Acorn Income Fund Ltd

Transcription

1 Acorn Fund Ltd Share : Ordinary Main Investment Country Investment Sector Speciality UK Smaller Companies & capital growth, investing primarily in smaller UK companies. Share price NAV Diluted Discount (-) / Gross assets Market cap. 21 May May 2004 NAV Premium (+) (million) (million) GBX * GBP USD Composite estimated last published on 30 Apr Ticker Portfolio Gross Average daily Debt Cover ISIN Market Launch Yield dividend yield turnover 000 Share gearing Sedol Makers AIF/LON GB Feb 1999 (prospective) Investment objectives Investment in equities, high yielding and fixed interest securities in order to achieve high income and the opportunity for income and capital growth. Approximately 75% of the portfolio is invested in smaller capitalised UK companies. To enhance income for investors, the fund will invest in a high income portfolio initially constituting about 25% of its assets. At the EGM held on 24/10/03 shareholders voted in favour of a change to the investment policy. The High Portfolio will now be invested solely in sterling denominated investment grade fixed interest bonds (rating not to be below A) and no longer in ordinary and income shares of Split Capital Investment Trusts nor lower grade fixed interest, sterling denominated debt and convertibles. Basic details Investment Management Investmt.Man. Collins Stewart Fund Management Ltd PO Box 8, 2nd Floor TSB House, Le Truchot, St Peter Port Guernsey, GY1 4AE Telephone +44 (1481) Fax number +44 (1481) Manager Andrew Duquemin +44 (1481) WWW Directors David Martin Bralsford (Chairman), John C Boothman, Shane Raymond Le Prevost, John Michael McKean Fees & Ratios Year-end 31 Dec Gross Assets (m) Net Assets (m) Expenses (m) Total Exp / GA 3.47% 4.41% 4.03% 4.21% Net Exp / NA 2.00% 2.89% 2.05% 2.36% Net Inc / NA 3.12% 7.53% 5.70% 4.35% Portfolio t/o Collins Stewart Fund Management Ltd act as the Manager, providing administration and secretarial services. Unicorn Asset Management Ltd and Collins Stewart Asset Management act as Investment Advisers. The Manager receives an aggregate annual fee payable quarterly in arrears, at the rate of 1% of the total assets of the Company. In addition, the Manager is eligible for a performance fee payable at the end of each year, provided that the total assets per share attributable to the ordinary shares grow at a rate in excess of 10% per annum (the benchmark) and a min total dividend of 8.5p is paid. If the conditions are met a fee of 15% of any excess of the net asset value per share over the benchmark, weighted for the average number of shares in issue, is payable to the Manager. The Manager is responsible for paying the fees of the Investments Advisers. The management agreement is terminable by either party on 12 months notice expiring at any time on or after the second anniversary of it coming into force. Collins Stewart (CI) Ltd act as Custodian for an annual fee of 0.05% of the total assets, together with a GBP40 per transaction settlement charge. Financial calendar Year end 31 Dec Last AGM 09 Jun 2003 Last Accounts 24 Mar 2004 Next AGM 09 Jun 2004 NAV published Monthly Dividends Quarterly Other information Launch date 11 Feb 1999 Domicile Guernsey Tax Domicile Guernsey Traded on London (LSE) Channel Islands Stock Exchange Registrar Collins Stewart (CI) Ltd Custodian Collins Stewart (CI) Ltd Inv. Relations Redemption 25 Apr years Fund Capital Initial Public Offering issued at 1.00 GBP and 10.6m net of expenses Capital Changes Date Note Oct 03 At the EGM held on 10/10/03 the Fund gained the authority to repurchase up to 4,440,000 of its Ords Sep 03 At the EGM to be held on 10/10/2003 the fund will seek the authority to repurchase up to 14.99% of its own Ords Jun 03 The fund announces that it has currently had no need to use its loan offset account Mar 03 Reduced first interim dividend declared of 1.5p per share Dec 00 Fund has placed 2,600,000 new 133.5p per share Sep 99 Issue of 15 million new ordinary shares of 25p each at 132.5p per share May 99 Fund intends to allot 1m new Ords of 25p each at 112p per share Capital structure as at 21 May 2004 Debt Redeems GBPm 28 May Oct Oct Sep Dec 2005 Equity Issued GBPm Ord Inc 25p 29,600, Total Assets/Debt ratio 2.4 Stated Gearing 169

2 Acorn Fund Ltd

3 Acorn Fund Ltd Portfolio summary Asset allocation (%) estimated on 21 May 2004, based on 31 Mar 2004 Quoted Equity 79 Unquoted Equity - FI (Government) - FI (Corporate) 13 Derivatives - Convertibles - Cash 6 Other Funds 2 Geographical allocation (%) estimated on 21 May 2004, based on 31 Mar 2004 UK 93.6 Cash & Fixed Interest 6.4 Sector allocation (%) estimated on 21 May 2004, based on 31 Mar 2004 Smaller Companies Debt - Corporate Net Current Assets Ordinary Shares Investment Funds Top shareholdings ( % portfolio) 31 Mar James Halstead 7.3 BSS Group Conversion Loan Stock 9% 7.2 Wellington Holdings 4.2 Robert Walters 6.0 Diploma 4.1 Pendragon 6.0 Abacus 4.1 Rotork 5.1 Alpha Airports 4.0 Dealing & Settlement Wind-up provisions At the 2006 AGM a special resolution will be proposed that the company ceases to continue as presently constituted. If the resolution is not passed then a similar resolution will be proposed at every 5th AGM thereafter. At the EGM held on 24/10/2003 the fund gained the authority to repurchase up to 14.99% of its own issued share capital for cancellation. A renewal of this authority is sought at the AGM to be held on 09/06/2004. Tax Situation Tax considerations in Guernsey Companies registered in Guernsey are eligible for exemption from taxation under the provisions of the Tax (Exempt Bodies) (Guernsey) Ordinance Under the provisions of the act, exemption is granted by the Guernsey Tax Authority on an annual basis, provided companies continue to comply with the requirements of the Ordinance and upon payment of an annual fee which is currently GBP600. No capital gains tax is applicable in Guernsey. Tax considerations in UK Funds may gain approval as investment trusts pursuant to Section 842 of the and Corporation Taxes Act 1988 (ICTA) provided that they are not closed companies, and the income of funds is mainly eligible investment income, provided that the funds do not retain more than 15% of the income in any accounting period. They will then be exempt from UK taxation on realised chargeable gains. Dividends received from other UK resident companies will constitute franked investment income. will be subject to UK corporation tax after relief for allowable expenses where it is not franked investment income or foreign income dividends received from UK resident companies. arising from overseas investment may be subject to withholding tax, and this may be reduced or eliminated via any double taxation treaties between the UK and the countries concerned. News 20 May 2004 Exeter Investment Group Plc -175,000 Ords to 2,855,000 (9.65%) 20 May 2004 Exeter Investment Group Plc -200,000 Ords to 2,655,000 (8.97%) 11 May ,100 Ords (0.19%) in Vp Plc; no longer hold a notifiable interest in the company 24 Mar 2004 Final results for the year ended 31/12/ Mar 2004 First interim dividend declared of 2p per share 03 Mar 2004 BFS Investments Plc +290,000 Ords to 3,669,263 (12.40%) 01 Mar 2004 Exeter Investment Group -75,000 Ords to 3,195,000 (10.79%) 17 Feb ,415,000 Ords in Eurodis Electron plc to 2,020,494 Ords 11 Feb ,707,500 Ords in Eurodis Electron plc to 5,435,494 (3.26%) 11 Feb 2004 Hold 5,435,494 Ords in Eurodis Electron plc

4 Acorn Fund Ltd DISCLAIMER The FactBook pages are compiled by Fundamental Data and have no regard to the particular needs of any specific recipient. All price information is indicative only. Nothing herein is to be construed as a solicitation or an offer to buy or sell any financial products. The FactBook pages are based on information obtained from sources believed to be reliable but are not guaranteed as being accurate, nor are they a complete statement of these securities. Fundamental Data accepts no liability whatsoever for any loss or damage of any kind arising out of the use of all or part of these FactBook pages.

5 Acorn Fund Ltd Ordinary FD Peer group ZDSUK SPO FD/AITC SCI O/I Comparative Indices FTSESCXIT FTSE SmallCap ex IT Performance as at 21 May 2004 Category YTD 1-Year 3-Year 5-Year NAV Capital return Fund $ ZDSUK SPO $ Total return Fund $ ZDSUK SPO $ Price Capital return Fund $ ZDSUK SPO $ Total return Fund $ ZDSUK SPO $ Index Capital return FTSE SmallCap ex IT $ Total return $ Risk & correlation 21 May 2004 NAV volatility (σ) Price volatility (σ) Alpha (NAV) (α) Beta (NAV) (β) Sharpe ratio (NAV) Treynor ratio (NAV) R-squared (NAV) Correlation coeff (NAV) Risk breakdown Total portf. risk (σ) Market risk Specific risk Index statistics (FTSE SmallCap ex IT) Volatility (σ) Treynor relative Discount statistics 21 May 2004 Low High Average Volatility(σ) Z Statistic Year on Year Performance NAV Total Return Fund Peer Group Comp Index YTD Since Sep Recent Dividend history Type Ex-dividend Pay date Net GBp Special 17 Mar Dec Oct Sep Jun Mar Dec Sep Jun Mar Dec Sep Mar Dec Oct Sep Jun Mar Dec Sep Jun Mar Dec Sep Directors believe that it will be of benefit to shareholders to have dividends paid regularly on predetermined dates. The directors therefore intend to pay dividends quarterly. In order to avoid delay, all dividends are expected to be interim dividends. In the absence of unforseen circumstances, three interim dividends of an equal amount will be paid in March, June, and September each year and a further interim dividend of a larger amount will be paid in December. Analytics Redemption Yields & Capital growth -2½% 0% 2½% 5% 7½% 10% All assets grown Terminal Gross Assets Terminal Assets / share Redemption Yield Only Equity grown Terminal Gross Assets Terminal Assets / share Redemption Yield Hurdle Rates Theor. Ratio Wipe out Share price Option Cheap / Equity All Equity All Value Dear