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Mercantile Investment Trust plc

 

Buy Mercantile Investment Trust plc shares

MERCANTILE INVESTMENT TRUST PLC (MRC) Shares

ABOUT MERCANTILE INVESTMENT PLC

Mercantile Investment Trust plc is one of the oldest UK-based investment trusts, with a history dating back to 1884.

The company is managed by JP Morgan Asset Management (UK) Ltd, and today oversees assets of approximately £ 2 billion. Much of this success is owed to the company’s diversified portfolio, consisting of around 100 holdings to include FTSE 100 companies which became listed on the index since the Trust made the decision to purchase them.

This high-value portfolio is currently managed by Guy Anderson and Anthony Lynch.

Anderson assumed the role of primary decision-maker from veteran portfolio manager Martin Hudson, who still retains a role on the team alongside Lynch.

OVERVIEW OF MERCANTILE INVESTMENT PLC

  • Mercantile Investment Trust plc manages a broad investment portfolio with a wide range of holdings, including Intermediate Capital, Bellway, Man Group, SSP, Unite, Beazley, Grafton, Electrocomponents, Marshalls and Close Brothers.

  • It operates in several sectors, to include financials, industrials, consumer services, consumer goods, technology, oil and gas, and telecommunications, amongst others.

  • Growth is driven by the company’s investment policy of emphasizing growth from medium and smaller companies while deriving long term growth in dividends that remain in line with inflation.

  • The company also uses long term gearing to increase potential returns to shareholders and invests approximately 15% of gross assets in the other United Kingdom listed investment companies (including investment trusts).

  • In order to monitor performance against this objective, the Board uses a number of financial KPIs. The principal KPIs include measuring performance against the benchmark index (the most important KPI by which performance is judged), measuring performance against the company’s peers; and performance attribution, the purpose of which is to assess how the company achieved its performance relative to its benchmark index, using various components such as stock selection and sector allocation.

VISION & VALUES OF MERCANTILE INVESTMENT PLC

  • Mercantile Investment Trust plc‘s values fall in line with that of its management company, JPMorgan Asset Management (UK) Limited (JPMAM).

  • These principles encompass community and human rights issues, greenhouse gas emissions, and criminal corporate offence.

  • To this end, the company’s primary objective is the promotion of the best economic interests of its clients, while recognizing that non-financial issues such as social and environmental factors have the potential to impact the share price, as well as the reputation of companies.

  • Specialists within JPMAM’s environmental, social and governance (‘ESG’) team are tasked with assessing how companies deal with and report on social and environmental risks and issues specific to their industry.

  • JPMAM is also a signatory to the United Nations Principles of Responsible Investment, which commits participants to six principles, with the aim of incorporating ESG criteria into their processes when making stock selection decisions and promoting ESG disclosure.

  • The company is also a signatory to the Carbon Disclosure Project, while JPMorgan Chase is a signatory to the Equator Principles on managing social and environmental risk in project finance.

MARKET PERFORMANCE OF MERCANTILE INVESTMENT PLC

  • Mercantile Investment Trust plc trades on the Financial Times Stock Exchange (FTSE), where investors can buy shares under the stock symbol MRC.

  • Data from the company’s 2019 financial analysis shows a robust performance despite trying political and economic conditions in the UK recently. The company increased its cash reserves by 71.80%. Cash Flow from Investing totalled £135.78 million, indicating the company earned more from the sale of existing assets than it spent on the purchase of new assets. In addition, the company generated £ 46 million in cash from operations.

  • Positive contributors to relative returns included stock selection in mining and an overweight position in oil equipment, services & distribution.

  • The company’s overweight position in Softcat, the UK information technology reseller focused on the SME market, also contributed positively to investment performance. The stock continued to trade higher after a positive trading update towards the end of July.

  • While the company is navigating turbulent times in the UK following the downgrades in January and February 2019, expectations for 2019 earnings and dividends in the UK market have proved resilient, making this a good long-term buy for investors who seek to capitalize on the potential upswing in the markets going forward.

Buy MERCANTILE INVESTMENT TRUST PLC stocks / shares – A Step by Step Guide how to Buy / Purchase MERCANTILE INVESTMENT TRUST PLC Stocks or Shares online.

Before buying any stock or share one has to consider a few factors.

STEP 1: PROPER RESEARCH IS ESSENTIAL

Upon deciding you want to buy MERCANTILE INVESTMENT TRUST PLC Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.

Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.

STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN MERCANTILE INVESTMENT TRUST PLC STOCKS / SHARES

It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a US Dollar 5 stock, multiply 100 by US Dollar 5 to get US Dollar 500.

STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE

Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.

STEP 4: OPEN A BROKERAGE ACCOUNT

A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.

STEP 5: COMMIT AND PURCHASE MERCANTILE INVESTMENT TRUST PLC STOCKS / SHARES

Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out.  Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of MERCANTILE INVESTMENT TRUST PLC stocks / shares.

5 Questions to ask yourself before purchasing any stocks or shares.

  1. Is it the best time to buy this stock / share?
  2. Should I buy MERCANTILE INVESTMENT TRUST PLC stocks / shares in the current economic climate?
  3. Can I afford to buy this stock / share?
  4. What is the forecast of the stock / share growth?
  5. What is the current price per earning ration on the stock / share?

 

Author Details

Louis Schoeman

Louis Schoeman

Featured Forex and Stocks writer

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