Foreign Exchange Hedging

18 March 2020

SQN Asset Finance Income Fund Limited

Foreign Exchange Hedging

The Board of the Company has instructed the Investment Managers to close out the forward foreign exchange hedging used to hedge non Sterling exposures back to Sterling. The Investment Managers executed that instruction late yesterday.

In recent days, the Company has faced margin calls on its forward foreign exchange hedging as Sterling has weakened notably.

The Board is concerned to preserve liquidity in what is an extreme market and economic environment. Whilst no lessees or borrowers are yet exhibiting new stress as a result of the COVID-19 virus and the exceptional governmental measures being taken, some are operating in sectors and geographies that could be adversely impacted. Accordingly, the Board believes that it is in shareholders' best interests to seek to preserve liquidity and act promptly and prudently now in advance of any further adverse foreign exchange moves which could create liquidity pressures for the Company.

The Company's approximate non Sterling exposures are as follows:

Ordinary shares

US dollar 25.43%*

Euro 11.49%*

*of the last announced net asset value, being for 30th November 2019

C shares

US dollar 21.54%**

Euro 9.73%**

** of the last announced net asset value, being 31st January 2020.

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Notes to Editor

The Company invests in equipment lease and asset finance arrangements across a diverse portfolio of assets and industries predominantly in the UK, Northern Europe and US. The Company focuses on business-essential, revenue-producing (or cost saving) equipment and other assets with high in-place value and long economic life relative to the investment term.

The Company's Investment Managers are SQN Capital Management, LLC, a Registered Investment Advisor with the United States Securities and Exchange Commission and its subsidiary, SQN Capital Management (UK) Limited.