1889 – 2019: celebrating 130 years of the Merchants Trust

Advertisement feature This year marks the 130th anniversary of the formation of The Merchants Trust. Its aims today are the same as its aims at launch: to deliver healthy growth of both capital and income for the ordinary investor.

Simon Gergel, Portfolio Manager - The Merchants Trust PLC

This year marks the 130th anniversary of the formation of The Merchants Trust. And while the Merchants of today is very different to the one that was set up in 1889 its aims are remarkably similar: to deliver healthy growth of both capital and income for the ordinary investor, just as it did at launch.

The Trust's initial focus was on railway expansion in the US, Canada and South America. Right from the start, however, the Trust diversified its portfolio across continents, countries and industries and this approach has been fundamental to its longevity the ability to adapt to a changing world. Merchants has endured innumerable global crises and market crashes over its life but its spread of investments and its evolving strategy has enabled it to weather such storms and move forward.

The present-day Merchants invests solely in UK companies, but many of these companies are multinational businesses, so that investors have exposure to global markets. Generating a high income has always been part of Merchants' make-up and following our AGM in May, we will have paid increasingly higher dividends year-on-year for the last 37 years. This makes Merchants one of the Association of Investment Companies' dividend heroes'.

Our criteria for deciding which shares we buy focuses on fundamentals. When market sentiment swings occur, as they did in 2018, we treat this as a potential opportunity to buy some really good companies at attractive prices. By really getting to the bottom of what's going on, we can sometimes identify companies that are fundamentally sound, but where we think the market may have just got it wrong.

Reaching 130 is a remarkable achievement, in a world obsessed with short-term market movements, political and economic risks. The investment trust structure has helped, allowing us to take a long-term investment perspective and not get buffeted around too much by short term noise'. The Trust's focus on long-term capital and income growth is as relevant now as it was in 1889 and we are resolute in our aim to continue providing a good home for investors' money.

Simon Gergel, Portfolio Manager - The Merchants Trust PLC

www.merchantstrust.co.uk

Important information:This is no recommendation or solicitation to buy or sell any particular security. Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors may not get back the full amount invested. A ranking, a rating or an award provides no indicator of future performance and is not constant over time.

This is a marketing communication issued by Allianz Global Investors GmbH, an investment company with limited liability, incorporated in Germany, with its registered office at Bockenheimer Landstrasse 42-44, D 60323 Frankfurt/M, registered with the local court Frankfurt/M under HRB 9340, authorised by Bundesanstalt fr Finanzdienstleistungsaufsicht (www.bafin.de). Allianz Global Investors GmbH has established a branch in.

 

Recommended

If you think now is a good time to buy, look at these investment trusts
Investment trusts

If you think now is a good time to buy, look at these investment trusts

With the latest market slides, an awful lot of assets are beginning to look very cheap indeed. If you are thinking of buying, Merryn Somerset Webb has…
10 Mar 2020
How to build a properly diversified investment trust portfolio
Sponsored

How to build a properly diversified investment trust portfolio

Max King explains how to build a well diversified portfolio using one of our favourite tools – investment trusts.
25 Feb 2020
Why investment trusts are the best vehicle for your money
Sponsored

Why investment trusts are the best vehicle for your money

Max King explains the advantages of investment trusts – sometimes called closed-ended funds – over their open-ended counterparts (or Oeics).
11 Feb 2020
Investment trusts: the Cinderella of investment arrives at the ball
Funds

Investment trusts: the Cinderella of investment arrives at the ball

Investors should look beyond the market noise of a single year and examine the bigger picture. Max King explains what we can learn from 25 years of in…
8 Jan 2020

Most Popular

How will we repay our vast debt pile? Do we even need to?
Sponsored

How will we repay our vast debt pile? Do we even need to?

In his recent articles looking at different aspects of the fixed-income investing world, David Stevenson looked at inflation. Today he looks at a clos…
19 Oct 2020
Negative interest rates and the end of free bank accounts
Bank accounts

Negative interest rates and the end of free bank accounts

Negative interest rates are likely to mean the introduction of fees for current accounts and other banking products. But that might make the UK bankin…
19 Oct 2020
The Bank of England should create a "Bitpound" digital currency and take the world by storm
Bitcoin

The Bank of England should create a "Bitpound" digital currency and take the world by storm

The Bank of England could win the race to create a respectable digital currency if it moves quickly, says Matthew Lynn.
18 Oct 2020