Diverse Income Trust to launch new share class
The Diverse Income Trust is hoping to raise up to £50m through the issuance of a new C share class.
Gervais Williams, joint fund manager of the Diverse Income Trust and former head of smaller companies investing at Gartmore, says: “We are planning a C share issue at this time for several reasons. The current climate suits the trust’s investment style of investing in companies with strong balance sheets and good and growing income.
“With investment trends changing beyond the credit boom we believe that a multi cap approach offers greater scope for diversification and selecting for intrinsic value and a similar strategy was effective beyond the 1929 credit boom.
“Dividends are likely to represent a larger element of shareholder return in a low-growth environment. Smaller companies have more room to show meaningful growth, often have stronger balance sheets that could support faster dividend growth, and are increasingly under-researched, under-owned and under-valued.”
The share class will charge an annual fee of 1% of market capitalisation with no performance fee. The target yield is 4% on an annualised basis.
The close of offer will take place on July 11.
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