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 Hendersons' Kerley: investing in Marmite-like China

Hendersons' Kerley: investing in Marmite-like China

Citywire A-rated manager sees higher quality growth originating from China's current reforms.

Play Oil slump opportunities, Japanese recession & a UK bank conundrum

Oil slump opportunities, Japanese recession & a UK bank conundrum

Investment Pulse this week looks at further challenges for the British banking sector, Japan's return to recession and the continuing weakness of brent crude.

Play JPMAM's Georgina Brittain: the best opportunities in mid caps

JPMAM's Georgina Brittain: the best opportunities in mid caps

Brittain discusses where she sees opportunities in mid caps despite rising valuations.

Your Business: Cover Star Club

Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

Wealth Manager on Twitter