Factsheet: Diverse Income Trust Ord

UK Equity Income

Rated Fund 2016-2018. Good for small company exposure

By investment trust standards, Diverse Income is a new kid on the block, having only been set up in 2011, but its managers, Gervais Williams and Martin Turner, have plenty of experience between them.The trust's dividends, paid quarterly, are well supported given that the trust has revenue reserves to meet payouts to shareholders for the next 1.2 years.Although it can invest in UK companies of any size, it has a bias towards medium-sized and small companies. At the end of 2017, more than a third of the portfolio was invested in Alternative Investment Market stocks.They have 17 per cent in large companies, but their caution on this area of the market is exemplified by a put option on the FTSE 100, worth 1.2 per cent of assets. This provides insurance against the index falling in value, via an option to sell the index at a particular price with a view to buying back at a lower price.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 is able to introduce product changes repeatedly to stay ahead of the competition. Shares in the trust have traded within a range of a discount of 9 per cent (after the EU referendum) to a premium of 3.6 per cent over the past three years.

Narrative and ratings content all as of 01 January 2018.

See all Money Observer rated funds
Name
Diverse Income Trust Ord
Manager
Miton Trust Managers Limited
Type
Closed Ended Investment Company
ISIN
GB00B65TLW28
Sector
UK Equity Income
Launched
28/04/2011
OCF
1.17 %
Risk Rating
1
3 Year Sharpe
0.89
3 Year Alpha
4.26
Yield
3.5 %
Benchmark
3.48415 %
Fund Size
£ 412.25 million
NAV
107
Gearing
100
Discount Premium
2
The company will invest primarily in quoted or traded UK companies with a wide range of market capitalizations but a long-term bias toward small and mid-cap equities. The company will also invest in large cap companies, including FTSE 100 constituents, where it is believed that this may increase shareholder value. The Company may utilise derivative instruments including index-linked notes, contracts for differences, covered options and other equity-related derivative instruments. The company may invest in unquoted companies however the aggregate investments in such companies will not exceed 5% of the value of the Funds investment portfolio as at the time of investment.
Holding %
Zotefoams PLC 2.15 %
Stobart Group Ltd 2.07 %
Charles Taylor PLC 2.04 %
SafeCharge International Group Ltd 1.76 %
Amino Technologies PLC 1.57 %
Mucklow (A & J) Group PLC 1.48 %
Randall & Quilter Investment Holdings Ltd 1.33 %
CML Microsystems PLC 1.31 %
K3 Capital Group PLC 1.31 %
Ukx 09/20/19 P6500 Index 1.25 %
Region %
United Kingdom 89.26 %
Sector %
Financial Services 22.15 %
Consumer Cyclical 14.99 %
Industrials 13.52 %
Basic materials 13.21 %
Technology 9.36 %
Energy 7.93 %
Consumer Defensive 7.31 %
Name
Miton Trust Managers Limited
Address
EC4M 8AB, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Gervais Williams
Joined 04/28/2011

Gervais joined the Company in 1993 and heads Gartmore's award-winning smaller companies team. He has over fifteen years experience in smaller company investment. Believing that strong management is one of the keys to smaller company share price performance, Gervais and the team attend around 700 company meetings each year. These meetings are the cornerstone to their rigorous stock selection process.Prior to 1993, Gervais spent three years at Thornton Investment Management where he was responsible for a new investment strategy for the smaller companies unit. Gervais previously spent five years at Throgmorton Asset Management as a director responsible for segregated smaller company portfolios. Gervais graduated from the University of Liverpool in 1980 with an Honours degree in Engineering.

Gervais Williams
Joined 04/28/2011

Gervais joined the Company in 1993 and heads Gartmore's award-winning smaller companies team. He has over fifteen years experience in smaller company investment. Believing that strong management is one of the keys to smaller company share price performance, Gervais and the team attend around 700 company meetings each year. These meetings are the cornerstone to their rigorous stock selection process.Prior to 1993, Gervais spent three years at Thornton Investment Management where he was responsible for a new investment strategy for the smaller companies unit. Gervais previously spent five years at Throgmorton Asset Management as a director responsible for segregated smaller company portfolios. Gervais graduated from the University of Liverpool in 1980 with an Honours degree in Engineering.

Data provided by Morningstar.

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