Merchants trust makes bullish bet on energy and mining firms

Manager Simon Gergel told Investment Week that the 133-year-old trust has continued to top up its position in firms across the sector, arguing that the surge in commodity prices twinned with spiralling inflation had bolstered the outlook for these companies. Shell, Scottish & Southern Energy, Drax Group and Rio Tinto take up some of the equity income trust's largest positions, and at the end of April, 9.5% of the trust was invested in the energy sector. R&M's Sergeant: 'There are a huge number of anomalies for value managers to exploit this year' Despite pressures to divest away fr...