Edison issues research review on Acorn Income Fund

RNS Number : 2387K

Acorn Income Fund Ld

19 September 2016

 

London, UK, 19 September 2016

Edison issues research review on Acorn Income Fund (AIF)

Acorn Income Fund (AIF) has produced solid long-term total returns (+138% share price and +135% NAV over five years) from its portfolio of UK smaller companies (70-80% of assets) and high-yielding securities (20-30%). The first half of 2016 has been a more challenging period, but over the latter part of the summer AIF has begun to reassert its trend of outperformance versus its benchmark. The allocation to the small-cap portfolio has been increased to the maximum 80% as the managers continue to find well-financed, dividend-paying smaller companies at attractive valuations. The current wider than average discount may reflect a degree of uncertainty ahead of the forthcoming five-yearly discontinuation vote; investors are reminded to vote against the special resolution if they wish to back the continuation of the company.

At 16 September AIF's shares traded at an 11.4% discount to cum-income NAV. This is wider than both short- and longer-term averages, possibly reflecting under-performance earlier in the year and uncertainty ahead of the discontinuation vote (see above). Strong medium- to longer-term performance and an attractive yield of 4%+ have seen the shares frequently trade at a premium, and it is reasonable to expect the discount to narrow (assuming shareholders vote against discontinuation) if the early signs of a return to outperformance become more established. 

Click here to view the full report.

All reports published by Edison are available to download free of charge from its website: www.edisoninvestmentresearch.com

About Edison: Edison is an international equity research firm with a team of over 110 analysts, investment and roadshow professionals and works with both large and smaller capitalised companies, blue chip institutional investors, wealth managers, private equity and corporate finance houses to support their capital markets activity. Edison provides services to more than 420 retained corporate and investor clients from offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

Contact details: Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn	www.linkedin.com/company/edison-investment-research
Twitter	www.twitter.com/Edison_Inv_Res
YouTube	www.youtube.com/edisonitv
Google+	https://plus.google.com/105425025202328783163/posts

 

END

 

 

NRADMGMLDLFGVZM