After delivering an 18.4% capital return and over 4% in dividend income in 2025, The Diverse Income Trust (LON:DIVI) is quietly making bold moves. Fund Manager Gervais Williams lays out why he’s leaning further into undervalued UK small caps like Yü Group, ACG Metals and Victorian Plumbing — and what makes these names stand out amid market uncertainty. From North Sea energy plays to digital-first disruptors, this conversation reveals where the Trust is finding mispriced opportunities with significant upside.
Key Moments:
- 00:30 – Why geopolitical volatility favours a multi-cap approach
- 01:45 – Small caps’ overlooked income contribution & 2026 outlook
- 03:50 – Yü Group: cash-rich, undervalued, and now a top holding
- 05:25 – ACG Metals: cash now, copper upside next
- 07:15 – Ithaca Energy: dividends and positioning post-Shell tie-up
- 08:45 – BlueNord: from overlooked to cash machine
- 10:15 – Primary Health Properties: inflation-proof income
- 11:35 – Norcros: capital-light bathroom growth story
- 12:55 – Arbuthnot Banking Group: deeply discounted financial with growing AUM
- 14:40 – Victorian Plumbing: MFI, next-day tiles & distribution scale-up
The Diverse Income Trust invests primarily in quoted or traded UK companies across a wide range of market capitalisations, with a long-term bias towards small and mid-cap equities.
Yü Group supplies gas, electricity, and water to UK businesses, with a focus on organic growth and strong cash generation.
ACG Metals. A developing copper and precious metals miner, advancing a sulphide project in Turkey with near-term production.
Ithaca Energy is a North Sea oil and gas producer focused on high-dividend returns and expanding production capacity.
BlueNord is a Danish-headquartered energy company with low-carbon North Sea gas assets and strong free cash flow.
Primary Health Properties owns and manages healthcare facilities with long-term, inflation-linked leases generating stable rental income.
Norcros supplies bathroom and shower products, transitioning to a capital-light model with growth through acquisitions.
Arbuthnot Banking Group is a UK-based private and commercial bank, growing assets under management and offering resilient earnings.
Victorian Plumbing is an online bathroom retailer expanding operational scale with next-day delivery and the MFI brand acquisition.
