13th Feb 2026 11:52
(Alliance News) - Diverse Income Trust PLC on Friday reported a rise in its net asset value over the first half of 2025, though it had underperformed its benchmark.
The London-based investor in small and mid-cap UK equities posted a NAV per share of 113.21 pence at the end of November, up 6.1% from 106.69p at May 30. NAV per share was 13% higher on-year, up from 100.25p.
DIT's NAV total return for the six months ended in November was 8.5%, compared with 12.5% for the firm's comparator, the Deutsche Numis All-Share index.
"The company's portfolio is tilted towards opportunities amongst smaller companies, which presented a headwind during this reporting period. Since the period end, strong absolute performance has resumed," DIT stressed.
According to the firm, its NAV total return had risen above 10% as at Feburay 4, compared with 7.5% for its comparator.
DIT shares edged up 0.2% to 116.75 pence on Friday morning in London.
The firm said it was considering various options to address a reduction in capital due to share redemptions.
DIT noted talks "with key institutional shareholders" on possibilities "that would enable shareholders to remain exposed to the company's current investment strategy."
"The possibilities include replacing the annual redemption with an active share buyback policy defending a narrow level of discount throughout the year, coupled with providing regular opportunities for shareholders to vote on whether they wish the company to continue," DIT said on Friday.
The firm has also considered "offering shareholders the opportunity to switch to an open-ended fund managed according to the same strategy by the same investment team."
DIT plans to update further on this "in due course".
Chair Andrew Bell commented: "Although confidence has waned in the UK government...prospects for 2026 are likely to be helped by the lagged effect of interest rate cuts made during 2025 and by the structuring of the 2025 budget measures, which front-loaded government spending increases, while deferring the balancing tax increases needed to maintain market confidence to the end of the decade."
Bell continued: "Despite the 'Magnificent 7' US technology leaders dominating the headlines, in 2025 the UK market outperformed both the 'Mag 7' and the US market in sterling terms, evidence that investors may be developing vertigo at some US valuations, leading them to seek better value elsewhere.
"Within the UK market, many smaller companies have suffered more severe derating due to their invisibility to larger institutional investors. With UK valuations looking attractive relative to other regions, with the regulatory discussion shifting towards encouraging investment in the UK market and with UK and global interest rates on a declining trend, the prospective risk-reward from UK equities looks better than for some years, particularly the neglected second liners and smaller companies. Our managers are exceptionally positive on the outlook for the portfolio."
By Holly Munks, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
Diverse Income Trust