SME Credit Realisation Fund (SCRF), formerly known as the Funding Circle SME Income Fund, is to return £16m to shareholders through compulsory redemption of shares at 94.8p per share.
The rate is equivalent to the fund’s quarterly net asset value (NAV) of 30 September, which was up 0.78 per cent on total return basis from 30 June, meaning that 5.7 per cent of each registered shareholding will be redeemed.
SCRF also declared a quarterly dividend of 1.3125p, 5.25p on an annualised basis, payable on 22 November.
It is seeking to balance the timely return of cash with maximising the realisation value, by winding down the portfolio and ceasing new investment.
The fund is being wound down after an extraordinary general meeting of shareholders in Funding Circle’s dedicated investment trust backed a managed closure in June.
Speaking at the time, the board said it wanted to return capital to shareholders in a timely manner, while maximising the value it can get from the company’s investments.
The fund launched in 2015 but announced it was due to close in April after being hit by hedging fees and the impact of International Financial Reporting Standards (IFRS) requirements.