11th Apr 2019 12:21
LONDON (Alliance News) - Acorn Income Fund Ltd on Thursday said its net asset value declined in 2018 as a result of ongoing Brexit uncertainty.
The investment company said NAV per share declined by 21% to 384.61 pence in 2018 compared to 486.84p reported at the end of 2017.
Acorn's NAV total return in 2018 was negative 17%. In comparison, the total return on the FTSE All-Share Index and the Numis Smaller Companies ex Investment Cos Index was negative 9.5% and negative 15%, respectively.
"Whilst this was disappointing, the UK market in general and smaller companies in particular suffered under a difficult global macro backdrop and the ongoing uncertainty of a Brexit resolution," said Chair Helen Green.
Share price total return came in negative 24%, with the trust's shares trading at 334.00 pence on December 31, representing a 13% discount to NAV.
The stock was trading 1.0% lower on Thursday at 356.76p a share.
Acorn increased its dividend for the year by 10% to 19.80p compared to 18.00p paid a year earlier.
Looking ahead, Green said: "We have very strong belief and confidence in the long term attractions of our investment strategy and confidence in our investment advisers to steer our asset allocation and stock selection."
Related Shares:
AIF.L