The NAV of the SME Class Fund is equal to the subscription price and is updated at the end of each month. It is calculated on the valuation of the assets of the Fund and is published on the latest fund fact sheet available here or available on request.
MTNs will generally be priced at par unless their credit is impaired as the intention of the fund is to hold them till maturity.
Subscriptions can be made on the first business day of each month and are made at NAV. The minimum initial subscription amount per investor is £20,000. Subscriptions can only be made through an account with LGB Investments, Heritage Capital Management Limited in London or the IM investment platform. Subscriptions cannot be accepted from US persons.
Redemptions can be made on the last business day of each month. Notice periods may be required in cases of substantial investments. Investors requiring regular income can provide standing orders. Redemption requests up to 5% of NAV will be settled using the cash resources of the fund. The manager may satisfy redemption requests in excess of 5% of the NAV of the fund by:
- Utilising subscription payments by incoming investors in the fund.
- Selling holdings of the fund.
- Making in specie transfers to the investment accounts of redeeming investors.
The manager may delay redemption payments in respect of redemption requests in excess of 10% of the NAV of the fund until cash received by the fund from subscription payments, the sale of holdings and scheduled loan note receipts are sufficient to satisfy the redemption requests. Redemptions are made at NAV - ~1% in order to protect the remaining investors. The usual settlement for redemptions is T+5.
Fund Fees and Expenses
The fund does not charge an upfront fee. The management fee of 1% p.a. is split between the Investment Manager (0.3% p.a.) and the LGB acting as the Advisor (0.7% p.a.). LGB is currently waiving its portion of the management fee during the development phase of the fund. The management fee will be charged progressively but not retrospectively as the fund grows. There is a performance fee of 5.00% of any increase in the NAV above the previous highest level payable to the Advisor. The custodian fee is 0.06% p.a. subject to a minimum of £5,000. Administration expenses are 0.09% subject to a minimum of £9,000 p.a. The annual operating cost of LGB SME SPV Limited through which most of the holdings are held of £12,000.