Report

Acorn Income Fund - Managers broadly positive for small caps in 2017

Acorn Income Fund (AIF) aims to achieve a high income and potential for capital growth by investing 70-80% of its assets in a portfolio of well-financed UK smaller companies with attractive valuations and dividend growth, and 20-30% in high-yielding securities to add income and reduce capital risk. While long-term performance has been strong, the immediate aftermath of the UK’s vote to leave the EU caused a decline in domestically focused small caps. Since the half-year (30 June), AIF’s NAV has recovered well and now stands at an all-time high; in contrast, the share price is more than 7% below its 12-month high, suggesting scope for the wider-than-average discount to narrow. AIF gears its portfolio using zero-dividend preference shares (ZDPs); shareholders recently approved a proposal to extend the life of the ZDPs to February 2022 at an accrual rate of 3.85% pa.
Underlying
Acorn Income Fund

Provider
Edison Investment Research
Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts
Sarah Godfrey

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