Edison issues review on The Diverse Income Trust

RNS Number : 5616F

Diverse Income Trust PLC (The)

29 October 2018

 

London, UK, 29 October 2018

Edison issues review on The Diverse Income Trust (DIVI)

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.

At 15 October 2018, DIVI traded on a 1.1% discount to cum-income NAV, which is a little below its three-year average premium of 0.1%. Historically, the trust has traded close to its NAV. This reflects the success of the investment strategy, the annual redemption mechanism, as well as the board's ability to manage the supply and demand for its shares.

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