Merchants Trust PLC Edison issues review on The Merchants Trust (MRCH)
May 22 2018 - 10:06AM
RNS Non-Regulatory
TIDMMRCH
Merchants Trust PLC
22 May 2018
London, UK, 22 May 2018
Edison issues review on The Merchants Trust (MRCH)
The Merchants Trust (MRCH) is managed by Simon Gergel at
AllianzGI. He aims to generate a high and growing level of income,
with the potential for long-term capital growth, from a portfolio
of UK equities. The manager considers there are great opportunities
in the UK stock market for high-yield investors, and that in
aggregate UK stocks are looking attractively valued compared to
global equities. MRCH has a distinguished dividend history; payouts
have grown in each of the last 36 consecutive years. In FY18, the
annual distribution was 2.5% higher than in FY17 - a larger growth
rate than in recent years, reflecting higher dividend growth from
portfolio companies, but also due to MRCH's lower interest costs
following the refinancing of a tranche of its high-cost debt in
late 2017.
MRCH's shares are currently trading at a 3.7% discount to
cum-income NAV, with debt at market value. This is narrower than
the 5.3% averages over both the last one and three years, but wider
than the 3.2% five-year average. There is potential for a narrower
discount if the manager continues to build on his long-term record
of outperformance. MRCH has a progressive dividend policy; annual
distributions have increased for the last 36 consecutive years,
growing at broadly double the annual rate of UK inflation over this
period.
Click here to view the full report.
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Mel Jenner, +44 (0)20 3077 5720
Sarah Godfrey, +44 (0)20 3681 2519
Investmenttrusts@edisongroup.com
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