Interim Management Statement

RNS Number : 1877M

Acorn Income Fund Ld

19 May 2010

 



ACORN INCOME FUND LIMITED (the "Company")

Interim Management Statement for the period 1 January 2010 to 19 May 2010.

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 2009	30 April 2010	% change
Ordinary share NAV	131.22p	158.56p	20.83%
Ordinary share mid price	113.75p	124.39p	9.35%
Total return on Gross Assets (adjusted for debt repayment)			14.91%
Hoare Govett Smaller Companies Index (ex Investment Companies) - total return	7,614	8,532.22	12.06%

Material Events and Transactions

There were no material events during the period. Over the first four months of the year the Company performed well both in absolute terms and relative to the Hoare Govett Smaller Companies index. The net asset value per share rose 20.83% from 131.22p to 158.56p. In the smaller companies portfolio, against a background of continuing  stock market recovery, the adviser has purchased Brewin Dolphin, Lookers and Acal believing that they all offer strategic long term value . In the income portfolio following a strong rally in subordinated debt and high yield bonds the adviser has reduced exposure to this area of the market.

Issued share capital of the Company at 30 April 2010:

Ordinary Shares:     8,939,790

Dividends

The Company announced an interim dividend on 22 February 2010 of 1.5 pence per share, which was paid on 31 March 2010.  

Largest holdings (% of Gross Assets) as at 30 April 2010

Smaller Companies Portfolio
Devro plc	4.40%
Fenner plc	4.14%
Diploma plc	4.11%
IMI plc	3.97%
James Halstead plc	3.70%
VP plc	3.34%
RPC Group plc	3.30%
Stobart Group Ltd	3.19%
Lookers plc	2.97%
Primary Health Properties	2.82%
Income  Portfolio
Treasury Stock 2.12% 2024	2.00%
LBG Capital No.1 plc	1.55%
Icap Group Holdings plc	1.21%
Aviva plc	1.04%
Societe Generale 3.875% 17/12/2015	1.01%
Invesco Leveraged High Yield	0.99%
HSBC Holdings plc	0.97%
Barclays Bank plc 4.875%	0.91%
F&C Asset Management plc	0.86%
Greenwich Loan Income Fund Ltd	0.84%
Cash	3.76%

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 2010 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 2010

E&OE - in transmission

 

END

 

 

IMSKKLBFBEFZBBZ