Mel Jenner
19 January 2017

The Merchants Trust announces benchmark change

Performance measure moved from FTSE 100 to FTSE All-Share index

The Merchants Trust (MRCH) has announced that it will be changing its benchmark with effect from 1 February 2017.

It currently measures its performance against the FTSE 100 index, however reflecting the change in MRCH’s exposure over the last 10 years – the percentage of the portfolio invested outside of FTSE 100 stocks has increased from 11% to 36% – the board has decided to change the benchmark. From the start of the new financial year, MRCH’s performance will be measured against the FTSE All-Share index, which the board believes more closely reflects the structure of the portfolio and the investible universe. There will be no significant changes to how MRCH is managed.

MRCH aims to provide an above-average level of income and income growth, coupled with long-term capital growth from a portfolio of mainly higher-yielding, large-cap UK equities. It has 34 years of consecutive annual dividend growth. Near-term investment performance has improved; this is partly a function of rising bond yields as investors are starting to rotate away from expensive bond proxies and towards more cyclical, higher-yielding sectors of the UK stock market.

To read our latest research note on MRCH, please click here.

Disclaimer - Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. This document may contain materials from third parties, which are supplied by companies that are not affiliated with Edison Investment Research. Edison Investment Research has not been involved in the preparation, adoption or editing of such third-party materials and does not explicitly or implicitly endorse or approve such content. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of publication and is subject to change without notice. While based on sources believed reliable, we do not represent this material as accurate or complete. Any views or opinions expressed may not reflect those of the firm as a whole. Edison Investment Research does not engage in investment banking, market making or asset management activities of any securities. The material has not been prepared in accordance with the legal requirements designed to promote the independence or objectivity of investment research.