AIF.L Regulatory News (AIF)

Edison Investment Research Limited / Key word(s): Study Edison issues review on Acorn Income Fund (AIF) 09-Jan-2017 / 11:20 GMT/BST

London, UK, 9 January 2017

Edison issues review on Acorn Income Fund (AIF)

Acorn Income Fund (AIF) aims to achieve a high income and potential for capital growth by investing 70-80% of its assets in a portfolio of well-financed UK smaller companies with attractive valuations and dividend growth, and 20-30% in high-yielding securities to add income and reduce capital risk. While long-term performance has been strong, the immediate aftermath of the UK's vote to leave the EU caused a decline in domestically focused small caps. Since the half-year (30 June), AIF's NAV has recovered well and now stands at an all-time high; in contrast, the share price is more than 7% below its 12-month high, suggesting scope for the wider-than-average discount to narrow. AIF gears its portfolio using zero-dividend preference shares (ZDPs); shareholders recently approved a proposal to extend the life of the ZDPs to February 2022 at an accrual rate of 3.85% pa.

At 5 January, AIF's ordinary shares traded at a 10.6% discount to cum-income NAV. This is wider than both short- and longer-term averages, although it is broadly in line with average discounts for pure UK smaller companies trusts. Given recent stronger NAV performance, a dividend yield of more than 4% and an attractive level of dividend growth (FY16 dividend up 12.7% on FY15), we believe there is scope for the discount to narrow to a level more in line with the fund's history.Click here to view the full report.

All reports published by Edison are available to download free of charge from its websitewww.edisoninvestmentresearch.com

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.

Contact details: Learn more at www.edisongroup.com and connect with Edison on:

Dissemination of a UK FINANCIAL NEWS, transmitted by EQS Group.The issuer is solely responsible for the content of this announcement.