Gervais Williams' Diverse Income Trust has toasted a second successful C share issue.

Following the trust's launch last May, income has stayed in demand among investors and the vehicle's latest issue of C shares takes it above the psychologically important £100 million mark.

'The additional capital takes the fund decisively beyond £100 million market cap and will reduce the total expense ratio and improve the ability to buy and sell the trust in the market,' Williams (pictured) said, after his trust's board announced the successful issue to the market.

The manager added: 'While small-cap income stocks have lead the market higher this year, we don’t consider this to be a one-off, but rather the beginning of a new post credit boom trend that may be with us for an extended period.’

Williams has benefited from the strength seen in smaller companies this year and has grown his trust's net asset value (NAV) per ordinary share 30.79% over the 12 months to the end of December, versus a gain of 16.72% in the FTSE All Share TR Index.

The trust's share price has risen 35.76% and it trades at a 5.6% premium to NAV.