Merchants Trust : Change of Benchmark

18 January 2017

The Merchants Trust PLC

Change of Benchmark

At its recent annual strategy session, the Board concluded that the aims of The Merchants Trust ('the Company') remain appropriate for the current environment. The Company seeks to provide an above average level of income and income growth together with long term capital growth through a policy of investing mainly in higher yielding UK listed large companies.

The Board monitors the Company's NAV total return against several comparators, including the FTSE 100 index which is the current benchmark, and the peer group, the UK equity income sector. As the Manager has diversified the sources of income to build sustainable growth and resilience into the income stream, the proportion of the portfolio invested outside of the FTSE 100 Index has increased from 11% to 36% during the last ten years. Given this, the Board has decided to change the benchmark to the FTSE All Share Index which more closely reflects the structure of the portfolio and the available investment universe. This change will come into effect from the beginning of the financial year, 1 February 2017. No significant changes to the management of the portfolio are anticipated.

Enquiries: Melissa Gallagher

Head of Investment Trusts

Allianz Global Investors GmbH UK branch [e-mail]

Direct: 020 3246 7539