Diverse Income Trust (The)

LN: DIVI

£335.2m market cap

88.2p 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
%
1m
3m
12m
Actual (1.5) (5.3) (17.8)
Relative* (2.6) (5.8) (15.5)
52-week high/low 107.5p/87.8p
*% relative to local index
Key management
Michael Wrobel Chairman
Gervais Williams Fund manager
Martin Turner Fund manager

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