Edison has issued a research update on Acorn Income Fund.

It says: "Acorn Income Fund (AIF) has come through a period of change with its impressive long-term record intact. The death of founding small-cap portfolio manager John McClure in June 2014 caused uncertainty and a widening in the discount, but co-managers Simon Moon and Fraser Mackersie at Unicorn Asset Management have provided continuity of management, and stock selection has driven outperformance and a re-rating in the shares.

"The fund blends the small-cap allocation with an income portfolio managed by Paul Smith at Premier Fund Managers, which helps boost income and reduce volatility.

"At 9 December AIF's shares were trading at a small 1.7% discount to NAV. Average discounts over one, three and five years of 8.3%, 4.3% and 8.1% respectively reflect a widening through the second half of 2014, culminating in a three-year high of c 18% in February 2015. Strong relative performance and a re-rating in smaller company shares following the UK election have seen AIF's discount narrow sharply to a level more familiar to longer-term investors, and any widening from current levels could be viewed as a buying opportunity. The board uses buybacks and issue at its discretion to manage the discount."


At 3:35pm: (LON:AIF) Acorn Income Fund Ltd share price was +0.5p at 388.5p