Finding Value in the UK with Simon Gergel of the Merchants Trust

The UK equity market is one of the most attractive markets in the world for income investors and right now the market looks cheap.

Investment trusts are a great way to capitalise on the market’s income credentials while outsourcing portfolio management to an expert.

MoneyWeek deputy digital editor Rupert Hargreaves talks to Simon Gergel, portfolio manager at the UKfocused Merchants Trust, with 95% of assets invested in UK equities and the remainder in Europe.

Last year the trust was one of the few to beat the market, with the value of its assets rising 10.5% for the 12 months to the end of November, compared to a return of 6.5% for its benchmark, the FTSE All Share Index.

Over the six months to the end of April, the trust’s net asset value has increased by 14.1% compared to 12.5% for its benchmark. Today the trust trades at a slight premium to NAV and yields just under 5%.

MoneyWeek videos are designed to help our viewers become better investors. They're aimed at beginners and more experienced investors.

In some videos, we explain investment concepts in an easytounderstand way. In others, we focus on topical investment stories and themes. Either way, the emphasis is on clarity and brevity. We don't want to waste your time with a 20minute video that could easily be so much shorter.

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MoneyWeek videos are made by MoneyWeek, the UK's most popular financial magazine. Founded in 2000, MoneyWeek aims to provide intelligent and enjoyable commentary on the most important financial stories. It also tells you how to make money from the latest financial news.