The Diverse Income Trust - Roll over into open-ended fund or cash exit

Since its launch in April 2011, the Diverse Income Trust (DIVI) has outperformed the UK market and all but one of its 17 AIC UK Equity Income sector peers. Its dividend record has also been stronger than that of the UK equity market, with its dividend increasing each year. As investment trusts can trade at a discount to NAV, DIVI operates an annual redemption facility, which allows shareholders to exit at a price close to NAV. However, significant UK capital withdrawals in recent years have driven substantial redemptions, reducing the trust's size and gradually increasing its ongoing charges ratio. Following consultation with the trust's major institutional shareholders, on 25 February 2026 the board put forward proposals for a merger with the Premier Miton UK Multi Cap Income Fund, an FCA-authorised open-ended investment company with a similar strategy, which is also managed by Gervais Williams and Martin Turner. There will be a 100% cash exit for shareholders wishing to allocate capital elsewhere.

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