Fund in Focus: British Empire Trust

Morningstar fund analysts have upgraded British Empire Trust as manager Joe Bauernfreund proves his disciplined and fundamental value approach pays off

David Holder 31 January, 2019 | 9:48AM
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David Holder: British Empire Trust (BTEM) offers investors a unique approach to global equity investment where noted improvements help drive an upgrade to a Morningstar Analyst Rating of Bronze, from Neutral.

The mandate to run the trust has been in Asset Value Investors’ hands since 1985. Joe Bauernfreund who became CIO and sole manager in September 2015, has been immersed in the investment culture at AVI for 16 years and has been schooled in the firm’s investment style by AVI’s founder, John Walton, and previous manager John Pennink who remains as Chairman of AVI.

The team’s strategy is to seek out-of-favour companies whose assets are misunderstood by the market or under-researched, and which trade significantly below their intrinsic value, or where AVI can exert pressure to enact change that will help realise shareholder returns. Whilst the value style has been out of favour, AVI have been consistent and resolute in maintaining their investment approach which we find encouraging.

Bauernfreund’s tenure, whilst still relatively early days, has been characterised by a renewed focus and sharpening of the investment approach which we feel is significant. He has reiterated the disciplined and fundamental value approach to investing employed at AVI and built a substantial research resource. Early signs are encouraging, and recognition of progress form the base of the analyst upgrade from Neutral to Bronze.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
AVI Global Trust Ord236.00 GBX0.43Rating

About Author

David Holder  is a senior investment research analyst at Morningstar

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