For the year to 31/10/2021, BRIG generated a NAV total return of 30.4% vs a return of 35.4% from its benchmark, the FTSE All-Share index. On a share price basis, the company returned 22.2% over the period, with the discount having widened from par to 6%.
In absolute terms, the result was the best annual return since the managers took over in 2012. The stock traders remain underweight in the market. But under the terms of their funds, they can legally avoid many stocks, but they do so, in a limited way, because their investment strategy doesn’t desire them anyway. The board is aware that relative performance has not been quite as favourable as they would like, but continues to be “fully supportive of this approach and … have every confidence in the ability of our investment managers to continue to deliver on the company’s investment objective as we enter 2022”.
Earnings per share from revenue for the year to 31 October 2021 were 7.10 pence vs 5.43 pence last year. The total year dividend is held firm at 7.20 pence a share.
The ongoing charges ticked up slightly over the year to 1.21% from 1.19%. In total, during the year, 1,112,783 ordinary shares were bought at an average price of 177.30 pence per share, for a total consideration (including expenses) of £1,973,000 (c. 5% of shares in issue at the beginning of the year).
BRIG maintains a flexible gearing policy that varies with market conditions and is capped at 20% of net assets at the time of investment. Net gearing at the end of the financial year was at no point higher than the 31 October 2021 level of 6.0%.
