The Merchants Trust

LN: MRCH

£570m market cap

514p last close

MRCH’s investment objective is to provide an above-average level of income and income growth, together with long-term growth of capital through investing mainly in higher-yielding UK FTSE 100 companies. The benchmark index is the FTSE 100 index.

Investment summary

The Merchants Trust (MRCH) offers investors the potential for long-term capital growth along with a high and growing level of income. Helped by the refinancing of the trust’s high-cost, long-term debt, for FY20 (ending 31 January) the board’s intention is that MRCH’s annual dividend will be at least 4.2% higher year-on-year. Manager Simon Gergel at Allianz Global Investors (AllianzGI) is optimistic about the trust’s prospects, citing a broad opportunity set due to attractive valuations in the UK stock market. He says that at some stage the deeply depressed sentiment towards UK shares should improve, which could lead to a meaningful revaluation of the domestic market.

Share price graph
Price performance
%
1m
3m
12m
Actual 3.2 8.7 16.0
Relative* 4.3 9.5 7.7
52-week high/low 519.0p/439.0p
*% relative to local index
Key management
Simon Fraser Chairman
Simon Gergel Fund manager

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