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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Stick with money-maker Mercantile

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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Our buy call on investment trust Mercantile (MRC) is 44.4% in the money and we are pleased to note a benchmark-beating first half performance (15 Oct) from the small and mid cap-focused fund.
Focused on finding ‘tomorrow’s UK market leaders’, Mercantile’s tried-and-tested strategy paid off in the six months to July 2021, with the trust generating a net asset value total return of 25.3%.
That was comfortably ahead of the 18.1% produced by the benchmark FTSE All-Share (ex FTSE 100, ex Inv Companies) index, thanks to stellar share price performances from the likes of luxury watch retailer Watches of Switzerland (WOSG) and media group Future (FUTR).
The positive outlook of fund managers Guy Anderson and Anthony Lynch is reflected in the trust’s 10% gearing, with portfolio companies for the most part either continuing to perform strongly or recovering well from the Covid crisis.
Mercantile also said it plans to at least maintain the full year dividend at 6.7p by dipping into its revenue reserves, ‘but to a lesser extent than required for 2021’, with investee companies beginning to increase and restore pay-outs.
SHARES SAYS: Keep buying at 261.5p.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.
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