Over the year to 31 May 2016, Diverse Income Trust’s NAV per share rose from 87.03p to 91.02p (+4.6%). This compares with a fall in the FTSE All-Share Index of 9.7% – small cap.s outperformed – the FTSE SmallCap (excluding Investment Companies) Index ended the year to 31 May 2016 down just 2.5% and the FTSE AIM All-Share Index fell 4.3%. The total dividend for the year amounted to 2.80p, compared with 2.50p on a rolling twelve month basis, an increase of 12.0%. the shares moved from trading at asset value to trading at a 3% premium.
At the forthcoming Annual General Meeting, the Board will be seeking shareholder approval of an amendment to the Company’s investment policy to allow the Manager to increase the maximum number of securities that may be held in the portfolio to 160 holdings. The Board believes that this change will allow the Manager greater flexibility to buy and sell stocks over a longer period of time and invest in more opportunities amongst the smallest companies in the portfolio, whilst diversifying risk.
There is very little information in the report on which stocks contributed to returns . Bioventix and Burford Holdings were sold, crystallising profits – the latter is up 23% since 31 May. We are told that TalkTalk disappointed and was sold. They also bought Persimmon, Taylor Wimpey and ITV during the period all of which have done badly since the EU referendum (though have bounced off their lows).
DIVI : Diverse Income to get more diversified