Fact sheet: Diverse Income IT

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
UK EQUITY INCOME
Sector
IT UK Equity Income
Fund type
Investment Trust
Primary aim
GROWTH & INCOME
Why Money Observer Rates Diverse Income IT

Rated Fund 2016-2017. Looking to smaller companies for growth potential

By investment trust standards, this trust is a new kid on the block, having only been set up in 2011. But what particularly appeals is that its managers, Gervais Williams and Martin Turner, have plenty of previous experience between them.

Although it can invest in UK companies of any size, it has a bias towards medium-sized and small companies. At the end of 2016, over a third of the portfolio was invested in companies listed on the Alternative Investment Market. Its dividends, paid quarterly, have grown by an annual average of nearly 7 per cent over the past five years.

When deciding which income stocks to buy, the managers try to find companies that they believe are best placed to increase their productivity. The type of company they particularly favour is one that's able to introduce product changes repeatedly in order to stay ahead of the competition.

The managers ask five questions before choosing which companies to invest in: what are the prospects for rising turnover, can corporate margins be maintained, is the management team good enough, how much financial headroom is there in the balance sheet and are there low expectations in the share price.

They favour smaller companies because they are often overlooked and under-researched, providing more opportunity to benefit from the potential for growth in these stocks. However, they will also invest in larger companies if they believe there is scope to achieve a good return.

3 Year Performance
Fund Performance39.1%
Average of Rated Funds Group34.2%
Sector Performance26.4%
Fund information
Fund name
The Diverse Income Trust PLC Ord 0.1P
Fund manager company
Miton Trust Managers Limited
Fund type
Investment Trust
Fund managers
  • Gervais Williamssince 27/04/2011
  • Martin Turnersince 27/04/2011
Accolades
Fund objective
The Company’s investment objective is to provide Shareholders with an attractive level of dividends in businesses with the prospect of dividend growth. This trend should also be reflected in some capital growth over the long term. It will invest primarily in quoted or traded UK companies with a wide range of market capitalisations and a long-term bias toward small and mid cap equities. It may also invest in large cap companies, including FTSE 100 constituents, where it is believed that this may increase shareholder value.
Benchmark
  • No Specified Index
Investment style
Growth
Investment method
Shares
Quick stats
1 Year return
15.5%
1 Year rank in sector
11/25
Sector
IT UK Equity Income
Yield
3%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
1.15%
Fund size
£389m
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
142
Mid price
101.5
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
104.12
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
-2.52
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
100
Top in this sector
Fund name1 Year
ChvSmCos DvTstplc34.4%
Shires Income plc33.1%
Std Life Eq In Tst27.8%
JPMorganClaverhITplc22.4%
F&C Cap & Inc IT PLC22%
...more in IT UK Equity Income

Performance snapshot

Holdings snapshot

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-1%1.7%4.8%15.5%39.1%91.3%
Sector1.2%1.4%3.2%13.9%26.4%60.6%
Rank within sector22 / 2514 / 2515 / 2511 / 255 / 254 / 25
Quartile4th3rd3rd2nd1st1st
Calendar performance
 YTD - 20182017201620152014
Fund-2.9%17%-0.1%20.1%4.3%
Sector-0.6%14%6.9%3.8%3%
Rank within sector24 / 259 / 2522 / 253 / 2514 / 25
Quartile4th2nd4th1st3rd
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
4.11
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
1.02
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.59
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
14.46
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
11.92
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.3
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.31
Price movement
52 week high104.5
52 week low90.75
Current bid price100.5
Current offer price102.5
Current mid price101.5
Region
1UK99%
2Money Market1%
Industry sector
No data available.
Asset type
1UK Equities99%
2Money Market1%
Individual holdings
1STOBART GROUP LTD2.3%
2CHARLES TAYLOR PLC2.1%
3IG DESIGN GROUP PLC2%
4SAFECHARGE INTL GROUP LTD1.6%
5PARK GROUP1.5%
6AMINO TECHNOLOGIES1.4%
7ROYAL DUTCH SHELL1.4%
8ZOTEFOAMS1.4%
9FTSE 100 PUT OPTIONS1.3%
Management
Fund manager group
PSigma Unit Trust Managers
Fund manager company
Miton Trust Managers Limited
Fund type
Investment Trust
Fund objective
The Company’s investment objective is to provide Shareholders with an attractive level of dividends in businesses with the prospect of dividend growth. This trend should also be reflected in some capital growth over the long term. It will invest primarily in quoted or traded UK companies with a wide range of market capitalisations and a long-term bias toward small and mid cap equities. It may also invest in large cap companies, including FTSE 100 constituents, where it is believed that this may increase shareholder value.
Benchmark
  • No Specified Index
Investment style
Growth
Investment method
Shares
Fund managers
NameSinceBiography
Gervais Williams27/04/2011Gervais Williams joined Miton Group plc in 2011. He manages a number of funds and trusts that aggregate to over £1bn. He is also Senior Executive Director at Miton Group plc. His fund management career extends over 30 years including 17 years at Gartmore Group Ltd, where he was head of UK Small Companies investing in UK smaller companies and Irish equities. Gervais is a member of the AIM Advisory Council, chairman of the Quoted Companies Alliance and a board member of The Investment Association. He is also on the EU Taskforce reviewing why the number of smaller IPOs has declined over recent decades. Gervais Williams published his first book 'Slow Finance' in the autumn of 2011, and his second book 'The Future is Small' was published in November 2014. His most recent book 'The Retreat of Globalisation' was published in December 2016. Gervais is Fund Manager of the CF Miton UK Multi Cap Income Fund, CF Miton UK Smaller Companies Fund, Miton Income Fund, Diverse Income Trust plc, The Investment Company plc and Miton UK MicroCap Trust plc. He was awarded Fund Manager of the Year 2014 by What Investment.
Martin Turner27/04/2011Martin Turner joined Miton Group plc in May 2011. Martin's career in the City began in 1995 where he qualified as a Chartered Accountant with Arthur Andersen. He moved to Rothschild and in time on to Head of Pan European Mid and Small Caps Sales at Merrill Lynch. Following this, Martin was Head of Sales at Teathers/Landsbanki before taking the Head of Small/Mid Cap Equities role covering research, sales and trading at Collins Stewart. Martin graduated from Warwick University with a degree in Accounting and Financial Analysis. Martin is Fund Manager of the CF Miton UK Multi Cap Income Fund, CF Miton UK Smaller Companies Fund, the Diverse Income Trust plc, The Investment Company plc and Miton UK MicroCap Trust plc
Compliance
AIC Member
Domicile
No data available.
Fund for sale in
United Kingdom
The Diverse Income Trust PLC NFV
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)1.15%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price104.12
CurrencyGBX
Price updated17/01/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi code0WPG
The Diverse Income Trust PLC NPV
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)1.15%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price104.12
CurrencyGBX
Price updated17/01/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi code0IMN
The Diverse Income Trust PLC Ord 0.1P
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price102.76
CurrencyGBX
Price updated17/01/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeNJPM
Data provided by

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