The Diverse Income Trust plc (DIVI) has published the latest Edison review.
Gervais Williams’ and Martin Turner’s multi-cap approach to managing The Diverse Income Trust (DIVI) has yet again paid off, protecting on the downside. The trust has topped the ranks of UK high dividend yield peers over the past 12 months, and remains in the top quartile by NAV total return over the medium term. It has also materially outperformed the comparative indices since launch in 2011, demonstrating the managers’ skill to pick winners, patience, consistent approach, and the ability to diversify away most of the risk of dividend cuts. Williams believes that DIVI’s small- and mid-cap tilted portfolio is well positioned to continue benefiting from increased investor demand for cash-generative businesses, caused by fears over the current coronavirus pandemic and lockdowns.
DIVI trades at a discount of 1.2% to its cum-income NAV, a considerable recovery from its 22.7% low point in March, and narrower than the three-year average of 3.1%. The board aims to limit the discount to a level close to the trust’s NAV, including an annual opportunity to redeem shares at NAV less costs. An improvement in sentiment towards UK equities, combined with the trust’s strong performance, are potential catalysts for the discount to remain at the target level.
Click here to view the full The Diverse Income Trust report.