The Diverse Income Trust plc (LON:DIVI) October 2020 Investor Presentation presented by Gervais Williams.
The Diverse Income Trust investment approach is primarily in quoted or traded UK companies with a wide range of market capitalisations, but a long-term bias toward small and medium sized companies. The Company may also invest in large companies, including FTSE 100 Index constituents, where it is believed that this may increase shareholder value.
The stock selection process uses a ‘traffic-light’ process to identify companies that are able to grow their dividends on a sustainable basis:
- Are there prospects for rising turnover?
- Can margins be sustained?
- Does the management team make decisions we feel will build real intrinsic value?
- How much financial flexibility is there in the balance sheet?
- Are there low expectations in the share price?
The Managers adopt a stock specific approach in managing the Company’s portfolio and therefore the amount apportioned to a particular industry sector is of secondary consideration. As a result of this approach, the Company’s portfolio does not track any index.
Any use of derivatives for investment purposes will be made on the basis of the same principles of risk spreading and diversification that apply to the Company’s direct investments.
*Yield refers to the dividends received by a holder of company shares. The historic yield reflects distributions paid over the last 12 months as a percentage of their mid-market price as at the date shown. This yield should not be seen as a future forecast.