Merchants Trust has released its results for the year ended 31 January 2014. The fund is 125 years old this year so the annual report (which you can access from the Merchants Trust page by clicking the link) dwells quite a bit on the fund’s progress since 1889.
2013/14 was not a bad year for the trust. Its net asset value total return was 17.5% and its share price return was even better (up 19.1%). By contrast the return on the FTSE 100 Index was 7.6%.
Merchants Trust’s performance has been boosted as its expensive debt gets closer to maturity (the potential cost of repaying the debt early which is factored into the net asset value falls as the debt gets closer to being paid off). If there was one mistake the trust made in its history that it probably wishes it didn’t, then taking out that debt is probably it.
The dividend was increased by 1.7% – the 32nd consecutive year of dividend increases.