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Diverse Income Trust PLC on Wednesday reported a negative total return for its latest half year, but reassured that its investees can ‘gain strength in tougher conditions’. Diverse Income Trust, which invests in small and medium-sized UK listed companies, said net asset value was 85.61 pence per share at November 30, down from 95.45p at the same time one year prior. The stock was up 0.3% at 81.26 pence on Wednesday afternoon in London. Diverse Income Trust also declared a 1.0p per share second interim dividend, raising the total payout for the half year to 2.00p from 1.90p the year before. NAV total return was negative 1.3% for the six months to November 30, while the Deutsche Numis All-Share Index delivered positive 1.6%. Diverse Income Trust acknowledged that interest rate cuts are likely this year, but added that ‘it remains unclear whether this will occur to revive depressed economies or to reward declines in inflation in economies experiencing modest or weak growth. ‘One scenario would argue for defensively hunkering down, the other in favour of looking forward to better times. Our strategy is adaptable to either. Diverse Income’s manager aims to invest in well-managed, soundly financed companies which prosper in normal times but are able to use their cash flows and access to capital markets to gain strength in tougher conditions.’ The trust also said it expects the planned four dividends for the year to May 31 to ‘at least match’ those paid the year before. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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