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Acorn Income Fund (AIF)

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Monday 17 August, 2020

Acorn Income Fund

Dividend Announcement

17 AUGUST 2020

 (a closed-ended investment company incorporated in Guernsey with registration number 34778)
LEI 213800UAZN7G46AHQM67


Dividend Announcement

The Directors are pleased to declare a third interim dividend for the year ending 31 December 2020 of 5.75p per Ordinary Share which represents an increase of 10.58% compared to the corresponding dividend for the year ending 31 December 2019 and maintains the distribution level set for the first and second interim dividends in 2020.

The impact of COVID-19 has led many UK companies to reduce or cancel dividend payments and this will impact Acorn's earnings in 2020. Acorn's dividend distributions in 2020 will require partial use of the Company's revenue reserves. At 31 December 2019, Acorn had revenue reserves equal to 1.04 times the 2019 dividend. The Directors consider the current situation is one in which it is appropriate to draw on those reserves in order to maintain income levels for investors. The interim results published today show that the revenue reserves at 30 June 2020 stood at 14.6p per share having been 21.6p per share at 31 December 2019.

Acorn will not distribute from capital. Dividends will only be paid out of current period revenues and revenue reserves. 

The Company's investment adviser for the Smaller Companies portfolio keeps under close review the dividend outlook for the companies that Acorn is invested in. The investment adviser has been pleased to note that many of Acorn's investee companies reduced or passed their dividends out of caution rather than necessity and are now resuming payments in line with unchanged dividend policies. Against this background the directors believe that 5.75p per share is a reasonable target for the fourth interim dividend that will be paid in December; however shareholders should note that the actual dividend will be set in the light of income earned over the remainder of the year as well as the outlook for 2021 and beyond. 

Ex-Dividend Date:  10 September 2020
Record Date:  11 September 2020
Payment Date:  30 September 2020
Dividend per Share:  5.75 pence per Ordinary Share (Sterling)

For information please contact:

Northern Trust International Fund Administration Services (Guernsey) Limited
Company Secretary  +44 (0) 1481 745498

Premier Miton Investments
Claire Long                                                           + 44 (0) 1483 400463

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