Acorn’s income share soars as board recommends trust wind-up

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Last month, the board reversed its decision to appoint BMO Global Asset Management and significantly changed the trust’s investment objective and policy.

In its last update on September 1, the Board of Directors stated that due to a number of factors, including the dual structure of the portfolio, the likely future decline in dividends, the historic discount to the NAV and size of the company, they “did not believe the company could continue in a viable manner. in its current form.”

The trust’s common stock was trading at a discount of 18.5%, but news of the board’s proposal pushed up the trust’s stock price, which rose 48p Thursday morning to 406p per share, according to Hargreaves Lansdown.

During the board’s last consultation with shareholders, the board saw that some approved the portfolio under Unicorn’s leadership, while others simply wanted to step down.

Unicorn confirmed its support for the proposal on Thursday.

Chris Hutchinson, director and senior fund manager at Unicorn, said the rollover option would “take advantage of the efficiencies in the sale of the equity component of the Acorn portfolio to investors looking to redeem themselves,” while protecting the interests of shareholders wishing to retain and grow. the value of their investment, by remaining invested ”.

Over the past three years, the Unicorn fund has returned 15.7% ahead of its benchmark, the FTSE All Share, which has returned 11.4%, according to FE fundinfo.

Unicorn has agreed to waive its management fees and entry fees for the Unicorn UK Income fund for a period of 12 months for Acorn shareholders who choose to transfer their investment.

The proposals remain subject to shareholder and regulatory approvals.

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