15 Nov 2010 11:38
ACORN INCOME FUND LIMITED (the "Company")
Interim Management Statement for the period from 1 July 2010 to 12 November 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-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 2010 | 29 October 2010 | % change | |
Ordinary share NAV | 148.67p | 180.36 p | 21.31% |
Ordinary share mid price | 128.50p | 148.50 p | 15.56% |
Hoare Govett Smaller Companies Index (ex Investment Companies) - total return | 7704.15 | 9107.87 | 18.22% |
Material Events and Transactions
The Small Companies portfolio has grown significantly as the market has continued to recover as investors focussed on future growth prospects. The holdings in Castings and Consort Medical were increased during the period while a small amount of IMI was sold. The Income portfolio continues to generate an attractive yield whilst providing capital growth. Credit markets continue to tighten and further potential remains. A perceived risk to the portfolio is rising risk-free rates and therefore the portfolio has maintained its partial hedge against gilt weakness.
Issued share capital of the Company at 29 October 2010:
Ordinary Shares: 8,774,790
Treasury Shares: 165,000
Bank loan
The Company has a loan facility of £6m and as at 29 October 2010 a total of £4,350,000 is outstanding.
Dividends
The Company announced an interim dividend on 1 September 2010 of 1.5 pence per share, which was paid on 30 September 2010. A further interim dividend of 1.75 pence per share was announced on 2 November 2010 and is payable on 23 December 2010.
Largest holdings (% of Gross Assets) as at 29 October 2010
Smaller Companies Portfolio | |
Devro PLC | 5.82% |
Fenner PLC | 5.09% |
Diploma PLC | 4.83% |
Renishaw PLC | 4.60% |
James Halstead PLC | 4.34% |
RPC Group PLC | 4.18% |
IMI PLC | 3.91% |
Primary Health Properties | 3.10% |
Stobart Group Ltd | 3.05% |
Lookers PLC | 2.98% |
Income Portfolio | |
Short Exposure to the Long Dec 10 Gilt Future | 6.14% |
LBG Capital No.1 PLC | 1.77% |
ICAP Group Holdings PLC | 1.17% |
ING Bank NV | 1.10% |
Santander Issuances | 1.08% |
Aviva PLC | 1.07% |
HSBC Holdings PLC | 1.03% |
Barclays Bank PLC | 1.00% |
Greenwich Loan Income Fund Ltd | 0.91% |
JP Morgan Chase | 0.84% |
Cash | 5.73% |
The Board is not aware of any significant events or transactions which have occurred since 29 October 2010 which would have a material impact on the financial position of the Company.
For further information contact:
Premier Fund Managers Limited
Investment Adviser
Tel: 01483 306090
Anson Fund Managers Limited
Secretary
Tel: 01481 722260
15 November 2010
A copy of the document can be found at : http://www.anson-group.com/p3.pdf
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.
END OF ANNOUNCEMENT
E&OE - in transmission