Edison issues review on The Merchants Trust

London, UK, 24 March 2022

Edison issues review on The Merchants Trust (MRCH)

The Merchants Trust (MRCH) is managed by Allianz Global Investors' chief investment officer, UK equities, Simon Gergel. He is very pleased by how the trust's income has recovered as companies have returned to paying dividends. With an uncertain economic and investment backdrop, which has been exacerbated by the Russian invasion of Ukraine, the manager stresses the importance of focusing on companies' long-term prospects. Gergel considers MRCH's balanced portfolio of attractively valued cyclical and defensive stocks, with both domestic and international businesses, is relatively well positioned for the current environment. The trust has a commendable performance track record, having outperformed its UK benchmark over the last one, three, five and 10 years, while its NAV total return now ranks first or second versus its 16 largest peers in the AIC UK Equity income sector over the last one, three and five years.

MRCH's shares are currently trading at a 1.8% premium to NAV, which compares to a range of an average 0.5% premium to a 2.0% discount over the last one, three, five and 10 years. Strong investor demand for the trust's shares has meant that the share base increased by 5.6% in FY22, and by a further 1.5% so far in FY23. MRCH is on track to deliver 40 consecutive years of dividend growth and offers an attractive, above-market 4.8% yield.

Click here to view the full report or here to sign up to receive research as it is published.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Mel Jenner +44 (0)20 3077 5720 [email protected]

Sarah Godfrey +44 (0)20 3681 2519 [email protected]

Learn more at www.edisongroup.com and connect with Edison on:

LinkedIn https://www.linkedin.com/company/edison-group-/

Twitter www.twitter.com/Edison_Inv_Res 

YouTube www.youtube.com/edisonitv