AIF.L Regulatory News (AIF)

London, UK, 24 January 2020

Edison issues review on Acorn Income Fund (AIF)

Acorn Income Fund (AIF) saw a significant bounce back in performance during 2019, boosted by greater clarity on Brexit following December's general election. In what was also a good year for the operational performance of companies in AIF's small-cap portfolio (c 77% of assets), the fund ended the year with an NAV total return of 27.4%. This was ahead of the benchmark and more than made up for losses in 2018, meaning the fund has also regained its medium- and longer-term record of outperformance. While the smaller companies managers (Simon Moon and Fraser Mackersie at Unicorn Asset Management) are very positive on the prospects for both capital and income in the year ahead, the income portfolio managers (Chun Lee and Robin Willis at Premier Miton) are less sanguine, and remain focused on absolute returns as a result.

At 23 January 2020, AIF's ordinary shares were trading at a 12.5% discount to cum-income NAV. While this was in line with the one-year average discount, it is well above longer-term averages (c 7-9%), suggesting significant potential to narrow. Meanwhile, the 5.0% dividend yield is significantly higher than the 1.5% average for UK smaller company investment trusts.

Click here to view the full report.

Subscribe to Edison's content to receive reports by email.

All reports published by Edison are free-to-access and available on the website.

About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact Edison:

Sarah Godfrey, +44 (0)20 3681 2519

Mel Jenner, +44 (0)20 3077 5720

investmenttrusts@edisongroup.com

Learn more at Edisongroup.com and connect with Edison on:

LinkedIn https://www.linkedin.com/company/edison-group- 

Twitter www.twitter.com/Edison_Inv_Res 

YouTube www.youtube.com/edisonitv