Interim Management Statement

RNS Number : 6970D

Acorn Income Fund Ld

18 May 2012

 



ACORN INCOME FUND LIMITED (the "Company")

Interim Management Statement for the period 1 January 2012 to 18 May 2012 ("the Period") as required under the Disclosure and Transparency Rule 4.3.2.

Investment Objectives and Policy

The objectives of the Company are to provide the Company's 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 provide both income and capital growth predominantly through investment of approximately 70 to 80% 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 20 to 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 October 2011	30 April 2012	% change or return
Ordinary share NAV	192.13p	222.36p	15.73%
Ordinary share mid price	161.00p	183.00p	13.66 %
ZDP share NAV	-	102.30p	-
ZDP share mid price	-	106.00p	-
Total return on Gross Assets (adjusted for debt repayment)			12.86%
NUMIS NSCI Ex Investment Companies	9,217.90	10,416.49	13.00%

Material Events and Transactions

During the period under review the proceeds of the Zero Dividend Preference share (ZDP) issue, which was completed in December 2011, were invested across 20 stocks in the UK smaller company portfolio with new holdings in Silverdell, UK Mail and Low and Bonnar. The holding in Stobart Group was sold and the holding in RPC was reduced as it had become a large holding.The Income portfolio continued to remain predominately invested in financials which, despite volatility, the manager believes offer the best medium term return potential. Cash from the ZDP issue, was invested into credits such as Fidelity and RSL Finance and in a new UBS Contingent Convertible.

Issued share capital of the Company:

With effect from 30 April 2012, the issued share capital of the Company was 8,724,790 Ordinary Shares (including 215,000 Ordinary Shares held in Treasury) and 12,000,000 Zero Dividend Preference Shares.

Dividends

The Company announced an interim dividend on 24 February 2012 of 3.0 pence per share, which was paid on 30 March 2012.  

Largest holdings (% of Gross Assets) as at 30 April 2012:

Smaller Companies Portfolio	%
Renishaw plc	5.3%
RPC Group plc	5.3%
Castings plc	5.1%
James Halstead plc	5.1%
Diploma plc	5.0%
VP plc	5.0%
Acal plc	4.7%
Consort Medical plc	4.6%
Lupus Capital plc	4.6%
Devro plc	4.6%
Income  Portfolio
GE Capital	4.93%
Lloyds 7.8673% 17/12/2019	4.53%
Credit Suisse 7.875% 24/02/2041	4.47%
Greenwich Loan Income Fund Ord	4.29%
Rabobank 6.875% 19/03/2020	4.00%
Invesco Leveraged High Yield Trust Ord	3.96%
Standard Life 3.5% CULS 31/03/2018	3.85%
F&C Asset Management 9% 20/12/2016	3.72%
UK Treasury 8% 06/07/2021	3.32%
ICAP Group 7.5% 28/07/2014	3.24%

For further information contact:

Premier Fund Managers Limited

Investment Adviser

Tel: [phone]

Anson Fund Managers Limited

Secretary

Tel: [phone]

A copy of the document can be found at: http://www.anson-group.com/P16.pdf

18 May 2012

E&OE - in transmission

 

END

 

 

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