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Mercantile

Closed-end funds and OEICs
monabri
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Re: Mercantile

#350488

Postby monabri » October 25th, 2020, 1:24 pm

L'Uni posted info on the B7 & B8 baskets. I remember we reviewed the "scores on the doors"in Q4 2019.

viewtopic.php?p=256058#p256058


There has been a 2020 review in June 2020 on B7 which holds Mercantile.

viewtopic.php?p=314953#p314953

Mercantile ( MRC) was one of the star performers in the B7/B8 selections and I remember umming & ahhing about buying in....but then the shareprice rapidly increased towards the end of 2019, I thought " chance missed". I did eventually buy a small chunk a few months ago, end of April (192p) but not a significant buy percentage wise....March 19th 2020 would have been a better buy in point ;)

Adamski
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Re: Mercantile

#350499

Postby Adamski » October 25th, 2020, 2:43 pm

jackdaww wrote:presume you mean BGUK ?:


Hi I meant the british smaller cos fund
https://www.bailliegifford.com/en/uk/in ... nies-fund/

scotia
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Re: Mercantile

#350545

Postby scotia » October 25th, 2020, 5:46 pm

midgesgalore wrote:With all that you said in mind - guess who bought into this IT in mid February? Groan!!

We all make mistakes! And the problem with many ITs in a falling market is the rapidly widening discount - unless you are a buy and forget investor.
In my UK IT purchases I have favoured Finsbury Growth and Income (FGT) which has a reasonable discount management policy. But I'm underweight in the UK at the moment with Covid and Brexit uncertainties.

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Re: Mercantile

#350549

Postby scotia » October 25th, 2020, 6:07 pm

Arborbridge wrote:
scotia wrote:I was a one-time investor in Mercantile (MRC), but from autumn 2015 to autumn of 2019 it followed, reasonably closely, a FTSE 250 tracker (on a total return basis). So I moved on. From September 2019 to early March 2020 it rocketed upwards, then plunged spectacularly. With its discount recovering from around -14% to -4% recently, its 5-year total return is now slightly better than a tracker - but with a volatile discount which will keep me well clear of it - especially with so many uncertainties and headwinds facing the UK markets.


I'm really interested in the dividends, as in general I do not intend to sell. Would a FTSE250 tracker have given you a 9.9% pa increase in dividends across those five years you mention?

Yes - I agree - Mercantile seems fine if you are looking for UK exposure with a decent dividend and are a long-term holder who is unconcerned with volatility. At my investment stage I'm only interested in total return, and I felt that there were better choices - Finsbury Growth and income has a more modest dividend, but much better discount control and better growth. And to get exposure to smaller companies I favour Amati Smaller Cos (an OEIC).

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Re: Mercantile

#350558

Postby Lootman » October 25th, 2020, 6:43 pm

ADrunkenMarcus wrote:Smaller or medium sized companies such as Renishaw, Diploma, Spirax Sarco Engineering and Rotork have provided me with very good returns and are far superior to some of the structurally challenged mega caps in the FTSE 100. And the FTSE 250 has outperformed the FTSE 100 with, I think, better future prospects too.

Except that Spirax Sarco is a FTSE-100 company!

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Re: Mercantile

#350584

Postby ADrunkenMarcus » October 25th, 2020, 8:50 pm

Lootman wrote:
ADrunkenMarcus wrote:Smaller or medium sized companies such as Renishaw, Diploma, Spirax Sarco Engineering and Rotork have provided me with very good returns and are far superior to some of the structurally challenged mega caps in the FTSE 100. And the FTSE 250 has outperformed the FTSE 100 with, I think, better future prospects too.

Except that Spirax Sarco is a FTSE-100 company!


It is now, but it wasn't when I bought it. ;)

The share price has gone up over 2.5 times since my 2015 purchase. In fact, it's not too long since it joined the FTSE 100 and it's now risen to position 48 as at Friday's close on 23 October 2020! The problem is it keeps growing.

Best wishes

Mark.

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Re: Mercantile

#350595

Postby Lootman » October 25th, 2020, 9:42 pm

ADrunkenMarcus wrote:
Lootman wrote:
ADrunkenMarcus wrote:Smaller or medium sized companies such as Renishaw, Diploma, Spirax Sarco Engineering and Rotork have provided me with very good returns and are far superior to some of the structurally challenged mega caps in the FTSE 100. And the FTSE 250 has outperformed the FTSE 100 with, I think, better future prospects too.

Except that Spirax Sarco is a FTSE-100 company!

It is now, but it wasn't when I bought it. ;)

The share price has gone up over 2.5 times since my 2015 purchase. In fact, it's not too long since it joined the FTSE 100 and it's now risen to position 48 as at Friday's close on 23 October 2020! The problem is it keeps growing.

I know, same here. I was not disrespecting it as an investment at all, merely pointing out that a fund with a strict smallcap or midcap mandate would have had to have sold it by now, a victim of its own success.

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Re: Mercantile

#350623

Postby Arborbridge » October 26th, 2020, 7:17 am

Lootman wrote:
ADrunkenMarcus wrote:Smaller or medium sized companies such as Renishaw, Diploma, Spirax Sarco Engineering and Rotork have provided me with very good returns and are far superior to some of the structurally challenged mega caps in the FTSE 100. And the FTSE 250 has outperformed the FTSE 100 with, I think, better future prospects too.

Except that Spirax Sarco is a FTSE-100 company!


I hadn't caught up with that fact either! I still think of it as a small specialised company, a little gem amongst the rough.

Arb.

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Re: Mercantile

#350640

Postby ADrunkenMarcus » October 26th, 2020, 8:01 am

Arborbridge wrote:I still think of it as a small specialised company, a little gem amongst the rough.


Sadly, growing bigger is the price you pay when you grow as strongly as Spirax Sarco has, including over fifty years of c. 11 percent CAGR in dividends.

Best wishes


Mark

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Re: Mercantile

#400514

Postby richfool » March 31st, 2021, 9:15 am

THE MERCANTILE INVESTMENT TRUST PLC
FINAL RESULTS FOR THE YEAR ENDED 31ST JANUARY 2021
Performance
Our financial year end results have been dominated by the COVID-19 pandemic and the resulting actions taken by Government which led to significant market falls and increased volatility not seen in many years. The Company's benchmark fell by over 40% within the first two months of the beginning of our financial year. Nevertheless, over the year to 31st January 2021 as a whole, the Company produced a total return on net assets, with debt calculated at par value, of -6.1% against a total return of -5.1% for the benchmark which points to a significant rally from the lows of earlier in the year. The discount of the share price to Net Asset Value, with debt calculated at fair value, widened, from 1.4% to 3.8%, resulting in a total return to shareholders for the year of -8.4%. All returns include dividends paid.
Returns and Dividends
The Company's revenue account has been severely impacted by the consequences of COVID-19 as many portfolio companies either cut or cancelled their dividends. The revenue per share decreased to 4.10p, from 7.64p in 2020. The Company has paid three interim dividends of 1.35p per ordinary share in respect of the year to 31st January 2021.

The Company aims to provide shareholders with long term dividend growth at least in line with the rate of inflation, being 1.4% this year. Over the years the Company has built up revenue reserves and the Board believes that in these unprecedented times now is the time to utilise some of them. Therefore, the Board has declared a fourth quarterly interim dividend of 2.65p per share, giving a total dividend of 6.7p per share for the year, an increase of 1.5% over last year.

After the payment of the fourth interim dividend and the use of some reserves, the Company will have revenue reserves of approximately 5.3p per share. The near-term outlook for earnings and dividend income remains uncertain with some commentators not expecting UK dividends to regain previous highs for some time. One of the great advantages of the investment trust structure is the ability to use revenue reserves to bolster the dividend in hopefully temporarily difficult times. The reserves are not infinite but we will keep a close watch on developments and utilise the Company's reserves prudently to support dividends, if necessary, as the recovery ensues.

The Company's Articles of Association permit the payment of dividends out of realised capital profits. Although the Board does not have any current intention to use these powers, and it would consult with shareholders before doing so, such powers are available under circumstances in which shareholders would prefer to see the Company maintain or increase the dividend when the revenue position does not support this.

https://www.investegate.co.uk/mercantil ... 00040326U/


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