Page 38 - DIY Investor Magazine - Issue 23

Fantasy game business Games Workshop Group PLC may seem like a left-field choice, but its suitability as an investment is firmly based in reality. Both a manufacturer and a retailer, the company is a global leader in its (admittedly niche) market.
Finally, also worth mentioning are SSP Group plc. Billing themselves as the Food Travel Experts, the firm specialises in running food outlets in travel locations like airports and major stations.
Well placed to continue to benefit from the ongoing growth of international travel, SSP are already a truly global concern, operating more than 2,600 outlets in 33 countries worldwide.
WHY MERCANTILE?
The Mercantile Investment Trust plc is built around a rigorous research process aimed at discovering tomorrow’s market leaders.
The Trust looks for firms with a nimble business model who are either disruptors within their sector or first movers in a new market.
Our specialist investment team then focuses on three key areas:
• Quality: Profitability, sustainability of earnings and capital allocation discipline
• Outlook: Is the operational momentum of the business improving?
• Value: Have its future prospects been correctly estimated by the market?
Our careful active selection of sectors and stocks within them has allowed The Mercantile Investment Trust plc to outperform its Benchmark over 3, 5, 10 and 25 years.
While income is not a primary focus, a strong secondary objective is to grow dividends at least in line with inflation: dividends have increased six-fold since the turn of the millennium and have never been cut.
DIVIDEND POLICY SMOOTHING INCOME RETURN
Source: J.P. Morgan Asset Management. All figures based on the current trust total shares, after the 10 for 1 stock split in mid 2018
IMPORTANT INFORMATION
The Mercantile Investment Trust plc Quarterly rolling 12 months - as at end of June 2019
2014/15 2015/16 2016/17 2017/18 2018/19 18.10% -9.33% 31.98% 17.99% -3.00% 14.40% -8.29% 29.03% 17.02% -1.63%
Share price
NAV
Benchmark 14.18% -5.44% 22.26% 10.54% -6.24%
This is a marketing communication and as such the views contained herein do not form part of an offer, nor are they to be taken as advice or a recommendation, to buy or
sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not reliable indicators of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy. Investment is subject to documentation. The Investor Disclosure Document, Key Features and Terms and Conditions and Key Information Document can be obtained free of charge from JPMorgan Funds Limited or www.jpmam.co.uk/ investmenttrust. This communication is issued by JPMorgan Asset Management (UK) Limited, which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP. 0903c02a826a0d50
Past performance is not a guide to current and future performance. Source: J.P. Morgan Asset Management/ Morningstar. Net asset value performance data has been calculated on a NAV to NAV basis, including ongoing charges and any applicable fees, with any income reinvested, in GBP.
THE MERCANTILE INVESTMENT TRUST PLC
DIY Investor Magazine | Oct 2019 38