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Peer2Peer Finance News | September 23, 2019

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Honeycomb posts sweeter NAV for March

Honeycomb posts sweeter NAV for March
Marc Shoffman

THE HONEYCOMB Investment Trust posted an improved net asset value (NAV) return for March.

The alternative finance focused-fund recorded an NAV return of 0.72 per cent last month, under new IFRS 9 reporting standards – that take into account potential bad loans – up from 0.59 per cent during February.

It is the third month of reporting under the new accountancy rules.

Honeycomb’s March update showed its assets increased by £32m to £425m and said there was a pipeline of £750m of opportunities across its favoured consumer loans, small business and property sectors.

“The growth in assets was funded through drawdowns on debt facilities and the company finished the month with £127.3m of debt or 43 per cent debt-to-equity ratio and expects to continue to draw down on additional debt to fund new opportunities,” the update said.

The London Stock Exchange-listed investment trust is currently trading on a premium to NAV of 13.2 per cent.

Honeycomb provided a funding facility to alternative finance lender Sancus BMS Group in February.

The three-year funding line has a £50m accordion and revolving credit facility, meaning that Sancus BMS has the right to increase its line of credit with the lender.

Read more: Sancus draws first funding from Honeycomb credit facility