AIF.L Regulatory News (AIF)

ACORN INCOME FUND LIMITED

ANNOUNCEMENT OF ANNUAL RESULTS

The Directors announce the statement of results for the year ended 31 December 2010 as follows:

Investment Objectives and Policy

For the year ended 31 December 2010

The objectives of Acorn Income Fund Limited (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 interest-bearing 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% 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. The Company also aims to enhance income for shareholders by investing approximately 30% of its assets in high yielding instruments 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.

CHAIRMAN'S STATEMENT

Dear Shareholder,

During 2010 the UK market continued its recovery from the low points set in March 2009 at the depths of the banking crisis. Over the course of the year the FTSE All Share index (total return) rose 14.51% with a strong year end rally during December. Smaller company stocks performed well relative to the market leaders over the year. The FTSE Small Cap (ex investment companies) total return index returned 16.91% and the Hoare Govett Smaller Company (ex investment company) index was up 28.49% in the 12 months to 31 December 2010. The outperformance of small cap stocks provided a favourable background for the Company which at the start of the year had 62.7% of gross assets committed to the Smaller Companies Portfolio; 30.5% of the fund was in the Income Portfolio and 6.8% in cash. During the course of the year the allocation to the Smaller Companies Portfolio was increased and that, together with the strong relative performance of the Smaller Companies Portfolio, meant that by the year end the portfolio split was as follows;

Smaller Companies Portfolio 79.2%

Income Portfolio 18.7%

Operating Cash 2.1%

Investment performance

The Company's net asset value per share rose by 48.59% from 131.22p to 194.98p over the year. Including dividends paid during the year the total return on net assets was 54.68%. This was achieved from strong performance at the gross assets level plus the additional leverage provided by the Company's bank facility. Some small enhancement to NAV return was provided by the buying back of shares. Gross assets total return over the twelve months to 31 December was 38.06%, well ahead of the small cap indices.

The main features in the strategic positioning of the Income Portfolio during the course of the year were the maintenance of a hedge, through a short gilt position, against rising long-term interest rates, allowing the portfolio to remain exposed to the potential for credit spreads between corporates and gilts to narrow. The portfolio maintained a significant exposure to the financial sector where this potential was perceived to be the greatest. Although official interest rates have not yet been increased and the weak economy may delay a rise, our investment advisers continue to position the portfolio so that some protection against rising rates is maintained. Protection in this area was added during the year by acquiring instruments which are index linked or floating rate. The amount of capital committed to the Income Portfolio was reduced during the year in favour of the Smaller Companies Portfolio where stronger returns were anticipated. This proved to be a correct call. Some of the individual stock performances in the Smaller Companies Portfolio were spectacular with some positions doubling in value.

With a continuation vote to be proposed at the AGM this year it is appropriate to consider the long term performance records since the appointment of Premier Fund Managers Limited ("Premier") and Unicorn Asset Management Limited ("Unicorn") as investment advisers from 17 January 2007. The performance over the period from 17 January 2007 to 31 December 2010 is as follows:

Net Asset Value total return +18.02%

Gross Assets total return + 15.43%

Hoare Govett Smaller Companies TR +12.5%

FTSE Small cap Index TR -22.49%

(Source Financial Express, Bloomberg and Premier Asset Management)

Your board believes this is a creditable achievement during a period when market conditions have varied between abnormal and unprecedented.

Dividends

Earnings per share for the year were 6.42p (6.73p) and dividends totalling 6.25p (6.0p) were paid during the year with the fourth interim dividend being increased from 1.5p to 1.75p.

Share buy back

The board has sought to contain the share price discount to asset value, as well as raising the investment performance, by undertaking selective share purchases. Over the course of the year the Company bought back 165,000 shares. The shares are currently held in treasury providing scope to reissue them if appropriate circumstances arise. At the start of the period the shares were trading on a discount to asset value of 13.3%. This had moved out to 17% before the buyback was commenced but at the year end the discount was 14.2%.

Gearing and Bank Facility

As reported at the interim stage, in order to enable the Company to buy back shares and meet the post buy-back covenant test (which is much more demanding than the regular covenant test) £1.65m of loan was repaid in the first half and hence at the period end the amount of loan drawn down under the facility was £4.35m. The more demanding covenant test only needs to be met immediately following the buy-back and then reverts to the regular test. The loan margin of 2% over LIBOR remains attractive.

Outlook

Markets remain sensitive to the economic outlook in Europe and the US while the recent political unrest in North Africa and the natural disaster in Japan have served to remind investors that there can be no certainties in investment. Against these events risk premiums have increased and markets fallen back. Nevertheless our small company adviser remains positive with the portfolio focused on international earners rather than the UK domestic market and with corporate activity now starting to take place. In the Income Portfolio our adviser is cautious with regard to the bond markets against the expectation of rising interest rates but positioned to capture some benefit from this trend, for example through floating rate instruments. 

Continuation Resolution

The Company's articles provide for shareholders to vote on the continuation of the company at the AGM in 2011. Accordingly a resolution that the Company should cease to continue as presently constituted has been included in the resolutions to be proposed at the general meeting to be held on 24 August 2011.

Your board has reviewed the investment mandate and considers that it continues to provide a valid and potentially profitable investment strategy. The focus on UK smaller companies is consistent with the yield objective as the smaller company universe provides a good range of stocks offering attractive levels of yield and sustainable dividends. The Income Portfolio, which has been focused on fixed interest securities and actively managed, has served to enhance the overall portfolio yield and deliver returns in excess of the cost of the Company's borrowing, while providing some diversification by asset class.

Your board has also reviewed the performance and capability of the investment advisers. The directors have been impressed with the performance generated by the investment advisers since the change in the management arrangements implemented in January 2007. A review of investment performance since that date is set out above. Premier Asset Management (Guernsey) Ltd is wholly owned by Premier Asset Management Ltd, which is regulated in the UK and has approximately £2.5 billion under management, and ample resource and expertise to fulfil its duties as manager. The board therefore considers that, based on past investment performance and the capabilities of the manager and its investment advisers, there is a good case for the Company's continued existence.

The board will publish a circular prior to the general meeting setting out details regarding the proposed continuation.

In the circumstances the board would encourage shareholders to vote for continuation of the Company at the general meeting. For clarity, shareholders wishing the Company to continue should vote against special resolution 1. If however shareholders vote against continuation the board will, within three months of the date of the general meeting, put forward proposals for the winding up of the Company.

John Boothman

Chairman

INVESTMENT ADVISERS' REPORT

Smaller Companies Portfolio

The Smaller Companies Portfolio returned a capital gain of 49.8% compared to a return of 28.5% by the Hoare Govett Smaller Companies Index. The year under review has been very strong with a return to favour of strong well funded companies with strong international and export exposure.

Over the year Renishaw rose by 125.7% as its markets recovered, Fenner also benefited from strong mineral markets rising by 113.6% and Lupus rose by 112.7% on the back of recovery prospects and a management change. Other noticeable risers include Acal +102.2%, Devro +90.2%, IMI +82.3% and Bodycote +76.4%. Two stocks were down on the year (BPI -11.6% and Mucklow -8.2%).

During the year Davis Service Group was added to the portfolio as new management were appointed and Phoenix IT was purchased following a change in the dividend policy. A number of holdings were increased including Castings, Lookers, Consort Medical and Brewin Dolphin. The holding in IMI was reduced as it entered the FTSE 100 after a period of sustained performance. The holdings in Harvey Nash, Acal, MacFarlane, Avesco and BPI were reduced.

We continue to focus on companies with strong positions in overseas markets which will benefit from international economic growth. Our focus on well funded companies who can pay growing dividends will continue as we believe dividends are an important part of total returns. Corporate activity has picked up over the year but has still to spread to the mid and small capitalisation stocks. The company remains focused on the key investment principles that have served it well over the long term.

John McClure

Unicorn Asset Management Limited

Income Portfolio

Performance

The portfolio provided attractive returns over the year with market timing and security selection contributing to performance. The portfolio continues to generate relatively high yield.

Portfolio Commentary

The Monetary Policy Committee (MPC) maintained interest rates at 0.5% over the past year balancing the risks of declining growth and high inflation. The MPC appear uncertain as to which poses the greater threat to the economy as illustrated by the last MPC minutes highlighting a three way split. One member voted for an increase in Quantitative Easing, a policy used to increase money supply and stimulate demand, whilst another member voted for an immediate rate hike. However, the majority voted for no change reflecting the continued economic uncertainty. If inflation remains elevated, as we expect, and economic growth robust then the MPC will come under increasing pressure to increase rates.

The portfolio's hedge against the returns of gilts has been maintained throughout the year. The hedge acts to reduce the duration of the portfolio, limiting interest rate risk. With the hedge in place the return profile will be more aligned with credit performance. As a result the portfolio did not participate significantly in the gilt rally over the first half of the year nor suffer from the sharp rise in gilt yields during the last quarter.

Credit spreads suffered a volatile year with sovereign debt concerns driving markets, particularly bank credit. Credit spreads reached highs in the second quarter as Greece was bailed out by the IMF and Eurozone members. Despite the bailout the bond vigilantes turned their attention to other European peripheral countries, namely Portugal, Ireland, Italy and Spain. Fears of contagion spread and the cost to insure against defaults in bank debt returned to levels not seen since the depths of the credit crisis. Over the second half of the year credit spreads tightened gradually until the end of November when Ireland was bailed out by other EU nations and spreads widened again. Subordinated and senior bank debt suffered as policy makers talked of increased burden sharing for bonds.

Despite sovereign woes corporates are much healthier relative to last year as they have typically increased their debt maturity profiles at historically low rates and returned to profitability and free cash flows. Accordingly the spread between financials and corporate has widened as corporate yields have fallen. We hold an overweight position in financials and expect that as sovereign concerns dissipate, regulation becomes clearer, and capital ratios improve then financial credit spreads should tighten in more than corporate yields from these elevated levels.

In the first quarter we sold a number of high yielding positions and reinvested into holdings that would provide protection against inflation and associated rate hikes, namely a long dated EDF index linked bond and an Anglian Water floating rate note. We entered into the second quarter with a reduced risk profile and a high cash balance which assisted in our performance as Greece was bailed out. In addition, sales were made in the second quarter in order to provide further flexibility to the Smaller Companies Portfolio and to finance the Company share buybacks. These measures left the Smaller Companies Portfolio with a greater proportion of the Company's assets as equity market strength was considered more likely than superior bond returns. Accordingly transactions in the second half of the year were smaller however bond specific performances contributed significantly to overall performance. Lloyds enhanced capital notes (ECN), our largest holding, returned double digit returns over the year. The ECNs seemingly benefited from the increased capital funding requirements required by the new Basel III regulations. Equally our positions in subordinated Barclay's debt, long dated BAA debt and a holding in a high yield bond fund all provided attractive returns over the period.

Outlook

The recent concerns over fiscal deficits and bank funding illustrate that there are still stumbling blocks to overcome. However, governments, central banks, financials and corporates finally appear alert to such risks and therefore able to nullify any pain quicker than they did two years ago. Large corporates in particular have successfully accessed the bond markets meaning periods of market volatility should not affect their viability. We would expect not only the default rate to fall sharply and remain low but also rating agencies to begin to reverse the substantial downgrades during the last few years.

Paul Smith

Premier Fund Managers Limited

SCHEDULE OF PRINCIPAL INVESTMENTS

as at 31 December 2010

SCHEDULE OF PRINCIPAL INVESTMENTS

as at 31 December 2009

COMPANY DETAILS

History

The Company was incorporated on 5 January 1999 and commenced its activities on 11 February 1999. 29,600,002 Ordinary shares were issued.

The special resolution proposed at the Company's Annual General Meeting in 2006, that the Company cease as an investment company, was not carried by the necessary 75% majority of votes cast. Nevertheless, to provide an exit opportunity for the shareholders the Company made a Tender Offer to repurchase up to all of its Ordinary shares at net asset value, calculated after taking account of all costs. Applications under the Tender Offer were received for 20,660,212 Ordinary shares, leaving 8,939,790 Ordinary shares in issue after the Extraordinary General Meeting on 5 January 2007.

At the 5 January 2007 Extraordinary General Meeting, it was resolved that the issued share capital of the Company be reduced from £7,400,000.50 to £296,000.02, effected by the cancellation of 24p per issued Ordinary share, thus reducing the nominal amount of such shares from 25p to 1p per Ordinary share. It was also resolved that £17,000,000 standing to the credit of the Company's share premium account be cancelled. The £7,104,000.48, resulting from the cancellation of share capital, and the £17,000,000, resulting from the cancellation of the share premium account, were credited to a distributable reserve.

As part of the Tender Offer the Manager changed from Collins Stewart Fund Management Limited to Premier Asset Management (Guernsey) Limited.

Investment Objectives

The Company's investment objectives are to provide Shareholders with a high income and also the opportunity for capital growth.

Investment Policy

The Company's investment policy is to allocate approximately 70% of the Company's assets to the Smaller Companies Portfolio with the balance to the Income Portfolio. (Prior to the Tender Offer, this was approximately 75% to the Smaller Companies Portfolio with the balance allocated to the Income Portfolio).

The Smaller Companies Portfolio is principally invested in UK equities with a market capitalisation of under £1 billion. Unicorn as the Investment Adviser of the Smaller Companies Portfolio, focuses on companies with experienced and well motivated management products or services supplying growth markets, sound operational and management controls, good cash generation and a progressive dividend.

Premier manages the Income Portfolio and aims to maximise income with the objective of capital protection. The Income Portfolio comprises sterling denominated fixed interest securities including corporate bonds, preference and permanent interest bearing shares, convertibles, reverse convertibles, debentures and other similar securities. The Income Portfolio may also contain higher yielding shares of other investment companies, including property investment companies, however these will not exceed 15% of the overall portfolio (at the time of acquisition).

Bank Loan

On 13 February 2007, a new £6 million revolving credit loan facility was arranged with the Bank of Scotland and the maturity date being 13 February 2012. The interest payable on this facility is 1% over LIBOR with a non-utilisation charge of 0.5% on any undrawn part of the facility.

The capital covenant on the facility requires a ratio of specified investment to debt of 2:1. Specified investments includes UK listed securities with a market capitalisation of over £50 million, investment grade bonds and reverse convertible bonds meeting certain criteria relating to the issuer and the reference equity.

Management Fees

The management fee is 0.7% per annum of total assets together with a performance fee of 15% over a total return of 10% per annum. No performance fee was payable in 2010. The total expenses ratio ("TER") of the Company is capped at 1.5% of total assets, excluding performance fees and non-routine administration and professional fees and with adjustments made to allow for repayment of debt or the buy back of shares. The application of these calculations for 2010 indicates that a refund of £33,698 is due from the Manager. The net management fee charged in 2010 was £100,000. The Board has considered the level of fees charged on comparable investment trusts and recognises the importance of setting a level that enables the management contract to be commercially viable for the Manager.

At the general meeting held on 24 August 2010, the shareholders approved the proposal to increase the minimum fee, payable to the Manager with effect from 1 January 2010, included in the TER calculation to £100,000 from £50,000.

MANAGEMENT REPORT

For the year ended 31 December 2010

A description of important events which have occurred during the financial period, their impact on the performance of the Company as shown in the financial statements and a description of the principal risks and uncertainties facing the Company is given in the Chairman's Statement, Investment Advisers' Reports, the schedule of Risk Factors and the notes to the financial statements and is incorporated here by reference.

There were no material related party transactions which took place in the financial period.

Going Concern

Michael McKean

Director

12 April 2011

STATEMENT OF COMPREHENSIVE INCOME

for the year ended 31 December 2010

The Total column of this statement is the Statement of Comprehensive Income of the Company. The Company had no other comprehensive income during the year other than that reflected in the above Statement of Comprehensive Income. The supplementary revenue return and capital return columns have been prepared in accordance with the Statement of Recommended Practice ("SORP") issued by the Association of Investment Companies ("AIC").

In arriving at the results for the financial year, all amounts above relate to continuing operations.

No operations were acquired or discontinued in the year.

STATEMENT OF FINANCIAL POSITION

as at 31 December 2010

The financial statements were approved by the Board of Directors on 12 April 2011 and signed on its behalf by:

Michael McKean

Director

STATEMENT OF CASH FLOWS

for the year ended 31 December 2010

1 ACCOUNTING POLICIES

(a) Basis of preparation

The financial statements, which give a true and fair view, have been prepared in accordance with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB"), the AIC's SORP (as revised in January 2009) where this is consistent with the requirements of IFRS and all in compliance with The Companies (Guernsey) Law, 2008 (as amended). All accounting policies adopted for the period are consistent with IFRS issued by the IASB. The financial statements have been prepared on an historical cost basis except for the measurement at fair value of certain financial instruments.

The following Standards or Interpretations have been issued by the IASB but not yet adopted by the Company:

IFRS 7 Financial Instruments: Disclosures - Amendments enhancing disclosures about transfer of financial assets effective for annual periods beginning on or after 1 July 2011.

IFRS 9 Financial Instruments - Classification and Measurement (revised November 2009) effective for annual periods beginning on or after 1 January 2013.

IAS 24 Related Party Disclosures - Revised definition of related parties (revised November 2009) effective for annual periods beginning on or after 1 January 2011.

IAS 32 Financial Instruments: Presentation - Amendments relating to classification of rights issues (revised 2009) effective for annual periods beginning on or after 1 February 2010.

IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments effective for annual periods beginning on or after 1 July 2010.

Some of these Standards and Interpretations may require additional disclosure in future financial statements. None are expected to affect the financial position of the Company.

(b) Use of estimates and judgements

Management use estimates and judgements in allocating expenses between Revenue and Capital.

(c) Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity.

(d) Taxation

The Company has been granted exemption under the Income Tax (Exempt Bodies) (Guernsey) Ordinance, 1989 from Guernsey Income Tax, and has elected to remain exempt following changes in the Guernsey tax regime. The Company pays an annual fee of £600.

(e) Treasury shares

Treasury shares are classified as a deduction from equity and recorded for the consideration paid.

(f) Capital reserve

The following are accounted for in this reserve:

- gains and losses on the realisation of investments;

- expenses charged to this account in accordance with the policy below;

- increases and decreases in the valuation of the investments held at the year end; and

- unrealised exchange differences of a capital nature.

(g) Expenses

All expenses are accounted for on an accruals basis. Expenses are charged to the capital reserve where a connection with the maintenance or enhancement of the value of the investments can be demonstrated.

75% of the Company's management fee and financing costs are charged to the capital reserve in line with the Board's expected long-term split of returns between income and capital gains from the investment portfolio.

100% of any performance fee is charged to the capital account.

All other expenses are charged through the revenue account.

(h) Investment income

Interest income and distributions receivable are accounted for on an accruals basis. Interest income relates only to interest on bank balances. Bond income is accounted for on the effective interest rate ("EIR") basis.

(i) Foreign currency translation

The currency of the primary economic environment in which the Company operates (the functional currency) is Great British Pounds (GBP) which is also the presentational currency.

Transactions denominated in foreign currencies are translated into GBP at the rate of exchange ruling at the date of the transaction.

Monetary assets and liabilities, other than investments, denominated in foreign currencies at the reporting date are translated to the functional currency at the foreign exchange ruling at that date. Foreign exchange differences arising on translation are recognised in the Statement of Comprehensive Income. Foreign exchange differences relating to investments are taken to the capital reserve. Realised and unrealised foreign exchange differences on non-capital assets or liabilities are taken to the Statement of Comprehensive Income in the period in which they arise.

(j) Cash and cash equivalents

Cash and cash equivalents are defined as cash in hand, demand deposits and short term, highly liquid investments readily convertible to known amounts of cash and subject to an insignificant risk of changes in value. For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash, deposits at bank and money market deposits.

(k) Investments

All investments have been designated as financial assets at "fair value through profit or loss". Investments are initially recognised on the date of purchase at cost, being fair value of the consideration given. Subsequently, investments are measured at fair value, with unrealised gains and losses on investments recognised in the Statement of Comprehensive Income. Investments are derecognised on the date of sale. Gains and losses on the sale of investments will be taken to the Statement of Comprehensive Income in the period in which they arise. For investments actively traded in organised financial markets, fair value is determined by reference to Stock Exchange quoted market bid prices as at the close of business on the reporting date.

(l) Derivatives

Derivatives consist of forward exchange contracts which are stated at market value, with the resulting net realised and unrealised gains and losses being reflected in the Statement of Comprehensive Income.

(m) Trade date accounting

All "regular way" purchases and sales of financial assets are recognised on the "trade date", i.e. the date that the entity commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of the asset within the timeframe generally established by regulation or convention in the market place.

(n) Segmental reporting

During the year under review, the Audit Committee discussed the subject of Segmental Reporting, as defined under IFRS 8, with the Company's Administrator and the Company's Auditors. These discussions were reported back to the Board with the recommendation that that the Board reassess the segmental reporting disclosure as previously presented in the 2009 audited financial statements. This recommendation was approved by the Board and the Accounts have accordingly been prepared in the revised format. 

The Company retains two Investment Advisers, Unicorn Asset Management Limited and Premier Fund Managers Limited for the Smaller Companies Portfolio and Income Portfolio respectively. As the Board reviews the performance of each portfolio separately and decides on the allocation of resources based on this performance, the Board has determined that the Company has two reportable segments (2009: one).

The Board is charged with setting the Company's investment strategy in accordance with the Prospectus. They have delegated the day to day implementation of this strategy to its Investment Advisers but retain responsibility to ensure that adequate resources of the Company are directed in accordance with their decisions. The investment decisions of the Investment Advisers are reviewed on a regular basis to ensure compliance with the policies and legal responsibilities of the Board. The Investment Advisers have been given full authority to act on behalf of the Company, including the authority to purchase and sell securities and other investments on behalf of the Company and to carry out other actions as appropriate to give effect thereto. Whilst the Investment Advisers may make the investment decisions on a day to day basis regarding the allocation of funds to different investments, any changes to the investment strategy or major allocation decisions have to be approved by the Board, even though they may be proposed by the Investment Advisers. The Board therefore retains full responsibility as to the major allocation decisions made on an ongoing basis. The Investment Advisers will always act under the terms of the Prospectus which cannot be radically changed without the approval of the Board and the Shareholders.

The key measure of performance used by the Board to assess the Company's performance and to allocate resources is the total return on the Company's net asset value, as calculated under IFRS, and therefore no reconciliation is required between the measure of profit or loss used by the Board and that contained in the financial statements.

The schedule of principal investments held as at the period end are presented in the Investment Adviser's Report.

(o) Going concern

The Company has adequate financial resources and as a consequence, the directors believe the Company is well placed to manage its business risks successfully despite the current economic climate.

In accordance with the Company's articles of association, the shareholders are to vote on the continuation of the Company at the Annual General Meeting in August 2011. While the outcome of the vote is uncertain and may result in the winding up of the Company, the Board, after making enquiries, have a reasonable expectation that the Company has adequate resources to continue in existence for the foreseeable future. Accordingly, the directors have adopted the going concern basis in preparing the financial information.

2 OPERATING SEGMENTS

The Company has two reportable segments, being the Income Portfolio and the Smaller Companies Portfolio. Each of these portfolios is managed separately as they entail different investment objectives and strategies and contain investments in different products.

For each of the portfolios, the Board reviews internal management reports on a quarterly basis. The objectives and principal investment products of the respective reportable segments are as follows:

Segment Investment objectives and principal investments products

Income Portfolio To maximise income through investments in sterling denominated fixed interest securities including corporate bonds, preference and permanent interest bearing shares, convertibles, reverse convertibles, debentures and other similar securities.

Smaller Companies Portfolio To maximise income and capital growth through investments in UK equities with a market capitalisation of under £1 billion.

Information regarding the results of each reportable segment is included below. Performance is measured based on the increase in value of each portfolio, as included in the internal management reports that are reviewed by the Board.

Segment information is measured on the same basis as those used in the preparation of the Company's financial statements.

Geographical information

In presenting information on the basis of geographical segments, segment revenue and segment assets are based on the domicile countries of the investees and counterparties to derivative transactions.