Why Greed, Not Defense, Should be Embraced According to the Chief of Mercantile Investment Trust
The fortunes of investment trust Mercantile are closely tied to the UK economy. If recession is avoided, inflation is controlled, and interest rate rises come to a halt, the £1.6 billion trust could experience a sustained period of strong investment performance.
However, the trust could face challenges if the economy falters. There are many uncertainties and not many clear-cut answers.
Guy Anderson, the trust’s manager alongside Anthony Lynch, acknowledges this reality. He emphasizes the importance of the UK economy for the fund, as half of the revenues generated by its held companies are domestic. Dealing with various factors contributing to inflation, such as the pandemic, a tight labor market, and geopolitical tensions, has been a challenge.
These challenges have impacted the trust’s investment returns, causing it to underperform its benchmark, the FTSE All-Share Index, over the past three and five years. For example, the trust has delivered a 9% return to shareholders over the past five years, compared to the index’s 16% return.
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Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
