The RAB European Dynamic fund is set to wind up at the beginning of next month after struggling to attract new investment.
In a letter to financial advisers, the firm said the £2.8 million fund had failed to recover from underperformance during 2008.
RAB Investment Funds said the fund was unlikely to attract any new inflows and was no longer commercially viable to run.
Meera Patel, senior analyst at Hargreaves Lansdown, said the fund, which is set to be wound up around 7 September, could see some tax money returned.
She said, ‘RAB has stated that as part of the winding-up process they might be able to reclaim some tax previously withheld by tax authorities.
‘There is no guarantee on the amount or timing of this, but if any sum is recovered only those holding units on the wind up date will be eligible.’
Patel said the firm had been unable to provide any other details of if or even how much money might be returned.
Current investors will have three options, sell the holding, switch into another fund or continue to hold the fund into the winding up process.