THE HONEYCOMB Investment Trust saw its net asset value (NAV) returns slow in May after hitting a new high the month before.
The alternative-finance focused fund posted a NAV return of 0.56 per cent, down from 1.36 per cent in April.
A stock market update from the listed fund on Thursday also revealed new accountancy reporting standards – meaning funds have to take account of potential losses in their portfolio – have had a 0.7 per cent impact on the NAV return since inception in January 2016, putting it at 20.46 per cent.
Honeycomb said May’s results were hit by carrying excess cash following the £100m capital raise in April, but says the money will soon be used.
“The pipeline remains strong with a number of new opportunities expected to close in June which will utilise the cash balances,” Honeycomb said.
“The company has committed debt facilities in place of £150m plus an ability to upsize with the expectation of increasing the debt to equity ratio towards the target.”
Honeycomb raised £100m through a share sale in April following an oversubscribed £105m fundraising in May 2017.
The investment trust is currently trading on a premium to NAV of 11 per cent.