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Peer2Peer Finance News | September 23, 2019

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Honeycomb sees NAV sweetened by successful share placing

Honeycomb sees NAV sweetened by successful share placing
Marc Shoffman

HONEYCOMB investment trust saw its net asset value (NAV) boosted in May by an oversubscribed share placing.

The alternative finance-focused investment trust saw its NAV grow 1.8 per cent or 0.77 per cent after the boost from the extra funds is removed.

The return, up from 0.62 per cent in April, takes its year-to-date performance to 4.61 per cent and the fund is now sitting on a discount to NAV of 13.3 per cent with a dividend yield of 8.5 per cent.

It comes after the investment trust raised £105m through a placing of 10 million shares last month that will be used to capitalise on new business opportunities.

Read more: Honeycomb raises £105m in oversubscribed placing

“May was a strong performing month with a NAV return of 0.77 per cent before the impact of the capital raise in the month, or 1.80 per cent after as the benefit of issuance at a premium is recognised,” the investment company’s monthly update said.

“Performance was driven by a full month of new portfolio of consumer training loans purchased at the end of April along with strong underlying performance across the portfolio.

“The company concluded its third capital raise with £105m gross proceeds raised. These proceeds, as with previous capital raises, have been deployed rapidly with the acquisition of a portfolio of approximately £85m consumer loans, combined with the acquisition of a portfolio of consumer training loans signed in April.”

Honeycomb said it has a “strong pipeline of opportunities” and has seen a growing number of applications from its new referral relationship with the Green Deal Finance Company.

The results will be welcome news for the manager Pollen Street Capital as it seeks to show its strength following the announcement that it is is to take a controlling stake in MW Eaglewood, which manages P2P Global Investments. The deal will create one of Europe’s largest alternative finance-focused investment managers, with assets of around £2bn.

Read more: Honeycomb maintains slow and steady growth