Interim Management Statement

RNS Number : 5283S

Acorn Income Fund Ld

19 May 2009

 

ACORN INCOME FUND LIMITED ('the Company')

Interim Management Statement for the period 1January 2009 to 19 May 2009.

Investment Objectives and Policy

The objectives of the Company are to provide shareholders with a high income and also the opportunity for capital growth.

The Company's portfolio is invested in equities and high income and fixed interest securities in order to achieve its investment objectives. It is the aim of the Company to achieve its objectives predominantly through investment of approximately 70% of the portfolio in smaller capitalised United Kingdom companies admitted to the Official List of the United Kingdom Listing Authority and traded on the London Stock Exchange or traded on AIM; and by investing approximately 30% of its assets in high yielding securities which will be predominantly fixed interest securities (including corporate bonds, preference and permanent interest bearing shares, convertible and reverse convertible bonds and debentures) but may include up to 15% of the portfolio (measured at the time of acquisition) in high yielding investment company shares.

Financial Highlights

	31 December 2008	30 April 2009	% change
Ordinary share NAV	89.88p	89.76p	-0.13%
Ordinary share mid price	77.00p	75.25p	-2.27%
Total return on Gross Assets (adjusted for debt repayment)			0.01%
Hoare Govett Smaller Companies Index (ex Investment Companies) - total return	4737.00	5932.76	25.2%

Material Events and Transactions

Against a background of a deepening global recession the UK stock market declined severely in the first quarter of 2009.  The small company sector rallied from these low levels during April although the Company's portfolio initially lagged this recovery. There were no material events or transactions during the period. 

With the falling value of the Company's gross assets bank borrowings were reduced by £200,000 as detailed below. 

Issued share capital of the Company at 30 April 2009:

Ordinary Shares: 8,939,790

Bank loan

The Company repaid a further £200,000 of its loan from Bank of Scotland on 27 February 2009, thereby reducing the amount of the outstanding loan to £4,200,000.

Dividends

The Company announced an interim dividend on 13 February 2009 of 1.5 pence per share, which was paid on 31 March 2009. A further interim dividend of 1.5 pence per share was announced on 23 April 2009 and is payable on 16 June 2009. 

Largest holdings (% of Gross Assets) as at 30 April 2009

Smaller Companies Portfolio
RPC Group plc	4.56%
Rotork plc	3.99%
Devro plc	3.94%
James Halstead plc	3.79%
Primary Health Properties	3.73%
Diploma plc	3.44%
Consort Medical plc	3.10%
Stobart Group Ltd	2.68%
Renishaw plc	2.58%
Macfarlane Group plc	2.57%
Income Portfolio
Royal Bank of Scotland 10.5% 01/03/2013	1.63%
HSBC Holdings plc 6.25% 19/03/2018	1.54%
Bellway plc 9.5% 06/04/2014	1.28%
Bear Stearns FRN 26/09/2013	1.28%
Firstgroup plc 6.875% 15/04/2013	1.24%
Marks & Spencer plc 5.875% 29/05/2012	1.23%
Punch Taverns 5% 14/12/2010	1.20%
3i Group plc 3.625% 29/05/2011	1.09%
Enterprise Inns plc 6.5% 06/12/2018	1.00%
Prudential plc 6.125% 19/12/2031	0.97%
Cash	10.31%

Save for the volatility of the financial markets, which continues to impact on the Company's assets and NAV per share, the Board is not aware of any significant events or transactions which have occurred since 30 April 2009 which would have a material impact on the financial position of the Company.

Further Information

Daily prices, Company announcements, Prospectus and monthly fact sheets are available

via www.premierassetmanagement.co.uk.

For further information contact:

Premier Fund Managers Limited

Investment Adviser

Tel: [phone]

Anson Fund Managers Limited 

Secretary 

Tel: [phone]

19 May 2009

E&OE - in transmission

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