Why Merchants?

Established in 1889, The Merchants Trust PLC has, throughout its history, provided shareholders with an opportunity to benefit from investment in a diversified portfolio of leading companies with strong balance sheets and the potential to pay attractive dividends.

Merchants aims to provide its investors with an efficient, competitive and cost-effective way to achieve an above average level of income and income growth together with long term capital growth through a policy of investing mainly in higher yielding large UK companies. The company’s investment performance is benchmarked against the FTSE All-Share Index, reflecting the emphasis within the Merchants portfolio.

39 Consecutive Years of Dividend Growth

39 Consecutive Years of Dividend Growth

Although income is not guaranteed and could go down as well as up, the Trust has paid increasingly higher dividends to its shareholders year-on-year for the last 39 years.

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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.

Investment Goals

Merchants invests in UK companies. But this does not mean that investors are only exposed to the UK marketplace, as many of the UK’s leading companies are truly international in nature. In fact, some of the world’s largest and best known multinational businesses are headquartered in the UK. So, an investment in Merchants can provide access to the global economy, while benefiting from the UK's leading corporate governance standards.

Since the early 1980s, Merchants has had the pursuit of a high and growing income as a formal objective, alongside its capital growth objective. It has achieved this goal with distinction: by 2018, the Trust had achieved 39 consecutive years of dividend growth, although past performance is no guide to the future.

Investment Goals

Risks & Features

Other Risks to Consider

Merchants seeks to enhance returns for its shareholders through gearing, in the form of long-term, fixed rate debentures. Gearing can boost the Trust’s returns when investments perform well, though losses can be magnified when investments lose value. You should be aware that this Trust may be subject to sudden and large falls in value and you could suffer substantial capital loss.

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. Derivatives are used to manage the trust efficiently.

Learning about Investment Trusts

If you’re new to investment trusts, explore below and in the Education Centre to learn more about how investment trusts work.

An Introduction to Investment Trusts

The Merchants Trust PLC is a listed public company that invests in other companies and is quoted on the London Stock Exchange. 

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Broadcast Hub

Access the latest broadcast content here, including interviews with the Manager.

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A brief explanation of some of the most common investment trust terms. 

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Allianz Global Investors

Allianz Global Investors is one of the world’s leading active investment managers. Understanding our clients’ needs in order to act to their best advantage is embedded in our business, using our insightfulness to partner with clients and to drive performance.

Allianz Global Investors works for many clients around the world. From pension funds, large and small, to blue-chip multinationals, from charitable foundations to families, individuals and their advisers. We have created a business that enables us to meet the demands of our clients on a local basis and that empowers our investment managers to focus on achieving strong and consistent investment results.

© Allianz Global Investors GmbH 2021, 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.