Investment summary

The Diverse Income Trust (DIVI) was launched in April 2011. It targets stocks with a good and growing income since its manager, Gervais Williams (formerly of Gartmore) believes these can deliver some of the most sustainable capital gains too. The trust has a flexible mandate to seek the most attractive yield opportunities across the broad range of market capitalisation equities, without being benchmarked against any specific index. Currently, the portfolio is more highly weighted towards medium and smaller UK companies than most sector peers and seeks to manage the volatility risk by running a well diversified portfolio of around 100 stocks. Williams sees value in unloved, under-researched, under-owned smaller companies, and believes that these companies are often better placed to find some growth in a low growth environment, and that many have the balance sheet strength and cash-flow profiles to be able to grow dividends in such an environment. DIVI is consequently less exposed to the small number of heavyweight dividend paying UK stocks that are prevalent in the majority of sector portfolios.

Last updated on 17/01/2012