Merchants Share Discussion Threads

[bluemango] 24/6/2020 22:34

#676 che7win

I posted this on PHNX thread a few days ago, fwiw. (I hold PHNX, also EDIN and MRCH)

Bull factors (for PHNX):
7% yield looking relatively safe.

Legacy life assurance business model not hugely reliant on selling new product or services, unlike many other companies in current uncertain economic environment.

Low price possibly has much to do with confusion over fundamentals (eg focus on PE/eps)

Staff not furloughed, so no moral obligation to suspend dividends.

Chairman's wife recently bought £117k worth around these levels. Director deals aren't always a useful indicator, but nobody, whatever your situation, is going to fork out that kind of cash without being reasonably sure the capital would be secure.

[escapetohome] 24/6/2020 18:22

You might like to look at Aberdeen Asian Income.

Im really impressed with this IT.

Its really well actively managed out of Singapore, and not the emphasis on China as you might expect. So theyve got local knowledge.

I see far more stability here than other trusts.

Im a long term holder.

Around 5:5% yield.

[che7win] 24/6/2020 18:05

Zac, Thanks very much, it does help greatly.I do think insurance companies are undervalued, but have concern on their investment income alongside insurance rates likely to soften, especially car insurance.I will look at Henderson Far East Income, it wasn't on my radar before.

[zac0_4] 24/6/2020 12:21

che7win - my comments on your points for what they're worth! You may want to take a look at Henderson Far East Income. I've held for years. Annual dividend growth and quarterly payments. Current yield about 7%. EDIN - probably too much cross over with MRCH but haven't checked. PHNX & AV no idea. Vodafone - I did hold this stock but sold when they cut the dividend previously and have too much debt for my liking. Legal and General - This is a long term holding for me. My only criticisms would be (i) it's a bit more volatile than you would except, and (ii) only payout twice a year and unequal payments. My preference is 4 equal payments per annum. Hope this helps.

[zac0_4] 24/6/2020 12:03

CT2000 - No, I didn't think for a moment you were taking a 'pop' at me! I did think you had in mind that I traded holdings on a regular basis, which couldn't be further from the truth. Buy and hold, that's me!

I do take your point that this is the MRCH board. All I've tried to do is to question as to whether investors here are actually getting value for money, me included, and compare and contrast with other types of investments available.

You are clearly passionate in your views and that I accept and admire!

[che7win] 24/6/2020 10:29

Thanks chart trader

[speedsgh] 24/6/2020 10:10

The Merchants Trust AGM Shareholder Update -

As The Merchants Trust AGM will not include a portfolio manager update this year due to Coronavirus restrictions, Simon Gergel recorded the above video update for shareholders from lockdown at his London home.

[che7win] 24/6/2020 08:29

Current 6.75% yield here at today's 402.5p buy price.

[che7win] 24/6/2020 08:26

EDIN and PHNX - any opinions on these?I like today's announcement - reassuring that dividend yield intact here and smoothed out with reserves, exactly why I invested here.

[che7win] 24/6/2020 08:22

I’m here listening.

What other IT’s would you recommend for me, considering:

I want to buy them in my ISA (on IWeb)
I want high yield, 6% + in current climate
I want IT with track record of 10 years+ increasing or maintained dividend.
I don’t necessarily want UK based as that clashes with Merchants IT.
I want Low management charge.

Also considering LGEN, VOD, AV., as direct investments.

[zac0_4] 23/6/2020 20:09

Individual 5 year performance for my fund portfolio held with Fidelity: Mar15 to Mar16 +3.8%, Mar16 to Mar17 +17.8%, Mar17 to Mar18 +7.9%, Mar18 to Mar19 +18.9%, Mar19 to Mar20 -0.2%. Total return over 5 years of 70%. The 0.20% decline from Mar19 to Mar20 compares to -16% from the DOW and -25% from the FTSE100. Of the 12 funds (which is too many) 4 are tracker funds which track sectors not markets. Happy to share any further details ie geographical, sector mix, list of funds etc if of interest.

[zac0_4] 23/6/2020 19:59

Hi all - CT2000, I think you misunderstand me, I don't trade. I simply buy funds and hold them. I drawdown from the Fundsmith fund monthly. My other funds, 12 in total, are held on the Fidelity platform. I've just checked the portfolio performance via a report Fidelity make available. I'll share the data on a separate post.

[tim 3] 23/6/2020 18:52

Yep new all time high.

[zac0_4] 23/6/2020 11:15

They have a very simple, but ,to date, very successful formula. They only invest in companies with a high return on capital. The returns then being re-invested to produce higher returns etc. This has made me question whether paying dividends to shareholders is the best strategy for long term growth and business health and development.
Both my UK trusts lagging today. (MRCH & HHI)

[mister md] 23/6/2020 09:35

thanks zac0_4 - I watched the video you mentioned (fast forwarded through some of it). Some interesting discussion, including the part about Chinese stocks (non)-ownership versus exposure to China.

odd to see MRCH price down today with virtually all stocks up

[zac0_4] 22/6/2020 15:08

ct2000 - timing, time-in and right fund. I'm no fan of smaller company funds (or in this case investment trust). Too volatile. I know the following won't be of interest to you ct2000, but it might be to Tim3 & MMD. If you want to explore the Fundsmith fund further go on you tube and watch the video from the 2020 annual shareholders meeting. It's a very interesting watch in my opinion. Good luck all . . .