Honeycomb NAV returns to 2019 high

HONEYCOMB investment trust posted a slight improvement in its net asset value (NAV) return last month, matching its previous highs for 2019.

The alternative finance-focused fund saw its NAV grow 0.67 per cent in July, up from 0.65 per cent in June and matching its return for March and April, which was the highest so far this year.

It takes its return so far in 2019 to 4.44 per cent, more than half that of its total of 8.43 per cent for the whole of 2018, while it has returned 29.71 per cent since inception.

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“The strong performance in month was driven by a combination of growth in investment assets, stable yields and good credit performance with low levels of impairments and write offs,” Honeycomb said.

“Investment assets increased to £602m in the month through completion of new deals and growth in existing facilities.

“The growth was funded through drawing on the existing debt facilities which are now £186m drawn giving a debt to equity ratio of 46 per cent.”

Honeycomb is currently trading on a premium to NAV of 8.2 per cent.

In contrast, similarly focused investment trusts such as P2P Global Investments and VPC Specialty Lending are on discounts of 12 per cent and 18.7 per cent respectively.

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