Stocks and fixed income investor Acorn Income Fund declared a first-half dividend of 9.9p per share, up 10% on-year, and said uncertainty over Brexit had prompted it to invest in more defensive assets.

For the six months through June, the company posted a total return on gross assets of 0.19%.

That beat a 1.17% fall on the Numis Smaller Companies Index but was below a 1.69% gain on the FTSE All Share Index.

'There is little doubt that the uncertainties surrounding Brexit are impacting the market valuation of smaller companies with a domestic focus,' the company said.

'Risks of a 'no deal' Brexit appear to be gathering with little progress apparently being made in key areas of dispute.'

'This is a situation with which our investment advisers and your directors are increasingly uncomfortable.'

'Accordingly, post the period end, the board have agreed to alter the allocation between the two portfolios to take a more defensive position.'

Acorn said it was now targeting a split of 75% in the smaller companies portfolio and 25% in the fixed income portfolio, having had over 80% in smaller companies at 30 June.

Within the income portfolio, the focus would turn to investments that were less exposed to a 'no deal' Brexit scenario.



At 2:12pm: (LON:AIF) Acorn Income Fund Ltd share price was -3.5p at 427.5p