Acorn Income Fund - Dividend Announcement
PR Newswire
London, November 10
10 November 2020
Acorn Income Fund Limited
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)
For information please contact:
Northern Trust International Fund Administration Services (Guernsey) Limited
Company Secretary +44 (0) 1481 745498
Premier Miton Investments
Claire Long + 44 (0) 1483 400463
