The Merchants Trust



Before Investing

The Trust is a UK-based investment trust, listed and traded on the London Stock Exchange. All listed companies are identified by a “ticker” short code. For The Merchants Trust, this is MRCH.

You can easily invest in the Trust by purchasing shares through:
- an investment platform operated by a third party provider
- a stockbroker
- or a financial adviser

Many online platforms allow you to deal in shares in ‘real time’ and some offer an option to invest regularly each month as well as lump sum investing. Competition between platform providers is keen so charges are usually very competitive. Nevertheless, it pays to undertake detailed research before investing. You will find helpful information to guide you below.

Platform Investing

A cost-effective way to buy the Trust’s shares can be via an investment trading platform.

These are online ‘shops’ where you can buy and sell a comprehensive range of investments, including Investment Trusts, Open Ended Investment Companies (OEICs) and Unit Trusts - as well as the shares of individual listed companies. So, instead of having multiple accounts with lots of different providers, your platform account can hold all your investments in the one account. See below where you will find links to a range of these platforms.

Many platform providers allow you to buy and hold your shares within an Individual Savings Account (ISA), Junior ISA or Self Invested Personal Pension (SIPP), all of which have potential tax advantages. Or you can simply deal in your chosen shares without the tax advantages but also without any associated limits on how much you can invest. Most platforms will allow you to invest lump sums and/or regular savings. The latter can be very helpful if you want spread your investments throughout the year or if you’re simply uncertain as to whether now is a good time to invest or not.

Featured platforms

The Trust’s shares are available via these featured platforms (currently the largest three platforms for private investors in the UK). If you click on these website links you will leave this site and enter the individual platform websites. Below that we outline a directory with a more comprehensive list of platforms that offer the Trust’s shares.

Platform Directory

Alternatively, information on how to find a stockbroker can be found at www.pimfa.co.uk. Note: If you click on these website links you will be entering new websites. We are not responsible for the content and information once you have left the Allianz Global Investors site. Please note Allianz Global Investors does not make recommendations on where to buy investment trusts and is unable to provide financial advice. You are strongly advised that if you are unsure about the most suitable option for your needs that you should contact a financial adviser.

Costs and Service

Competition amongst platforms has grown markedly over recent years so investing online can be a very cost-effective way to buy the Trust’s shares. However, it’s really important to consider the overall level of fees as well as the range of services available. Don’t forget that cheapest is not always best - and also that some platforms have flat fees while others levy percentage-based charges. Typically, you will also pay a fee every time you buy and sell shares so you need to bear in mind these costs too if you are trading frequently. The decision on which platform to use is an important one, so remember to play close attention to the service each offers - as well as the overall tariff of charges, including annual fees, administration and dealing charges.

You can use a financial adviser to open or look after your platform account, as well as your underlying investment decisions. You will pay a fee for this service, determined by the scope of the service being offered. If you do not currently have a financial adviser, details of authorised financial advisers in your area can be found at www.unbiased.co.uk

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Investing for Children

Giving children a financial helping hand can assist with school and university costs, a first home or car - or just provide a decent financial boost to adult life. And it’s never too early to start putting money aside as the more time that your investments have to grow, the more effective your financial help can be.

What sort of investments you choose is up to you but if you are planning to invest for the next 5, 10 or even 20 years, investing in investment trusts could be more rewarding than ‘safe’ investments such as bank or building society deposit accounts, after inflation. Moreover, using investment trusts can be simple, sensible and relatively low cost but you should always remember that past performance is no indicator of future returns.

Although children cannot invest in investment trust shares in their own name, there are a range of options available to parents (or other adults) wishing to invest on their behalf outlined in the following sections.

Adults can make children’s investments in their own name, simply adding the name of the child to the account (this is called a designated account). There is no maximum investment limit. Following this flexible and straightforward route, you retain ownership of the shares, allowing you to access the money at any stage but with the option to transfer the assets to the child when they reach the age of 18 (or at a later stage, if you prefer). If you choose this route, your designated investment will be taxed as your own and will remain within your estate for inheritance tax purposes.

A Junior Individual Savings Account (JISA) works in the same way as a standard Individual Savings Account. This means that there’s no income tax to pay and no capital gains tax liability to worry about. Once a parent or guardian has opened a JISA, anyone can contribute to it making it very easy for other family members to invest.   There is a maximum investment limit each tax year (up to £9,000 for the 2021/22 tax year) and no withdrawals can be made until the child reaches 18 (at which point the JISA converts into the child’s name). 

Planning ahead for a child’s retirement may seem rather extreme but it can be a very worthwhile, tax-efficient route. You can start putting money into a Self-Invested Personal Pension (SIPP)  now and invest for the truly long-term, since although control passes to the child when they reach the age of 18 there’s no access to funds until the child reaches retirement age. Anyone can invest and you will receive basic rate tax relief from the government on contributions. There is a maximum annual contribution limit (£3,600 gross or £2,880 net for the 2021/22 tax year).

Opening Your Online Account

If you are happy to make your own investment decisions, as many investors are these days, you can open your own account online by following the instructions provided by your chosen platform. This should be a simple and straightforward process. If choosing this route, you may also be intending to make your own investment decisions, in which case the quality of investment research available on your chosen platform may also be an important factor to consider.

Before your make your final decision on your chosen platform, remember to do your homework and bear the following points in mind:

  • Do you need advice or are you happy to make your own investment decisions (DIY)?
  • General investment plan or an ISA or SIPP?
  • Lump sum investing, regular savings or both?
  • How much are you likely to invest (as the level of charges will vary)?

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Allianz Global Investors

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Welcome to The Merchants Trust

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  • Individual and professional investors
  • Warning to Shareholders

    We are aware that some shareholders may have received unsolicited telephone calls or correspondence concerning investment matters. These are typically from overseas based organisations who target UK shareholders offering to sell them, what often turn out to be, worthless or high risk shares in US or UK investments. They can be extremely persistent and persuasive. Shareholders are therefore advised to be very wary of any unsolicited advice or offers.

    Please note that it is most unlikely that either the company or the company’s Registrar, Link Asset Services, would make unsolicited telephone calls to shareholders. Any such calls would only ever relate to official documentation already circulated to shareholders and never in respect of investment ‘advice’.

    If you are in any doubt about the veracity of an unsolicited telephone call, please call the Company Secretary +44 (0)800 389 4696 or the Registrar on +44 (0) 371 664 0300.

    You can also report and get advice about fraud or cyber crime by contacting Action Fraud – National Fraud & Cyber Crime Reporting Centre 0300 123 2040 and visiting their website at www.actionfraud.police.uk.


    Please read this important information before proceeding further. It contains legal and regulatory notices relevant to the information contained on this website. By pressing ‘Confirm’ you agree that you have read and understood the following information.

    Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors may not get back the full amount invested.

    Please note that the products referred to on this website are only available to persons normally resident for tax purposes in the United Kingdom of Great Britain and Northern Ireland. Allianz Global Investors UK Limited has taken reasonable care to ensure the accuracy of information available through the site. However, the information may be amended at any time by Allianz Global Investors UK Limited without notice. As far as it is permitted under the Financial Services Act, Allianz Global Investors UK Limited does not accept liability for any loss, direct or indirect owing to reliance on any information contained herein. Opinions expressed whether in general or both on the performance of individual funds and in a wider economic context represent the views of the contributor at the time of preparation. They are subject to change and should not be interpreted as investment advice which Allianz Global Investors UK Limited is not authorised to give. If you are unsure of the suitability of any investment contained in this website, please contact a Financial Adviser. This site may provide links to third party websites over which Allianz Global Investors UK Limited has no control. These links are provided for your convenience and Allianz Global Investors UK Limited accepts no responsibility for the content of such websites. For your security we may record or randomly monitor all telephone calls.

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    The Merchants Trust PLC is incorporated in England and Wales. (Company registration no. 28276). Registered Office: 199 Bishopsgate, London, EC2M 3TY. The Company is a member of the Association of Investment Companies - Category: UK Equity Income.

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    Investments

    You should always bear in mind that:

    Past performance does not predict future returns.

    The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested. You should not make any assumptions about the future on the basis of this information.

    Changes in rates of exchange may cause the value of investments and the income from them to go down or up.

    In a building society your money is secure, whereas in a stock market-based investment it is exposed to a degree of risk and the value of your investment will fluctuate up and down.

    The Merchants Trust PLC is a quoted company listed on the London Stock Exchange. Its share prices are determined by factors including demand which means that the shares may trade below (at a discount) or above (at a premium to) the underlying net asset value.

    The Trust seeks to enhance returns for its shareholders through gearing, in the form of long-term, fixed rate debentures. Gearing can boost the Trust’s returns when investments perform well, though losses can be magnified when investments lose value. You should be aware that this Trust may be subject to sudden and large falls in value and you could suffer substantial capital loss.

    This investment trust charges 65% of its annual management fee to the capital account and 35% to revenue. This could lead to a higher level of income but capital growth will be constrained as a result. Your capital could also decrease if income paid out of capital exceeds the growth rate of the Trust. Derivatives are used to manage the trust efficiently.

    The views and opinions expressed herein, which are subject to change without notice, are those of the issuer companies at the time of publication. The data used is derived from various sources, and assumed to be correct and reliable at the time of publication.

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