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

Finance dashboard with financial charts and data graphs

(Image credit: © Getty images)

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.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

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

YouTube

Watch On

MoneyWeek videos are designed to help our viewers become better investors. They're aimed at beginners and more experienced investors.

In some videos, we explain investment concepts in an easy-to-understand way. In others, we focus on topical investment stories and themes. Either way, the emphasis is on clarity and brevity.

We don't want to waste your time with a 20-minute video that could easily be so much shorter.

Subscribe to our YouTube channel here: https://www.youtube.com/@MoneyWeekVideos

Rupert is 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 written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.