LONDON, March 25, 2011 /PRNewswire/ -- The Diverse Income Trust plc (DIVI) is a new investment trust targeting both an attractive and growing income as well as long-term capital growth, through investment in a diversified portfolio of securities, primarily listed UK equities with a high concentration on small and very small companies. The trust aims to pay quarterly dividends and targets a prospective annualised yield at inception no less than 4.0%. The significant focus on smaller companies is different to most of the established UK income and growth trusts and offers investors a greater degree of diversification away from the FTSE 100 companies. Further, the manager believes that many smaller companies will be able to grow faster in a period of modest economic growth and grow their dividends faster, and are under-researched and under-valued. He believes that these characteristics will be increasingly appreciated by the market.
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The trust's ordinary shares are being issued at 50p. With issuance costs capped at 2.5%, DIVI will begin trading with a minimum underlying NAV of 48.75p and, as such, shares are being issued at a maximum 2.6% premium to opening NAV. The trust does not have a fixed-life term but will include an annual redemption facility and may also use buybacks to manage any discount. In the current interest rate environment an attractive yield should bolster the rating of the shares, which should be attractive to investors seeking a high level of income combined with the prospect of capital growth.
Edison is Europe's leading investment research company. It has won industry recognition, with awards in both the UK and internationally. The team of more than 65 includes over 35 analysts supported by a department of supervisory analysts, editors and assistants. Edison writes on more than 280 companies across every sector and works directly with corporates, investment banks, brokers and fund managers. Edison's research is read by major institutional investors in the UK and abroad, as well as by the private client broker and international investor communities. Edison was founded in 2003 and is authorised and regulated by the Financial Services Authority (http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584).
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SOURCE Edison Investment Research