Page 29 - DIY Investor Magazine - Issue 25

INVESTING IN BRITAIN
As well as providing welcome returns to shareholders, one of the purposes of equity markets is to provide companies with capital.
Thus, equity investors like Mercantile have played a vital role in supporting businesses through the lock down period when they have zero revenue, yet heavy cost bases.
‘Those businesses have needed equity injections in order to survive — and ideally position themselves so they can flourish in the future. It’s actually a good reminder of what we’re really for.’
With around £2 billion in assets, Mercantile is a significant investor in the small-to-medium sector. The trust bought around a fifth of its portfolio at IPO, although it engages with potential acquisitions up to two years before they go public.
‘We have extensive due diligence, we visit the companies’ operating sites and meet their management multiple times.
We really get to understand the business’, says Anderson, who has a passion for discovering developing firms. ‘I want to invest in a business with solid fundamentals and a strong competitive positioning, where there is an exciting growth outlook.
The business should generate decent margins and crucially generate a strong return on capital with the ability to reinvest to drive further growth.’
Find out more about the Mercantile Investment Trust plc >
Our investment trust range >
View all Investor Insights >
This trust targets UK companies outside the FTSE 100 that have significant room for growth.
To buy this trust login to your EQi account Select Mercantile Investment Trust - GB00BF4JDH58
Important information
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 Prospectus and PRIIPs Key Information Document can be obtained free of charge from JPMorgan Funds Limited or www.jpmorgan.co.uk/JARA. This communication
is issued in the UK 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. This communication is issued in Europe (excluding UK) by JPMorgan Asset Management (Europe) S.à r.l., 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, R.C.S. Luxembourg B27900, corporate capital EUR 10.000.000.
Important information
This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from J.P. Morgan Asset Management or
any of its subsidiaries to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities
or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own professional advisers, if any investment mentioned herein is believed to be suitable to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, 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. Both past performance and yields is not a reliable indicator of current and future results.
J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. This communication is issued in the United Kingdom by JPMorgan Asset Management (UK) Limited, which is authorized and regulated by the Financial Conduct Authority, Registered in England No. 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.
29 DIY Investor Magazine | Sept 2020