Acorn Income Fund

LN: AIF

Market Cap£66m

Last Close 417p

AIF’s objective is to provide shareholders with a high income and the opportunity for capital growth. The portfolio is split into two pools: one (c 70–80% of assets) is invested in UK small-cap equities; the other is an income portfolio containing fixed-income instruments, convertibles and high-yielding shares in other investment companies. Performance is measured against a composite benchmark made up 75% of the Numis Smaller Companies (excluding investment companies) Index and 25% of the ICE BofAML Sterling Non-Gilts Index.

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Investment summary

The board of Acorn Income Fund (AIF) has announced the results of its strategic review ahead of the company’s five-yearly discontinuation vote in August. It is proposing to change the mandate from its present c 75% in UK smaller companies and c 25% in income-producing assets to a global equity income fund focused on sustainability and positive impact, managed by BMO Global Asset Management rather than the current partnership between Unicorn Asset Management and Premier Miton. AIF’s approach of investing in well-financed, income-generating and often domestically oriented small caps had led to a period of underperformance, partly attributable to Brexit uncertainty but compounded by last year’s COVID-19 induced dividend cuts. However, returns have rebounded strongly in the past year (see chart) as investors have begun to reassess the UK equity market. The board advises that shareholders who favour the move to BMO should vote against discontinuation and in favour of the proposals at the AGM and EGM in August. A circular will be published in due course.

Content on Acorn Income Fund
Acorn Income Fund Limited – Looking ahead with cautious optimism
Investment companies | Review | 3 November 2020
Acorn Income Fund – executive interview
Investment companies | Edison TV | 13 May 2020
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Share price graph
Price performance
%
1m
3m
12m
Actual 14.3 15.8 56.8
Relative* 17.1 17.2 31.7
52-week high/low 419.5p/244.5p
*% relative to local index
Key management
Nigel Ward Chairman
Claire Long Head of Investment Trusts at Premier Miton Gr

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