Edison issues update on The Diverse Income Trust
London, UK, 3 March 2023
Edison issues update on The Diverse Income Trust (DIVI)
The Diverse Income Trust (DIVI) is managed by Gervais Williams and Martin Turner at Premier Miton. They are very optimistic about the prospects for UK stocks, with Williams recently stating: 'I am more bullish than I have been in the last 30 years'. UK equity valuations are looking very attractive versus other markets and their own history, while there is a historically wide discount between the valuation of DIVI's portfolio and that of the UK market. The trust's income is now higher than pre-COVID-19 levels, with the improvement exceeding that of UK stocks in aggregate, which Williams attributes to the success of its portfolio companies. He believes that DIVI's shareholders will be rewarded with a higher level of income, while successful stock selection, which has been demonstrated in the past, could lead to outperformance versus the UK and global markets.
DIVI's 5.2% discount to cum-income NAV compares with average discounts of 4.6%, 4.0%, 3.2% and 1.1% over the last one, three, five and 10 years, respectively. The trust has an annual voluntary redemption option and in FY22, 1.7% of the share base opted to redeem. As shown in the chart above, there has been steady growth in DIVI's annual dividend and, based on its current share price, the trust offers an attractive above-market yield of 4.2%.
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