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- Merchants Trust held back by rising debt value
Merchants Trust has published results for the year ended 31 January 2015. Over that period the fund delivered a return on net assets of 4.7% which is about 2% behind the return generated by the FTSE100 Index over the same period. They say that most of this underperformance relates to changes in the market value of the fund’s expensive long-term debt as interest rates (used to price the debt) fell again – boosting the comparative value of their expensive debt.
The return to shareholders was 3.3%. The full year dividend was increased by 0.8% to 23.8p – they had to dip a little into reserves to pay this – revenue was 23.56p.
MRCH : Merchants Trust held back by rising debt value