Diverse Income Trust

UK Equity Income

Rated Fund 2016-19. Good for small company exposure

Diverse Income is a relatively new trust, but managers, Gervais Williams and Martin Turner, have plenty of experience. ­

The trust yields 3.8% and its quarterly dividends are well-supported, reflecting the fact that the trust has enough reserves to pay dividends for the coming year.

Although it can invest in UK companies of any size, it has a bias towards small and medium-sized companies. At the end of 2013 around a third of the portfolio was invested in Alternative Investment Market stocks.

Smaller firms are often overlooked and under-researched by investors, so the managers feel these offer more potential for growth than larger companies do.

­The managers do have 18.5% in large companies, but their caution about this area of the market is exemplified by a ‘put’ option on the FTSE 100 worth 1.6% of assets. ­ is insures against the index falling in value via an option to sell the index at a particular price, with a view to buying it back at a lower price. ­

The managers try to find companies they believe are best placed to increase their productivity. ­They particularly favour firms 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% (after the Brexit vote) to a premium of 4.2% over the past three years.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Diverse Income Trust
Manager
Miton Asset Management Limited
Type
Closed Ended Investment Company
ISIN
GB00B65TLW28
Sector
UK Equity Income
Launched
28/04/2011
OCF
1.13 %
Risk Rating
1
3 Year Sharpe
0.22
3 Year Alpha
-2.65
Yield
3.1 %
Fund Size
£ 349.63 million
NAV
94
Gearing
97
Discount Premium
-4
The company will invest primarily in quoted or traded UK companies with a wide range of market cap 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 3.00 %
Ukx 09/20/19 P6500 Index 2.59 %
Diversified Gas & Oil PLC 2.03 %
Charles Taylor PLC 1.67 %
Randall & Quilter Investment Holdings Ltd 1.56 %
Mucklow (A & J) Group PLC 1.51 %
IG Design Group PLC 1.46 %
Amigo Holdings PLC 1.41 %
SafeCharge International Group Ltd 1.41 %
Morses Club PLC 1.39 %
Region %
United Kingdom 87.61 %
Sector %
Financial Services 25.53 %
Basic materials 13.57 %
Consumer Cyclical 12.49 %
Industrials 12.26 %
Consumer Defensive 8.19 %
Technology 7.81 %
Energy 7.45 %
Name
Miton Asset Management 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.

Martin Turner
Joined 04/28/2011

Data provided by Morningstar.

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