London, UK, 9 April 2018
Edison issues review on The Diverse Income Trust (DIVI)
The Diverse Income Trust (DIVI) seeks to provide shareholders with an attractive level of dividends and capital growth over the long term. It achieves this through investing primarily in UK-listed companies that are able to improve productivity, where strong cash flow can underpin sustained dividend growth. The managers Gervais Williams and Martin Turner believe a multi-cap approach has the advantage of investing over a wider opportunity set relative to those limited to large mainstream stocks, and around two-thirds of DIVI's holdings are outside the FTSE 350. The strategy also seeks to manage the scale of potential capital loss, in the event of a major market setback, through the use of a FTSE 100 put option. DIVI has a solid track record of performance; from inception in April 2011 to end February 2018, it has generated an annualised total return of 13.8%.
DIVI is trading at a 0.7% premium to cum-income NAV, which is slightly below its five-year average of 1.0%. Since its inception, the trust has traded close to its NAV, reflecting good demand for its all-cap strategy, strong performance track record and the board's ability to manage supply and demand for DIVI's shares.
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