Share Name Share Symbol Market Type Share ISIN Share Description
Merchants Trust LSE:MRCH London Ordinary Share GB0005800072 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -1.00p -0.21% 473.00p 467.00p 473.00p 473.00p 466.00p 467.00p 95,997 16:35:26
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 32.6 27.7 25.5 18.5 514.29

Merchants Trust Share Discussion Threads

Showing 301 to 323 of 325 messages
Chat Pages: 13  12  11  10  9  8  7  6  5  4  3  2  Older
@robo Thanks for the news excerpt. About the platitudes, well, "high income" trust and funds are basically about collecting rent, making sure to avoid the companies that shrink their assets for generating their divis. To do so, the investment managers mostly look backward and find that the usual suspects (HSBC, Diageo, BAT, etc.) usually pay their bills, hold their value and even grow a bit over time, so they hold them. So, yep, Simon Gergel's comments are prone to be reassuringly boring. :) I hold a bit of this type of trust even though I know I pay the managers to hold run-of-the-mill dividend payers, which I could hold individually, but for a modest fee, they indeed spread the risk and do the buying and selling at lower cost than it would be for me as a small retail investor.
from Christopher Bellew's blog at Big Money Giving investment advice often is like showing off a garden – “if only you’d come last week”. Strangely, although equity markets are very high and international trade will be impacted by US tariffs and Brexit, there are some opportunities. If you need income you need look no further than these three investment trusts. You won’t know what to do with your money – they all yield the sunny side of 4%. First, Merchants Trust, founded in 1889, trades at a 3.6% discount to Net Asset Value (NAV) and yields a stonking 4.94%. Manager Simon Gergel explains his philosophy: “In this environment, our strategy is not to position the portfolio for one specific scenario, but to place a strong emphasis on portfolio construction. We aim to hold a broadly diversified portfolio of companies, across many different industries, both domestically exposed and those with multinational or global businesses.” Rather amazing that he is paid to deliver such platitudes.
Hi Goldpig - Thanks for highlighting DIG. Will be looking into that in more detail as I already have a fairly full allocation of MRCH. Impressive dividend history; not quite a dividend hero but it has increased its dividend in 34 out the last 38 years with the dividend maintained in the other 4 years (including 2005, 2010 & 2011). The dividend seems to have been growing at a slightly faster rate than MRCH too though that is probably partly a reflection of MRCH's debt which was even more expensive than DIG's; think the majority of MRCH's expensive debt has now been retired so their dividend increases may accelerate from here. Anyway, thanks again for highlghting. I'm looking forward to researching it more and have added the rather unloved DIG thread to my favourites so may see you over there in due course if it continues to hold my interest once I've done more research.
Hi, Today I added to my holding of MRCH and have now reached my target holding of 10,000 shares. My average purchase price was £4.812286 including all costs. MRCH is now a core holding in my ISA portfolio and it is my intention that about 50% of my ISA by value will be in Investment Trusts. To help fund todays purchase I paid more money into my ISA which has now reached the 2018-19 limit. I also sold the 5,000 Sainsbury shares in the ISA portfolio at a good profit and have taken an initial position in another Investment Trust. Until April I will only be able to use dividend income from within the ISA for any further purchases. The total value of my ISA portfolio has slipped a little over the last couple of months but remains over £200,000. Dividend income for reinvestment should be a little over £12,000 in the coming twelve months. Until April 2015 ISA income was negligible! My ISA portfolio now consists of IT's MRCH, HFEL, DIG (bought today) and individual companies LLOY, HSBA, CNA, VOD. Dunedin Income Growth Investment Trust is very unloved at the moment, in part due to a change of strategy. It has nearly a year of dividend reserves, pays out about 5% per annum in quarterly dividends and stands at a significant discount to NAV. Its expensive debenture with a coupon of nearly 8% matures in 2019 and borrowing costs will fall substantially. It is an IT in transition and could start to perform well in a year or so. Even better it is hard to find on ADVFN! Goldpig
GoldpigUk. I am not sure whats the safe thing to do at the moment is, as you say Any good news could easily cause a sharp rebound - bad news - the opposite. kept my core holdings for now ,sold 35% at higher levels but it don't look good out there for anything at the moment.
Hi nerja, With Brexit looming and Trump Trade wars causing market jitters there really are a lot of one off's at work, mostly political. I don't think anybody has a clue how Brexit or Trump will play out. Any good news could easily cause a sharp rebound - bad news - the opposite. (After the MRCH drop this morning 4.70 looks about the next support, drawing a line through the 2016-2018 lows on the chart above.) Meanwhile, MRCH is doing well out of its dollar earners helping it add to dividend reserves. I am not going to try and anticipate what might happen but will add until I reach 10,000 shares. I hope to keep my average purchase price in the £4.80's which now looks very likely. My intention is that Investment Trusts will form core holdings within my ISA portfolio. I do hold individual shares LLOY, HSBA, CNA, SBRY,and VOD within the ISA, but want to add another Investment trust to go with MRCH and HFEL. Goldpig
Looking as if this is going to test the 450p lows of the year, the market as a whole seems to be rolling over now, MUT,SHRS, CTY, CMHY, INV, PLI loads more trust going the same way. There does not seem to be any buy the dips at the moment, its seems they are selling what ever rallies occur now, cant find a stock on a new high at the moment, most appear to be head and shoulders or rolling over charts, its a wait and see time for me before topping up.
Hi tim 3, I have added a few this afternoon. September is a tricky month and I agree MRCH might slip a little lower in the next couple of weeks. I hope to reach my target holding of 10,000 MRCH shares by the end of this month. Like you I have bought for the long term and was happy to pay just under £5.00 a share today. Goldpig
Bought in here might still have some to fall but £5 area is also support and don't want to miss it. Intend to hold long term for yield.
tim 3
hTtp:// Few weeks old but worth a read. Advfn figures are way out on dividend yield btw. Big fall today noticed some chunky sells going through. (13:40 - 25/07 Sell 19000 518.00p £98,420.00) Good as need to get in around £5 ;)
tim 3
Hi goldpig I don't particularly class myself as an ethical investor. However I do feel uncomfortable investing in funds/trust that have a lot of tobacco stocks in their portfolio as smoking kills so many and is just about the worst thing you can do to your body. Problem is so many of the best funds and of course any FTSE tracker will have them in. So I try to compromise and look for ones with a smaller tobacco holding and was refreshed when MCH said on their previous update they had got rid of all tobacco holdings. Anyway on the shares I agree under £5 it’s a buy to me too its also about where the yield tips over 5%. Unfortunately missed the last opportunity as was invested elsewhere but got some some on one side if/when we see it again. Also bought some VIN recently,they too have an excellent dividend track record. Good luck. Edited for clarity!
tim 3
Hi Tim 3, Thanks for pointing out Imperial is back as a top ten holding. Not a share I would personally buy but it looks like another good Gergel investment decision. Lloyds are out of the top ten after a chunky final dividend, replaced by Imperial with its quarterly dividends, which should enhance dividend income for the Trust this financial year. I now feel quite lucky to have bought in here at an average in the 480's but I agree Merchants does look quite pricey at the moment. I have an initial target holding of 10,000 shares (currently holding 8,500 in my ISA). I am waiting for a pullback before adding here, and with Brexit uncertainties, trade 'wars' and reverse quantitive easing, good buying opportunities should occur over the coming months. Any downside here though might be limited if oil prices stay strong, due to a large weighting in Shell and BP. At the moment I would be happy to add if the price falls back below £5.00. Goldpig
On my watch list but a bit pricey here imo. I see they have Imperial back in their top 10 holdings. Disappointing as one of the things I liked about them compared with many of their peers was they had got rid of their tobacco stocks.
tim 3
Q1 quarterly dividend declared at 0.064p, planned to "at least maintain" at this level for remainder of year, giving annual div 25.6p, an increase of 3.2%.
Many thanks, Goldpig. Am gradually working my way through the AGM presentation. Some very useful stuff in there. I am also going through the Annual Report alongside the presentation. I note that they have two further debt instruments due for repayment in 2023 & 2029. The first one is very expensive again (see see pg93-94 of the AR) with a 9.25125% interest rate. Shame that can't be refinanced now; who knows what the debt markets will be like in 2023. Fintrust Debenture - Fixed rate interest loan repayable in May 2023. Principal amount £42m. Interest rate 9.25125% p.a. Secured bonds repayable in Dec 2029. Principal amount £30m. Interest rate 5.875% p.a.
Hi speedsgh, The 2018 MRCH AGM presentation is now available on the Merchant Trust website. Like last year very well worth watching. hxxps:// Trust - 2018 AGM Presentation Goldpig
Hi Goldpig. "Last year I took the decision not to buy RDSB or BP.directly in my ISA. I feel far happier holding them indirectly through the Merchants Trust. MRCH would be able to maintain its dividend if there was another major oil spill, for instance. Although I might miss out on some of the upside, there is some protection against downside. This is an important consideration in a market that is becoming more volatile and increasingly difficult to read." This chimes very closely with my current line of thought. Am actively trying to manage risk by moving away from direct holdings and increasing weightings in a portfolio of ITs that give expoure to a variety of different themes. As you say, happy to forego some of the upside in return for some protection against excessive downside. That's the theory in any case!
Latest Edison research note... FY18 outperformance continuing in FY19 - HTTP://
Looking strong recently.
tim 3
It’s much better placed now that the first slug of high cost debt has been repaid. The final high cost debt goes in 2023. A steady trust with improving prospects. I will continue to hold mine indefinitely as well. Only a small holding for me so may add.
Hi, Today I added 2,500 MRCH shares using part of my 2018-19 ISA subscription. I had to pay a little more than I had hoped but Merchants Trust is a core long term holding in my ISA portfolio which I expect to hold indefinitely. With the current market volatility I am hoping to accumulate more on any dips and as funds permit. Goldpig
Final Results - HTTPS:// Highlights of the year · A rising dividend for 36 consecutive years · Second highest yield in its sector · Investment performance ahead of benchmark · New borrowing secured at much lower interest rate In a key development during the year, the company announced the refinancing of the first tranche of its long-term borrowings, replacing it with new borrowings at a much lower interest rate. This has many potential benefits for shareholders, such as enhancing earnings per share and the flexibility to grow the dividend faster... ... New borrowing at much lower interest rates Towards the end of the financial year we refinanced a debenture taken out in 1987 (when the Bank of England base rate stood at 8.375%) with new borrowing at a much lower interest rate (2.96%). This replacement of the expensive debenture with lower cost borrowing is significant for the company. Not only does it reduce interest payment costs significantly (the weight average cost of debt decreased from 8.5% to 6.1%), enhancing the revenue earnings per share, but it also reduces capital costs and presents the possibility of growing the dividend faster in the future. The debt refinancing allows the investment manager to invest with a long-term view. Having secured the new borrowing for the next 35 years at an interest rate of just under 3%, the investment manager is able to invest in a selection of higher yielding stocks listed on the FTSE All-Share Index, whose average dividend yield is 4% at the time of writing. Outlook When I wrote to shareholders at the end of September, in the Half-yearly Report, I noted the rising risk profile for the UK economy and these concerns remain as valid now as they were six months ago. There remain further 'speed bumps' in the form of geopolitical and economic risks that will create short-term volatility along the way. High levels of consumer debt and the impact of inflation on real earnings, as well as uncertainty in the corporate sector caused by Brexit are all concerns. However, interest rates, although nudging upwards, remain very low by historic standards. Add to this the weak pound (which helps exporters), historically high employment levels and the fact that the UK stock market is predominantly exposed to economies outside the UK, and one can begin to understand why markets have remained near to all-time highs since September. In uncertain times, it is useful to remember that The Merchants Trust will celebrate its 130th anniversary in 2019 and that the company has a long and distinguished history of delivering income and capital returns through many uncertain periods over the years. The investment manager continues to invest in a portfolio comprising solid businesses with good prospects for growth and attractive dividends that are priced at a level from which they can deliver good total returns for shareholders. Looking ahead we think it's vital to continue doing what we've always done at The Merchants Trust. We leverage Allianz Global Investors' investment expertise to ensure The Merchants Trust always has a portfolio of attractive UK stocks. Above all, we believe that the company is well positioned to continue meeting its objectives of paying a high and growing dividend yield and delivering attractive total returns, for both existing and new investors, for many years to come.
Hi speedsgh and tim 3 Very interesting comments with which I largely agree. Until now I have only used Investment trusts for foreign investments and currently have Henderson Far East Income in my ISA. I will take a closer look at the City of London which is on my radar but MRCH is my current UK top pick. I hope to write a post about why in the near future. According to my notes Merchants publishes its final figures tomorrow. Should be interesting given the sharp sell off on the Dow at the close this evening. Goldpig
Chat Pages: 13  12  11  10  9  8  7  6  5  4  3  2  Older
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