The number of global takeovers plummeted in the final quarter of 2011 according to figures from Ernst & Young, with volumes falling by 14 per cent when compared with the third quarter. The figures were even more pronounced in western Europe, with volume and value falling by 18 and 22 per cent respectively.
However, in the three months since CF Acuim Multi Cap Income was launched, three of its stocks have been the subject of takeover speculation, while another of the fund’s holdings has attempted to make an acquisition of its own.
"The stocks of milk supplier Robert Wiseman hadn’t been trading that well, but it has been taken over by Muller," said Turner.
"Hardy Underwriting is in talks with a bidder. Greencore was also in talks but the interest eventually went away, with management blaming the poor economic situation."
"On the other side, one of the companies we own, packaging group DS Smith, bought its rival SCA for €1.6bn, which it is funding with a rights issue."
While Turner says this activity hasn’t had an inordinate impact on performance so far, he believes the fact that small caps have continued to experience takeover speculation during a difficult economic period supports the strategy and objectives of the fund.
"What we anticipated at launch was to be on track for dividend growth of 5 to 7 per cent and so far this is in line with expectations," he added.
"We targeted companies with high and growing dividends and believe small companies with strong balance sheets offer the best opportunities for this. We favour the nature of cash-generating companies that supply essential products and services so that their business is resilient in a slow-growth environment."
Performance of fund since launch vs sector
Source: FE Analytics
According to FE Analytics, CF Acuim Multi Cap Income, which Turner runs alongside Gervais Williams, has returned 3.54 per cent since its launch in October, only slightly underperforming its IMA UK Equity Income sector during this time.