Finding value in the UK with Simon Gergel of the Merchants Trust

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The UK equity market is one of the most attractive markets in the world for income investors - and right now the market looks cheap. Investment trusts are a great way to capitalise on the market’s income credentials while outsourcing portfolio management to an expert.

MoneyWeek deputy digital editor Rupert Hargreaves talks to Simon Gergel, portfolio manager at the UK-focused Merchants Trust, with 95% of assets invested in UK equities and the remainder in Europe.

Last year the trust was one of the few to beat the market, with the value of its assets rising 10.5% for the 12 months to the end of November, compared to a return of 6.5% for its benchmark, the FTSE All Share Index. Over the six months to the end of April, the trust’s net asset value has increased by 14.1% compared to 12.5% for its benchmark.

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Today the trust trades at a slight premium to NAV and yields just under 5%.

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Rupert was the former Deputy Digital Editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing.

His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has freelanced as a financial journalist for 10 years, writing for several UK and international publications aimed at a range of readers, from the first timer to experienced high net wealth individuals and fund managers. During this time he had developed a deep understanding of the financial markets and the factors that influence them.

He has written for the Motley Fool, Gurufocus and ValueWalk among others. Rupert has also founded and managed several businesses, including New York-based hedge fund newsletter, Hidden Value Stocks, written over 20 ebooks and appeared as an expert commentator on the BBC World Service.

He has achieved the CFA UK Certificate in Investment Management, Chartered Institute for Securities & Investment Investment Advice Diploma and Chartered Institute for Securities & Investment Private Client Investment Advice & Management (PCIAM) qualification.