ACORN INCOME FUND LD - Update on FTSE Hedge

Acorn Income Fund Limited (the “Company”) 
 (a closed-ended investment company incorporated with limited liability under the laws of Guernsey with registered number 34778)

UPDATE ON FTSE HEDGE

27 August 2015

The Company’s half-yearly report stated that, with a view to providing some protection against a fall in the broader UK equity market, the Company had purchased a put option on the FTSE 100 Index at 7000 and sold a FTSE 100 put option at 6000. This put spread was put in place when the FTSE 100 Index was trading at around 7000 and was designed to enable the Company to retain exposure to the Smaller Companies Portfolio whilst neutralising some of the gearing that would impact on net asset value in a falling market.

Both option positions were closed on 25 August 2015, when the FTSE 100 Index was trading at around 6000 and the protective effect of the trade had therefore largely been secured. The net proceeds from the closing of the position were approximately £655,000 and the profit arising from the transaction was equivalent to approximately 1.7p per ordinary share.

Enquiries:
For further information about this announcement, please contact:

Premier Asset Management
Nigel Sidebottom                                            [phone]

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