Mercantile Investment Trust (MRC)

Profile

https://am.jpmorgan.co.uk/investment-trusts/trusts/mercantile-it.aspx?isin=GB0005794036

Mercantile Investment Trust is a prominent UK equity investment trust with a 140-year history and over £2 billion in assets under management. It seeks long-term capital growth by investing primarily in a diversified portfolio of small- and mid-cap companies listed mainly on the London Stock Exchange. Managed by experienced professionals Guy Anderson and Anthony Lynch at J.P. Morgan Asset Management, the trust employs a bottom-up approach, targeting high-quality businesses with attractive valuations and improving outlooks, particularly in sectors like financial services, industrials, consumer cyclicals, and construction-related firms. Notable holdings include Plus500 and Bellway. An ancillary objective is to deliver dividend growth at least in line with UK inflation over five-to-ten years, a goal met consistently for the past decade, supported by a historic yield of around 3.1% and robust revenue reserves. With gearing around 13-14%, a low ongoing charge of 0.48%, and a strong track record of outperformance against its benchmark, Mercantile Investment Trust plays a key role in providing investors exposure to the dynamic UK SMID market.