Brunner Investment Trust (BUT) generated a net asset value (NAV) total return of 5.6% over the six months to 31 May 2026, compared with 12.0% from its 70% FTSE World ex UK/30% FTSE All-Share benchmark. A modest narrowing of the discount lifted the share price total return to 8.1%. The managers attributed the relative shortfall to Brunner’s lower exposure to the increasingly concentrated AI infrastructure rally, although TSMC, ASML and Microchip were among its strongest performers. IG Group, TotalEnergies, ConocoPhillips, Kia and CBIZ also contributed, while Auto Trader was the largest detractor.
Portfolio activity was elevated, with new investments including Lloyds, Wells Fargo, BMW, Melrose, Progressive, Equifax and Booking Holdings, while RELX was repurchased following a sharp fall in its valuation. Amphenol, Roper, Paycom and Partners Group were among the exits. Revenue earnings per share increased by 13.9% to 19.7p and the board expects to pay dividends totalling 27.0p for the full year, an 8.0% increase. The trust’s average discount was 8.8% during the period, and the board continued to buy back shares.
Matthew Read, senior analyst at QuotedData said: “Brunner’s portfolio is constructed with an ‘all-weather’ philosophy. It is meant to be a sleep at night portfolio and so its managers seek balance across sectors, regions and economic sensitivities rather than allowing any single theme or market trend to dominate. This means that the trust can look different from its benchmark, particularly when index returns are being driven by a narrow group of highly valued stocks as we have seen recently with the market heavily focused on the narrow group of stocks exposed to the AI trade. In this context, it is not surprising that Brunner has underperformed but it should offer greater resilience if enthusiasm for AI infrastructure spending cools. Meanwhile, 13.9% growth in revenue earnings and the proposed 8% dividend increase underline the strength of Brunner’sincome credentials.”
US activist Saba Capital has reportedly built a position in student accommodation provider Unite Group (UTG). The Times has reported that Saba’s position is as much as 4%, held through financial derivatives. UTG, the UK’s largest student accommodation provider with around 72,000 student rooms, is facing tough market conditions with falling demand and has repeatedly reduced its forecasts for occupancy and rental growth, while its shares have fallen by roughly one-third over the past 12 months. Its shares now languish on a discount to NAV of more than 40%. Saba has increasingly targeted listed property companies, where discounts to NAV remain wide compared to the investment companies sector, and follows its campaign to oust the board of Workspace (WKP) and its growing stake in build-to-rent landlord Grainger (GRI).
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