Edison issues review on The Diverse Income Trust

RNS Number : 7341T

Diverse Income Trust PLC (The)

16 October 2017

 

London, UK, 16 October 2017

Edison issues review on The Diverse Income Trust (DIVI)

The Diverse Income Trust (DIVI) invests in UK listed companies across the market capitalisation spectrum. It aims to deliver good and growing dividends as well as capital returns. Over two-thirds of its investments are outside the FTSE 350 index of large and mid-cap stocks, and the managers believe the small-cap universe is still rich in opportunities. The fund also seeks to minimise the scale of downside risk, and therefore the portfolio currently includes FTSE 100 put options. DIVI's share price has risen by around 110% since launch in April 2011 to end-September 2017, outperforming the FTSE All-Share index by over 50%.

DIVI's shares trade at a 1.4% discount to cum-income NAV. Since inception, the trust has traded close to the NAV, often at a premium, reflecting strong demand for the multi-cap strategy and its ability to manage the supply and demand for the shares. Although DIVI's 3.0% yield is at the low end of its peers, it is generously covered and managed for sustainable growth. Ordinary dividends have increased every year since inception in 2011 and two special dividends have been declared. 

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