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Mercantile Investment Trust PLC on Tuesday reported its total return for 2024 outperformed its benchmark index, and said it looks to future market volatility with confidence. The London-based investment company focused on medium and smaller sized companies in the UK said its net asset value total return for the twelve months that ended January 31 was 14.1%. This compared to a 12.3% return on its benchmark, the FSTE All-Share index excluding FTSE 100 constituents and investment trusts, with net dividends reinvested. The firm’s outperformance was primarily driven by stock selection, Mercantile explained, with contributions from invests such as 3i Group PLC, Intermediate Capital Group PLC, Plus500 Ltd and Games Workshop Group PLC. Pretax net return for the year multiplied to £242.3 million from £75.3 million, while its share price total return was 18.9%. Mercantile declared a final dividend of 3.40 pence per share, bringing the total dividend for the year to 7.90p, up 3.3% on-year. ‘The investment outlook is always clouded by uncertainties of some kind and the associated risk of volatility. I believe the shock and effects of the budget in October will wane and the entrepreneurial spirit in the UK will once again come to the fore. Most recently widespread US tariffs and retaliatory action taken by other countries have added a new dimension to economic uncertainty and ongoing geopolitical tensions,’ said Chair Angus Gordon Lennox. ‘However, your portfolio managers have a long and successful track record of navigating volatility triggered by a variety of market developments, and this, combined with their disciplined investment approach, leaves the board confident in their ability to steer the portfolio through the coming months and years. ‘Moreover, the board believes that market corrections that occur after unexpected shocks often present excellent buying opportunities. While there may be ongoing weakness and volatility, the board is of the view that these are typically just fluctuations when viewed over a longer time horizon.’ Shares in Mercantile Investment Trust were up 2.7% at 208.00 pence in London on Tuesday morning. The stock remains down 8.0% over the past year, however. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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