Edison issues review on The Diverse Income Trust

RNS Number : 3118C

Diverse Income Trust PLC (The)

22 February 2022

 

London, UK, 22 February 2022

Edison issues review on The Diverse Income Trust (DIVI)

Alpha generation and low correlation of Diverse Income Trust (DIVI) with major UK indices has resulted in a steady long-term total return. After celebrating its 10-year anniversary last year, multi-cap DIVI continues to be among the top-ranked UK high dividend-yield trusts over periods longer than three years, despite some setbacks in short-term performance against peers due to its relatively high AIM exposure. About a third of DIVI's portfolio is in AIM-listed stocks, while most peers are more exposed to large caps. Looking ahead, portfolio managers Williams and Turner expect their multi-cap income approach to continue to deliver over the medium to long term, and for the UK equity market to outperform the US.

DIVI's multi-cap strategy and the portfolio's diversification (c 130 holdings) mean the trust's portfolio stance has not changed significantly either during the pandemic or throughout its life. The trust has delivered attractive returns on the still dominating high-beta markets of the past decade. In 2021, as the AIM market underperformed the broader UK market, DIVI's performance lagged peers. DIVI's 14% NAV TR over the 12 months to end-January 2022 was below the peer group average of 20%. Whether or not the UK stock market recovers, we expect DIVI to capture extra returns amid a potential market shift from growth to value as global growth slows. High equity valuations took a hit at the start of 2022. If they continue to unwind, DIVI is well positioned to outperform indices and peers, given its income-generating multi-cap strategy and diverse sources of income.

Click here to view the full report or here to sign up to receive research as it is published.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: E dison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority .

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Victoria Chernykh [phone] [e-mail]

Sarah Godfrey [phone] [e-mail]

Learn more at   www.edisongroup.com and connect with Edison on: 

LinkedIn  https://www.linkedin.com/company/edison-group-/

Twitter    www.twitter.com/Edison_Inv_Res  

YouTube  www.youtube.com/edisonitv

 

END

 

 

NRASEWFEFEESEFE