Funding Circle SME Income Fund Ltd Net Asset Value and Dividend Declaration (8467A)

TIDMFCIF

RNS Number : 8467A

Funding Circle SME Income Fund Ltd

14 September 2018

Funding Circle SME Income Fund Limited Ordinary Shares (FCIF) - August 2018 monthly report

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES

*****

14 September 2018

Net Asset Value ("NAV") - Ordinary Shares (ISIN GG00BYYJCZ96)

At 31(st) August 2018, the NAV attributable to the Ordinary Shares of Funding Circle SME Income Fund Limited (the "Company") was GBP329.31m (31(st) July 2018: GBP328.88m). The NAV per Ordinary Share as at 31(st) August 2018 was 98.55 pence (31(st) July 2018: 98.42 pence).

The NAV total return in August 2018 was +0.1% (July 2018: +0.4%), reflecting an increased impairment charge attributable to two factors:

-- During August the gross assets of the Company increased following drawdown and deployment of the upsized Citi leverage facility and this resulted in an upfront impairment provision under IFRS9. However, the benefit of higher income and cash receipts from the enhanced leverage will be felt from September onwards.

-- Whilst the number of defaults from US loans in August was broadly in line with previous months (seven versus a 2018 average of six), the value of these defaulted loans was higher than the 2018 average. The Company has been advised that this outcome is well within normal month-to-month statistical variability and US credit performance as a whole remains in line with expectations.

The Company has published its monthly factsheet to the end of August 2018, containing information about the Company's financial position, performance and prospects, which is available at the Company's website at http://fcincomefund.com/documents/.

Dividend

The Company today declares a dividend of 1.312 pence per ordinary share payable on 31 October 2018 to shareholders on the register as at the close of business on 28 September 2018 (the record date) and the corresponding ex-dividend date will be 27 September 2018.

This is in line with the Company's guidance published on 29 June 2018 that it will pay a fully covered annual dividend of 5 to 6 pence per share for the twelve month period commencing 1 July 2018.

The Board has decided to offer shareholders a choice to receive dividends in cash or in shares via scrip dividend. Further details on the scrip dividend alternative will be sent to shareholders in due course.

CONTACTS

Richard Boleat, Chairman

[phone]

[e-mail]

Secretary and Administrator

Sanne Group (Guernsey) Limited

[e-mail]

[phone]

Media Contact

[e-mail]

PR Agency

TB Cardew

Tom Allison, Emma Crawshaw or Alycia MacAskill

[phone]

Corporate Broker

Numis Securities

Nathan Brown

[phone]

[e-mail]

Investor Relations

[e-mail]

Website

www.fcincomefund.com

The ISIN number of the Ordinary Shares is GG00BYYJCZ96, the SEDOL code is BYYJCZ9 and the TIDM is FCIF.

The LEI number of the Company is 549300ZQIYQVNIZGOW60.

*****

ABOUT FUNDING CIRCLE SME INCOME FUND

The Company is a registered closed-ended collective investment scheme registered pursuant to the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended and the Registered Collective Investment Scheme Rules 2015 issued by the Guernsey Financial Services Commission ("GFSC").

The Company's investment objective is to provide shareholders with a sustainable and attractive level of dividend income, primarily by way of investment in Credit Assets as defined in the Company's Prospectus.

*****

IMPORTANT NOTICES

This announcement contains "forward-looking" statements, beliefs or opinions. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the control of the Company and all of which are based on its directors' current beliefs and expectations about future events. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as "believes", "expects", "may", "will", "could", "should", "shall", "risk", "intends", "estimates", "aims", "plans", "predicts", "projects", "continues", "assumes", "positioned" or "anticipates" or the negative thereof, other variations thereon or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events, assumptions or intentions. These forward-looking statements include all matters that are not historical facts. Forward-looking statements may and often do differ materially from actual results. They appear in a number of places throughout this announcement and include statements regarding the intentions, beliefs or current expectations of the Board or the Company with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's business concerning, amongst other things, the financial performance, liquidity, prospects, growth and strategies of the Company. These forward-looking statements and other statements contained in this announcement regarding matters that are not historical facts involve predictions. No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing the Company. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed or implied in such forward-looking statements. The forward-looking statements contained in this announcement speak only as of the date of this announcement. Nothing in this announcement is, or should be relied on as, a promise or representation as to the future. The Company disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement to reflect any change in its expectations or any change in events, conditions or circumstances on which such statements are based unless required to do so by applicable law, the Prospectus Rules, the Listing Rules or the Disclosure Rules and Transparency Rules of the FCA. No statement in this announcement is intended as a forecast or profit estimate.

Neither this announcement nor any copy of it may be made or transmitted into the United States of America (including its territories or possessions, any state of the United States of America and the District of Columbia) (the "United States"), or distributed, directly or indirectly, in the United States or to US Persons (as such term is defined in Regulation S under the US Securities Act of 1933, as amended (the "Securities Act"). Neither this announcement nor any copy of it may be taken or transmitted directly or indirectly into Australia, Canada, Japan or South Africa or to any persons in any of those jurisdictions, except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of United States, Australian, Canadian, Japanese or South African securities laws. The distribution of this announcement in other jurisdictions may be restricted by law and persons into whose possession this announcement comes should inform themselves about, and observe, any such restrictions. This announcement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for securities in the United States, Australia, Canada, Japan or South Africa or in any jurisdiction to whom or in which such offer or solicitation is unlawful.

*****

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

MSCGGUWUBUPRGGC

(END) Dow Jones Newswires

September 14, 2018 07:06 ET (11:06 GMT)