8th Aug 2023 14:27
(Alliance News) - Diverse Income Trust PLC on Tuesday upped its full-year dividend, despite reporting a drop in its net asset value.
Diverse Income Trust invests in small- and medium-sized UK listed companies.
In the year ended May 31, the company's NAV per share fell by 20% to 88.87 pence from 110.55p a year earlier.
Total NAV return for the trust was minus 16.2% for the year, compared to minus 3.4% a year ago. This includes the change in NAV, plus the dividends paid during the year, the company noted.
Diverse Income Trust announced that it will pay a total dividend of 4.05p, up 3.8% from 3.90p.
"The UK market fell out of favour in recent decades, partly due to perceptions that it consisted of dull, mature companies and was under-represented in faster growth sectors. International investors were also deterred by the uncertainty over Brexit, with the UK economy and politics yet to adjust fully to be comfortable with the new structures," Diverse Income Trust said.
However, it noted that there are "some signs of hope from recent policy announcements encouraging investment in growing UK companies and reviewing potential obstacles to companies deciding to list in the UK."
Shares in Diverse Income Trust were down 0.4% to 81.56 pence each in London on Tuesday afternoon.
By Sophie Rose, Alliance News reporter
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