MI Chelverton UK Equity Income Fund Investment Objective and Policy Monthly Fact Sheet The objective of the Fund is to provide a progressive income stream and achieve long-term capital growth by investing primarily in a portfolio of fully listed and AIM traded UK equities. The Fund will 31 May 2021 invest in UK companies which aim to provide a high initial dividend, progressive dividend payments and long term capital appreciation. Launch Date 4 December 2006 Monthly Manager Commentary Fund Size £527m A relatively quiet month in terms of corporate results and news flow was dominated by Q1 trading Historic Yield 2.32% updates. Pleasingly these were generally positive and have served to underpin the ‘recovery’ trade in a wide range of our holdings. Having been overly pessimistic a year or so ago, analysts are firmly in ‘upgrade’ The historic yield reflects distributions over the mode as profit expectations are being revised upwards, generating positive share price momentum. We past 12 months as a percentage of the price of the B share class as at the date shown. It does hope to see this bounce in current earnings gradually start to be reflected in improving dividend payments not include any initial charge and investors may as Boards confidence in their trading outlook starts to improve. For the moment investors are happy to be subject to tax on their distributions. look through any potential changes in the government’s roadmap back to normality and appear sanguine about any short term volatility in domestic macro numbers. The consensus is still that any pick up in inflation will only be temporary although we are less convinced on this front and will be looking for any Share Price (as at 31.05.21) signs of sustained wage inflation which may undermine this view. Shares Income Accumulation Once again there was no discernible theme or trend in our best and worst performers over the month. B Shares 123.94p 263.74p A number of stocks with high overseas exposure were strong, Bodycote, Tyman and Morgan Advanced Materials, as were Redde and Bloomsbury which are predominately domestic orientated stocks. On the SEDOL Codes downside, Diversified Energy, Wood Group and Telecom Plus detracted from performance. The new issue Income Accumulation market has been extremely active over the past few months but has been focussed on ‘growth’ stocks. In the last month however we added Kitwave, our first IPO since the start of the pandemic, to our portfolio. B Shares B1FD646 B1Y9J57 It is a delivered wholesale business with 26 UK depots that specialises in selling impulse products such as confectionary, soft drinks and snacks to independent retailers. We expect to see more IPO activity in our Income Paid Quarterly investible universe as funds are starting to flow from relatively highly valued ‘growth’ stocks into cyclicals and ‘value’ type opportunities. On the trading front we sold down a number of holdings on income XD Dates 31 March, 30 June, grounds such as Shoezone and Flowtech and added to positions in Morrisons, Stock Spirits and Smart 30 September, 31 December Metering. Valuation 12 Noon, Daily Cumulative Performance 1 m 3 m 1 yr 3 yrs 5 yrs 10 yrs Initial Charge (%) 5.0* Fund (%) 2.06 13.47 43.09 4.16 41.77 180.71 Annual Management Fee (%) 0.75 Rank in sector 42/85 6/85 6/83 49/80 13/73 1/61 Minimum Investment £1,000 Quartile 2nd 1st 1st 3rd 1st 1st IA UK Equity Income (%) 2.12 10.73 27.35 5.84 31.05 95.82 Ongoing Charge (%) 0.89 Source: Morningstar, NAV to NAV, B Shares Acc, Total Return to 31.05.2021 Charges are for B share class. *or any such lower amount agreed with the ACD Calendar Year Performance (%) YTD 2020 2019 2018 2017 2016 ACD Maitland Institutional Services Limited Fund 17.33 ‑14.45 24.59 ‑14.20 24.27 4.77 IA Sector (%) 12.75 ‑10.91 20.12 ‑10.53 11.50 9.05 Investment Advisor Chelverton Asset Management Limited Source: Morningstar, NAV to NAV, B Shares Acc, Total Return to 31.05.2021 Administrator Dividend History Maitland Institutional Services Limited Q1 Q2 Q3 Q4 Total 2017 B Income 0.78p 1.25p 1.25p 2.48p 5.76p 2018 B Income 0.79p 1.40p 1.40p 2.29p 5.88p 2019 B Income 0.80p 1.50p 1.50p 1.99p 5.79p 2020 B Income 0.24p 0.55p 0.97p 0.70p 2.46p 2021 B Income 0.65p History of dividends declared per share. Source: Chelverton Asset Management Limited Dealing Details Dealing Line 0345 305 4217 © Morningstar 2021. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/ or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses Dealing Fax 0845 280 0188 arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is no guarantee of future results. MI Chelverton UK Equity Income Fund Monthly Fact Sheet Top 20 Holdings 31 May 2021 Holding Sector % of Portfolio 1. Redde Northgate Industrial Transportation 2.54 Fund Managers 2. Polar Capital Holdings Investment Banking & Brokerage Services 2.05 3. Bloomsbury Media 2.04 David Horner 4. Diversified Energy Oil, Gas & Coal 2.01 joined 3i Corporate Finance Limited in 1986 where 5. Mortgage Advice Bureau Finance & Credit Services 1.94 he was a manager giving 6. Sabre Insurance Non-life Insurance 1.87 corporate finance advice. In May 1993 he joined Strand 7. Chesnara Life Insurance 1.87 Partners Limited, and 8. Close Brothers Group Banks 1.87 was appointed a director 9. Devro Food Producers 1.78 in January 1994, where he carried out a range of corporate finance 10. Strix Electronic & Electrical Equipment 1.68 assignments identifying, structuring and 11. Contourglobal Electricity 1.67 managing investments in quoted and unquoted companies. In October 1997 he left to set up 12. Morgan Sindall Group Construction & Materials 1.61 Chelverton Asset Management Limited and 13. Synthomer Chemicals 1.61 was responsible for setting up, in May 1999, the 14. Bakkavor Food Producers 1.60 Small Companies Dividend Trust, which he still manages. He has co-managed the Chelverton 15. Tate & Lyle Food Producers 1.53 UK Equity Income Fund since launch. 16. Ashmore Investment Banking & Brokerage Services 1.51 17. FDM Industrial Support Services 1.51 David Taylor began his career as an 18. SThree Industrial Support Services 1.46 analyst in the research 19. STV Group Media 1.44 department at Wedd Durlacher and moved 20. Drax Group Electricity 1.44 into fund management in 1987 with the Merchant Source: Chelverton Asset Management Limited Navy Officers Pension Fund. He joined Gartmore Investment Limited in 1991, during this time, he ran a combination of institutional funds and investment trusts, namely the Clydesdale Market Cap Breakdown Investment Trust and London & Strathclyde % of Portfolio No. of Stocks Trust. In 1995, he moved to LGT to manage small cap retail funds and latterly spent nearly Above £1bn 34.64 29 seven years as head of UK smaller companies at £500m - £1bn 33.18 29 HSBC Asset Management. He joined Chelverton Asset Management in January 2006 and has £250m - £500m 17.03 16 co-managed the Chelverton UK Equity Income £100m - £250m 9.48 12 Fund since launch. Below £100m 3.40 9 Cash and Income 2.27 - Oliver Knott joined Chelverton Asset Total 100.00 95 Management in January 2020 as an Assistant Fund Source: Chelverton Asset Management Limited Manager. He has extensive experience in UK small and mid cap equities having joined Brewin Dolphin as a generalist salesman after graduating from the University of Essex with a 1st class honours degree in Politics, Philosophy and Economics.Prior to joining Chelverton, he worked as an equity analyst for N+1 Singer, Disclaimer: This fund invests in smaller companies and carries a higher degree of risk than in their highly respected technology research funds investing in larger companies. The shares of smaller companies may be less liquid and franchise. Oliver is a CFA Charterholder. their performance more volatile over shorter time periods. The fund can also invest in smaller companies listed on the Alternative Investment Market (AIM) which also carry the risks described above. This document is provided for information purposes only and should not be interpreted as investment advice. If you have any doubts as to the suitability of an investment, please consult your financial adviser. The information contained in this document has been FURTHER INFORMATION obtained from sources that Chelverton Asset Management Limited (“CAM”) considers to be Please contact Spring Capital Partners, reliable. However, CAM cannot guarantee the accuracy or completeness of the information in the first instance. provided, and therefore no investment decision should be based solely on this data. Past performance is not a guide to future performance. This document is issued by CAM, authorised Tel +44 (0)20 3195 0076 and regulated by the Financial Conduct Authority. This document does not represent a Email [email protected] recommendation by CAM to purchase shares in this Fund. The contents of this document are intended for Professional Investors and Eligible Counterparties only. We recommend private Visit springcapitalpartners.com investors seek the services of a Financial Adviser. Maitland Institutional Services Limited are the Authorised Corporate Director of this fund and prospectuses for the fund are obtainable directly from them.