Shareholders in Acorn Income have approved proposals allowing existing holdings to be rolled over into the Unicorn UK Income fund as the trust winds down.
The fund, run by Simon Moon (pictured left) and Fraser Mackersie (pictured right), was chosen by the board as a suitable rollover option at the end of a “competitive process” last month, despite it being an open-ended vehicle.
The pair managed Acorn Income’s smaller companies exposure, which accounted for 70-80% of total assets, and their £516m Unicorn UK Income fund shares two thirds of the same holdings as the trust.
The board decided the “voluntary liquidation” of the £67.7m trust was in the best interest of investors, weeks after it made an abrupt U-turn on bringing BMO Gam on board as manager. Global equities manager Sacha El Khoury had been slated to run Acorn Income, which was to abandon its UK smaller companies focus and be repositioned as a global sustainable income vehicle.
See also: Acorn Income board recommends ‘voluntary liquidation’ of trust
Shareholders who do not want to rollover into Unicorn UK Income will be able to withdraw their cash from Acorn Income at a price close to the prevailing NAV per share.
Chris Hutchinson, director and senior fund manager at Unicorn Asset Management, said: “The board’s recommendation is another strong endorsement of the Unicorn team, its resources, and most importantly, for the long-term value that we strive to deliver for all investors.
“Throughout the process we have sought to act in the best interest of shareholders and are pleased to offer investors the option to continue investing in a strategy closely aligned with that of Acorn Income.
“Unicorn has been the Investment Advisor for the equity portfolio of Acorn Income Fund since 2000, and we are delighted to be given the opportunity to continue to manage money on behalf of the long standing and supportive shareholders of Acorn.”
