Acorn Income share skyrockets as board recommends liquidation of trust

Follows BMO GAM reversal

Kathleen Gallagher
clock • 2 min read

The share price of the Acorn Income investment company has surged 12.4% following the board's recommendation to liquidate the trust, with shareholders having the option to move their holdings to the Unicorn UK Income fund, an open-ended vehicle, or receive cash.

Last month, the board reversed its decision to appoint BMO Global Asset Management and substantially change the trust's investment objective and policy. In its latest update on 1 September, the board said due to a number of factors including the dual portfolio structure, likely future cut in dividends, historic discount to NAV and size of the company, they "did not believe that the company can viably continue in its existing form". The trust's ordinary shares were trading on a discount of 18.5% but news of the board's proposal has boosted the trust's share price, which was up 48p on T...

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