HONEYCOMB Investment Trust saw its net asset value (NAV) grow by 0.65 per cent in July, raising its year-to-date returns to 5.81 per cent.
This represents a return to form for the trust, which saw its NAV drop from 1.8 per cent in May to 0.55 per cent in June following May’s oversubscribed share issue.
However, in its latest investor update on Monday, the investment trust revealed that May’s NAV return excluding the effect of the capital raise and issuance at a premium would have come in at 0.77 per cent.
The trust also saw its market capitalisation rise to £359.86m by the end of July, up from £350.14m in June. Net assets (cum-income) stood at £306.72m for the month, while net assets (ex-income) increased slightly to £300.25m.
Investment manager Pollen Street Capital said that the trust’s good performance was down to the acquisitions of two new portfolios in July, as well as higher levels of organic origination and new lending in the wholesale channel.
“The returns generated by the company’s investment assets continued their strong performance,” the investment company’s monthly update said. “At the end of the period, total investment assets stood at £319.9m, an increase of £19.7m since last month, with the share issue proceeds now fully invested (albeit for part of the month).
“Growth has been driven across all routes to market with two portfolios purchased in the month, higher levels of organic origination and new lending in the wholesale channel. Gross yields remain strong and impairments is performing in line with expectations.”
The company’s total NAV return since inception now stands at 13.83 per cent, while the share price performance is 20.25 per cent.
Earlier this year, Honeycomb’s investment manager Pollen Street Capital agreed to take a controlling stake in MW Eaglewood, creating one of Europe’s largest alternative finance-focused investment managers, with assets of around £2bn. MW Eaglewood’s existing clients include rival investment fund P2P Global Investments (P2PGI).