15th Feb 2023 16:57
(Alliance News) - Diverse Income Trust PLC on Wednesday said total returns to shareholders fell 12% in the half-year to November 30, 12% behind the return on the wider UK market.
The trust which has a long-term bias toward small and mid-cap equities said this included a reduction in net asset value offset in part by dividends paid during the period.
The net asset value at its November 30 half-year was 95.45 pence, down from 111.81 pence a year ago and 110.5 pence as at May 31 last year.
The trust said the first two interim dividends this year totalled 1.90p, up 5.6% on last year, and it expects to at least maintain the full year payout.
Retained revenue reserves were GBP16.4 million up from GBP15.9 million at the end of May 2022.
The trust noted the report covered a period when inflationary pressures were persistent and share prices of stocks other than those in the mainstream indices declined significantly.
But despite falling markets, the trust's revenue over the half year to November 2022 rose to 2.23 pence per share compared with 2.20 pence per share a year ago.
Chair Andrew Bell suggested: "The years of investor aversion to the UK following the Brexit referendum, allied to the recent avoidance of smaller companies leaves our portfolio well positioned for a potential turn in markets during 2023, as interest rates and inflation peak, when investors may start to anticipate better times in 2024."
Shares in Diverse Income Trust closed down 1.5% at 94.60 pence each in London on Wednesday.
By Jeremy Cutler Alliance News reporter
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