Portfolio & Performance

ISIN GB0005800072
SEDOL 0580007

Share Price is the price of a single ordinary share, as determined by the stock market. The share price above is the mid-market price at market close.
Share Price

Net Asset Value (NAV) per Share is calculated as available shareholders’ funds divided by the number of shares in issue, with shareholders’ funds taken to be the net value of all the company’s assets after deducting liabilities. The NAV figure above is based on the fair/market value of the company’s long-term debt and preference shares (known as debt at market value). This allows for the valuation of long-term debt and preference shares at fair value or current market price, rather than at final repayment value (known as debt at par).
NAV per Share

Premium/Discount. Since investment company shares are traded on a stock market, the share price that you get may be higher or lower than the NAV. The difference is known as a premium or discount.

Dividend Yield is calculated using the latest full year dividend divided by the current share price.
Dividend Yield

Data source DataStream and Allianz Global Investors as at 19.07.2019 based on market close mid price.

Awards & Ratings

RSMR Rating: The Merchants Trust has been awarded RSMR’s ‘R’ rating, widely recognised as a mark of quality for funds, ranges and investment trusts that receive this seal of approval. The RSMR research process results in a list of investment trusts which are the trusts that RSMR feel have a robust, repeatable process and the ability to deliver strong performance in the future.
The RSMR rating is designed for use by professional advisers and intermediaries as part of their advice process. This rating is not a recommendation to buy. If you need further information or are in doubt then you should consult a professional adviser.


The data shown is not constant over time and the allocation may change in the future. Totals may not sum to 100.0% due to rounding. All data source Allianz Global Investors unless otherwise stated.

Top 10 Holdings (%)

Royal Dutch Shell - B Shares
HSBC Holdings
Imperial Brands
BAE Systems
British American Tobacco
Legal & General
Standard Life Aberdeen
BHP Group
St James's Place

Data as of 30.06.2019

Geographic Breakdown (%)

UK 96.0
Cash 4.0

Data as of 30.06.2019

Sector Breakdown (%)

Consumer Services
Consumer Goods
Oil & Gas
Health Care
Basic Materials

Data as of 30.06.2019

Market Cap Breakdown (%)

FTSE 100 62.6
FTSE 250 25.9
Fledgling 0.9
Small Cap 6.7
Cash 4.0

Data as of 30.06.2019

Fund Manager Comments

Politics and geopolitical events continued to dominate investment markets in June. The trade dispute between the US and China continued to simmer, with President Trump meeting President Xi Jinping at the end of the month, although the US did back away from imposing additional tariffs on Mexico. There were increasing concerns that tariff increases are slowing world trade and threatening economic growth. Central banks were in sharp focus, with both the US Federal Reserve and the European Central Bank indicating that they may take action to help growth.

In the UK, the contest for Conservative party leader, and therefore Prime Minister, was whittled down to two; Boris Johnson and Jeremy Hunt. Boris Johnson started as the clear favourite among the Conservative party members, who make the decision, and he is standing on a commitment to deliver Brexit by 31 October 2019.

The stock market rose early in the month and then traded sideways on limited volatility. Over the month, the total return was 3.7%, bringing the return for the first six months of the calendar year to almost 13%. The best performing sectors were cyclical but globally exposed sectors, such as mining, electronic & electrical equipment and general industrials. The weakest sectors included domestic cyclical sectors like retail, real estate and housebuilders, as well as tobacco.

The portfolio return was in line with the index in June with the Trust’s NAV returning 4.3%. The biggest positive stock contributions came from copper miner Antofagasta, Standard Life Aberdeen and BAE Systems. All three shares produced total returns of 10% or above, recovering from prior weakness. The main negative stock contributions came from Keller, Imperial Brands and Senior, which underperformed the rising market.

Investment activity was limited in the month, which saw less volatility than in recent periods. We added to the Imperial Brands position as the shares continued to fall back, and offered exceptional value.

As we said last month, the UK stock market is polarised, with companies earning high returns on capital and those offering reliable or high growth, trading at unusually large premiums to the rest of the market. In this environment, we are able to find many sound businesses, with robust market positions and reasonable long term prospects, trading on low, or in some cases very depressed valuations. Sectors such as aerospace & defence, construction & building materials and life insurance have several companies that meet this description, and Merchants has a significant exposure to these industries, among others. By building a portfolio of shares in such companies, we believe that Merchants can continue to deliver a high and rising dividend yield and an attractive total return to shareholders in the medium term.

Simon Gergel 01 July 2019

In this environment, we are able to find many sound businesses, with robust market positions and reasonable long term prospects, trading on low, or in some cases very depressed valuations.

This is no recommendation or solicitation to buy or sell any particular security.


Performance (%)

Select period:

    Cumulative Returns (%)

    3M 6M 1Y 3Y 5Y
    Share Price 1.3 9.7 -2.6 42.2 26.0
    NAV (debt at fair value) 1.4 13.8 -6.9 31.4 25.8
    Benchmark 3.3 13.0 0.6 28.9 34.0

    Source: Thomson Reuters DataStream, percentage growth, mid to mid, total return to 30.06.2019.1

    Discrete 12 Month Returns (%)

    2019 2018 2017 2016 2015
    Share Price -2.6 17.0 24.8 -8.3 -3.4
    NAV (debt at fair value) -6.9 16.0 21.7 -5.3 1.1
    Benchmark 0.6 9.0 17.5 3.8 0.2

    Source: Thomson Reuters DataStream, percentage growth, mid to mid, total return to 30.06.2019.1

    1Past performance is not a reliable indicator of future returns. You should not make any assumptions on the future on the basis of performance information. The value of an investment and the income from it can fall as well as rise as a result of market fluctuations and you may not get back the amount originally invested.This investment trust charges 65% of its annual management fee to the capital account and 35% to revenue. This could lead to a higher level of income but capital growth will be constrained as a result.

    Copyright 2019 © DataStream, a Thomson Reuters company. All rights reserved. DataStream shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

    © Allianz Global Investors GmbH 2019, Registered Office: Frankfurt am Main, Register: HRB 9340, Local court: Frankfurt am Main. All Rights Reserved. The Merchants Trust PLC is incorporated in England and Wales. (Company registration no. 28276). Registered Office: 199 Bishopsgate, London, EC2M 3TY. The Company is a member of the Association of Investment Companies - Category: UK Equity Income.