Why Investment Trusts?
The Merchants Trust PLC (Merchants) is an independent company listed on the London Stock Exchange whose investment trust structure provides access to a diversified portfolio of leading UK companies.
Investment trusts own shares in a variety of different companies. So buying shares in Merchants will effectively give you a diversified portfolio of UK companies, but with international exposure since many of Merchants’ investments derive the majority of their earnings abroad. This spreads your risk, as you are not reliant on the success of just one or two companies. And buying shares in an investment trust can be less costly than purchasing the underlying stocks individually.
Merchants’ investment manager is accountable to the Trust’s board of directors. The board is completely autonomous and ensures that the interests of shareholders are looked after. The Merchants board of directors aims to provide investors with the reassurance of a diligent environment of checks and balances; they also provide the Trust with invaluable knowledge and economic insight, as well as having the final say on deciding on the dividends to be paid to shareholders.