LONDON (Alliance News) - Acorn Income Fund Ltd said Monday that its interim net asset value dipped, and saw a mixed performance compared to its benchmarks.
As at June 30, net asset value per share decreased by 2.5% to 474.53 pence from 486.84p as at the end of 2017.
Total return of 0.2% saw a mixed performance against its benchmarks, outperforming the Numis Smaller Companies Excluding Investment Companies Index's negative return of 1.2%, and the FTSE Small Cap Exclusive Investment Companies Index's total return of 0.1%. However, the FTSE All Share Index outperformed Acorn Income and reported a total return of 1.7%.
At the end of June, the share price rose by 1.7% to 471.50 pence from 463.50p at the end of December.
Shares in Acorn Income Fund were down 1.2% at 426.00 pence on Monday.
The fund declared a dividend of 9.90 pence per share for the six months to the end of June, up 10% from 9.00p for the same period the year before.
"There is little doubt that the uncertainties surrounding Brexit are impacting the market valuation of smaller companies with a domestic focus. Risks of a ‘no deal’ Brexit appear to be gathering with little progress apparently being made in key areas of dispute. This is a situation with which our investment advisers and your directors are increasingly uncomfortable," said Chairman Helen Green.
"Accordingly, post the period end, the board have agreed to alter the allocation between the two portfolios to take a more defensive position. Within the Income Portfolio the focus will be on investments that are less exposed to a ‘no deal’ Brexit scenario and the greater part of the money added to the Income Portfolio is likely to be directed towards alternative and defensive investments rather than conventional sterling bonds," Green added.
