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MRCH Merchants Trust Plc

527.00
-13.00 (-2.41%)
10 Jan 2025 - Closed
Delayed by 15 minutes
Merchants Investors - MRCH

Merchants Investors - MRCH

Share Name Share Symbol Market Stock Type
Merchants Trust Plc MRCH London Ordinary Share
  Price Change Price Change % Share Price Last Trade
-13.00 -2.41% 527.00 16:35:00
Open Price Low Price High Price Close Price Previous Close
540.00 527.00 540.00 527.00 540.00
more quote information »
Industry Sector
EQUITY INVESTMENT INSTRUMENTS

Top Investor Posts

Top Posts
Posted at 13/12/2024 07:59 by speedsgh
Long term fixed rate borrowing -

The Merchants Trust PLC (the Company) has today agreed an issue of two £25 million fixed rate 15 year secured private placement notes at a coupon of 5.91% (the Notes), raising total proceeds of £50 million.

The funding date will be 21 January 2025. Interest will be payable semi-annually to one institutional investor on 21 July and 21 January (first payment on 21 July 2025) and quarterly interest will be payable to the other institutional investor on 21 April, 21 July, 21 October and 21 January (first payment on 21 April 2025). The Notes shall be direct secured obligations of the Company and rank pari passu with all other secured indebtedness of the Company.

The purpose of the Notes is to take advantage of the Company's ability to use gearing which is expected to enhance long-term investment performance, and to provide fixed rate long or medium dated financing at a pricing level the Company considers attractive.

The proceeds of the Notes will be used to repay borrowings of £42m (taken out in 2019) which mature end of January 2025 and for other investment and general corporate purposes.

Colin Clark, Chairman said "The board believes borrowing is beneficial for shareholders as it can enhance longer term returns, provided the investment portfolio total return exceeds the cost of debt, albeit with the risk of higher volatility in capital returns. The new borrowing will increase the weighted average duration of drawn debt from 10.6 years to 16.4 years with the overall average cost of debt remaining at 5.1%."
Posted at 27/10/2023 07:43 by superiorshares
Any investors here ??
We will exclude Investindud, cttrader3, pete160 and Thamestrader .

Investors . You should note that the US has started to bomb Syria!
As ex military, I am convinced its only a matter of time before Iran is getting bombed .
The ramifications for the markets are enormous!!!!!
We will forget Siemens for the time being

SS
Posted at 23/10/2023 19:37 by superiorshares
If there are any Investors on here ??
IMO.
The US will shortly be engaging in military action against IRAN.

Markets will continue to tumble !

SS
Posted at 05/10/2023 09:15 by mortal1ty
This trust literally brought XP Power right before a 50% drop in the share price. lol.

We added a new stock to the portfolio, XP Power. XP designs and manufacturers power supply units, an essential component in most electronic machinery. XP Power’s customers are generally major manufacturers of electronic equipment, across a broad range of industrial, semiconductor and healthcare markets. XP’s products are often critical components that represent a small cost to the equipment manufacturer, but are generally designed-in for specific applications, allowing XP to make high margins and good returns. The company has an excellent growth record and normally commands a high valuation. However, the company has been through a difficult period, with supply chain problems and other company specific issues, and investors have been nervous about a downturn in the semiconductor cycle. These factors had taken the shares down to an unusually modest valuation for the business, which is also paying a dividend yield of over 4%
Posted at 26/9/2023 15:49 by speedsgh
Outlook

Central banks around the world continue to tread a tentative path around reducing inflation whilst trying to avoid recession. Recession may ultimately be unavoidable depending on how aggressive central banks decide to be. We note however that whilst that scenario can provide a challenge to the financial markets, assets such as the listed shares of companies often start to outperform well before the trough of an economic cycle. Our manager reminds us that any signals that inflation is moderating and that interest rates may fall could lead to investor sentiment improving very rapidly.

Uncertainty such as we have now is the enemy of calm and rational markets and so one might reasonably expect markets to continue to be very sensitive to news flow in the near term. For the dedicated stock picker this continues to provide opportunities where strong companies become caught up in general negativity and become, in the view of our manager, mispriced. He continues to see numerous opportunities to invest in good companies at attractive prices in the UK stock market which is one of the cheapest in the world and is currently trading near a 20-year low whilst its peer - the US equity market - is close to a 20-year high...
Posted at 17/7/2023 12:33 by ctrader3
SUPR pays their dividend at the start of next month,
investor A who bought when they were issued and simply re-invested their
dividends will receive next year a yield of 9.3% on seed capital.
And they will not have to sell any shares to receive the cash.

Investing in dividend paying shares is the same as buying a buy
to let property without the hassle.
The value of your buy to let property is of no concern
if u rely on the rent to pay your bills.
Posted at 17/7/2023 12:06 by ctrader3
yep, great if u are captain hindsight.
u are confusing now with will happen in the future.
If u can tell me how much Investor B's gain in 5 years time
I will change my mind.
I do know how much Investor A will have earned to spend
or re-invest in the market.
The general get out of jail card is only invest for a
minimum of 5 years, tough luck is year 5 and the market
has crashed.
u can get un-risked 6% on cash for 2 years but u
do not know what the yield will be when the term
ends.
Posted at 17/7/2023 10:08 by zac0_4
Investor A did, in fact, invest 5 years ago in SUPR, whilst Investor B invested in the Legal & General International Index fund.
Roll forward to today and Investor A is sitting on a loss of -6%, and that's with dividends reinvested, Investor B . . . well Investor B is sitting on a total gain of +57%!
And, as for 'gambling' well all Investor B needs is for the global economy to grow over time, something it's been doing for hundreds of years . . . and, of course, selling down units in a fund to provide income is something pretty much all workplace pensions do! But, of course that's gambling . . . isn't it?!!!!
Posted at 17/7/2023 06:21 by ctrader3
Investor A wants to plan for their retirement and buys SUPR
yielding 7.9%, other Trusts are available, knowing that
in 9 years time they will have received all their capital back.
In 9 years time they could have SUPR yielding 9%
and another trust yielding lets say 7%.

Investor B wants to gamble with their future and buys
a tracker hoping that the trust outperforms Investor A's
plan and that when they start to sell part of the tracker to
fund their retirement the markets haven't crashed.

GL
Posted at 29/1/2022 09:16 by ctrader3
11 investment trusts to earn £10,000 income in 2022
25th January 2022 10:38

Helen Pridham
from interactive investor


For the seventh successive year the investment trust choices passed the £10,000 test. Helen Pridham names the trusts for the year ahead. 
Selections for 2022
This year, an initial investment of £257,000 is required in our portfolio to generate an estimated £10,000 income, compared with £237,000 in 2021. This is due to rising share prices over the past year, which have resulted in decreasing yields. If higher yielding trusts were used, less capital would be required, but it is more beneficial in the long run to take a balanced approach.

The foundation of the portfolio consists of four UK-focused equity income trusts that make up 45% of the total. There are good prospects for a recovery in the UK stock market this year, which has been undervalued compared to other global stock markets. 




Helen Pridham’s hypothetical £10,000 investment trust and fund ideas were first introduced by Money Observer several years ago. The trusts chosen are made by Helen and not interactive investor. interactive investor’s Super 60 funds and ACE 40 funds are used as a starting point. 

Last year saw a welcome recovery in company dividends as the global economy started to recover from the worst effects of the pandemic. This was good news for income investors. But not all sectors were equally fortunate. In the second half of 2021, sharp rises were seen in mining, oil and banking dividends, while travel and hospitality companies were still suffering. This is why diversification is key for investors looking for a reliable income from equities.

One of the easiest ways to achieve this diversification is through investment trusts, many of which have been set up specifically to provide their shareholders with a regular and rising income as well as to protect the value of their capital. Of course, not all trusts end up achieving these aims if the areas they invest in perform badly or their managers make the wrong choices. For this reason, it is important to spread your investment across a number of trusts run by different managers and those investing in a variety of regions and asset classes.

Why trusts have an income edge over funds

Investment trusts are a good choice for income investors because of their in-built ability to smooth out their dividend payments. This arises from the rules which allow them to hold back part of their own income in good years and build revenue reserves. These ‘rainy day’ funds can be dipped into when times get hard to maintain their own dividend payments. This proved a particularly useful tool during the pandemic. 

However, there is no guarantee that investment trust dividends will not fall, and the capital value of trusts can also fluctuate. But the fact that over 40 companies have increased their annual dividends for a decade or more, including 17 which have done so for over 20 years, riding out various ups and downs in economic activity shows their commitment to consistency.

Building a portfolio
While it might be tempting to invest in the highest yielding trusts, you would end up with portfolio of highly specialist companies, such as Venture Capital Trusts. A good way to research the options available is to use the Income Finder tool on the Association of Investment Companies (AIC) website. This enables you to create a virtual portfolio of income-paying investment companies, track the dividend dates and see how much income you could receive over a year.

Several years before this tool became available, interactive investor set out to demonstrate how a portfolio of investment trusts could be used to provide a regular annual income of £10,000. This exercise has been repeated for the past seven years. The portfolio is reviewed annually and rebased for new investors, with some holdings being replaced by others which might offer better prospects.


The portfolio is designed for medium- to long-term investors who are prepared to take the risk that it may not deliver as much income as expected and their capital may go down. It is not a recommendation and past performance is not a guide to the future. Nevertheless, so far the portfolio has managed to deliver £10,000 or more of income each year. In 2021, it produced £10,359, which was 3% more than had been expected. Its capital value has been more volatile, with decreases in three of the seven years. However, 2021 was a positive year, producing a 15% capital gain.

hxxps://www.ii.co.uk/analysis-commentary/11-investment-trusts-earn-ps10000-income-2022-ii522668?

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