TIDMADIG

Aberdeen Diversified I&G Trust PLC

01 May 2019

London, UK, 1 May 2019

Edison issues initiation on Aberdeen Diversified Income and Growth Trust (ADIG)

Aberdeen Diversified Income and Growth Trust (ADIG) follows a diversified multi-asset approach, aiming to generate attractive long-term income and capital returns. The managers aim to hold a genuinely diversified, global, multi-asset portfolio of investments with differing return drivers and risk characteristics, that should produce uncorrelated returns. Performance has been mixed since the appointment of Aberdeen Standard Investments (ASI) as manager in February 2017, but positions in longer-term, less liquid investments, typically only accessible to large, sophisticated investors, are steadily being built up, and the experienced investment team is confident that the Libor +5.5% pa target return can be achieved over the investment cycle. The FY18 total dividend was 1.17x covered and the board intends to increase the FY19 dividend by 2.3% to 5.36p, representing a 4.7% yield.

While many of its peers are ungeared, ADIG has moderate structural gearing, with a GBP60m 6.25% bond due in 2031. Since October 2018, ADIG's shares have moved from a premium to a 1.6% discount to ex-fair NAV, which compares with a one-year average 1.5% premium and a three-year average 2.8% discount. The trust's 4.6% historic dividend yield is the second highest in the peer group, well above the 2.5% average yield, and the dividend rate was increased in the first quarter of FY19.

Click here to view the full report.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact Edison:

Gavin Wood, +44 (0)20 3681 2503

Sarah Godfrey, +44 (0)20 3681 2519

Investmenttrusts@edisongroup.com

Learn more at www.edisongroup.com and connect with Edison on:

   LinkedIn        https://www.linkedin.com/company/edison-investment-research 
   Twitter           www.twitter.com/Edison_Inv_Res 
   YouTube       www.youtube.com/edisonitv

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

NRAUGUGPAUPBGPG

(END) Dow Jones Newswires

May 01, 2019 08:23 ET (12:23 GMT)

Blackrock Income Strategies Trus (LSE:BIST)
Historical Stock Chart
From Dec 2024 to Jan 2025 Click Here for more Blackrock Income Strategies Trus Charts.
Blackrock Income Strategies Trus (LSE:BIST)
Historical Stock Chart
From Jan 2024 to Jan 2025 Click Here for more Blackrock Income Strategies Trus Charts.