13th Aug 2025 13:17
(Alliance News) - Diverse Income Trust PLC on Wednesday said its total return decreased in financial 2025 but still beat its benchmark, and remained confident whilst pointing to US-centric turbulence.
The London-based investor in small and mid-cap UK equities implied that its strategy will hold up "as globalisation fades".
Diverse Income's net asset value per share rose to 106.69 pence at May 31 from 98.87p at November 30.
NAV total return for financial 2025 was 12.8%, decreasing from 16.5% on-year, but comfortably outperforming the 9.7% rate posted by the firm's comparator, the Deutsche Numis All Share index.
Diverse Income set a 1.35p final dividend for the year ended May 31, and boosted its total dividend by 5.8% to 4.50p from 4.25p.
The trust's shares were 0.7% higher at 101.50 pence on Wednesday afternoon in London.
Among the top contributors to performance were miners Pan African Resources and Greatland Gold, which boosted income by 1.86% and 1.62% respectively.
Key detractors included oil and gas firm Savannah Energy, which dragged returns down by 1.75%, and polymer chemical producer Zotefoams, with a negative 0.70% return.
Diverse Income noted: "The past year has seen 2024’s limited green shoots in the UK economy wilt under the influences of tax increases and other confidence-sapping policy initiatives by the Labour government, allied to uncertainties on the world stage centred on the US government’s planned or imagined changes in import tariffs."
However, the firm suggested it could benefit from "a strong market tailwind" as confidence in US stocks falters and tariffs produce "weighty consequences".
Chair Andrew Bell added: "Although the disinvesting trend from UK equities by domestic investors has not materially improved, increases in UK allocations by international investors have contributed to an improved relative performance by the UK market, spreading beyond the main internal sectors dominant in the top 100 index. Some, at least, are beginning to see opportunity in the UK’s laggard status, rather than chasing the momentum available elsewhere," commented Chair Andrew Bell.
By Holly Munks, Alliance News reporter
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