Diverse Income Trust (The)

LN: DIVI

£362.3m market cap

94.4p last close

DIVI targets an attractive and growing level of income with long-term capital growth, investing in a diversified portfolio of primarily UK-listed equities. It has a stronger focus on small and very small market capitalisation stocks than is typical of the UK Income & Growth peer group. As a stock specific portfolio there is no benchmark but the trust targets an initial yield of around 4% for the period to 31 May 2012 and income growth higher than other income funds.

Investment summary

The Diverse Income Trust (DIVI) aims to generate a good and increasing level of income, as well as capital gains over the long term. It primarily invests in UK equities, across the market capitalisation spectrum, seeking companies that are underappreciated by the market and able to generate productivity gains, which in turn underpin future dividends growth. The trust has around two-thirds of its holdings in companies outside of the FTSE 350 index, and is relatively lowly correlated with mainstream UK indices. DIVI has a solid medium- and long-term performance track record with a total return of c 14% pa when both the NAV and dividend income are included, over the period since inception in April 2011 to end-September 2018. UK equities remain out of favour ahead of Brexit and volatility has increased. This combination is presenting greater opportunity to add value, according to the managers Gervais Williams and Martin Turner.

Share price graph
Price performance
%
1m
3m
12m
Actual 3.6 (1.5) (8.4)
Relative* 0.3 (4.2) (7.0)
52-week high/low 109.0p/89.4p
*% relative to local index
Key management
Michael Wrobel Chairman
Gervais Williams Fund manager
Martin Turner Fund manager

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