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
Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Play Japan's slump, the umbrella revolution and the battle for Brazil

Japan's slump, the umbrella revolution and the battle for Brazil

With the arrows of Abenomics appearing to be missing their targets and political uncertainty rife in Hong Kong and Brazil we take a look at investor sentiment in this week's Investment Pulse

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter