Acorn Income Fund Ld Share Discussion Threads

[rogerrail] 19/5/2021 20:25

Are they targeting 3.5% of NAV? If so thats over 4.4% on current share price Still I would be sorry to see this go as it does provide some diversity to the run of the mill income investments with its focus on smaller companies, and IMO its a better investment than competitor SDV, but it seams we dont have the choice to maintain the status quo.

[rcturner2] 18/5/2021 19:26

Is that yield still correct though as is it not the historic yield?

[scillyfool] 18/5/2021 18:14

I’m not sure about everyone else here but I invest to make money not to pander to an Investment Trust Board’s perceived vision of the latest “wokery” trend.
Acorn currently yields c.6.25% and is on a discount of c.13% and I have no problem with the current management of Premier/Unicorn.
The only possible reasons to vote for a change of management are poor performance, investing in underperforming shares or poor returns.
Can the Board provide evidence of better performance in the proposed move to BMO?
If not, then they should consider winding up the Trust and returning the proceeds to us loyal investors and we will make our own minds up as to where to invest our money.

[chc15] 17/5/2021 23:39

Although 3.5 percent yield with capital growth sounds ok, but will it beat a global tracker fund, that is the question..

[chc15] 17/5/2021 08:52

Hmm, don't suppose we have a choice here, either we sell ourselves or stick. Rather it kept its UK focus, sounds a load of esg duff.

[skyship] 17/5/2021 08:39

Managers/Directors trying to continue their role rather than face the Discontinuation vote. If you like the new proposal perhaps better to vote it down then just buy a tracker ETF!

[rcturner2] 17/5/2021 08:19

I would rather see the Trust continue with the current holdings, which was one of the reasons that I hold here. The top ten holdings contain decent UK small caps and the NAV is currently growing well, I reckon +10% in the last 6 weeks alone.

Why do people always have to fiddle with things?

[skyship] 17/5/2021 07:21

A load of woke puffery - liquidation the best move...

[adrunkenmarcus] 10/5/2021 21:24

Yes, it will. I wouldn't mind the company being wound up and getting NAV for my shares rather than the current market price, but equally I'd be open to sensible proposals for future policy.

I quite like the idea of long term leverage and their focus on smaller caps. I don't like the expenses relative to the size of the company or various recent stock picking failures. I think it went off the boil after John McClure's untimely demise.

[2wild] 10/5/2021 21:16

NAV up 12.2% in last 2 months to 425.29p plus dividend. Brought today at 356p, a 16.3% discount to nav.

The Zeros redeem in February 2022, will be interesting to see what proposals are put forward.

[speedsgh] 10/5/2021 14:47

An interesting blog post. Worth a read...

All Change At Acorn Income Fund? -

[speedsgh] 21/4/2021 10:27

Fairly dour set of results, unsurprising in view of last year's events compounded by the trust's high level of gearing. An unfortunately-timed purchase of hedging (listed put option on the FTSE 100) after the horse had already bolted served to exacerbate matters but perhaps easy to say that now with the benefit of hindsight.

Looking forward it sounds nailed on that the dividend will be re-based and they are undertaking a strategic review with proposals to be put forward alongside the 5-yearly discontinuation vote at the AGM in August.

Annual Financial Report -

on the DIVIDEND...

"The Board has been pleased to see the recovery in earnings throughout the second half of the year, certainly reaching a level which was far from visible during the second quarter, and although our projections do show a recovery in the Company's revenues for 2021 and thereafter, the Board believe that it is likely that a return to a sustainable and covered dividend will necessitate a lower dividend payment in future years."

on the STRATEGIC REVIEW...

At the Annual General Meeting in August 2021, a discontinuation vote will be put to the shareholders and they will be asked to vote on whether they wish the Company to continue for a further five years. At the same time the Directors intend to put forward proposals, yet to be finalised, that may involve changes to investment policy, corporate structure, gearing and dividend yield. Shareholders will be able to consider whether they wish the Company to continue for a further five years in the light of these changes. In preparing these proposals the Board has been working with the Company's broker and has employed an external consultant to conduct a strategic review of the company.

This strategic review is predominantly focussing on the following areas:

• the investment management structure and investment objectives that will seek to address the discount, expand the investor base and facilitate the growth of the Company over the coming years;

• the appropriate level of sustainable yield;

• gearing level together with the resultant impact on income yield; and

• form of gearing, if any, (i.e. ZDPs and/or bank debt) that is most appropriate in the current market environment.

At this time the review is still in active progress and we will report to shareholders as soon as more detailed information is available. As a result of the review the AGM voting documents will be made available separately to this report and are not, as has historically been the Board's practice, included at the end of this report.

As a consequence of the strategic review, there will inevitably be material changes to the formal structure of the relationship with the Investment Advisers and Investment Manager. To this end, the Company has served protective notice to terminate the Investment Management Agreement which has the effect of initiating the notice period required under the Agreement. This action should not be interpreted as an indication that the current Investment Advisers will not be involved in the management of Acorn's portfolio post the conclusion of the strategic review.

[adrunkenmarcus] 17/4/2021 17:29

AIF's discount to NAV seems to be closing somewhat recently. It was 18% or so but has narrowed to around 11% when I last looked. Any thoughts on what happens if the company is ended? I assume we should, theoretically, get our capital returned to us at close to NAV.

[mister md] 09/4/2021 11:19

the shift into value stocks continues

[karmicpete] 09/4/2021 11:18

Buying in anticipation of the August vote perhaps?

[rcturner2] 08/4/2021 20:37

Moving up nicely here. Still a decent yield and good discount.

[tykethat] 13/3/2021 10:28

@keith95

I think I agree with you. I've held for a long time but all the terrific performance of years ago have long since been eaten up. And now along with the revenue reserve.

Never got over the death of their previous manager.

[keith95] 13/3/2021 09:52

If I still hold I will be voting to end the company ... trading well below NAV ....

Meanwhile .... no drop on ex divi date is always nice to see.

[speedsgh] 26/2/2021 12:01

Dividend cut on the way...

Dividend Announcement -

The Directors are pleased to declare a first interim dividend for the year ending 31 December 2021 of 5.75p per Ordinary Share which is in line with the corresponding dividend for the year ended 31 December 2020.

As previously announced at the time of the fourth interim dividend for the year ending 31 December 2020, the income from your Company's investment portfolio has inevitably been adversely hit by dividend cuts as our investee companies seek to manage their businesses in these extraordinary times.

It is the Directors' current intention to utilise revenue reserves to maintain the first and second quarterly dividend payments at the same level as the corresponding quarterly dividends for the year ending 31 December 2020. The Company currently has £1.954m of revenue reserves equivalent to 12.36 pence per share.

Although our projections do show a recovery in the Company’s revenues for 2021, the Directors believe that it is likely that a return to a sustainable and covered dividend will necessitate a lower dividend payment in future years. Noting the Company is scheduled to hold a discontinuation vote at the AGM in August this year, and that the ZDPs come to the end of their life in early 2022, the Directors aim to report to shareholders ahead of the AGM with an updated view on future dividend policy.

Ex-Dividend Date - 11 March 2021
Record Date - 12 March 2021
Payment Date - 31 March 2021
Dividend per Share - 5.75 pence per Ordinary Share (Sterling)

[oniabsta] 10/12/2020 21:08

expect a cut in the divi next year. Have already used up half of the reserves.
Domestic focused and a Brexit no deal all but assured. Have sold out for small profit.
No doubt it will take off now.

[chc15] 10/11/2020 13:31

Long term sufferer here on this, but good to see the divi, and not from capital!

[speedsgh] 10/11/2020 11:27

Dividend Announcement -

The Directors are pleased to declare a fourth interim dividend for the year ending 31 December 2020 of 5.75p per Ordinary Share which represents an increase of 10.58% compared to the corresponding dividend for the year ended 31 December 2019. With this distribution the total dividend for 2020 will be 23p per Ordinary Share, a 10.58% increase on the 20.8p distribution in 2019.

COVID-19 has led many UK companies to reduce or cancel dividend payments and this has impacted Acorn's earnings in 2020. The 23p per Ordinary Share distribution for the year will be achieved by drawing from the Company's revenue reserves. At 31 December 2019, Acorn had revenue reserves equal to 1.04 times the 2019 dividend. The Directors consider the current situation is one in which it is appropriate to draw on those reserves in order to maintain income levels for investors.

Acorn will not distribute from capital. Dividends will only be paid out of current period revenues and revenue reserves.

The recovery in the income flow from the Company's Smaller Companies portfolio is progressing well. Many of Acorn's investee companies initially adopted a cautious approach to the uncertainties that lay ahead and reduced or passed their dividends. These companies are now resuming dividend payments. A few have actually increased dividends above their 2019 level. There are nine investee companies in the portfolio that have not yet resumed dividends however our investment advisers for the Smaller Companies portfolio believe that most of these will make distributions in 2021.

The directors will monitor the level of income generated by the portfolio and this in turn will inform decisions on the appropriate dividend distribution for 2021.

Ex-Dividend Date: 3 December 2020
Record Date: 4 December 2020
Payment Date: 18 December 2020

Dividend per Share: 5.75 pence per Ordinary Share (Sterling)

[speedsgh] 04/11/2020 13:16

Latest Edison research note...

Looking ahead with cautious optimism -

[2wild] 24/10/2020 15:09

Got back in Friday at 257.7p, just below the 256-260 mid price, on a 14% discount to 300p NAV and 8.9% yield.