you or less complete and would not expect Portfolio review might think. similarly strong returns going forward. Whilst our sector and regional | All other sectors underperformed. | weightings didn’t particularly affect | Norwegian bank DNB also performed | | --- | --- | --- | | Industrials were up 8%. Within this | relative performance this year, our | well, although its 31% return was far | | anything AI related (including our | stylistic bents did. As discussed earlier, | short of Bank of Ireland’s 112%. In | 34 INVESTMENT MANAGER’S REVIEW 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 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 INVESTMENT MANAGER’S REVIEW | European bank stress tests, DNB gets | Three other AI-related companies were | | --- | --- | | very high scores financial resiliency. It is | major contributors to performance | | markedly less financially levered than | in 2025. Taiwan Semiconductor | | many banks, which limited upside in this | Manufacturing Co was up over 50%, | | cyclical upswing but will prove important | contributing 1% to relative performance. | | when or if times become tougher. When | As a reminder, TSMC, as its known, has | | we talk about prudency and quality, this | a virtual monopoly manufacturing | | is an example of how it is woven into | bleeding edge semiconductors including | | the portfolio, even in sectors which have | GPUs for Nvidia, TPUs for Google, and | | historically been seen as lower quality. | the chips that power Apple iPhones. As | such it is an agnostic winner in the AI After Bank of Ireland, Alphabet was the space irrespective of the form of silicon next largest contributor to performance. that ultimately emerges as best suited ## After Bank of Ireland, Alphabet is the parent company of and most cost efficient for AI. Anther top Google, Deepmind, YouTube and ## 10 contributor was ASML which provides Alphabet was the next autonomous driving company Waymo. TSMC and others with the extraordinarily ## The stock was up 82% in the year. Bear in largest contributor complex lithography machines used mind what we said earlier about relative ## in the semiconductor manufacturing to performance. position sizing. Because Alphabet process. Again, ASML are a de facto ## is a large index weight, our relative Alphabet is the parent monopolist for this part of the workflow. position size (1.6% on average) was In general, we like companies that don’t ## company of Google, smaller than the absolute position size face competition – another hallmark of ## (3.6% on average) limiting the relative Deepmind, YouTube and quality investments. Finally, Amphenol performance contribution to a still very was up 87% and contributed about ## autonomous driving decent 1%. 0.5% to performance. Amphenol make, ## amongst other things, the connectors company Waymo. The Alphabet started the year perceived as used in data centres and have enjoyed an AI loser; a Blackberry to ChatGPT’s ## stock was up 82% in explosive demand as a result. iPhone. During the year, they responded ## by launching AI mode in search and the year. Equity returns can be broken down | ever-improving variants of their flagship | into three factors; dividends, growth in | | --- | --- | | AI model, Gemini. By using internally | earnings per share and the multiple | | developed TPU semiconductors which | placed on those earnings. Alphabet, for | | are far cheaper than GPUs from Nvidia | example, does pay a small dividend, | | and their own cloud hosting capabilities | but it’s trivial in the great scheme of | | they may have also established a | things. In the most recent quarter (Sept | | substantial cost advantage to ChatGPT; | 2025) earnings per share grew an | | vital in a capital intensive industry like | impressive 35% year on year, but the | | AI. Data now clearly shows that Gemini | stock’s performance was augmented by | | is rapidly regaining the small amounts | substantial P/E multiple expansion from | | of search type volume it initially lost to | 18x to 27x forward profit estimates. This | | ChatGPT when it first launched. | 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 37 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 Spanish electricity company Iberdrola was a notable contributor to performance, buoyed by growing demand. PHOTO © IBERDROLA 38 INVESTMENT MANAGER’S REVIEW explosive rally in a short period of time. LSE and any number of other software Whilst this will handicap future returns, it companies, suffered a comparable remains in the realm of the sane. fate; as mentioned earlier, the average American stock was down during the Our two utilities stocks performed well year. Whilst we don’t want to be naïve, this year, too. UK listed SSE and Spanish we think there may be opportunities Iberdrola have both been buoyed by amongst the wreckage. Many of the growing demand for electricity and barriers to entry these businesses enjoy contributed 30bps each to performance. are unlikely to be breached in our Expectations for strong demand allow opinion. Time alone will tell what the fate both to grow their ‘regulated asset of these businesses is, but periodic frights base’; the capital stock of investments in like this are not uncommon in equity generation, transmission and distribution markets. Whilst some correctly diagnose upon which regulators allow them to an imminent problem, there are also generate a return. SSE now expect 7-9% many false alarms which provide an earnings per share growth through to opportunity to buy great companies at 2030, at which point 80% of profitability very reasonable prices. will be CPI linked – a very desirable financial characteristic. As noted earlier, the Healthcare sector was weak this year. One of the Trust’s The final contributors to our top 10 longest standing holdings, United are GE Aerospace (jet engines) which ## Health, was our largest contributor to Our two utilities stocks was up another 60% in the year and underperformance costing us 1.8%. ## London Stock Exchange, which we do performed well this United Health has grown in complexity not hold but is a substantial part of the ## since we purchased it and had year, too. UK-listed SSE UK portion of our benchmark. LSE is a become too reliant on the provision diversified information services company ## and Spanish Iberdrola of government services. As a financial these days and is typical of the type of (the company’s core business is health ## stock that has been decimated by fears have both been buoyed insurance) it is hard to know precisely relating to AI disruption. ## what is happening under the hood, but by growing demand Turning to the top ten detractors, whilst profit margins are low and they appear ## for electricity and we didn’t hold LSE, we held a few to have made mistakes in new customer businesses which suffered the same ## selection. Profit forecasts have been contributed 30bps each fate which appeared in our top ten substantially reduced. Whilst we reduced ## detractors. Whilst very different to LSE to performance. our position before their first profit at first glance, Auto Trader and the warning, we did not do so by enough. similar Baltic Classifieds Group both The decision was costly. We have since cost us dearly. The bear thesis is that exited the position. AI will somehow allow consumers to | more conveniently or more accurately | Elsewhere in healthcare, Cooper, which | | --- | --- | | search for a used car than they can | makes contact lenses, and Align, which | | do using the Auto Trader app today. | makes Invisalign dental treatments, were | | Having wracked our brains about this, | also poor. Both are somewhat sensitive | | we cannot envisage how this might be | to consumer sentiment as both are | | so. Nevertheless, the stock performed | bought out of pocket, and this weighed | | poorly. Despite unchanged profit | on results at the margin. We have | | forecasts, Auto Trader stock was down | retained our position in Cooper but sold | | 23% as the P/E multiple contracted from | our position in Align, concerned about | | 23x to 17x. Baltic Classifieds, a smaller | rising levels of competition and whether | | position thanks to profit taking last year, | the market opportunity was as big as | | was down over 40%. The combined | we believed. | positions cost us 1.75%. Other negative contributors of note | We think similar fears around AI | include not owning Broadcom, another | | --- | --- | | disruption were behind declines in our | AI semiconductor company which has | | holdings Paycom, which makes payroll | become a large index weight. As our top | | processing software, and Corpay, | ten contributors show, we had plenty | | which deals with corporate payments. | of AI exposure elsewhere. Instead, we | | Both were down around 25% despite | held a company called Microchip which | | no change to profit forecasts, showing | makes far more basic semiconductors | | how changes to sentiment can have a | used in all manner of applications, from | | large impact in the short run. Plenty of | cars to dishwashers. This company saw | | similar businesses we don’t own, like | the continuation of a down cycle that | 39 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 | began two years ago. These cycles are a | trucks, Korean cars, YouTube, Google, | | --- | --- | | natural part of business for companies | Microsoft, Marmite and more. Each of | | such as these and we chose to retain our | these businesses generates cash and | | holding, viewing it as par for the course. | has an enviable market position. It is that | | We expect a cyclical rebound in 2026 | which ultimately gives businesses value | | now that excess inventories have been | and has allowed Brunner to increase | | flushed from the system. | its dividend for over fifty consecutive | years. We believe a balanced focus on Finally, Partners Group rounded out the a wide range of reliable and growing top 10 detractors. Partners is a private cash-flow streams is a timeless approach equity fund manager. A lacklustre IPO to investment that transcends fashions. market made it difficult for Partners to We resolutely refuse to put all our eggs sell past investments, while rising interest in one basket. We also refuse to buy rates limited the prices others would stocks simply because they are big or pay for these assets. Fewer realisations because other people believe they are reduced the performance fees Partners valuable despite the absurd assumptions earned on successful investments during necessary to make that so. Whilst we the year. Whilst we continue to believe in want to be forward-looking, we are the sector’s long term growth potential not naïve. and Partners’ robust business model, it ## We believe a balanced is understandable that the stock slipped. We place no store in our ability to predict ## focus on a wide range In many ways Partners is a hedge for our the next twelve months. Our belief is that holding in banks, which generally prefer if you invest in a range of good quality, ## of reliable and growing higher interest rates. growing businesses generating plentiful cash flow then investment outcomes will ## cash-flow streams is be good. Even though this was another Looking ahead ## a timeless approach year where NAV growth lagged the What of the future? We note that benchmark, we believe the portfolio to ## to investment that valuations are somewhat elevated, be well positioned with an appropriate particularly in the US, where multiples ## transcends fashions. level of absolute risk. remain at historical highs. We like our unusual benchmark (70% global, 30% Investment activity UK) in this context, as it skews us to the We make investments with the intention better value on offer on this side of the to own the companies for a long time - Atlantic. It is also probably telling that our ideally, forever. However, the world is not leverage is low at present – just 3%. We static and so we shouldn’t be either. don’t think it’s time to go all-in, but we remain ready to take on debt (a helpful There are three primary reasons we end feature of the investment trust structure) up selling investments. should market conditions change. 1. A change to the original There is disconcerting hype in certain investment case: areas. We have discussed AI. Many other The world often evolves in ways we did cyclicals – particularly banks – have not anticipate and, unfortunately, we re-rated. We have measured exposure are not immune from making mistakes. | to AI and retain some exposure to banks, | Whilst we tend to focus on higher quality | | --- | --- | | which continue to generate lots of cash, | businesses which are more resilient, | | but we augment this with an eclectic | sometimes adverse developments mean | | range of sensibly judged investments | we believe an investment is no longer | | that deliberately provide a wide range of | warranted. We aim to have ‘strong | | uncorrelated risks. | opinions, loosely held’. | | By owning Brunner, you invest in car | 2. Valuation: | | insurance, crop insurance, supermarkets, | Market prices are more volatile than | | AI chip manufacturing, cloud computing, | business values. In the case of the FTSE | | regulated electricity transmission, | 100, the average stock hit a high for the | | Asian life insurance, hotels, airports, jet | year that was more than 60% above that | | engines, payment processing, natural | company’s low for the year. For smaller | | gas production, used car classifieds, | companies, the volatility is often even | | Norwegian and Irish banks, wooden | more extreme. Where we cannot justify | | pallet networks, Japanese convenience | the valuation we may look to sell. | stores, lithography machines, electron microscopes, vaccines, cancer drugs, contact lenses, lock makers, line-painting 40 INVESTMENT MANAGER’S REVIEW | 3. Making room for something new: | warning equipment. Products include | In the second half we exited six small, | | --- | --- | --- | | As with most things in life, there are | unglamorous municipal vehicles | lower conviction, positions. In aggregate | | trade-offs. When we uncover a fresh | including street sweepers, sewage | these positions represented around just | | investment idea, we need to sell | vacuum trucks and road-marking | 4% of the portfolio. | | something to release capital. We are | equipment, as well as law-enforcement | | Diageo, the premium spirits always looking to improve the portfolio, vehicle lights and industrial safety sirens. manufacturer, failed to deliver the so positions may be sold to make way The company is present in around 10 revenue or volume growth that we had for new ideas. niche end markets and has built #1 or #2 anticipated, and consequently profit positions in each. The products they sell Portfolio turnover in 2025 was around margins came under pressure. are non-discretionary and Federal Signal 24%, implying an average holding period benefits from an extensive distribution Although the position was never very of around four years. network for both new product sales large, after two and a half years we We added six new names to the and for aftermarket spare parts and accepted there was no sign of a recovery portfolio during the year. Three in the maintenance. As the largest player on the horizon and decided to move on. first half and three in the second half. In across these niches, Federal Signal can We also sold SThree, the STEM the first half we purchased new positions outspend competitors on R&D, resulting recruitment specialist. Profits have been in Amazon, Kia and Tesco. For details in superior product quality, features and under significant pressure from a weak of these, please see our Half Yearly reliability. This in turn results in higher hiring environment in their specialty Financial Report, 31 May 2025. pricing, as customers pay an upfront end markets. We considered our capital price premium to access a lower total In the second half we acquired new would be better deployed elsewhere. cost of ownership. shareholdings in Paycom Software, We had held Accenture, the technology Federal Signal, and MonotaRO. MonotaRO services giant, since 2014. Whilst Japanese industrial distributor technological change has been of Paycom MonotaRO was the third new addition benefit to the firm in the past, we worry Paycom is a leading vendor of human in the second half. The company is that their focus on labour-intensive resources management software for doing for industrial parts in Japan what work will come under pressure from mid-market firms. Where many of its Amazon has done for books in many AI technologies and tools. We began competitors have separate tools and Western markets. They offer a vast selling the position in the first half of databases for different HR functions choice of items at compelling prices, the year and exited it entirely during such as employee records, payroll and with rapid delivery. MonotaRO lists the second. shift management, Paycom has a single 22 million parts from more than 2,000 technology stack that provides ‘a single We also sold Relx, the UK-based suppliers, with the most popular 750,000 source of truth’. While competitors have information services provider. We had items held in stock ready for immediate typically been built through acquisition, been reducing the shareholding over the dispatch. Delivery is quick: around 2/3 of Paycom has built everything in house. prior year on account of the elevated the Japanese population is covered by The result is a superior customer valuation. As AI disruption concerns next morning delivery on in-stock items. experience resulting in very high increased we felt the margin of safety in The Japanese industrial parts sector has customer satisfaction levels relative to the business was too limited, and exited been slow to move online, with three competitors. Over time, Paycom has the position entirely. quarters still done via traditional physical significantly outgrown the market and distributors. As a result, despite revenue Creative software vendor Adobe there remains a long runway for future growth of more than 20% a year for the was another sale in the second half. growth given the fragmented nature of past 15 years, MonotaRO still represents We felt the economic moat was the end market. The company has many only a small fraction of the total market. narrowing, driven by rising competition of the quality characteristics that we like: Management targets 15% growth for the from upstarts such as Canva, plus a happy customers that stick around, high mid-to-long term. wide range of AI image and video profit margins, strong management (the generation tools. | Founder remains CEO, and owns 11% of | Japanese investments often suffer | | | --- | --- | --- | | the company) and a very strong balance | from weak corporate governance | Dental devices firm Align Technologies, | | sheet. While in recent months the stock | and inefficient capital allocation. With | which makes Invisalign clear aligners, | | has been caught up in waves of concern | MonotaRO we have fewer concerns | was also sold during the second half of | | about AI disruption and weakness in the | on this front: leading US industrial | the year. The company has suffered from | | labour market for mid-market firms, we | distributor WW Grainer founded and | increased competition and pressure on | | expect the company to deliver strong | still owns almost 50% of the company. | consumer spending. Whilst the former | | revenue and profit growth for many | Consequently, disclosure is good, and | may eventually recover, the growing | | years to come. | the company pays an (admittedly | competitive intensity appears to be | | | modest) dividend. | structural. We decided to invest our | Federal Signal funds elsewhere. Federal Signal is a good example Full sales during the first half were of the maxim that value accrues in Nestle (consumer goods), Abbvie niches. The company is a leading (pharmaceuticals) and UnitedHealth manufacturer of specialty industrial Group (US health insurer). Please see our vehicles and integrated safety and half year report for details. 41 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 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 INVESTMENT MANAGER’S REVIEW ## Investment philosophy and stock selection process Long-term focus A balanced, diversified portfolio Our focus is on understanding how a business evolves and Drawing on the full resource of AllianzGI’s global platform, we creates value over the long term. It is only over longer periods look across all industries and geographies to select the most that the fundamental attributes of a businesses or industry attractive investment ideas for the trust’s portfolio. We believe reveal themselves. It is also over longer periods that the in building a balanced portfolio that is diversified across a wide power of compounding takes place. A small cohort of high range of idiosyncratic opportunities and risks. In this way the return, growth businesses are able to deliver exceptional portfolio can be relied upon to deliver a steady and consistent outcomes for shareholders over time. Patience is a prerequisite capital and income return. for participation. Research intensive, focus on cash flow Factually, most equities are long duration assets, whose present AllianzGI’s research platform combines a large global value is derived from cash flows expected well into the future. team of equity and credit portfolio managers and analysts, We therefore believe it is sensible to align our analytical environmental, social and governance specialists and our timeframe with that reality. Our attention is skewed to factors own Grassroots* market research organisation. Collectively, such as returns on invested capital, sustainable competitive these provide Brunner’s fund managers with thoughtful, high advantages, barriers to entry, long term growth rates, capital quality analysis of a wide range of businesses and industries, allocation policies and leverage. Ultimately, considerations augmented by insights into structural and cyclical trends. Our such as these will determine the quantity, trajectory and research emphasises the analysis of sustainable company riskiness of the cash flows that the trust will receive from its cash flows, which we believe provides the truest measure of holdings. We believe the stock market remains excessively corporate performance. focused on the short term. Through detailed research and SM analysis focused on what truly matters, we seek to deliver *Grassroots is a division of AllianzGI. superior investment returns. Quality: stable above average returns We seek to identify – Long term competitive advantage this universe through – Strong balance sheets fundamental research – High barriers to entry Quality – Management quality – Stable/improving ROCE/RoE – Sound on ESG issues Growth Valuation Value, not just ‘cheap’ Secular growth – Reverse Discounted Cash Flow – Addressable market growth – Enterprise Value vs. Cash returns – Sustainable growth – technology, brand – Price/Book vs. Return on Equity – Long term, through-cycle approach – Dividends – an output not input – Avoid structural decline 43 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 Stock selection – focus on quality, growth Selling stocks and valuation Despite taking a long-term approach, we are still active Our stock selection process blends assessments of business managers. In general, there are three situations where stocks quality, long-term growth potential and valuation, resulting in will be sold from the portfolio: a holistic view of a company, the risk factors and, ultimately, the – Where there has been a material change to the investment drivers of shareholder value. case. Whilst we work hard to minimise mistakes, we Quality is about understanding the intrinsic attributes of a recognise that we can make errors of judgement. Businesses business model. High quality companies are those with high can evolve in an adverse direction, despite our best efforts to returns on invested capital supported by long-term competitive avoid investments in those that do. advantages, shareholder friendly management teams, sound – Where the valuation has reached uncomfortably high ESG and strong balance sheets. levels and implies expectations that clearly exceed what we believe to be reasonable. Such companies tend to be highly profitable, generating – Where a sale is required to raise cash for a superior substantial cash flow that can be used to fund further, value- investment opportunity elsewhere. creative growth or returned to shareholders as dividends or buybacks. Business quality can vary enormously across and Portfolio construction within industries. Fortunately, as global investors with a large The portfolio consists of a minimum of 50 holdings that investible universe, we can afford to be highly selective. are selected on their individual merits whilst taking into To assess long-term growth potential, it is important to consideration the exposure to individual industries, understand the secular forces that are shaping the economy geographies, themes, factors and other idiosyncratic risk and society, such as demographics, electrification and factors, ensuring that the overall portfolio remains well digitalisation. This provides the context in which to assess balanced and diversified. broader industry drivers as well as a company’s position within The size of each individual holding reflects the level of the industry. Particular emphasis is placed on differentiating conviction. Typically, this reflects our balanced judgement between structural and cyclical growth. Whilst we will invest regarding the quality, growth and value of each investment, in cyclical companies, a much greater value is placed on the with additional considerations related to the likely range of structural element. The combination of a high-quality business outcomes (a proxy for risk) and liquidity. model and long-term growth is a particularly powerful driver of shareholder value. Most of the world’s truly great equities have At the portfolio level, the objective is to ensure that stock enjoyed these twin attributes. specific risk – the risk which results from our stock selection decisions – is the primary driver of the portfolio’s returns. Company valuation seeks to determine whether there is Residual risks such as currency, style, geography or sufficient upside to warrant investing. We look for companies macroeconomic are monitored and managed to ensure that where the quality and/or long-term growth potential is not fully they are not driving the overall portfolio’s returns. Ultimately, appreciated. We want to anticipate rather than react and are the aim is to optimise the portfolio to achieve the dual objective careful not to overpay, for example by identifying companies of consistent benchmark outperformance combined with an with structural growth masked by a cyclical downturn or those attractive and growing income. 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. 44 INVESTMENT MANAGER’S REVIEW ## 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 & 1 accounting Business conduct 1 and culture Capital 2 management Corporate 18 governance Environmental 10 risks or impacts Financial 0 performance Operational 2 performance Risk 1 management Social risks 7 or impacts Strategy or 8 business model Transparency 4 and disclosure Several issues may be covered in each meeting. 45 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## Environmental, Social and Governance ## performance 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. Environmental performance v benchmark Governance performance v benchmark 8.0 8.0 4.0 4.0 Q1 17 Q4 25 Q1 17 Q4 25 Brunner ESG MSCI Environment BM ESG MSCI Environment Brunner ESG MSCI Governance BM ESG MSCI Governance Social performance v benchmark ESG performance v benchmark 8.0 8.0 4.0 4.0 Q1 17 Q4 25 Q1 17 Q4 25 Brunner ESG MSCI Social BM ESG MSCI Social Brunner ESG MSCI Aggregate BM ESG MSCI Aggregate Source: MSCI/AllianzGI. 46 INVESTMENT MANAGER'S REVIEW # Top twenty holdings ![img-3.jpeg](img-3.jpeg) ## Microsoft **Sector:** Software & Computer Services **Headquarters:** North America **Value of holding:** £42.1m **Percentage of portfolio:** 6.2% 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. ![img-4.jpeg](img-4.jpeg) ## Taiwan Semiconductor **Sector:** Technology Hardware & Equipment **Headquarters:** North America **Value of holding:** £25.6m **Percentage of portfolio:** 3.8% 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. ![img-5.jpeg](img-5.jpeg) ## Alphabet **Sector:** Software & Computer Services **Headquarters:** North America **Value of holding:** £36.0m **Percentage of portfolio:** 5.3% 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. ![img-6.jpeg](img-6.jpeg) ## Visa **Sector:** Industrial Support Services **Headquarters:** North America **Value of holding:** £24.1m **Percentage of portfolio:** 3.6% 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. 47 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## 5 6 ## Bank Of Ireland Group SSE Sector: Banks Sector: Electricity Headquarters: Ireland Headquarters: United Kingdom Value of holding: £21.9m Value of holding: £19.5m Percentage of portfolio: 3.2% Percentage of portfolio: 2.9% Like many European banks, Bank of Ireland has spent much of SSE, formerly Scottish and Southern Energy, is a diversified the time since the financial crisis rebuilding and strengthening energy company. The company is largely focused on electricity its balance sheet. Significant improvements to lending transmission and distribution networks in Scotland and standards and a less competitive Irish banking landscape England and has built a leading UK portfolio of renewable have seen returns improve, leverage fall and large cash returns power assets. SSE has announced plans to invest £33 billion in begin in earnest. Credit conditions permitting, we expect regulated electricity networks and renewables over the next these to continue, providing shareholders with dividends and five years. buybacks that dwarf those on offer in most other sectors. ## 7 8 ## AIA Intercontinental Hotels Sector: Life Insurance Sector: Travel & Leisure Headquarters: Hong Kong Headquarters: United Kingdom Value of holding: £19.2m Value of holding: £19.0m Percentage of portfolio: 2.8% Percentage of portfolio: 2.8% AIA is the leading pan-Asian life and health insurer. Operating Intercontinental Hotels Group is one of the world’s largest hotel across 18 markets, with #1 market positions in half of these, it companies with 6,800 hotels and a further 2,300 in its pipeline. provides vital health, protection, and savings solutions to over The business model is asset light; a franchise or management 43 million individual policyholders. AIA is a strong beneficiary fee is charged to hotel property owners who licence its systems of rising economic prosperity and relatively weak social safety and brands – including Holiday Inn, Intercontinental and Six nets in many Asian countries. AIA leverages its leading agency Senses – under long-term contracts. Low capital requirements sales force to deliver the company’s mission of helping millions mean it generates lots of free cash which is returned to live “Healthier, Longer, Better Lives”. shareholders via generous dividends and buybacks. 48 INVESTMENT MANAGER’S REVIEW ## 9 10 ## TotalEnergies Thermo Fisher Scientific Sector: Oil, Gas & Coal Sector: Medical Equipment & Services Headquarters: France Headquarters: North America Value of holding: £18.4m Value of holding: £18.2m Percentage of portfolio: 2.7% Percentage of portfolio: 2.7% TotalEnergies is a French multi-energy leader transitioning from Thermo Fisher Scientific is the world leader in serving the oil to a diversified power giant. Operating in 120 countries, the science industry, with annual revenue of $44 billion. With a firm balances low-cost oil and LNG production with aggressive mission to enable customers ‘to make the world healthier, growth in renewable power generation. With a “more energy, cleaner and safer’, they provide a wide range of products and less emissions” strategy, the company aims to produce 100 services that enable life sciences research. These range from TWh of annual electricity by 2030, mostly from renewables. relatively basic laboratory supplies to electron microscopes, CRISPR gene editing machines, clinical research services and the production of complex pharmaceutical ingredients. ## 11 12 ## ASML Holding Corpay Sector: Technology Hardware & Equipment Sector: Industrial Support Services Headquarters: Netherlands Headquarters: North America Value of holding: £18.0m Value of holding: £17.0m Percentage of portfolio: 2.7% Percentage of portfolio: 2.5% Netherlands-based ASML is a critical provider of advanced Corpay is a global leader in corporate payments, helping lithography machines used in semiconductor manufacturing. businesses manage expenses with precision. Their Their Extreme Ultra-Violet (EUV) technology uses complex sophisticated platform streamlines fuel, lodging, and accounts lasers and hyper-flat mirrors to etch circuits at a scale many payable costs through digital payment cards and automated times finer than a human hair. ASML is the only company with workflows. By replacing inefficient paper-based systems the know-how to produce EUV machines, which are essential with real-time data and integrated fintech solutions, Corpay for manufacturing cutting edge chips sold by Nvidia, Apple provides its customers with essential control and transparency. and others. 49 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ![img-7.jpeg](img-7.jpeg) ## Shell **Sector:** Oil, Gas & Coal **Headquarters:** United Kingdom **Value of holding:** £16.6m **Percentage of portfolio:** 2.5% 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. ![img-8.jpeg](img-8.jpeg) ## Charles Schwab **Sector:** Investment Banking & Brokerage **Headquarters:** North America **Value of holding:** £16.6m **Percentage of portfolio:** 2.4% 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. ![img-9.jpeg](img-9.jpeg) ## Schneider Electric **Sector:** Electronic & Electrical Equipment **Headquarters:** France **Value of holding:** £14.9m **Percentage of portfolio:** 2.2% 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. ![img-10.jpeg](img-10.jpeg) ## Auto Trader Group **Sector:** Software & Computer Services **Headquarters:** United Kingdom **Value of holding:** £14.3m **Percentage of portfolio:** 2.1% 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%. 50 INVESTMENT MANAGER'S REVIEW ![img-11.jpeg](img-11.jpeg) # Amazon Sector: Retailers Headquarters: North America Value of holding: £14.1m Percentage of portfolio: 2.1% 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. ![img-12.jpeg](img-12.jpeg) # GSK Sector: Pharmaceuticals & Biotechnology Headquarters: United Kingdom Value of holding: £13.7m Percentage of portfolio: 2.0% 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. ![img-13.jpeg](img-13.jpeg) # Itochu Sector: General Industrials Headquarters: Japan Value of holding: £13.9m Percentage of portfolio: 2.1% 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. ![img-14.jpeg](img-14.jpeg) # AMETEK Sector: Electronic & Electrical Equipment Headquarters: North America Value of holding: £13.6m Percentage of portfolio: 2.0% 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. Total value of top twenty holdings: £397.0m Percentage of portfolio: 58.6% 51 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## Portfolio analysis Data as at 30 November each year ### Geographical distribution (%) 48.74 50 44.49 40 30 27.30 25.73 19.76 20.52 20 10 5.97 3.29 2.37 1.83 0 North America United Kingdom Continental Europe Pacific Basin Japan 2024 2025 ### Historical geographical distribution (%) 50 North America 40 30 United Kingdom 20 Europe 10 Pacific Basin Japan 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 52 52 INVESTMENT MANAGER’S REVIEW ### Sector distribution (%) 25 20 15 10 5 0 Consumer Technology Industrials Financials Consumer Goods Health Care Energy Utilities 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 ### Sector breakdown by country (%) 25 20 15 10 5 0 Consumer 2025 Technology Industrials Financials Consumer Goods Health Care Energy Utilities 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 - | 53 53 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## Listed equity holdings at 30 November 2025 % of invested Name Sector Value (£’000s) 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 Top twenty holding. Added during the year. 54 INVESTMENT MANAGER’S REVIEW % of invested Name Sector Value (£’000s) 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 Top twenty holding. Added during the year. 55 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 | 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. 56 INVESTMENT MANAGER’S REVIEW ## Distribution of invested funds at 30 November 2025 Composite | United | | North | | | Other | | 2025 | | benchmark | | 2024 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Kingdom | | America | | countries | | | total | | | sector | total | | | | % | | % | | | % | | % | weighting* | | | % | 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 57 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 Composite | United | | North | | | Other | | 2025 | | benchmark | | 2024 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Kingdom | | America | | countries | | | total | | | sector | total | | | | % | | % | | | % | | % | weighting* | | | % | 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. 58 Seoul, South Korea. Car manufacturer Kia, a new addition to the portfolio, is headquartered in the city. ## 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 59 59 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## Directors, Manager and advisers Amanda Aldridge BSc FCACarolan Dobson Elizabeth Field MA BSc Chartered FCSI* Board Chair. Chair of the management Chair of the audit and risk committee engagement committee and the nomination committee | Joined the board in December 2013 | Joined the board in December 2019. | Joined the board in December 2022. | | --- | --- | --- | | and has been Chair since the AGM in | Amanda is a non-executive director | Elizabeth recently retired as a partner | | March 2016. She is Chair of BlackRock | and audit committee chair of Staffline | at Stephenson Harwood. Elizabeth | | Latin American Investment Trust plc and | Group PLC and a non-executive director | was a corporate lawyer for 35 years | | previous Chair of JPMorgan European | of Helical plc and AGS Airports Group | with extensive experience of advising | | Discovery Trust plc, Baillie Gifford UK | Holdings Limited. She also chairs the | public and private companies on a wide | | Growth Trust plc and Aberdeen Smaller | audit and risk committee of The Low | range of corporate transactions across | | Companies Income Trust plc. Carolan is | Carbon Contracts Company and The | a variety of sectors, specifically including | | current Chair of ABB Ltd Pension Fund, | Electricity Settlements Company. She | investment trusts. | | independent non-executive director of | was formerly a partner at KPMG LLP and | | Experience: Columbia Threadneedle Fund Managers during her career she was Head of the Elizabeth is a lawyer and has experience and Independent Investment Adviser to Retail Sector practice before becoming of providing legal and corporate a number of large Local Government Head of Contract Governance in the governance advice to investment Pension Schemes. Carolan was previously Risk-Consulting Division. Amanda is trusts, asset managers and investment head of UK equities at Abbey Asset a Fellow of the Institute of Chartered trust sponsors. Managers, Head of Investment Trusts at Accountants in England and Wales. Murray Johnstone and was the portfolio Reasons for the recommendation Experience: manager of two investment trusts. for re-election: Amanda brings senior experience in Elizabeth’s legal knowledge and Experience: accounting practice, with specialisms negotiating skills are valuable to the Carolan is an experienced fund manager including risk, and has non-executive board and she has wide knowledge of and has held key roles in the investment director and audit committee the industry. management industry and in advisory chair experience on other public roles and she chairs both investment company boards. trusts and other organisations. Reasons for the recommendation Reasons for the recommendation for re-election: for re-election: Amanda has evident skills and Carolan’s wise and effective leadership experience both from her background as of the board and wide knowledge a chartered accountant and as an audit and experience of the industry provide committee chair. 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. * Independent on appointment as Chair. 60 GOVERNANCE Andrew Hutton MA, CFA Jim Sharp MA Senior Independent Director, Chair of the remuneration committee. | Joined the board in April 2020. He is | Joined the board in January 2014. He | Committee memberships | | --- | --- | --- | | owner and director of A.J.Hutton Ltd, an | began his career in corporate finance | All directors are non-executive and | | investment advisory practice established | with J.Henry Schroder & Co. Limited from | independent of the manager. | | in 2007. Andrew started his career in | 1992 to 2002 where he was a director. | | All directors are members of the 1979 at J.P. Morgan where, over 18 He is Chair of The Cotswold Company management engagement committee years, he held investment and business and Monica Vinader. and the nomination committee. management positions in London, Experience: New York, Singapore and Australia. He All directors, with the exception of Jim has a background in financial was subsequently head of investment the Chair, Carolan Dobson, and Jim services and in addition to experience management at Coutts Group and co- Sharp, are members of the audit and in running businesses and insight into CEO of RBS Asset Management. Andrew risk committee. marketing and promotion he brings has served as Senior Independent a connection to the largest group All directors, with the exception of Jim Director of Baillie Gifford UK Growth of shareholders. Sharp, are members of the remuneration Fund and Chairman of JPMorgan Global committee. Emerging Markets Income Trust. Reasons for the recommendation for re-election: Further details can be found on Experience: Jim’s broad commercial and operational page 69. Andrew is an asset management experience and knowledge and professional with senior management understanding of marketing and and money management experience. promotion are valuable and his Reasons for the recommendation connection to a key stakeholder helps for re-election: the board’s understanding of the Andrew brings to the board a requirements of shareholders. deep understanding of portfolio management. 61 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 | The Manager or Alternative | Head of Investment Trusts | Bankers and Custodian | | --- | --- | --- | | Investment Fund | Stephanie Carbonneil | HSBC Bank plc | | Manager (AIFM) | Email: stephanie.carbonneil@ | | | Allianz Global Investors UK Limited | allianzgi.com | Depositary | | (AllianzGI UK) is incorporated in the | | HSBC Securities Services | | UK and its registered office is at 199 | Investment Manager | | | Bishopsgate, London EC2M 3TY. It is | Julian Bishop and James Ashworth, | Solicitors | | authorised by the Financial Conduct | Co-Lead managers, representing | | Dickson Minto W.S. Authority (FCA). Allianz Global Investors UK Limited, Herbert Smith Feehills Kramer 199 Bishopsgate, London EC2M 3TY Allianz Global Investors GmbH (the manager). (AllianzGI) is an active asset manager Independent auditors operating across nineteen markets PricewaterhouseCoopers LLP Company Secretary and with specialised in-house research Registered Office teams around the globe, managing Registrars assets for individuals, families and Kirsten Salt ACG MUFG Corporate Markets institutions worldwide. 199 Bishopsgate, London EC2M 3TY (full details on page 108) Telephone: 020 3246 7513 As at 30 September 2025, AllianzGI Email: kirsten.salt@allianzgi.com Stockbrokers had €580 billion of assets under management worldwide. J.P. Morgan Cazenove Registered number Through its predecessors, AllianzGI 00226323 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 62 GOVERNANCE ## Directors’ Report | The directors present their Report which | This confirmation is given and should | The first two quarterly dividends of | | --- | --- | --- | | incorporates the audited financial | be interpreted in accordance with | 6.25p (£5,406,000) were paid during | | statements for the year ended 30 | the provisions of section 418 of the | the company’s financial year to 30 | | November 2025. | Companies Act 2006. | November 2025 and the board declared | a third quarterly dividend of 6.25p | Share capital | Related party transactions | (£2,702,000) per ordinary share which | | --- | --- | --- | | Details of the company’s share capital | During the financial year no transactions | was paid on 11 December 2025. The | | are set out in Note 11 on page 97. | with related parties have taken place | board recommends a final dividend for | | | which would materially affect the | the year ended 30 November 2025 of | During the year 283,991 new ordinary financial position or the performance of 6.25p (£2,702,000), payable on 2 April shares of 25p were issued to J.P. Morgan the company. 2026, making a total distribution for Securities under the shareholder the year of 25.0p per ordinary share. authority granted at the AGM in 2024 for The next quarterly dividend payment is Management contract and a total consideration of £4,176,000, at an expected to be made in July 2026. management fee average price of 1,462.25p. 10,496 shares The main expense of the company and were bought back by the company and Invested funds therefore the most significant element held in treasury under the shareholder The market value of the company’s of the ongoing charges is the investment authority granted at the AGM for a total investments at 30 November 2025 management fee and the board is keen consideration of £146,000. was £677.9m (2024: £644.7m). Sales to ensure this fee remains competitive. Since the year end and up to 10 February of investments during the year resulted The manager’s performance under the 2026, a further 4,669 ordinary shares in net gains of £46.4m (2024: gains of contract and the contract terms are of 25p were bought back to be held £87.4m). Provisions contained in the reviewed annually by the management in treasury for a total consideration Finance Act 2010 exempt approved engagement committee. The committee’s of £65,937.80, at an average price investment trusts from corporation tax report is on page 70. of 1,412.25p. on their chargeable gains. Under the Alternative Investment A resolution to renew the authority Details of the total return of the Fund Managers Directive (AIFMD) the to issue new shares will be put to company and the split between revenue company appointed AllianzGI UK as the shareholders at the AGM, together with and capital returns are shown in the designated Alternative Investment Fund a resolution to renew the authority to Income Statement on page 86. The Manager (AIFM) for the company on purchase shares for cancellation or revenue and capital split is explained the terms and subject to the conditions holding in treasury. The full text of the in more detail in the Statement of of the management and administration resolutions is set out in the notice of Accounting Policies on page 90 under agreement between the company and meeting on page 109. ‘Investment management fee and AllianzGI UK (the management contract). administrative expenses’ and on page Independent auditors 93 under ‘Finance costs’. AllianzGI UK is authorised and regulated A resolution to approve the re- by the Financial Conduct Authority with The following disclosures are made in appointment of PricewaterhouseCoopers its registered office at 199 Bishopsgate, accordance with Part 6 of Schedule 7 of LLP as auditors of the company will London EC2M 3TY. the Large and Medium sized Companies be proposed at the annual general and Groups (Accounts and Reports) The management contract provides meeting, together with a resolution Regulations 2008. for a management fee based on authorising the directors to determine the 0.45% per annum of the value of the auditors’ remuneration. | | company’s assets after the deduction | Capital structure | | --- | --- | --- | | Each of the directors at the date of | of current liabilities, short-term loans | The company’s capital structure is set out | | approval of this report confirms that: | with an initial duration of less than one | in Note 11 on page 97. | year and the value of the company’s 1. so far as the director is aware, there investments in any other funds managed Listing Rule UKLR 6.6.1R is no relevant audit information of by the manager. The contract can be There are no matters requiring disclosure which the company’s auditors are terminated with six months’ notice. under this Rule, other than on share unaware; and capital which is set out above on 2. the director has taken all the steps Revenue this page. that he/she ought to have taken The revenue earnings attributable as a director to make himself/ to ordinary shareholders for the year herself aware of any relevant audit amounted to £12,046,000 or 27.86p per information and to establish that ordinary share (2024: £11,686,000 or the company’s auditors are aware of 27.37p per ordinary share). that information. 63 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## 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 64 GOVERNANCE | misleading environmental claims. The | and as a financial investment vehicle | for the renewal of this authority, which | | --- | --- | --- | | SDR has several dimensions, including | does not have customers. The directors | will last until the conclusion of the | | an ‘anti-greenwashing’ rule, designed | therefore consider that the company is | annual general meeting in 2027 or 1 July | | to increase trust and confidence in the | not required to make a statement under | 2027 if earlier. | | sustainable investment market and to | the Modern Slavery Act 2015 in relation | | This authority is limited to a maximum combat providers exploiting demand to slavery or human trafficking. number of 14,415,909 ordinary shares, for sustainable products by making representing approximately one third of unsupported environmental claims. Bribery Act 2010 the existing ordinary share capital of the The company’s website https://www. The board has a zero tolerance policy in company as at the date of this report, brunner.co.uk/en-gb/about-us/esg notes relation to bribery and corruption and provided that there is no change in the that Brunner’s investment process only has received assurance through internal issued share capital between the date includes consideration of ESG factors, controls reporting from the company’s of this report and the annual general not Socially Responsible Investment main third party service providers that meeting to be held on 31 March 2026. | (SRI) (i.e., building sustainable portfolios | adequate safeguards are in place to | | | --- | --- | --- | | by delivering sustainable financial | protect against any such potentially | Disapplication of pre-emption rights | | returns based on the assessment of | illegal behaviour by employees | A resolution was passed at the annual | | ESG practices) nor impact aspects (i.e., | or agents. | general meeting of the company held | | promoting social and environmental | | on 2 April 2025 under section 570 of | | goals and/or/outcomes alongside | | the Companies Act 2006, to authorise | Annual General Meeting business financial returns). the directors to allot ordinary shares Directors’ Re-election for cash other than pro rata to existing The plans for board succession, including TCFD shareholders. The current authority will the arrangements for the retirements The board continues to look at the expire on 1 July 2026 and approval of the directors with over nine years’ carbon footprint of the portfolio which is therefore sought for the renewal service, are described on page 71. is reported in the monthly factsheets. of this authority, which will last until Carolan Dobson, Amanda Aldridge, Whereas as an investment company we the conclusion of the annual general Elizabeth Field, Andrew Hutton and do not report following the requirements meeting in 2027 or 1 July 2027 if earlier. Jim Sharp each retire in accordance of the Task Force on Climate-related This authority is limited to a maximum with the board policy on the annual Financial Disclosures (TCFD) we take an number of 4,324,772 ordinary shares, re-election of directors and offer interest in how the portfolio compares representing approximately 10% of the themselves for re-election at the AGM against available indexed data. On existing ordinary share capital of the in 2026. Biographical details of the page 46 we look at various ESG MSCI company as at the date of this report, directors are on page 60 together performance metrics against those of provided that there is no change in the with the reasons why the board supports the benchmark. issued share capital between the date and recommends their re-election. In accordance with the requirements of this report and the annual general Directors serving during the year and of the TCFD, AllianzGI UK as AIFM has meeting to be held on 31 March 2026. their interests in the share capital of the prepared a product level report for company as at 30 November 2025 are Accordingly resolution 12 as set out in the company. The TCFD report for the set out in the Directors’ Remuneration the notice of meeting on page 109 will company is available on the company’s Report on page 72. be proposed as an ordinary resolution website brunner.co.uk. and resolution 13 will be proposed as a The board’s view is that each director special resolution. who is retiring and offering themselves Greenhouse gas emissions to be re-elected at the AGM continues The directors do not currently intend to As an investment company, the to make a valuable and effective allot shares under these authorities other company’s own direct environmental contribution and remains committed in than to take advantage of opportunities impact is minimal. The company has the role. The board has also considered in the market as they arise and only if no greenhouse gas emissions to report the number of boards on which they believe it would be advantageous from its operations, nor does it have each director sits and the other time to the company’s existing shareholders responsibility for any other emissions commitments for each board member to do so. The directors confirm that no producing sources under the Companies and is satisfied that each director has allotments of new shares will be made Act 2006 (Strategic Report and Directors’ the capacity to devote all the time and unless the lowest market offer price of Reports) Regulations 2013. For the attention needed to fulfil their role and the ordinary shares is at least equal to or same reasons, the company considers duties to the company. at a premium to Net Asset Value. itself to be a low energy user under the Streamlined Energy & Carbon Allotment of new shares Share buy back programme Reporting regulations and therefore A resolution authorising the directors The board is proposing the renewal is not required to disclose energy and to allot new share capital was passed of the company’s authority under carbon information. at the annual general meeting of the section 701 of the Companies Act 2006, company on 2 April 2025 under section to purchase ordinary shares in the Modern Slavery Act 2015 551 of the Companies Act 2006. The market for cancellation. In addition to The company does not provide goods or current authority will expire on 1 July renewing its powers to buy back shares services in the normal course of business, 2026 and approval is therefore sought for cancellation, the board will seek 65 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 shareholder authority to repurchase Where purchases are made at prices The Brunner family shares for holding in treasury for sale below the prevailing Net Asset Value of Since the establishment of the company and reissue at a later date. the ordinary shares, the Net Asset Value in 1927, various members of the per share for the remaining shareholders extended Brunner family have held This authority will give the company the is enhanced. It is therefore intended shares in the company. Jim Sharp, ability to reissue treasury shares quickly that purchases will only be made at director, is connected by marriage to the and cost-effectively (including pursuant prices below the prevailing Net Asset Brunner family. to the authority under resolution 13, see Value at the time of purchase, with above) and provides the company with Following discussions in 2013, the purchases to be funded from the additional flexibility in the management agreement was reached with the realised capital profits of the company of its capital base. Such shares may be Takeover Panel that for the purposes (which are currently in excess of £622m). resold for cash but all rights attaching of the City Code on Takeovers and The rules of the UK Listing Authority to them, including voting rights and any Mergers (the Code), Sir Hugo Brunner limit the price which may be paid by the right to receive dividends are suspended and Mr TBH Brunner, together with their company to 105% of the average middle whilst they are held in treasury. If the children (and their spouses) and related market quotation for an ordinary share board exercises the authority conferred trusts (the Connected Parties) will be on the five business days immediately by resolution 14, which will be proposed treated as acting in concert for the preceding the date of the relevant as a special resolution, the company purposes of the Code. The Connected purchase. The minimum price to be paid will have the option of either holding in Parties currently hold 9,571,319 shares, will be 25p per ordinary share (being the treasury or of cancelling any of its shares representing 22.13% of the ordinary nominal value). purchased pursuant to this authority and share capital of the company. If the will decide at the time of purchase which Under the Financial Conduct Authority’s proposed buy back authority were to be option to pursue. Listing Rules, a company is permitted used in full, the repurchase of ordinary to purchase up to 14.99% of its equity shares could result in the Connected The board believes that such purchases share capital through market purchases Parties holding 26.03% of the reduced in the market at appropriate times pursuant to a general authority granted ordinary share capital of the company and prices may be a suitable method by shareholders in general meeting. (assuming that the Connected Parties of enhancing shareholder value. The did not sell any ordinary shares). company would make either a single The current authority which permits purchase or a series of purchases, when the company to purchase up to 14.99% The board and the Annual Report | market conditions are suitable, with | of the ordinary shares, expires at the | | | --- | --- | --- | | the aim of maximising the benefits to | conclusion of the forthcoming annual | Following the process reported in the | | shareholders and within guidelines | general meeting. The board believes | Audit and Risk Committee Report, on | | set from time to time by the board. | that the company should continue | page 75, the board is able to state | | Additionally, the board believes that the | to have authority to make market | that it considers that the Annual Report, | | company’s ability to purchase its own | purchases of its own ordinary shares | taken as a whole, is fair, balanced | | shares should create additional demand | for cancellation or additionally for | and understandable. | | for the ordinary shares in the market | holding in treasury. Accordingly, a special | | | and that this should assist shareholders | resolution to authorise the company to | | | wishing to sell their ordinary shares. | make market purchases of up to 14.99% | By order of the board | of the company’s issued ordinary share Kirsten Salt capital will be proposed. Provided there Company Secretary is no change in the issued share capital 11 February 2026 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. 66 GOVERNANCE Statement of the Depositary’s The Depositary must ensure that: Report of the Depositary to the Responsibilities in Respect Shareholders of The Brunner – the company’s cash flows are of The Brunner Investment Investment Trust PLC (the company) for properly monitored and that cash the year ended 30 November 2025. Trust PLC provided by HSBC of the company is booked into the Securities Services, depositary to cash accounts in accordance with Having carried out such procedures the company. the Regulations; as we consider necessary to discharge our responsibilities as Depositary of – the sale, issue, repurchase, redemption ‘The Depositary must ensure that the the company, it is our opinion, based and cancellation of shares are company is managed in accordance on the information available to us and carried out in accordance with with the Financial Conduct Authority’s the explanations provided, that in all the Regulations; Investment Funds Sourcebook, (the material respects the company, acting Sourcebook), the Alternative Investment – the assets under management through the AIFM, has been managed Fund Managers Directive (AIFMD) and the Net Asset Value per share in accordance with the rules in the (together the Regulations) and the of the company are calculated in Sourcebook, the Articles of Association company’s Articles of Association. accordance with the Regulations; of the company and as required by The Depositary must in the context of its – any consideration relating to the AIFMD.’ role act honestly, fairly, professionally, transactions in the company’s assets HSBC Securities Services independently and in the interests of the is remitted to the company within the 12 December 2025 | company and its investors. | usual time limits; | | | --- | --- | --- | | The Depositary is responsible for | – that the company’s income is | Further information about the | | the safekeeping of the assets of | applied in accordance with the | relationship with the Depositary is on | | the company in accordance with | Regulations; and | page 106. | the Regulations. – 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. 67 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## Corporate Governance Statement | The board reports against the AIC Code of | committees and the results were shared | The board will continue to ensure that all | | --- | --- | --- | | Corporate Governance (AIC Code) 2019. | with the whole board. The findings of | appointments are made on the basis of | | As confirmed by the Financial Reporting | the evaluation included confirmation | merit against the specification prepared | | Council, following the AIC Corporate | that the board is effective and that | for each appointment. | | Governance Guide enables investment | each director continues to be effective, | | The board has chosen to align its company boards to meet their obligations has the appropriate skills and has diversity reporting reference date with under the UK Corporate Governance Code demonstrated commitment and devoted the company’s financial year end and and Listing Rules. the necessary time to his or her role. All proposes to maintain this alignment for directors attended all board and relevant future reporting periods. The company Board composition committee meetings during the year. The has met one of the targets on board There are five directors on the board. We directors all provide challenge in board diversity as at its chosen reference date, aim to have two investment professionals, meetings and each offers useful guidance 30 November 2025 as at least 40% of the an accountant, a lawyer and a director from their own areas of expertise. individuals on its board of directors are with commercial expertise, one of which The Senior Independent Director women. The board did not at the reference preferably has a connection with the conducted an appraisal of the Chair date and does not at the date of this Brunner family, to provide a balanced as part of the externally facilitated report have any directors from a minority board. The optimum number of directors is board evaluation process. This exercise ethnic background. Further details on the therefore five, but the number could fall to confirmed that the Chair demonstrates company’s appointment process can be four and go as high as six to cover periods effective leadership, makes an excellent found under Board Composition, above, of recruitment, transition and retirement. contribution to the company and is and Succession on page 71. As required The board has a plan for the retirement assiduous in her engagements with the under LR 6.6.6, further detail in respect of directors to ensure that an orderly company’s stakeholders. of the targets outlined above as at 30 process of recruitment can take place November 2025 and as at date that the and that the board’s balance of skills and Gender and ethnic diversity Annual Report was approved is disclosed relevant experience is maintained. This The board is supportive of the FCA’s Listing in the tables below. | may mean that directors might be on | Rules (LR 6.6.6) to encourage greater | | | --- | --- | --- | | the board for longer than nine years to | diversity on listed company boards and | As an externally managed investment | | allow for continuity of experience and a | has implemented the FCA’s disclosure | company, the company has no executive | | smooth transition. | requirements. The board recognises the | directors, employees or internal | | | importance of having a range of skilled, | operations. Therefore, columns relating | The biographies of the directors are set out experienced individuals with the right to executive management have been on pages 60 and 61 together with the knowledge represented on the board. removed from the tables below. skills and experience each director brings to the board for the long-term sustainable Number of Senior success of the company. Number of Percentage Positions on the Board members of the Board Board* No contracts of significance in which directors are deemed to have been Gender interested have subsisted during the year Men 2 40% 1 under review. Contracts of employment are not entered into with the directors, Women 3 60% 1 who hold office in accordance with the Other - - - company’s Articles of Association. Not specified/prefer not to say - - - Board evaluation Ethnicity The board and its committees were White British or other white background 5 100% 2 subject to an externally-facilitated Mixed/Multiple Ethnic Groups - - - performance appraisal during the course of the year. This was conducted by means Asian/Asian British - - - of a detailed questionnaire facilitated Black/African/Caribbean/Black British - - - by Lintstock Limited, an external service Other ethnic group, including Arab - - - provider. Lintstock then reported to the Chair, and the Senior Independent Not specified/prefer not to say - - - Director relating to the review of the chair, * The company only has two of the senior roles specified by the Listing Rules, that is the on the outcome of the evaluation and position of chair and SID. One of these roles is occupied by a man and one by a woman. the effectiveness of the board, the chair, 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 the individual directors and the board 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 GOVERNANCE Conflicts of Interest Directors’ indemnities the role and as a result of this exercise Spencer Stuart was appointed to Under the Companies Act 2006 directors Directors’ and Officers’ liability insurance conduct the process. must avoid a situation where they have, cover is held by the company and was in or can have, a direct or indirect interest place for the whole of the financial year. The Nomination Committee Report is on that conflicts, or possibly may conflict, As permitted by the company’s Articles page 71. with the company’s interests. The board of Association, the company has granted reports annually on the company’s indemnities to the directors. Management procedures for ensuring that its powers engagement committee of authorisation of conflicts are operated Board committees The management engagement effectively and that the procedures have committee met once in the year Audit and risk committee been followed. to review the Management and The Audit and Risk Committee Report is Administration Agreement and the Each of the directors has provided a on page 75. manager’s performance and a report statement of all conflicts of interest and of management fees. It has defined Nomination committee potential conflicts of interest relating to terms of reference and consists of all The nomination committee meets the company. These statements have the directors. It is chaired by Carolan as needed – at least once each year been considered and approved by the Dobson, the Chair of the board. – and makes recommendations on board. The directors have undertaken to board succession planning and the notify the Chair and Company Secretary The Management Engagement appointment of new directors and of any proposed new appointments and Committee Report is on page 70. considers the composition and balance new conflicts or potential conflicts for Remuneration committee of the board. The committee is chaired consideration, if necessary, by the board. The remuneration committee met by Carolan Dobson, the Chair of the The board has agreed that only directors once in the year and consists of all board, and met once in the last year who have no interest in the matter being the directors except Jim Sharp. The when it considered the re-election of considered will be able to participate in committee is chaired by Andrew directors at the annual general meeting taking the relevant decision and that in Hutton. The committee determines the and the plans for new recruitment taking the decision the directors will act company’s remuneration policy and to the board. The members of the in a way they consider, in good faith, will determines the remuneration of each committee met separately under the be most likely to promote the company’s director within the terms of that policy. leadership of the Senior Independent success. The board can impose limits or The Directors’ Remuneration Report is on Director to review the tenure of the conditions when giving authorisation if page 72. Chair and consider the plans for it thinks this is appropriate. For example, succession. All directors serve on the a director with a potential conflict might The terms of reference for each of nomination committee and consider be asked to step out of the meeting the committees may be viewed by nominations made in accordance with room or will be permitted to remain shareholders on request and are an agreed procedure. in the room but not participate in the published on the company’s website discussion or take part in a vote on a brunner.co.uk in the Information/Legal It is the board’s policy to use external course of action. Documents section. agencies to draw up lists of candidates as part of the recruitment of new The board confirms that its powers of directors. The brief to the recruitment authorisation are operating effectively consultant includes the request that the and that the agreed procedures have shortlist should include a diverse range been followed. of candidates. In the current search to recruit a chair-elect during the course of 2026, four firms were invited to pitch for Board attendance Attendance by the directors at formal board and committee meetings during the year was as follows: Board Audit Management strategy and risk Remuneration Nomination engagement Director Board day committee committee committee committee No. of meetings 6 1 2 1 1 1 1 Carolan Dobson 6 1 2 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 1 1 Jim Sharp 6 1 2 1 1 1 1 Invited to attend meetings, although not a committee member. 69 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## Management Engagement Committee Report | Role of the committee | AIFM | Committee evaluation | | --- | --- | --- | | The Management Engagement | Details of the current AIFM, Allianz | The activities of the Management | | Committee reviews the investment | Global Investors UK Limited (‘AllianzGI | Engagement committee were | | management agreement and monitors | UK’), are on page 106. | considered as part of the board | | the performance of the Manager for | | evaluation process completed in | AllianzGI UK is authorised and regulated the investment, secretarial, financial, accordance with standard governance by the Financial Conduct Authority with administration, marketing and support arrangements as summarised on page its registered office at 199 Bishopsgate, services that it provides under that 68. The conclusion from the process London EC2M 3TY. agreement. It also reviews the terms of was that the committee was operating the agreement including the level and effectively, with the right balance of Manager reappointment structure of fees payable, the length membership and skills. The annual evaluation that took place in of notice period and best practice December 2025 included a presentation provisions generally. from the portfolio managers and Carolan Dobson AllianzGI’s Head of Investment Trusts. Composition of the committee Management engagement This covered the work done with the All the directors are members of the committee Chair board on the provision of investment committee. Its terms of reference can be 11 February 2026 and support services, including the found on the website at brunner.co.uk. promotion and distribution of the trust, succession planning and the ambitions Manager evaluation process for 2026; the dividend strategy; the The committee met once during the year investment strategy; and the sales for the purpose of the formal evaluation and marketing activity, covering the of the manager’s performance. work with investment platforms and | For the purposes of its ongoing | wealth managers. The evaluation | | --- | --- | | monitoring, the board receives | also considered the manager’s fee | | detailed reports and views from the | in relation to the peer group. The | | portfolio manager on investment | committee met in a private session | | policy and strategies, asset allocation, | following the presentation. As part of | | stock selection, attributions, portfolio | the externally facilitated evaluation of | | characteristics, gearing and risk. The | the board described in the Nomination | | board also assesses the manager’s | Committee report on page 71, the | | performance against the investment | individual directors had considered the | | controls set by the board. | relationship with and the performance | of the manager over the year and the The manager also reported to the results of this were considered in the board on its succession plans for the key evaluation. Following the discussions in individuals, including the members of the this meeting it was concluded that in its portfolio management team. opinion the continuing appointment of Performance information is set out on the manager on the terms agreed was in page 9. 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. 70 GOVERNANCE ## Nomination Committee Report Role of the committee Succession Committee evaluation The Nomination Committee leads the Succession planning is considered The activities of the Nomination process for board appointments and regularly by the committee. Committee were considered as part of makes nomination recommendations the board evaluation process completed The members of the committee met to the board. The committee reviews in accordance with standard governance separately under the leadership of the and makes recommendations on board arrangements as summarised on page Senior Independent Director to review structure, size and composition, the 68. The conclusion from the process the tenure of the Chair and consider the balance of knowledge, experience, was that the committee was operating plans for succession. Notwithstanding skill ranges and diversity and considers effectively, with the right balance of her length of service on the board, succession planning and tenure policy. membership and skills. the directors are unanimously agreed that Carolan Dobson continues to be Composition of the committee independent and remains a highly All directors are members of the Carolan Dobson effective Chair with strong leadership committee and its terms of reference can Nomination committee Chair of the board. Taking this into account be found on the website at brunner.co.uk 11 February 2026 and as the board has a majority of independent directors, it was agreed Activities of the committee that Carolan Dobson’s tenure as the The committee met during the year Chair of the board should continue until and considered, in accordance with its the AGM in 2027. terms of reference the structure, size There is a plan in place to recruit a new and composition of the board and director in advance of the Chair stepping satisfied itself with regard to succession down and an externally facilitated planning, making recommendations to evaluation of the Chair, the board, the the board. The committee reviewed the individual directors and committees succession plan, as mentioned below, was conducted in 2025 in which there and recommended it to the board. was a brief to consider this succession | The committee also discussed the | plan in detail. Following this exercise | | --- | --- | | results of the board and committee | the board invited recruitment firms to | | evaluation exercise, which covered the | make proposals and in January 2026, | | structure and size of the board and its | Spencer Stuart was appointed to assist | | composition, particularly in terms of | with the search. The process was led | | succession planning, and the experience | by the Senior Independent Director, | | and skills of the individual directors and | Andrew Hutton. | 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. 71 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 # Remuneration Committee Report ![img-15.jpeg](img-15.jpeg) As chair of the remuneration committee, I am pleased to present the committee’s report for year ended 30 November 2025. ## 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 | 72 GOVERNANCE 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 | | | 2025 | | 2025 | | | 2024 | | | 2024 | | 2024 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | base salary | | | taxable expenses | | * total | | | base salary | | | taxable expenses | | * 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. 73 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 | | | % change | | | | % change | | | | % change | | | | % change | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 2025 | | | 2024 to | 2024 | | 2023 to | | 2023 | | 2022 to | | 2022 | | 2021 to | | 2021 | | | | £ | | 2025 | | £ | | 2024 | | £ | | 2023 | | £ | | 2022 | | £ | 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 200 Benchmark +85% 180 Share Price +84% NAV debt at fair value +75% 160 % 140 120 100 2020 2021 2022 2023 2024 2025 Source: AllianzGI/Thomson Reuters DataStream Andrew Hutton Remuneration committee Chair 11 February 2026 74 GOVERNANCE ## Audit and Risk Committee Report Composition accounting policies and confirmed their appropriateness and reviewed Andrew Hutton and Elizabeth Field in detail the annual and half-yearly served on the committee throughout financial reports and in each case the year. The Chair of the board and recommended them for adoption by Jim Sharp are invited to attend audit the board. At the meeting for the half and risk committee meetings, as are year the auditors presented the audit representatives of the manager. plan for the year ending 30 November As you will see from my biography on 2025. In the meeting relating to the page 60, I am a Chartered Accountant year end the committee considered and until 2017, I was an audit and the auditors’ report on the annual advisory partner, at KPMG, London. I financial statements. also chair the audit committee of two ## As chair of the audit At each meeting the committee received other listed companies. During the year ## and risk committee, a report on the operation of controls the board reviewed the composition relating to the company and the proper of the audit and risk committee and it ## I am delighted to present conduct of its business in accordance considers that, collectively, its members with the regulatory environment in which ## the committee’s report have sufficient recent and relevant both the company and the manager financial experience to discharge their ## for the year ended 30 operate. The committee has also responsibilities fully. received reports from the company’s ## November 2025. service providers on their continuing Role response to cyber security risks and The principal role of the committee is related business continuity updates. to assist the board in relation to the reporting of financial information, review Risk of financial controls and management Although the board has ultimate of risk. The committee has defined responsibility for the management of terms of reference and duties and the risk, the audit and risk committee assists terms of reference are published on by monitoring the formal reports from the company’s website, brunner.co.uk. the manager and third-party service These include: providers on risk and internal controls. – responsibility for the review of the During the year the committee reviewed Annual Report and the half-yearly the risk management framework and Financial Report; concluded that existing processes were – consideration of the nature and scope, adequate to ensure that its assessment independence and effectiveness of of risk is robust and of sufficient the external audit and of the auditors’ frequency, namely carried out at each findings and recommendations; and committee meeting and twice annually – review of the terms of appointment by the board as follows: of the auditors, including their remuneration and the provision of any – A matrix of risks is reviewed at each non-audit services by them. audit and risk committee meeting. We consider whether new risks should be Activities added or previously identified risks The committee meets twice each year. removed, assess their likelihood of These meetings are attended by the occurring and potential scale, review auditors and also by representatives of the mitigating actions and assess the manager, including both risk and the residual risk against what we compliance officers. It is the practice of regard as acceptable – ‘risk appetite’. the committee to meet with the auditor Economic and political volatility, without management present at least including continued international once each year. conflict and tensions and the impact of tariffs and trade wars have all been At the scheduled meetings in respect considered by the board in this review. of the year ended 30 November 2025 – Assurance over mitigating actions in the committee reviewed the company’s relation to these risks is provided in 75 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 a series of reports from all the third relevant accounting and regulatory Accuracy, occurrence and completeness party service providers. developments, and recommendations of dividend income – Resulting from the work of the audit on corporate reporting; During the year, income reports and and risk committee, the principal – the audit processes, evidence of forecasts are reviewed in detail with the risks and uncertainties are identified oversight by the audit lead; and manager at each meeting of the board, for disclosure and discussion in our – the reasonableness of audit fees; including yield information. Changes to annual report. The committee also the forecast for each portfolio stock from The committee sought comments from assesses residual risks after controls meeting to meeting are also scrutinised. representatives of the manager on the and mitigating actions have been provision of services by the auditor and The auditor conducts an independent applied, and evaluates whether these the effectiveness of the external audit for analysis of the expected income stream fall within our risk appetite. The risks the year ended 30 November 2025 and from the investment portfolio for the identified, together with mitigating considered whether the audit team as year. We discussed the outcome of this actions, and the results of the risk a whole demonstrated an appropriate analysis and were satisfied based on appetite assessment are set out in the level of challenge to the Board and the this and that the dividend income was Strategic Report on page 11. manager in fulfilling their role. appropriately recorded in the annual report and accounts. | Viability Statement | Based on all of the above, the committee | | | --- | --- | --- | | Taking into account this review of risk | concluded that we have no concerns | In addition we reviewed the manner in | | the committee reviewed a paper that | with the performance of the auditor and | which expenses are allocated between | | supported the board’s conclusion, set out | has recommended to the board that a | capital and income and noted historic | | on page 22 in the Strategic Report, | resolution proposing the re-appointment | returns as an indicator of future returns. | | of their reasonable expectation that the | of the auditor is put to shareholders at | It was concluded that the ratio of 70:30 | | company is viable in the longer term, | the annual general meeting. | remains appropriate since it broadly | | assessed as the next five years. | | reflects our investment policy and split | | | Financial report and | of prospective capital and income | | | significant Issues | returns. This area will be kept under | The audit, its effectiveness and regular review. the terms of appointment of The significant issues identified for the auditor the review of the financial statements We also confirmed, as stated in the The committee reviewed the terms of this year, that is, those identified as Statement of Accounting Policies appointment of the auditor, monitored presenting the greatest risks, were on page 90, that there are no the audit process, assessed the auditors’ the valuation and existence of the judgements, estimates, and assumptions independence and objectivity as well as investments in the portfolio; and the about the carrying amounts of assets the effectiveness of the audit process. It accuracy, occurrence and completeness and liabilities that are not readily was noted that there were no non-audit of dividend income. These and other apparent from other sources. services provided by the audit firm, and matters, identified as posing lesser risk, The committee considered the audit that none are planned in the financial were considered and discussed with the materiality and error reporting year to 30 November 2026. manager and the auditor as part of the thresholds in the audit plan and year end process. This is PricewaterhouseCoopers’ eighth confirmed that they were satisfied with year as our auditor and under current Valuation and existence of the these. As in previous years, the auditor FRC guidance, the next audit tender investments in the portfolio set the materiality threshold as 1% of will be required in respect of the year Listed investments are valued using stock Net Asset Value to align closely with ending 30 November 2028. Until exchange prices provided by third party comparable companies, but continues then, we will continue to monitor the financial data vendors. We discussed to report to the committee on matters auditor’s performance and make any the work done by the auditor on the below that level on qualitative grounds. appropriate recommendations. valuation of investments and received The audit and risk committee and the assurance that there were no concerns As part of our review of the performance whole board reviewed the entire annual regarding valuation of the investments. of the auditor, the members of the report and noted all of the supporting committee and those representatives The manager confirms to us the information received. It then considered of the manager involved in the audit existence and ownership of portfolio whether the annual report satisfactorily process reviewed and considered a investments. The manager receives reflected a true picture of the company number of areas including: information from the custodian which and its activities and performance in is reconciled with the portfolio list. the year, with a clear link between the – the reputation and standing of the The auditor conducts an independent relevant sections of the report and audit firm including annual reports verification exercise which was concluded that it did so. The directors from the auditor’s regulator; satisfactorily concluded. were then able to confirm that the – the skills, experience and annual report, taken as a whole, is fair, specialist knowledge of the audit Based on this the committee concluded balanced and understandable and team, particularly relating to that the valuation and existence of provides the information necessary for investment trusts; the investments in the portfolio is shareholders to assess the company’s – audit communication including appropriately recorded in the annual performance, business model details of planning, information on report and accounts, and strategy. 76 GOVERNANCE Internal control and Whistleblowing internal audit As the company has no employees AllianzGI has decided to transition its it does not have a formal policy back office services to a new service concerning the raising, in confidence, provider. The committee will be of any concerns about improprieties for receiving regular additional reporting appropriate independent investigation. on the management and controls of The audit and risk committee has the transition from AllianzGI to gain received and noted the manager’s additional assurance during this change. policy on whistleblowing. Any matters concerning the company should The audit and risk committee’s view be raised with the Chair or Senior continues to be that the company does Independent Director. not require an internal audit function of its own as it delegates its day-to-day | operations to third parties from whom | Amanda Aldridge | | --- | --- | | it receives internal control assurance | Audit and risk committee Chair | | reports. Reports from third party auditors | 11 February 2026 | 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. 77 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## Statement of Directors’ Responsibilities ## in respect of the financial statements The directors are responsible for The directors are responsible for In the case of each director in office preparing the Annual Report and the safeguarding the assets of the company at the date the directors’ report financial statements in accordance with and hence for taking reasonable steps is approved: applicable law and regulation. for the prevention and detection of fraud – so far as the director is aware, there and other irregularities. | Company law requires the directors | | is no relevant audit information of | | --- | --- | --- | | to prepare financial statements for | The directors are also responsible for | which the company’s auditors are | | each financial year. Under that law the | keeping adequate accounting records | unaware; and | | directors have prepared the financial | that are sufficient to show and explain | – they have taken all the steps that they | | statements in accordance with United | the company’s transactions and disclose | ought to have taken as a director in | | Kingdom Generally Accepted Accounting | with reasonable accuracy at any time | order to make themselves aware of | | Practice (United Kingdom Accounting | the financial position of the company | any relevant audit information and to | | Standards, comprising FRS 102 ‘The | and enable them to ensure that the | establish that the company’s auditors | | Financial Reporting Standard applicable | financial statements and the Directors’ | are aware of that information. | | in the UK and Republic of Ireland’, and | Remuneration Report comply with the | | This responsibility statement was applicable law). Companies Act 2006. approved by the board of directors on | Under company law directors must not | The directors are responsible for the | 11 February 2026 and signed on its | | --- | --- | --- | | approve the financial statements unless | maintenance and integrity of the | behalf by: | | they are satisfied that they give a true | company’s website. Legislation in | | | and fair view of the state of affairs of the | the United Kingdom governing the | | | company and of the profit or loss of the | preparation and dissemination of | Carolan Dobson | | company for that period. In preparing | financial statements may differ from | Chair | | these financial statements, the directors | legislation in other jurisdictions. | | are required to: Directors’ confirmations – select suitable accounting policies and Each of the directors, whose names then apply them consistently; and functions are listed in Directors, – state whether applicable United Manager and Advisers on pages 60 Kingdom Accounting Standards, to 61, confirm that, to the best of comprising FRS 102 have been their knowledge: followed, subject to any material | departures disclosed and explained in | – the company’s financial statements, | | --- | --- | | the financial statements; | which have been prepared in | | – make judgements and accounting | accordance with United Kingdom | | estimates that are reasonable and | Accounting Standards, comprising FRS | | prudent; and | 102, give a true and fair view of the | | – prepare the financial statements on | assets, liabilities, financial position and | | the going concern basis unless it is | profit of the company; and | | inappropriate to presume that the | – the Strategic Report includes a fair | | company will continue in business. | 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. 78 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 79 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## 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). 80 FINANCIAL STATEMENTS 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 We tested the valuation of the listed equity investments by The investment portfolio at the year-end comprised listed agreeing the prices used in the valuation to independent equity investments valued at £677.9m. third party sources. We focused on the valuation and existence of investments We tested the existence of the investment portfolio because investments represent the principal element of the by agreeing investment holdings to an independent Net Asset Value as disclosed on the Balance Sheet in the custodian confirmation. financial statements. We have no matters to report as a result of this testing. Accuracy, occurrence and completeness of Income We assessed the accounting policy for investment income from investments recognition for compliance with accounting standards Income from investments consists primarily of and the AIC SORP and performed testing to check that dividend income. income had been accounted for in accordance with this stated accounting policy. We found that the accounting We focused on the accuracy, occurrence and completeness policies implemented were in accordance with accounting of investment income recognition as incomplete or standards and the AIC SORP, and that income has inaccurate income could have a material impact on the been accounted for in accordance with the stated company’s Net Asset Value and dividend cover. accounting policy. We also focused on the accounting policy for investment We tested the accuracy of dividend income by agreeing income recognition and its presentation in the Income the dividend rates from investments to independent Statement for compliance with the requirements of market data. The Association of Investment Companies Statement of Recommended Practice (the ‘AIC SORP’), as To test for completeness, we tested that all dividends incorrect application could indicate a misstatement in declared in the market by investment holdings had income recognition. 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. 81 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 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. 82 FINANCIAL STATEMENTS 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: 83 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 – 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. 84 FINANCIAL STATEMENTS 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 85 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## Income Statement for the year ended 30 November 2025 | | | 2025 | 2025 | | 2025 | | 2024 | 2024 | | 2024 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Revenue | | Capital | Total Return | | Revenue | | Capital | Total Return | | | Notes | | £’000s | £’000s | | £’000s | | £’000s | £’000s | | £’000s | Gains on investments held at fair value through 8 - 46,435 46,435 - 87,450 87,450 profit or loss 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 12,046 43,506 55,552 11,686 84,365 96,051 shareholders 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. 86 FINANCIAL STATEMENTS # Balance Sheet at 30 November 2025 | | 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 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 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## Statement of Changes in Equity for the year ended 30 November 2025 | | Called up | | | Share | | Capital | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | share | premium | | redemption | | Capital | Revenue | | | | | capital | account | | | reserve | reserve | reserve | Total | | Notes | | £’000s | | £’000s | | £’000s | £’000s | £’000s | £’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. 88 FINANCIAL STATEMENTS # Cash Flow Statement for the year ended 30 November 2025 | | 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). 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 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 # 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. 90 FINANCIAL STATEMENTS 5 Finance costs – In accordance with the FRS 102 Section 10 Dividends – In accordance with FRS 102 Section 32: ‘Events 11: ‘Basic Financial Instruments’ and Section 12 ‘Other After the End of the Reporting Period’, the final dividend Financial Instruments’, long term borrowings are stated proposed on ordinary shares is recognised as a liability at the amortised cost being the amount of net proceeds when approved by shareholders. Interim dividends are on issue plus accrued finance costs to date. Finance costs recognised only when paid. Dividends are paid from the are calculated over the term of the debt on the effective revenue reserve. interest rate basis. 11 Foreign currency – In accordance with FRS 102 Section Finance costs net of amortised premiums are charged to 30: ‘Foreign Currency Translation’, the company is required capital and revenue in the ratio 70:30 to reflect the board’s to nominate a functional currency, being the currency in investment policy and prospective split of capital and which the company predominately operates. The functional revenue returns. and reporting currency is pounds sterling, reflecting the Dividends payable on the 5% cumulative preference stock primary economic environment in which both the company are classified as an interest expense and are charged in full and its shareholders predominantly operate and in which to revenue. its expenses are generally paid. Transactions in foreign currencies are translated into pounds sterling at the rates 6 Taxation – Where expenses are allocated between capital of exchange ruling on the date of the transaction. Foreign and revenue, any tax relief obtained in respect of those currency monetary assets and liabilities are translated expenses is allocated between capital and revenue using into pounds sterling at the rates of exchange ruling at the marginal method and the company’s effective rate the balance sheet date. Profits and losses thereon are of corporation tax for the accounting period. Deferred recognised in the capital column of the income statement taxation is recognised in respect of all timing differences and taken to the capital reserve. that have originated but not reversed at the balance sheet date, where transactions or events that result in an 12 Significant judgements, estimates and assumptions – obligation to pay more tax or a right to pay less tax in the In the application of the company’s accounting policies, future have occurred. Timing differences are differences which are described above, the directors are required to between the company’s taxable profits and its results as make judgements, estimates, and assumptions about stated in the financial statements. the carrying amounts of assets and liabilities that are not readily apparent from other sources. The investment A deferred tax asset is recognised when it is more likely portfolio currently consists of listed investments and than not that the asset will be recoverable. Deferred tax therefore no significant estimates have been made in is measured on a non-discounted basis at the rate of valuing these securities. corporation tax that is expected to apply when the timing differences are expected to reverse. There are no significant judgements, estimates, and assumptions. 7 Shares repurchased for cancellation and for holding in Estimates and underlying assumptions are reviewed on treasury – Share capital is reduced by the nominal value of an ongoing basis. Revisions to accounting estimates are the shares repurchased, and the capital redemption reserve recognised in the period in which the estimate is revised is correspondingly increased in accordance with Section if the revision affects only that period, or in the period of 733 Companies Act 2006. The full cost of the repurchase the revision and future periods if the revision affects both is charged to the capital reserve within Gains (Losses) on current and future periods. 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. 91 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## Notes to the Financial Statements for the year ended 30 November 2025 ### 1. Income 2025 2024 £’000s £’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 | 2025 | 2025 | | 2024 | 2024 | 2024 | | --- | --- | --- | --- | --- | --- | --- | --- | | Revenue | | Capital | Total | Revenue | | Capital | Total | | | £’000s | £’000s | £’000s | | £’000s | £’000s | £’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. 92 FINANCIAL STATEMENTS ### 3. Administration expenses 2025 2024 £’000s £’000s Auditors’ remuneration for audit services 48 45 VAT on auditors’ remuneration 10 9 58 54 Other administration expenses 1 Directors' fees 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 | 2025 | 2025 | | 2024 | 2024 | 2024 | | --- | --- | --- | --- | --- | --- | --- | --- | | Revenue | | Capital | Total | Revenue | | Capital | Total | | | £’000s | £’000s | £’000s | | £’000s | £’000s | £’000s | On 5% Cumulative Preference Stock repayable 23 - 23 22 - 22 after more than five years On 2.84% Fixed Rate Notes 2048 repayable after 216 504 720 213 498 711 more than five years 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 93 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ### 5. Taxation | | 2025 | 2025 | 2025 | | 2024 | 2024 | 2024 | | --- | --- | --- | --- | --- | --- | --- | --- | | Revenue | | Capital | Total | Revenue | | Capital | Total | | | £’000s | £’000s | £’000s | | £’000s | £’000s | £’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 2024 £’000s £’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 2024 £’000s £’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. 94 FINANCIAL STATEMENTS ### 7. Earnings per ordinary share | | 2025 | 2025 | 2025 | | 2024 | 2024 | 2024 | | --- | --- | --- | --- | --- | --- | --- | --- | | Revenue | | Capital | Total | Revenue | | Capital | Total | | | £’000s | £’000s | £’000s | | £’000s | £’000s | £’000s | Profit after taxation attributable to ordinary 12,046 43,506 55,552 11,686 84,365 96,051 shareholders 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 2024 £’000s £’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). 95 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## 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%. 96 FINANCIAL STATEMENTS ## 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. 97 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ### 12. Reserves Capital Reserve | | Share | | Capital | Gains (losses) | | | Investment | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | premium | | redemption | | | on sales of | | | holding | Revenue | | account | | | reserve | | Investments | | gains (losses) | | reserve | | | £’000s | | £’000s | | | £’000s | | £’000s | £’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 | Debt | Debt at | Debt | | --- | --- | --- | --- | | fair value | at par | fair value | at par | | 2025 | 2025 | 2024 | 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. 98 FINANCIAL STATEMENTS (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 2024 £’000s £’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 | | 2025 | | 2024 | | 2024 | | --- | --- | --- | --- | --- | --- | --- | --- | | 30% increase | | 30% decrease | | 30% increase | | 30% decrease | | | in fair value | | in fair value | | in fair value | | in fair value | | | | £’000s | | £’000s | | £’000s | | £’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: 99 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 | | 2025 | | | 2025 | | | 2025 | | 2024 | | | 2024 | | | 2024 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | Other net assets | | | Total currency | | | | | Other net assets | | | Total currency | | | | Investments | | | (liabilities) | | | exposure | | Investments | | | (liabilities) | | | exposure | | | | £’000s | | | £’000s | | | £’000s | | £’000s | | | £’000s | | | £’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 | | 2025 | | 2024 | | 2024 | | --- | --- | --- | --- | --- | --- | --- | --- | | 20% decrease in | | 20% increase in | | 20% decrease in | | 20% increase in | | | sterling against | | sterling against | | sterling against | | sterling against | | | foreign currencies | | foreign currencies | | foreign currencies | | foreign currencies | | | | £’000s | | £’000s | | £’000s | | £’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. 100 FINANCIAL STATEMENTS | | 2025 | | | 2025 | | 2025 | 2025 | 2024 | | 2024 | | 2024 | 2024 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Fixed | | Floating | | | | | Fixed | Floating | | | | | | | rate | | | rate | | Nil | | rate | | rate | | Nil | | | | interest | | interest | | Interest | | Total | interest | interest | | Interest | | Total | | | £’000s | | | £’000s | £’000s | | £’000s | £’000s | | £’000s | £’000s | | £’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: | | | | Amount | | | Effective | | --- | --- | --- | --- | --- | --- | --- | | | Maturity | | borrowed | Coupon | | rate since | | 2025 | | date | £’000s | | rate | 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% | | | | Amount | | | Effective | | --- | --- | --- | --- | --- | --- | --- | | | Maturity | | borrowed | Coupon | | rate since | | 2024 | | date | £’000s | | rate | 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. 101 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 | | Three | | Between | Between | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | months | three months | | one and | More than | | | | | or less | and one year | | five years | five years | | Total | | 2025 | £’000s | | £’000s | £’000s | | £’000s | £’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 | | Three | | Between | Between | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | months | three months | | one and | More than | | | | | or less | and one year | | five years | five years | | Total | | 2024 | £’000s | | £’000s | £’000s | | £’000s | £’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 2024 £’000s £’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 10,283 102 FINANCIAL STATEMENTS 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 2024 £’000s £’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 | | 2025 | | 2024 | | 2024 | | --- | --- | --- | --- | --- | --- | --- | --- | | Book value | | Fair value | | Book value | | Fair value | | | | £’000s | | £’000s | | £’000s | | £’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 2024 £’000s £’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). 103 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 ## 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. 104 Online payroll and human resources software specialist Paycom, another new addition to the portfolio, is based in Oklahoma City, Oklahoma. ## Investor ## Information 106 Investor information (unaudited) 109 Notice of Meeting 112 Glossary 105 105 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 # Investor information (unaudited) ## AIFM and Depository 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 depository and custodian in accordance with AIFMD under an agreement between the company, AllianzGI UK and HSBC. Depository 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. 106 INVESTOR INFORMATION ## 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 107 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 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. 108 INVESTOR INFORMATION # Notice of Meeting 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 109 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 Notes: (v) in the case of shares held through CREST, via the CREST system (see notes below). The following notes explain your general rights as a shareholder and your right to attend and vote at this Meeting 7. If you return more than one proxy appointment, either or to appoint someone else to vote on your behalf. by paper or electronic communication, the appointment received last by the Registrar before the latest time for the 1. To be entitled to attend and vote at the Meeting (and for receipt of proxies will take precedence. You are advised to the purpose of the determination by the company of the read the terms and conditions of use carefully. Electronic number of votes they may cast), shareholders must be communication facilities are open to all shareholders and registered in the register of members of the company at those who use them will not be disadvantaged. close of trading on Friday 27 March 2026 (the record date). Changes to the register of members after the relevant 8. Shareholders can vote electronically via the Investor Centre, deadline shall be disregarded in determining the rights of a free app for smartphone and tablet provided by MUFG any person to attend and vote at the Meeting. Corporate Markets (the company’s registrar). It allows you to securely manage and monitor your shareholdings 2. Shareholders are entitled to appoint another person as in real time, take part in online voting, keep your details a proxy to exercise all or part of their rights to attend up to date, access a range of information including and to speak and vote on their behalf at the Meeting. A payment history and much more. The app is available to shareholder may appoint more than one proxy in relation download on both the Apple App Store and Google Play, to the Meeting provided that each proxy is appointed to or by scanning the relevant QR code below. Alternatively, exercise the rights attached to a different ordinary share or you may access the Investor Centre via a web browser at: ordinary shares held by that shareholder. A proxy need not https://uk.investorcentre.mpms.mufg.com/. be a shareholder of the company. Apple App Store Google Play 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 9. If you are an institutional investor, you may be able to the names of the joint holders appear in the company’s appoint a proxy electronically via the Proxymity platform, Register of Members in respect of the joint holding (the first a process which has been agreed by the company named being the most senior). and approved by the Registrar. For further information 5. A vote withheld is not a vote in law, which means that the regarding Proxymity, please go to www.proxymity.io. Your vote will not be counted in the calculation of votes for proxy must be lodged by 11.30 a.m. on Friday 27 March or against the resolution. If no voting indication is given, 2026 in order to be considered valid or, if the meeting is your proxy will vote or abstain from voting at his or her adjourned, by the time which is 48 hours before the time discretion. Your proxy will vote (or abstain from voting) as of the adjourned meeting. Before you can appoint a proxy he or she thinks fit in relation to any other matter which is via this process you will need to have agreed to Proxymity’s put before the Meeting. associated terms and conditions. It is important that you read these carefully as you will be bound by them and they 6. To be valid, any form of proxy or other instrument will govern the electronic appointment of your proxy. An appointing a proxy, must be returned by no later than electronic proxy appointment via the Proxymity platform 11.30 a.m. on Friday 27 March 2026 through any one of the may be revoked completely by sending an authenticated following methods: message via the platform instructing the removal of your (i) by post, courier or (during normal business hours only) proxy vote. hand to the company’s registrar at: 10. The return of a completed form of proxy, electronic voting MUFG Corporate Markets online or via the app or any CREST Proxy Instruction (as PXS 1 described in note 13 below) or the appointment of a proxy Central Square via Proxymity will not prevent a shareholder from attending 29 Wellington Street the Meeting and voting in person if he/she wishes to do so. Leeds 11. CREST members who wish to appoint a proxy or proxies LS1 4DL through the CREST electronic proxy appointment service (ii) electronically through the website of the company’s may do so for the Meeting (and any adjournment of the registrar at https://uk.investorcentre.mpms.mufg.com/ Meeting) by using the procedures described in the CREST or via the Investor Centre app. Manual (available from www.euroclear.com). CREST (see note 8 below). Personal Members or other CREST sponsored members, (iii) via Proxymity (see note 9 below). and those CREST members who have appointed a service 110 INVESTOR INFORMATION 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, Proximity 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. 111 THE BRUNNER INVESTMENT TRUST PLC ANNUAL REPORT 30 NOVEMBER 2025 # Glossary ## 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). 112 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 The Brunner Investment Trust PLC 199 Bishopsgate London EC2M 3TY +44 (0)203 246 7000 www.brunner.co.uk 4