Why the sun hasn’t shone for SQN

Jon Rebak takes another look at SQN Asset Finance Income Fund to see how the fund has got on.

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A troubled solar-cell maker has cooled SQN's shares
(Image credit: This content is subject to copyright.)

Back in March, I highlighted SQN Asset Finance Income Fund (LSE: SQN) as part of a number of specialist income ideas. This fund leases equipment and other physical assets to a portfolio of companies, using the steady cash flows from this to pay monthly dividends. Its borrowers are well diversified across different sectors, but some individual investments are still a significant percentage of the total fund's value, meaning that a single defaulting borrower could have a noticeable impact on the fund's net asset value (NAV).

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Jon is an investment writer who worked for HSBC Asset Management from 1980 until 2015. During this time, Jon focused mainly on funds research and managing a series of multi-asset portfolios, for both retail and institutional clients. He holds a BA Honours degree in geography.