Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Williams' Diverse Income trust targets £50m to control premium

Williams' Diverse Income trust targets £50m to control premium

The Diverse Income Trust managed by Gervais Williams hopes to raise another £50 million in order to cut its premium and costs.

Diverse Income currently trades on a premium of 5.2% compared with an average discount of 0.9% for its UK Equity Income peer group.

‘Taking into account the company’s performance since IPO, the current rating of its shares, and the manager’s outlook for potential investee companies and the company’s underlying portfolio, the board is considering increasing the company’s capital base through a pre-emptive offer of C shares to raise up to approximately £50 million of gross proceeds in June 2014,’ Diverse Income stated.

‘Any such fundraising would be expected to reduce the company’s ongoing cost ratio as well as broaden the company’s investor base to improve market liquidity for existing shareholders.’

Diverse Income’s present ongoing charge is 1.84%, according to the AIC, higher than the sector average of 1.18% including performance fees.

Over the past year Diverse Income has returned 36.1%, compared with an average of 15.8% for the sector and 8.9% from the FTSE All Share index.

Diverse Income added that it was now taking legal, tax and financial advice on the fundraising.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Gutteridge and Foster discuss UK commercial property with Jason Baggaley, manager of the Standard Life Property Income investment trust

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Gutteridge puts the heat on Odey's asset allocation maestro with a couple of tough questions.

Brewin's Foster & Gutteridge: searching for the yield of dreams

Brewin's Foster & Gutteridge: searching for the yield of dreams

Guy Foster and Ben Gutteridge discuss the latest upbeat US payroll report and how it has increased the probability of a first hike in interest rates in June.

Your Business: Cover Star Club

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Growing a business is the main aim of many company owners but managing that growth in a controlled way is just as important

Wealth Manager on Twitter