Gervais Williams, fund manager of Diverse Income Trust (LSE:DIVI), highlights examples of stocks he feels have plenty of upside potential. He also runs through how he selects shares, gives an overview of how UK dividends have fared this year, and explains why a couple of months ago he purchased some insurance (a put option) to help protect performance in the event of a market sell-off.
00:35: the kind of companies the investment trust backs. It invests across large, mid and small-cap companies, including AIM shares.
1:51: the income generated from the underlying investments has recovered from the Covid-19 pandemic.
3:10: looking back at performance in 2021, Gervais Williams notes: “We’ve had some very strong individual stocks, but actually the fund itself invests across about 140 individual holdings, so it is not really down to one or two holdings.”
4:44: Williams points out that “although the markets generally are moving on to new highs” he is finding plenty of opportunities. He says there are a number of overlooked shares, and names two examples.
5:39: the trust has some exposure to young companies that typically operate in immature industry sectors. Williams names two examples, one of which he describes as also being a “very overlooked stock”.
7:18: Williams explains why a couple of months ago he purchased some insurance (a put option) to help protect performance in the event of a market sell-off.
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