LONDON (Alliance News) - Acorn Income Fund Ltd on Wednesday said its net asset value total return beat all three benchmarks during 2017 as smaller stocks in particular did well.
Acorn is split into two sub-portfolios: a smaller companies portfolio making up between 70% and 80% of its investments and an income portfolio focusing on fixed income securities, investment company shares, and structured investments.
Acorn's net asset value total return for 2017 was 19.6%. By contrast, the Numis Smaller Cos Index returned 19.5%, the FTSE All Share Index 13.1%, and the FTSE Small Cap 15.6%.
The smaller companies portfolio returned just under 25%, comfortably beating both smaller company benchmarks.
Its net asset value per share increased to 486.84 pence per share from 407.23p for 2016.
Acorn's total return to shareholders for 2017 was 18.00 pence per share, compared to 15.50p the year before.
It was a "positive year" for small and midcap UK equities, Acorn said, and its own performance was driven by continued strong trading from investee companies. During the year, the portfolio added ten new holdings and disposed of eleven, and took part in three initial public offerings.
Acorn's other portfolio said it was a "complacent" year for fixed income markets. The company said it is to adopt a more absolute return and will maintain a position away from bond index exposures, with more capital going towards alternative investments.
Acorn shares were up 0.4% Wednesday at 439.40 pence each.