Merchants trust lags UK market as growth style outperforms value in 'difficult' H1

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The Merchants investment trust (MRCH) has underperformed the UK market in the first half of the year, as growth stocks outperformed the trust’s value-oriented holdings.

According to its half-year results to the end of July, the trust's net asset value fell by 2.2%, while the FTSE All-Share index gained 0.8%.  On the back of a strong year for Merchants in 2022, chair Colin Clark recognised that the first half of 2023 had been more "difficult" for the trust's value style as higher growth stocks outperformed.  "After a fall from grace for technology and other high growth shares during 2022 due to the high inflation and rising rates backdrop, there has been a sharp reversal in the first half of 2023, with a rally in technology shares, particularly the la...