Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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.

Related Fund Managers

Gervais Williams
Gervais Williams
5/83 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 68.44%
Citywire TV
Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Play Henderson's Hermon: how to be defensive in smaller caps

Henderson's Hermon: how to be defensive in smaller caps

Hermon, who manages the Henderson Smaller Companies trust, talks about he will tackle a 'challenging' 2016.

Your Business: Cover Star Club

Profile: 'what we are doing at Mosaic is Darwinian'

Profile: 'what we are doing at Mosaic is Darwinian'

The changes in financial services over the last few years may leave some destitute warns Marco Sambucci of Mosaic Money Management

Wealth Manager on Twitter