THE DIVERSE INCOME TRUST PLC
THE DIVERSE INCOME TRUST PLC
HALF-YEARLY FINANCIAL REPORT
The Directors present the Half-Yearly Financial Report of the Company for the
period to 30 November 2016.
RESULTS FOR THE HALF YEAR TO 30 NOVEMBER 2016
Increased dividend per share The first interim dividend for the year, payable
in February 2017, was increased from 0.65p to 0.70p per share. Subsequent to
the half-year end, a second interim dividend of 0.70p per share, payable in May
2017, has been declared, increasing from 0.65p per share last year.
Revenue reserves increased to £13.4m The revenue reserves of the Group
increased to £13.4m at the half-year end, exceeding the £10.7m annual cash cost
of the four dividends paid out to shareholders in 2016.
Total return to shareholders of +1.5% This includes the movement in net asset
value ("NAV") plus the third interim and final dividends for 2016, which went
ex-dividend during the period, and compares with an increase in the FTSE
All-Share Index of 7.7% in the six months to 30 November 2016. After dividend
payments, the NAV per share fell from 91.02p to 90.89p in the period.
Summary of Results
At 30 At 31 May
November 2016 Change
2016
NAV per ordinary share 90.89p 91.02p (0.14)%
Ordinary share price (mid) 92.00p 93.75p (1.87)%
Premium to NAV 1.22% 3.00%
Revenue return per ordinary 2.07p* 3.33p
share
Ongoing charges 1.18%** 1.18%
* For six months ended 30 November 2016. Note: comparative figure is for
the full year ended 31 May 2016.
** Estimated as at 30 November 2016. Ongoing charges are the Company's
annualised revenue and capitalised expenses (excluding finance costs and
certain non-recurring items) expressed as a percentage of the average monthly
net assets of the Company during the year.
CHAIRMAN'S STATEMENT
Half-Year to 30 November 2016
This Report covers the six-month period ended 30 November 2016 for The Diverse
Income Trust plc.
Half-year returns
Movements in the mainstream equity markets were dominated by the UK's decision
to withdraw from the European Union. The subsequent devaluation of sterling by
15% boosted the share prices of those companies with overseas earnings or that
pay dividends directly in a foreign currency. The FTSE All-Share Index rose
7.7% in the half year to 30 November 2016 and many of the resource stocks
recovered strongly in the period. By comparison, the FTSE SmallCap (excluding
Investment Companies) Index was up 3.6% and the FTSE AIM All-Share Index was up
10.8%. Smaller dividend stocks were out of the limelight in the period under
review, despite their ongoing potential to deliver dividend growth and as a
result, the Company's NAV fell slightly by 0.1% over the half year.
Dividends
The underlying revenues of the Company have grown progressively since launch
and this trend continued in the half year. As a result, we will pay a first
interim dividend of 0.70p on 28 February 2017 and have declared a second
interim dividend of 0.70p payable on 31 May 2017. This brings the total of the
last four dividends to 2.90p, which compares to annualised dividends of 2.02p
in the Company's first year (2011/12). The pattern of dividends is now in
keeping with the Board's previously stated intention to pay quarterly dividends
more equal in quantum through the year, as shown in the table below:
Year ending Year ended
31 May 2017 31 May 2016
pence pence
First interim dividend 0.70 0.65
Second interim dividend 0.70 0.65
Third interim dividend 0.75
Final dividend 0.75
Returns since issue
Although many mainstream market indices have performed well during the half
year, their performance since the Company was set up in April 2011 has been
much more measured. For example, the FTSE All-Share Index has only appreciated
by 17.0% in the five-and-a-half-year period. Many smaller quoted companies have
performed rather better, with the FTSE SmallCap (excluding Investment
Companies) Index rising 60.4% in the five-and-a-half-year period, although the
FTSE AIM All-Share Index is still down 11.1% over the same period. In
comparison, the NAV of the Company has increased by 81.8% in the period since
launch, with the Company being amongst the best performing of its peer group.
Borrowing
In September 2016, the Company entered into a £25m unsecured revolving loan
facility agreement with The Royal Bank of Scotland, replacing the previous
overdraft facility with The Bank of New York Mellon. The facility is available
for three years and provides the scope in certain circumstances to raise the
level of borrowing to £50m. Further details of the facility can be found in the
Manager's Report below. The facility was undrawn as at 30 November 2016.
The Board
As announced on 20 December 2016, Calum Thomson has joined the Board as a
non-executive Director and chairman of the Audit Committee. We welcome Calum to
the Board and believe that his extensive experience auditing investment trusts
will make him a good chairman of the Audit Committee.
Outlook
The principal focus of Diverse has always been to generate a meaningful and
growing dividend for shareholders through investing in both larger and smaller
quoted companies. Alongside this, the Company seeks to limit stock-specific
risk, through investing via a longer list of modestly-sized holdings across a
wide universe of stocks.
Whilst the long-term advantages of this strategy may have been overshadowed by
the abrupt market movements during the half year, it still remains promising
for the future. Strategies with a wider opportunity set have the potential to
access all of the businesses with the greatest vibrancy, irrespective of size.
It gives the portfolio more scope to navigate a period of elevated political
uncertainty and any further reversal of bond yields.
Michael Wrobel
Chairman
30 January 2017
MANAGER'S REPORT
Details of the Manager
The Company's Manager is Miton Trust Managers Limited, a wholly-owned
subsidiary of Miton Group plc.
Miton Group plc is a quoted company listed on AIM and is characterised by its
independent thinking. This is important at all times, but it may be
particularly important currently given the fact that the underlying market
trends may change with our new economic policies after the UK's decision to
withdraw from the EU.
Miton has a team of four fund managers researching UK-quoted stocks. The
day-to-day management of the Company's portfolio is carried out by Gervais
Williams and Martin Turner, who have a particular focus on researching many of
the smaller quoted stocks.
Gervais Williams
Gervais joined Miton in March 2011 and is Senior Executive Director of the
group. He has been an equity portfolio manager since 1985, including 17 years
as Head of UK Smaller Companies and Irish Equities at Gartmore.
He won the Grant Thornton Investor of the Year Award in 2009 and 2010, and was
awarded Fund Manager of the Year 2014 by What Investment?
Martin Turner
Martin joined Miton in May 2011. Martin and Gervais have had a close working
relationship since 2004, and their complementary expertise and skills led to
their backing a series of successful companies.
Martin qualified as a Chartered Accountant with Arthur Andersen and also has
extensive experience at Rothschild, Merrill Lynch and Collins Stewart, where as
Head of Small/Mid Cap Equities, his role covered their research, sales and
trading activities.
The overall objective of the Company
Over recent decades, equity markets have suffered occasional setbacks, but
typically these have been followed by stronger recoveries shortly thereafter.
Whilst there is always risk, it is easy to overlook longer-term downsides at a
time when equity markets are generally appreciating well. During these decades,
the main metric of success has been almost solely the relative return of the
fund compared with a mainstream index, with little consideration of the scale
of the downside risks along the way.
Uniform fund benchmarks tend to lead to uniformity in portfolio holdings too,
since these are often selected with reference to index weightings. In equity
income funds, the natural limits to the income stock universe have led these
funds to invest in a particularly narrow range of holdings, often forcing funds
to have 5% to 10% of their portfolios in their largest holdings. In addition,
many of these holdings are often duplicated in other competitor funds as well.
Whilst markets have appreciated well, the advantages of these strategies are
obvious. However, there are serious downsides with monocultures. At a time when
the political and economic trends are changing, we believe that market
participants should become more wary about sizeable stock specific risk.
Diverse was set up with this background in mind. Overall, it has the aim to
invest in a more wide-ranging portfolio offering an attractive dividend yield
and the prospect of dividend growth in the future. Rather than measuring the
success of Diverse with regard to the return of an equity index, our aim is to
generate a premium return through investing in a portfolio of holdings that has
a greater focus on the sustainability and organic growth of the underlying
income over time.
Implementing the investment strategy
There is good academic evidence that over time the ultimate return on an
individual stock is principally determined by the initial yield at the time of
investment and the changes to that dividend thereafter. Specifically, if the
company pays growing dividends, then over time this is normally reflected in a
sustained rise in its share price. In contrast, those that suffer dividend cuts
are often subject to share price setbacks.
Generally, we believe it is those companies with the best ongoing productivity
improvements that have the best chances to sustain and improve corporate cash
flow going forward. After all, companies with strong cash flow are not just in
a position to fund the current dividend, but equally importantly are also in a
good position to grow the dividend going forward.
The portfolio holdings are therefore selected for the prospect of cash paybacks
on capital expenditure and, by implication, their dividend growth. We find the
following five factors helpful to identify those with the most attractive risk/
reward ratios and the potential for generating a sustained and growing stream
of dividends:
- Turnover growth - Although some companies can succeed in growing their profits
without much turnover growth, in general, durable dividend growth over time
comes from those that progressively expand their turnover.
Companies investing for productivity improvement can often increase sales via
an innovative new service or through introducing a better product. Indeed, even
in times of economic stagnation, this type of improvement can sometimes keep
turnover improvement coming through when others are struggling.
- Sustained margins - A company that generates ongoing turnover growth may find
it does not grow its cash flow much if its profit margins fall back at the same
time. The best kinds of productivity improvement should reduce the cost of
goods, whilst also justifying some improvement to the market price.
Ideally, we are looking for companies that have the potential to sustain or
improve their profit margins through outstanding customer service. This may be
especially important should the competitive environment become more severe.
- Management of risk - All investment carries risks, but often those moving the
fastest are obliged to take the greatest risks. In general, we aim to moderate
portfolio risk by investing in companies where the management team limit their
risks, even though this may hold back growth to a steadier pace. Such companies
still carry plenty of potential to deliver an attractive return for their
shareholders over time.
- Better balance sheets - Many corporates have taken on extra debt over the past
decade given the exceptionally low interest rates. However, we prefer
investments with net cash balances or those with modest debt relative to the
headroom on the facility.
In a world that is uncertain, companies with stronger balance sheets are better
positioned to continue to pay good dividends even if their underlying
profitability dips temporarily. Over time, those with under-geared balance
sheets can take more advantage of any economic setbacks to disproportionately
improve their market position, whereas those more fully drawn on their
facilities tend to have fewer options.
- Low entry valuations - The upside potential on an investment is often greater
when the valuation on entry is modest. In general, we favour stocks where the
overall market capitalisation reflects some issues in the past since sometimes
there is plenty of upside should things improve as they are not reflecting the
potential for the future.
With few institutional investors actively researching the full range of big and
small quoted companies, we believe there are still plenty of stocks with low
entry valuations, even after the recent mainstream index appreciation.
Progress over the period
Generally, world growth expectations continued to decline and equity markets
have remained volatile during the period under review. The market returns
during the half year under review were predominately driven by the UK's
decision in June 2016 to leave the European Union. The devaluation of sterling
boosted the share prices of many multi-national companies during the half-year
period. For example, five of the top ten companies in the FTSE 100 Index pay
their dividends in overseas currencies and the devaluation of sterling enhanced
their apparent rate of dividend growth. Alongside this, most commodity stocks
were amongst the best performers over the half year, as oil and commodity
prices staged a strong recovery. In general, both of these factors were
dominant in many of the largest weightings in the FTSE 100 Index, greatly
boosting the index returns over the half year.
A similar trend was evident amongst some of the AIM All-Share Index
constituents too. For example, the major recovery of the ASOS share price,
along with its large weighting, added more than 2% to the return of the FTSE
AIM All-Share Index. In addition, GW Pharmaceuticals added almost 2% on a US
listing and the strong performances of Fevertree and Boohoo.com also added
another 2.4% of Index return between them.
The Company minimises stock specific risk through limiting portfolio holdings
to around 1% each. Even the stocks where the Manager has the highest conviction
rarely exceed 1.5% at the time of purchase. Only two holdings in the Company
were 2% or more of the portfolio at the end of November, with all the other
holdings progressively smaller. Stock specific risk remains limited, with 149
stocks across a wide range of industry sectors.
The principal reason for the wide differential in the performance of the
Company and the mainstream indices is down to the diversification of the
portfolio. Although the Company had holdings in many of the largest and best
performing FTSE 100 stocks over the six-month period, the weightings in the
Company's portfolio were just a tiny fraction of their combined weightings in
the FTSE 100 Index and that of the mainstream indices.
Several other holdings that have been a significant part of the portfolio for
some years did continue to perform strongly in the period. For example, IG
Design rose 66% and Burford Capital appreciated 45% in the period. In contrast,
the share price of Fairpoint disappointed after the government decided that the
small claims courts should adjudicate on a wider range of cases. In addition,
the FTSE 100 Put option detracted from returns in the period as its value fell
in line with strong rise in the FTSE 100 Index.
Current market trends and outlook
Although many of the mainstream stocks recovered well during the latter part of
the half year, there are still many small and micro cap stocks whose share
prices have not much improved from the price setbacks they suffered after the
Brexit vote.
The globalisation of trade, along with the adoption of debt, may have enhanced
the long period of world growth in the past. Although there was some recovery
after 2008, the momentum in world growth has moderated over recent years in
spite of interest rates being sustained at remarkably low levels. Perhaps more
worryingly, productivity improvement, which is the long-term driver of wealth
generation, has marginally declined in the four years to the end of 2015. The
figures are not yet known for 2016.
Over much of the last five years, the principal driver of equity return has
therefore been rising equity valuations based upon bond yields moving to
ultra-low levels. We believe the nature of the companies in the portfolio is
very different. Generally, they have been selected on the basis that they are
well placed to generate attractive returns on their investment over recent
years. As this comes through in a rising stream of cash payback, we are hopeful
that this will continue to drive ongoing dividend growth, in spite of the
potential for changes in the political and economic trends.
Diverse's strategy for managing the portfolio through any potential market
setbacks
Over the period under review, equity markets have been quite volatile, mainly
on the upside for now, but in future there is always the outside risk that
markets could surprise on the downside with a significant setback. As an
investment trust, Diverse has two strategies that can help the Company to
generate a better return for shareholders through any potential period of
volatility.
A FTSE 100 Put option
The first is via the purchase of a Put option. This means the Company can sell
the FTSE 100 Index at a certain level (6,000 in our case) after the stock
market has sold off. An option like this is not dissimilar to purchasing car or
house insurance, in that it adds a degree of insurance to the Company's
portfolio so that the Company itself could benefit from an additional capital
sum, with its size determined by the scale of the FTSE 100 setback.
However, options like this come with a cost - a bit like an insurance premium.
Specifically, the time value of the Put option will gradually decay over the
insured period (to March 2018 in our case), irrespective of whether the markets
suffer any fluctuations or not. The initial cash cost of any Put option is
therefore very important, since its resale value generally falls over time
(assuming markets are relatively flat) and ultimately becomes worthless if the
FTSE 100 Index does not fall significantly below 6,000.
With this in mind, the Company has been careful to find ways in which it could
keep the initial cost of the Put option at the lowest possible level. It has
done this in two ways:
* The purchase of Put options is timed to coincide with moments when the FTSE
100 Index is already close to a high and investors are generally optimistic
about the future. For example, the term of the Put option was extended in
late September 2016 when markets had staged a strong recovery on sterling's
devaluation after the Brexit vote. The term of the option was extended from
June 2017 to March 2018.
* To date, the overall scale of the Put option has been limited to just
one-third of the size of the Company in order to keep the time decay costs
to modest levels. The cost of this option has amounted to less than 0.1% of
the NAV per month on average, were the option to expire worthless at the
end of its term in March 2018.
The key advantage for shareholders is that, should the FTSE 100 Index suffer a
significant setback, then the resale value of the Put option would be expected
to rise proportionately. The full level of that appreciation would be related
to the duration of the remaining term of the option as well as the scale of the
market setback. If the Put option were to be sold after a market setback, the
cash proceeds could then be used to purchase additional equities for the
portfolio at a time when share prices were depressed. The increased holdings in
the portfolio would have greater recovery potential thereafter. Alongside this,
the Company would benefit from extra income from the new holdings added during
this period.
In summary, Diverse has greater scope to take advantage of any major market
setback through participating in FTSE 100 Put options, albeit that the strategy
does have a modest adverse cost if markets do not drop back significantly in
the period through to March 2018.
The debt facility
The Company has put in place a committed debt facility of £25m, with scope in
certain circumstances to raise this to £50m, up to a maximum of 15% of NAV. The
Company pays commitment fees to have the facility which gives the Company
access, at a modest cost, to significant borrowings, which we can deploy when
we judge the time to be right. However, normally the Company does not utilise
the facility. This is because the key risk with debt is that, if there was a
severe market sell-off, then the covenants on the debt facility could force the
Company to repay some, or potentially all, of the outstanding debt after the
market had dropped. This has the disadvantage of obliging the Company to
liquidate some of its portfolio holdings just at a time when share prices would
be depressed. In short, a geared fund can end up at a disadvantage during a
setback, whereas an ungeared portfolio can at least continue to hold its
portfolio throughout the period of volatility and thereby fully participate in
any subsequent market recovery.
Importantly, we believe the Company has plenty of scope to generate an
attractive long-term return without relying on debt so the fund has a geared
return over the longer term. Therefore, the plan is to ensure the Company is
not significantly borrowed at a time when markets are at risk of a setback.
The great advantage of this strategy is that the under-utilised debt facility
should normally be available to buy additional stocks after the market setback
at hopefully unusually attractive entry prices. Following the market bottom,
the portfolio would then have extra recovery potential - funded by the debt
facility. If the market were to go on and recover, then shareholders would
benefit from the appreciation of the extra shares purchased during the market
setback, as well as the associated extra dividend income (offset in part by the
interest costs on the debt).
Conclusions
Both the FTSE 100 Put option and the debt facility aim to help the Company to
have additional strategies to buy extra shares close to a market bottom, so
that the Company's returns would be enhanced were the markets to recover after
a period of severe volatility.
Gervais Williams and Martin Turner
Miton Asset Management Limited
30 January 2017
PORTFOLIO INFORMATION
as at 30 November 2016
Valuation % of net Yield1
Rank Company Sector & main activity £'000 assets %
1 Charles Taylor Industrials 7,547 2.2 4.0
2 Stobart Industrials 6,814 2.0 7.5
3 Burford Capital2 Financials 6,763 1.9 1.3
4 IG Design2 Consumer Goods 6,489 1.9 1.2
5 4Imprint Consumer Services 6,454 1.8 1.9
6 Amino Technologies2 Technology 5,535 1.6 3.3
7 Safestyle UK2 Consumer Services 5,505 1.6 6.5
8 Lok'n Store2 Financials 5,389 1.5 2.2
9 Mucklow (A&J) Financials 4,794 1.4 4.6
10 Shoe Zone2 Consumer Services 4,674 1.3 5.4
Top 10 investments 59,964 17.2
11 Novae Financials 4,501 1.3 3.3
12 Phoenix Financials 4,402 1.3 7.5
13 Conviviality2 Consumer Services 4,285 1.2 4.6
14 RPC Industrials 4,265 1.2 1.8
15 Aviva Financials 4,175 1.2 4.8
16 Royal Dutch Shell 'B' Oil & Gas 4,096 1.2 7.1
17 Park2 Financials 4,085 1.2 4.5
18 Macfarlane Industrials 4,044 1.2 3.2
19 Kier Industrials 4,010 1.1 4.6
20 BP Oil & Gas 4,004 1.1 6.9
Top 20 investments 101,831 29.2
21 Randall & Quilter2 Financials 3,984 1.1 6.6
22 Beazley Financials 3,911 1.1 2.7
23 Hostelworld Consumer Services 3,891 1.1 5.0
24 SQS Software Quality Systems2 Technology 3,879 1.1 1.8
25 Legal & General Financials 3,801 1.1 5.9
26 Direct Line Insurance Financials 3,778 1.1 6.9
27 Morses Club2 Financials 3,768 1.1 1.7
28 Safecharge International2 Industrials 3,766 1.1 4.8
29 Lloyds Banking Financials 3,753 1.1 4.4
30 Dairy Crest Consumer Goods 3,582 1.0 3.9
Top 30 investments 139,944 40.1
31 Provident Financial Financials 3,567 1.0 4.3
32 Zotefoams Basic Materials 3,550 1.0 2.3
33 Costain Industrials 3,490 1.0 3.3
34 Hiscox Financials 3,486 1.0 2.3
35 Royal Mail Industrials 3,394 1.0 4.8
36 Imperial Brands Consumer Goods 3,374 1.0 4.5
37 Bloomsbury Publishing Consumer Services 3,331 1.0 4.0
38 Bioventix2 Health Care 3,321 1.0 4.7
39 CML Microsystems Technology 3,302 0.9 1.9
40 Treatt Basic Materials 3,223 0.9 1.7
Top 40 investments 173,982 49.9
Balance held in 93 equity investments 151,704 43.5
Total equity investments 325,686 93.4
Sirius Minerals Finance 8.5% 28/11/2023 Notes 2,395 0.7
600 Group 8% Convertible Loan Notes 14/02/2020 2,356 0.7
St. Modwen Properties 6.25% 07/11/2019 Bonds 847 0.3
Aggregated Micro Power 8% 31/03/2021 Notes 465 0.1
Fixed interest and convertible investments 6,063 1.8
Total investments 331,749 95.2
Listed Put option
FTSE 100 - March 2018 6,000 Put 6,679 1.9
Total investment portfolio 338,428 97.1
Other net assets 10,126 2.9
Net assets 348,554 100.0
¹ Source: Interactive Data. Based on historical yields and therefore not
representative of future yield. Includes special dividends where known.
² AIM/ISDX listed.
PORTFOLIO INFORMATION
as at 30 November 2016
Invested portfolio capital by sector
Financials 27.6%
Industrials 19.2%
Consumer Services 19.0%
Consumer Goods 8.6%
Technology 6.4%
Basic Materials 6.1%
Telecommunications 3.5%
Oil & Gas 2.9%
Other 2.6%
Cash and Fixed Interest 1.8%
Health Care 1.5%
Utilities 0.8%
100.0%
Invested portfolio capital by Index or Exchange
FTSE 100 Index 13.9%
FTSE 250 Index 14.4%
FTSE SmallCap Index 18.4%
FTSE Fledgling Index 4.6%
AIM/ISDX Exchanges 38.0%
International Equities 0.9%
Other 8.0%
Cash and Fixed Interest 1.8%
100.0%
Portfolio investment income received in the
period by Index or Exchange
FTSE 100 Index 16.2%
FTSE 250 Index 15.1%
FTSE SmallCap Index 15.5%
FTSE Fledgling Index 3.5%
AIM/ISDX Exchanges 42.2%
Other 5.6%
Cash and Fixed Interest 1.9%
100.0%
Estimated annual income by sector¹
Financials 35.3%
Industrials 19.7%
Consumer Services 18.6%
Consumer Goods 4.5%
Basic Materials 4.5%
Telecommunications 4.4%
Oil & Gas 3.8%
Technology 3.4%
Cash and Fixed Interest 3.3%
Other 1.0%
Health Care 0.9%
Utilities 0.6%
100.0%
¹ Projected income based on portfolio as at 30 November 2016.
Source: Interactive Data.
INTERIM MANAGEMENT REPORT AND DIRECTORS' RESPONSIBILITY STATEMENT
Interim Management Report
The important events that have occurred during the period under review, the key
factors influencing the financial statements and the principal risks and
uncertainties for the remaining six months of the financial year are set out in
the Chairman's Statement and the Manager's Report above.
The principal risks facing the Group are substantially unchanged since the date
of the Annual Report and Accounts for the year ended 31 May 2016 and continue
to be as set out in that report on pages 20 to 22.
Risks faced by the Group include, but are not limited to, investment and
strategy, smaller companies, sectoral diversification, dividends, share price
volatility and liquidity/marketability risk, gearing, key man risk, market risk
and credit and counterparty risk.
Responsibility Statement
The Directors confirm that to the best of their knowledge:
* the condensed set of financial statements has been prepared in accordance
with International Accounting Standard ("IAS") 34, Interim Financial
Reporting, as adopted by the European Union; and gives a true and fair view
of the assets, liabilities and financial position of the Group; and
* this Half-Yearly Financial Report includes a fair review of the information
required by:
a. DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six
months of the financial year and their impact on the condensed set of
financial statements; and a description of the principal risks and
uncertainties for the remaining six months of the year; and
b. DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related
party transactions that have taken place in the first six months of the
current financial year and that have materially affected the financial
position or performance of the Group during that period; and any changes in
the related party transactions that could do so.
This Half-Yearly Financial Report was approved by the Board of Directors on 30
January 2017 and the above responsibility statement was signed on its behalf by
Michael Wrobel, Chairman.
CONDENSED CONSOLIDATED INCOME STATEMENT
for the period to 30 November 2016
Period to Period to Year ended
30 November 2016 30 November 2015 31 May 2016*
Revenue Capital Revenue Capital Revenue Capital
return return Total return return Total return return Total
Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains on investments held
at fair value through
profit or loss
- 4,213 4,213 - 21,821 21,821 - 16,876 16,876
(Losses)/gains on
derivative contracts
- (5,602) (5,602) - 955 955 - (1,087) (1,087)
Foreign exchange (losses)/
gains - (12) (12) - (4) (4) - 5 5
Income 2 8,788 - 8,788 6,549 - 6,549 14,368 - 14,368
Management fee (415) (1,244) (1,659) (424) (1,273) (1,697) (851) (2,554) (3,405)
Other expenses (396) - (396) (330) - (330) 667 - 667
Return on ordinary
activities before finance
costs and taxation
7,977 (2,645) 5,332 5,795 21,499 27,294 12,850 13,240 26,090
Finance costs (6) (20) (26) (3) (8) (11) (13) (39) (52)
Return on ordinary
activities before taxation
7,971 (2,665) 5,306 5,792 21,491 27,283 12,837 13,201 26,038
Taxation - irrecoverable
withholding tax
(45) - (45) (37) - (37) (48) - (48)
Return on ordinary
activities after taxation
7,926 (2,665) 5,261 5,755 21,491 27,246 12,789 13,201 25,990
pence pence pence pence pence pence pence pence pence
Basic and diluted return:
Per ordinary share
3 2.07 (0.69) 1.38 1.50 5.60 7.10 3.33 3.44 6.77
* Audited.
The total column of this statement is the Income Statement of the Group
prepared in accordance with International Financial Reporting Standards
("IFRS"), as adopted by the European Union. The supplementary revenue and
capital columns are presented in accordance with the Statement of Recommended
Practice issued by the Association of Investment Companies ("AIC SORP").
All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued during the year.
There is no other comprehensive income and therefore the return on ordinary
activities after tax is also the total comprehensive income.
The accompanying notes are an integral part of these financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share
Share premium Special Capital Revenue
capital account reserve reserve reserve Total
Note £'000 £'000 £'000 £'000 £'000 £'000
As at 1 June 2016* 434 192,244 45,775 99,342 11,250 349,045
Total comprehensive income:
Net return for the period - - - (2,665) 7,926 5,261
Transactions with shareholders
recorded directly to equity:
Equity dividends paid 4 - - - - (5,752) (5,752)
As at 30 November 2016 434 192,244 45,775 96,677 13,424 348,554
As at 1 June 2015* 387 192,244 48,558 86,141 9,199 336,529
Total comprehensive income:
Net return for the period - - - 21,491 5,755 27,246
Transactions with shareholders
recorded directly to equity:
Cancellation of ordinary shares 5 (3) - (2,783) - - (2,786)
Equity dividends paid 4 - - - - (5,752) (5,752)
As at 30 November 2015 384 192,244 45,775 107,632 9,202 355,237
As at 1 June 2015* 387 192,244 48,558 86,141 9,199 336,529
Total comprehensive income:
Net return for the year - - - 13,201 12,789 25,990
Transactions with shareholders
recorded directly to equity:
Management shares 50 - - - - 50
Cancellation of ordinary shares 5 (3) - (2,783) - - (2,786)
Equity dividends paid 4 - - - - (10,738) (10,738)
As at 31 May 2016* 434 192,244 45,775 99,342 11,250 349,045
* Audited.
The accompanying notes are an integral part of these financial statements.
CONDENSED CONSOLIDATED BALANCE SHEET
30 November 30 November 31 May
2016 2015 2016*
Note £'000 £'000 £'000
Non-current assets:
Investments held at fair value
through profit or loss 331,749 347,686 339,313
Current assets:
Derivative instruments 6,679 7,026 8,026
Trade and other receivables 1,292 5,564 2,064
Cash at bank and cash 9,280 75 2,983
equivalents
17,251 12,665 13,073
Current liabilities:
Bank overdraft** - (1,120) -
Trade and other payables (446) (3,994) (3,341)
(446) (5,114) (3,341)
Net current assets 16,805 7,551 9,732
Total net assets 348,554 355,237 349,045
Capital and reserves:
Share capital - ordinary 5 384 384 384
shares
Share capital - management 5 50 - 50
shares
Share premium account 192,244 192,244 192,244
Special reserve 45,775 45,775 45,775
Capital reserve 96,677 107,632 99,342
Revenue reserve 13,424 9,202 11,250
Shareholders' funds 348,554 355,237 349,045
pence pence pence
Net asset value per ordinary 6 90.89 92.63 91.02
share
* Audited.
** Normally, the Company does not have an overdraft, but on occasions when the
timing of the settlement of purchase and sales is mismatched, there is need to
use the bank overdraft in modest scale for a short period.
The accompanying notes are an integral part of these financial statements.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Period to Period to Year ended
30 November 30 November 31 May
2016 2015 2016*
£'000 £'000 £'000
Operating activities:
Net return before taxation 5,306 27,283 26,038
Decrease/(increase) in investments and 1,389 (22,776) 15,789
derivatives
Purchase of investments (21,867) (38,229) (62,216)
Sale of investments 33,644 35,614 66,022
Purchase of derivative instruments (7,445) (5,747) (17,243)
Sale of derivative instruments 3,190 4,776 10,237
Exchange losses on capital items - - (5)
Decrease/(increase) in trade and other 772 (3,499) 1
receivables
(Decrease)/increase in trade and other (2,895) 3,037 2,384
payables
Withholding tax paid (45) (37) (48)
Net cash inflow from operating activities 12,049 422 9,381
Financing:
Management shares - - 50
Cancellation of shares - (2,786) (2,786)
Equity dividends paid (5,752) (5,752) (10,738)
Net cash (outflow)/inflow from financing (5,752) (8,538) 13,474
Increase/(decrease) in cash and cash 6,297 (8,116) 4,093
equivalents
Reconciliation of net cash flow movements
in funds:
Cash and cash equivalents at the start of 2,983 7,071 7,071
the period
Exchange movements - - 5
Net cash inflow/(outflow) from cash and 6,297 (8,116) (4,093)
cash equivalents
Cash/(net debt) at the end of the period 9,280 (1,045) 2,983
* Audited.
The accompanying notes are an integral part of these financial statements.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1 General Information
The consolidated financial statements, which comprise the unaudited results of
the Company and its wholly-owned subsidiary, DIT Income Services Limited
(together referred to as the "Group") for the period ended 30 November 2016,
have been prepared in accordance with IFRS, as adopted by the European Union,
and with the AIC SORP, where the AIC SORP is consistent with the requirements
of IFRS. The comparatives cover the period from 1 June 2015 to 30 November 2015
and for the year from 1 June 2015 to 31 May 2016.
The financial statements have been prepared on the basis of the accounting
policies set out in the Annual Report and Accounts for the year ended 31 May
2016.
The financial information contained in this Report does not constitute full
statutory accounts as defined in the Companies Act 2006. The financial
statements for the periods to 30 November 2016 and 30 November 2015 have not
been either audited or reviewed by the Company's Auditor. The information for
the year ended 31 May 2016 has been extracted from the latest published Annual
Report and Accounts, which have been filed with the Registrar of Companies. The
Report of the Auditor on those financial statements contained no qualification
or statement under Section 498(2) or (3) of the Companies Act 2006.
The Directors consider that it is appropriate to adopt the going concern basis
in preparing the financial statements. Cash flow projections have been reviewed
and show that the Group has sufficient funds to meet both its contracted
expenditure and its discretionary cash outflows in the form of the dividend
policy. After making enquiries, and bearing in mind the nature of the Group's
business and assets, the Directors consider that the Group has adequate
resources to continue in operational existence for the foreseeable future,
being a period of at least 12 months from the date that these financial
statements were approved. In arriving at this conclusion, the Directors have
considered the liquidity of the portfolio and the Group's ability to meet
obligations as they fall due.
2 Income
Year
Period to Period to ended
30 November 30 November 31 May
2016 2015 2016
£'000 £'000 £'000
Income from investments:
UK dividends 5,750 4,938 10,816
UK REIT dividend income 144 74 256
Unfranked dividend income 2,595 1,330 2,746
UK fixed interest 167 112 274
8,656 6,454 14,092
Other income:
Underwriting income 60 25 43
Exchange gains/(losses) 13 (3) (5)
Net dealing profit of subsidiary 59 73 238
Total income 8,788 6,549 14,368
3 Return per Share
Returns per share are based on the weighted average number of shares in issue
during the period. Normal and diluted return per share are the same as there
are no dilutive elements on share capital.
Ordinary Shares:
Period to Period to Year ended
30 November 2016 30 November 2015 31 May 2016
Net Per Net Per Net Per
return share return share return share
£'000 pence £'000 pence £'000 pence
Revenue return 7,926 2.07 5,755 1.50 12,789 3.33
Capital return (2,665) (0.69) 21,491 5.60 13,201 3.44
Total return 5,261 1.38 27,246 7.10 25,990 6.77
Weighted average
number of ordinary
shares 383,487,239 383,679,588 383,583,414
4 Dividends per Ordinary Share
Amounts recognised as distributions to equity holders in the period.
Period to Period to Year ended
30 November 2016 30 November 2015 31 May 2016
£'000 pence £'000 pence £'000 pence
In respect of the
previous period:
Third interim dividend 2,876 0.75 - - - -
Fourth interim dividend - - 3,835 1.00 3,835 1.00
Final dividend 2,876 0.75 1,917 0.50 1,917 0.50
In respect of the period
under review:
First interim dividend - - - - 2,493 0.65
Second interim dividend - - - - 2,493 0.65
5,752 1.50 5,752 1.50 10,738 2.80
The Board has declared a first interim dividend of 0.70p per ordinary share,
payable on 28 February 2017 to shareholders registered at the close of business
on 30 December 2016. The ex-dividend date was 29 December 2016. The Board has
also declared a second interim dividend of 0.70p per ordinary share, payable on
31 May 2017 to shareholders registered at the close of business on 31 March
2017. The ex-dividend date will be 30 March 2017. In accordance with IFRS,
these dividends have not been included as a liability in these financial
statements.
5 Called-up Share Capital
The Company, which is a closed-ended investment company with an unlimited life,
has a redemption facility through which shareholders are entitled to request
the redemption of all or part of their holding of ordinary shares annually on
31 May in each year. The Board may, at its absolute discretion, elect not to
operate the annual redemption facility in whole or in part. In respect of the
31 May 2016 Redemption Point, the Company received requests for 265,744
ordinary shares. All of these shares were matched with buyers and sold at a
calculated Redemption Price of 90.97p per share.
The issued share capital consisted of 383,487,239 ordinary shares and 50,000
management shares as at 30 November 2016.
6 Net Asset Value
Ordinary Shares
The NAV per ordinary share and the net assets attributable at the period end
were as follows:
30 November 2016 30 November 2015 31 May 2016
NAV Net assets NAV Net assets NAV Net assets
per share attributable per share attributable per share attributable
pence £'000 pence £'000 pence £'000
Ordinary shares:
Basic and diluted 90.89 348,554 92.63 355,237 91.02 349,045
NAV per ordinary share is based on net assets at the period end and 383,487,239
ordinary shares, being the number of ordinary shares in issue at the period end
(30 November 2015: 383,487,239 and 31 May 2016: 383,487,239 ordinary shares).
Management Shares
The NAV of £1 (30 November 2015: £1 and 31 May 2016: £1) per management share
is based on net assets at the period end of £50,000 (30 November 2015: £50,000
and 31 May 2016: £50,000) and 50,000 (30 November 2015: 50,000 and 31 May 2016:
50,000) management shares. The shareholders have no right to any surplus or
capital or assets of the Company.
7 Transaction Costs
During the period, expenses were incurred in acquiring or disposing of
investments classified as fair value through profit or loss. These have been
expensed through capital and are included within gains on investments in the
Income Statement. The total costs were as follows:
Period to Period to Year ended
30 November 2016 30 November 2015 31 May 2016
£'000 £'000 £'000
Costs on acquisitions 74 139 235
Costs on disposals 45 50 95
119 189 330
These transaction costs are dealing commissions paid to stockbrokers and stamp
duty, a government tax paid on transactions (which is zero when dealing on the
AIM/ISDX exchanges). A breakdown of these costs is set out below:
Year
Period to Period to ended
30 November % of average 30 November % of average 31 May % of average
2016 monthly net 2015 monthly net 2016 monthly net
£'000 assets £'000 assets £'000 assets
Costs paid in dealing
commissions 72 0.02 91 0.03 164 0.05
Costs of stamp duty 47 0.01 98 0.03 166 0.05
119 0.03 189 0.06 330 0.10
The average monthly net assets for the six months to 30 November 2016 was £
342,936,000 (30 November 2015: £343,615,000 and 31 May 2016: £345,686,000).
8 Management Fee
The management fee is calculated at the rate of one-twelfth of 1.0% per
calendar month on the average market capitalisation of the Company's shares up
to £300m and one-twelfth of 0.8% per calendar month on the average market
capitalisation above £300m, payable monthly in arrears. In addition to the
basic management fee, and for so long as a Redemption Pool is in existence, the
Manager is entitled to receive from the Company a fee calculated at the rate of
one-twelfth of 1.0% per calendar month of the NAV of the Redemption Pool on the
last business day of the relevant calendar month.
At 30 November 2016, an amount of £278,000 was outstanding and due to Miton
Trust Managers Limited in respect of management fees (30 November 2015: £
293,000 and 31 May 2016: £283,000).
9 Fair Value Hierarchy
The Group is required to classify fair value measurements using a fair value
hierarchy that reflects the subjectivity of the inputs used. The fair value
hierarchy has the following levels:
Level 1 - Valued using quoted prices, unadjusted in active markets.
Level 2 - Valued by reference to valuation techniques using observable inputs
for the asset or liability, other than quoted prices included in Level 1.
Level 3 - Valued by reference to valuation techniques using inputs that are not
based on observable market data for the asset or liability.
The valuation techniques used by the Group are explained in the Annual Report.
The tables below set out the fair value measurements of financial assets in
accordance with the fair value hierarchy into which the fair value measurements
are categorised.
Financial assets at fair value Level 1 Level 2 Level 3 Total
through profit or loss at 30 November £'000 £'000 £'000 £'000
2016
Equity investments 323,489 2,197 - 325,686
Derivative contracts 6,679 - - 6,679
Fixed interest bearing securities 3,242 - 2,821 6,063
333,410 2,197 2,821 338,428
Financial assets at fair value Level 1 Level 2 Level 3 Total
through profit or loss at 30 November £'000 £'000 £'000 £'000
2015
Equity investments 341,443 - - 341,443
Derivative contracts 7,026 - - 7,026
Fixed interest bearing securities 1,597 - 4,646 6,243
350,066 - 4,646 354,712
Financial assets at fair value Level 1 Level 2 Level 3 Total
through profit or loss at 31 May 2016 £'000 £'000 £'000 £'000
Equity investments 330,342 2,962 - 333,304
Derivative contracts 8,026 - - 8,026
Fixed interest bearing securities 846 1,237 3,926 6,009
339,214 4,199 3,926 347,339
The value of the subsidiary held at fair value is £1 (30 November 2015: £1 and
31 May 2016: £1) and is classified as a Level 3 investment.
The Company's subsidiary completes trading transactions. The value of the
investments held for trading in the subsidiary at 30 November 2016 are £nil (30
November 2015: £nil and 31 May 2016: £nil). The difference between the sale and
purchase of assets is trading income recognised in the Income Statement.
Reconciliation of Level 3 Investments
The following table summarises the Company's Level 3 investments that were
accounted for at fair value:
As at As at As at
30 November 30 November 31 May
2016 2015 2016
Level 3 Level 3 Level 3
£'000 £'000 £'000
Opening fair value investments 3,926 3,142 3,142
Purchase at cost - 1,513 2,548
Sale proceeds (1,351) - (1,608)
Transfer from Level 1 179 - -
Movement in investment holding
gains:
Movement in unrealised 67 (9) (156)
Closing fair value of investments 2,821 4,646 3,926
10 Transactions with the Manager and Related Parties
The amounts paid and payable to the Manager pursuant to the management
agreement are disclosed in note 8. There were no other identifiable related
parties at the half-year end.
INVESTMENT OBJECTIVE AND POLICY
Investment Objective
The Company's investment objective is to provide shareholders with an
attractive and growing level of dividends coupled with capital growth over the
long term.
Investment Policy
The Company invests primarily in quoted or traded UK companies with a wide
range of market capitalisations, but a long-term bias towards small and mid cap
equities. The Company may also invest in large cap companies, including FTSE
100 constituents, where it is believed that this may increase shareholder
value.
The Manager adopts a stock specific approach in managing the Company's
portfolio and therefore sector weightings are of secondary consideration. As a
result of this approach, the Company's portfolio does not track any benchmark
index.
The Company may utilise derivative instruments including index-linked notes,
contracts for differences, covered options and other equity-related derivative
instruments for efficient portfolio management, gearing and investment
purposes. Any use of derivatives for investment purposes will be made on the
basis of the same principles of risk spreading and diversification that apply
to the Company's direct investments, as described below. The Company will not
enter into uncovered short positions.
Risk Diversification
Portfolio risk is mitigated by investing in a diversified spread of
investments. Investments in any one company shall not, at the time of
acquisition, exceed 15% of the value of the Company's investment portfolio.
Typically it is expected that the Company will hold a portfolio of between 80
and 160 securities, predominantly most of which will represent no more than
1.5% of the value of the Company's investment portfolio as at the time of
acquisition.
The Company will not invest more than 10% of its gross assets, at the time of
acquisition, in other listed closed-ended investment funds, whether managed by
the Manager or not, except that this restriction shall not apply to investments
in listed closed-ended investment funds which themselves have stated investment
policies to invest no more than 15% of their gross assets in other listed
closed-ended investment funds. In addition to this restriction, the Directors
have further determined that no more than 15% of the Company's gross assets
will, at the time of acquisition, be invested in other listed closed-ended
investment funds (including investment trusts) notwithstanding whether or not
such funds have stated policies to invest no more than 15% of their gross
assets in other listed closed-ended investment funds.
Unquoted Investments
The Company may invest in unquoted companies from time to time subject to prior
Board approval. Investments in unquoted companies in aggregate will not exceed
5% of the value of the Company's investment portfolio as at the time of
investment.
Borrowing and Gearing Policy
The Board considers that long-term capital growth can be enhanced by the use of
gearing which may be through bank borrowings and the use of derivative
instruments such as contracts for differences. The Company may borrow (through
bank facilities and derivative instruments) up to 15% of NAV (calculated at the
time of borrowing).
The Board oversees the level of gearing in the Company, and reviews the
position with the Manager on a regular basis.
In the event of a breach of the investment policy set out above and the
investment and gearing restrictions set out therein, the Manager shall inform
the Board upon becoming aware of the same and if the Board considers the breach
to be material, notification will be made to the LSE.
No material change will be made to the investment policy without the approval
of shareholders by ordinary resolution.
SHAREHOLDER INFORMATION
Capital Structure
The Company's share capital consists of redeemable ordinary shares of 0.1p each
with one vote per share ("ordinary shares") and non-voting management shares of
£1 each ("management shares"). From time to time, the Company may issue C
ordinary shares of 1p each ("C shares") with one vote per share.
As at 30 November 2016 and the date of this Report, there are 383,487,239
ordinary shares in issue, none of which are held in treasury, and 50,000
management shares.
Redemption of Ordinary Shares
The Company has a redemption facility through which shareholders are entitled
to request the redemption of all or part of their holding of ordinary shares on
31 May each year. Redemption Request forms are available upon request from the
Company's Registrar.
Shareholders submitting valid requests for the redemption of ordinary shares
will have their shares redeemed at the Redemption Price or the Company may
arrange for such shares to be sold in the market at the NAV (including current
period revenue) (the "Dealing Value") prevailing at the end of May (subject to
the Directors' discretion). The Directors may elect, at their absolute
discretion, to calculate the Redemption Price applying on any redemption point
by reference to a separate Redemption Pool, when the Redemption Price will be
calculated by reference to the amount generated upon the realisation of the
Redemption Pool.
The Board may, at its absolute discretion, elect not to operate the annual
redemption facility on any given Redemption Point, or to decline in whole or
part any redemption request, although the Board does not generally expect to
exercise this discretion, save in the interests of shareholders as a whole.
A redemption of ordinary shares may be subject to income tax and/or capital
gains tax. In particular, private shareholders that sell their shares via the
redemption mechanism could find they are subject to income tax on the gains
made on the redeemed shares rather than the more usual capital gains tax on the
sale of their shares in the market. However, individual circumstances do vary,
so shareholders who are in any doubt about the redemption or the action that
should be taken should consult their stockbroker, accountant, tax adviser or
other independent financial adviser.
The relevant dates for the May 2017 Redemption Point are:
2 May 2017 Latest date for receipt of Redemption
Requests and certificates for certificated
shares
3.00pm on 2 May 2017 Latest date and time for receipt of
Redemption Requests and TTE instructions for
uncertificated shares via CREST
5.00pm on 31 May 2017 The Redemption Point
On or before 14 June 2017 Company to notify Redemption Price and
dispatch redemption monies; or
If the redemption is to be funded by way of a
Redemption Pool, Company to notify the number
of shares being redeemed. Notification of
Redemption Price and dispatch of redemption
monies to take place as soon as practicable
thereafter
On or before 28 June 2017 Balance certificates to be sent to
shareholders
Further details of the redemption facility are set out in the Company's
Articles of Association or are available from the Company Secretary.
Historic Dividend Record
Period/year ended 31 May: 2012 2013 2014 2015 2016 2017
pence pence pence pence pence pence
First interim dividend 0.30 0.30 0.30 0.40 0.65 0.70
Second interim dividend 0.50 0.50 0.50 0.50 0.65 0.70
Third interim dividend 0.46 0.46 0.50 0.50 0.75
Fourth interim dividend 0.76* 0.84 0.95 1.00 -
Final dividend - - - 0.50 0.75
2.02 2.10 2.25 2.90** 2.80 1.40
* The fourth interim dividend for the period ended 31 May 2012 was 0.93p but
this included the benefit of the initial 13-month period. As shown above, on an
annualised basis, the fourth interim dividend would have been 0.76p.
** In order to allow shareholders to vote on the dividend, a final dividend was
introduced in the year ended 31 May 2015, resulting in the payment of five
dividends for that year. Since then, the Company has paid three interim
dividends and a final dividend in respect of each year. There has been no
interruption in the dividend payment timetable as a result of this change.
Share Dealing
Shares can be traded through your usual stockbroker.
Share Prices
The Company's ordinary shares are listed on the LSE. The mid-market prices are
quoted daily in the Financial Times under 'Investment Companies'.
Share Register Enquiries
The register for the ordinary shares is maintained by Capita Asset Services. In
the event of queries regarding your holding, please contact the Registrar on
0871 664 0300 or on +44 (0)208 639 3399 from outside the UK (calls cost 12p per
minute plus your phone company's access charge; calls outside the UK will be
charged at the applicable international rate). Lines are open 9.00am to 5.30pm,
Monday to Friday, excluding public holidays in England and Wales. You can also
email ssd@capitaregistrars.com.
Changes of name and/or address must be notified in writing to the Registrar:
Capita Asset Services, Shareholder Services, The Registry, 34 Beckenham Road,
Beckenham, Kent, BR3 4TU.
Manager: Miton Trust Managers Limited
The Company's Manager is Miton Trust Managers Limited, a wholly-owned
subsidiary of Miton Group plc. Miton Group is listed on the AIM market for
smaller and growing companies.
As at 31 December 2016, the Miton Group had £2.91 billion of assets under
management.
Members of the fund management team invest in their own funds and are
significant shareholders in the Miton Group.
Investor updates in the form of monthly factsheets are available from the
Company's website, www.mitongroup.com/dit.
DIRECTORS AND ADVISERS
Directors (all non-executive) Custodian
Michael Wrobel Bank of New York Mellon SA/NV
Paul Craig London Branch
Lucinda Riches One Canada Square
Calum Thomson London E14 5AL
Jane Tufnell
Secretary and Registered Office Depositary
Capita Sinclair Henderson Limited BNY Mellon Trust & Depositary (UK)
(trading as Capita Asset Services) Limited
Beaufort House BNY Mellon Centre
51 New North Road 160 Queen Victoria Street
Exeter EX4 4EP London EC4V 4LA
Telephone: 01392 477500
Alternative Investment Fund Manager Registrar and Transfer Office
or Manager
Miton Trust Managers Limited Capita Asset Services
Paternoster House Shareholder Services Department
65 St Paul's Churchyard The Registry
London EC4M 8AB 34 Beckenham Road
Beckenham
Kent BR3 4TU
Investment Manager
Telephone: 0871 664 0300
(+44 (0)208 639 3399 from outside the
Miton Asset Management Limited UK)
Paternoster House (calls will cost 12p per minute plus
65 St Paul's Churchyard phone company's access charge; calls
London EC4M 8AB from outside the UK will be charged
at the applicable international
Telephone: 020 3714 1525 rate).
Website: www.mitongroup.com
Lines are open 9.00am to 5.30pm,
Monday to Friday, excluding public
Company website holidays in England and Wales.
Email: ssd@capitaregistrars.com
www.mitongroup.com/dit Website: www.capitaassetservices.com
Auditor Solicitor
Ernst & Young LLP Stephenson Harwood LLP
25 Churchill Place 1 Finsbury Circus
Canary Wharf London EC2M 7SH
London E14 5EY
Banker Stockbroker
Bank of New York Mellon Cenkos Securities plc
One Piccadilly Gardens 6.7.8 Tokenhouse Yard
Manchester M1 1RN London EC2R 7AS
An investment company as defined under Section 833 of the Companies Act 2006.
Registered in England No. 7584303.
A member of the Association of Investment Companies.
The Half-Yearly Financial Report will be posted to shareholders shortly. The
Report will also be available for download from the Company's website:
www.mitongroup.com/dit or on request from the Company Secretary.
National Storage Mechanism
A copy of the Half-Yearly Report will be submitted to the National Storage
Mechanism ("NSM") and will be available for inspection at the NSM, which is
situated at: www.morningstar.co.uk/uk/nsm.
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of this announcement.
DIVERSE INCOME TRUST : Half-year Report
January 31, 2017 at 07:01 am
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