Diverse Income Trust (The)


£345.8m market cap

91.4p 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 growing level of income, as well as capital gains over the long term. It is not constrained by benchmarks and has a wide opportunity set across the market capitalisation spectrum to find high-quality, resilient companies that can sustain dividend growth over the long term. The managers, Gervais Williams and Martin Turner, have a small-cap bias and over two-thirds of the portfolio is outside of the FTSE 350 index. Since its inception in April 2011, the trust has delivered an annualised NAV total return of 12% and consistent growth in its regular dividend. Performance in more recent years has lagged the FTSE All-Share index, which the managers believe reflects small-cap and value stocks being overlooked, and they are finding superior investment opportunities in this segment of the UK equity market.

Share price graph
Price performance
Actual 9.3 2.5 (13.0)
Relative* 5.7 2.0 (12.8)
52-week high/low 106.5p/82.0p
*% relative to local index
Key management
Michael Wrobel Chairman
Gervais Williams Fund manager
Martin Turner Fund manager

You may also be interested in…