The trust was launched earlier this year and focuses on a portfolio of small and mid-cap companies; Williams said investor demand for an open-ended version has led MAM to prepare the groundwork for a launch in late September.
The yield on the Oeic’s portfolio is intended to be “broadly similar” to that on the investment trust, said Williams, though the cost on capital may be higher.
“We have seen demand from investors for a unitised version”, he confirmed.
Williams and co-manager Martin Turner have been investing capital gradually thus far given the volatility seen in UK equity markets in May. “We are one-third invested so far. We will be fully invested, so as the market goes down we need to buy into the dips”, he said.
The first factsheet for the Diverse Income Trust indicates that process has already begun. “With the market drifting, there have been good opportunities to set buying limits and then wait for the market to dip down and offer stocks at attractive levels”, the managers said.
Current largest holdings are online software provider Playtech, at 1.8%, and legal and professional fees insurer Abbey Protection, at 1.7%.
