The advantages of an 'all weather' portfolio

Rupert Hargreaves talks to Julian Bishop, Co-Lead Portfolio Manager of The Brunner Investment Trust

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Brunner Investment Trust offers a unique proposition for investors. Founded in 1927 by the Brunner Family, the trust has a long history of protecting and creating wealth for its investors. The founding family remain significant shareholders in the trust to this day, and the current management team - led by Co-Lead Portfolio Manager Julian Bishop and Christian Schneider, remains committed to generating long-term value for all investors. 

Brunner’s ‘all-weather’ portfolio is designed to protect and grow shareholders' capital year after year. It has increased its dividend yearly since 1972, making it an AIC dividend hero.

Over the past five years, the trust has returned 54.1%, outpacing its benchmark’s (70% FTSE World ex-UK Index and 30% FTSE All-Share Index) return of 44.5%. For the year to the end of August, the trust was up 12.7%, including dividends, compared to 6.2% for its benchmark.

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But despite its attractive qualities, the trust is currently trading at a mid-teens percentage discount to the value of its portfolio. That's even though the portfolio contains some of the most interesting and exciting businesses listed globally on public markets, including the likes of Microsoft and Visa. 

Recently, MoneyWeek deputy digital editor Rupert Hargraves sat down with Co-Lead Portfolio Manager Julian Bishop to discuss the trust's approach to finding securities and what it really means when it says it pursues an ‘all-weather’ portfolio approach. During the interview, Brunner’s Co-Lead Portfolio Manager also talked about why the trust likes global giants such as Microsoft and why it has a large position in under-the-radar financial companies such as Munich Re,  which provide an important service, although investors often overlook them. 

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