Interim Management Statement

RNS Number : 7734C

Acorn Income Fund Ld

19 November 2009

 



ACORN INCOME FUND LIMITED ("the Company")

Interim Management Statement for the period from 1 July 2009 to 19 November 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-bearing securities in order to achieve its investment objectives. The Company aims to do this 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

	30 June 2009	30 October 2009	% change
Ordinary share NAV	95.97p	128.34p	33.73%
Ordinary share mid price	84.50p	106.00p	25.40%
Hoare Govett Smaller Companies Index (ex Investment Companies) - total return	6019.38	7442.43	23.64%

Material Events and Transactions

Over the past four months both the Smaller Companies and High Income portfolios have performed well.  The Smaller Companies portfolio has grown significantly as the market has recovered and investors focused on oversold stocks. A number of holdings were increased including Fenner, Brewin Dolphin and Mucklow whilst a number of new investments such as Harvey Nash and Lookers were also purchased. The portfolio reduced its holdings of RPC, Weir Group and Rotork whilst selling the entire holding of Abbey Protection. The High Income portfolio has continued to provide a stable high income and capital growth as the credit rally has continued. Credit spreads remain wide in comparison to pre credit crisis levels and there still remains further upside in the bond markets. Steps have been taken to hedge some gilt exposure due to concerns over the likely trend in long-term UK interest rates.

Issued share capital of the Company at 30 October 2009:

Ordinary Shares: 8,939,790

Bank loan

The Company drew down £500,000 and £800,000 against the loan from Bank of Scotland in July 2009 and August 2009 respectively. A total of £5,500,000 is outstanding as at 30 October 2009.

Dividends

The Company announced an interim dividend on 26 August 2009 of 1.5 pence per share, which was paid on 30 September 2009. A further interim dividend of 1.5 pence per share was announced on 4 November 2009 and is payable on 23 December 2009. 

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

Smaller Companies Portfolio
RPC Group PLC	4.14%
James Halstead PLC	3.91%
Fenner PLC	3.73%
Devro PLC	3.71%
Diploma PLC	3.68%
IMI PLC	3.53%
Vp PLC	3.45%
Primary Health Properties	3.17%
Stobart Group	3.16%
Brewin Dolphin	3.14%
High Income Portfolio
Short Exposure to the Long Dec 09 Gilt Future	6.98%
UK Treasury 2.5% 03/07/2019	3.12%
Enterprise Inns 6.5% 2018	1.41%
ICAP Group 7.5% 28/07/2014	1.37%
Lloyds Banking Group 6.3673% 2049	1.28%
HSBC 6.25% 2018	1.22%
Aviva 5.9021% PERP- 2020	1.17%
Bear Stearns FRN 2013	1.03%
Greenwich Loan Income Fund Ltd	1.03%
Bellway 9.5% Prefs 2014	0.97%
Cash	1.52%

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 October 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.

This document is for information purposes only. It is not, and is not intended to be an invitation, inducement, offer, or solicitation, to deal in the shares of the company. The price of shares in the company and the income from them may go down as well as up and investors may not get back the full amount invested on disposal of shares in the company. An investment in the company should be considered only as part of a balanced portfolio of which it should not form a disproportionate part.

For further information contact:

Premier Fund Managers Limited

Investment Adviser

Tel: [phone]

Anson Fund Managers Limited 

Secretary 

Tel: [phone]

19 November 2009

E&OE - in transmission

 

END

 

 

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