THE HONEYCOMB Investment Trust saw its net asset value returns (NAV) improve in August, backed by “strong origination” across all its portfolio sectors.
The alternative finance-focused investment trust posted a total NAV return of 0.67 per cent last month, up from 0.63 per cent in July.
This takes its NAV performance since inception to 22.43 per cent and 5.82 per cent so far this year.
“The company’s gross investment assets increased to £545m in the month, an increase of £17m on July driven by continued strong originations across all three sectors of consumer, property and small-and medium-sized enterprises (SMEs),” a Honeycomb update said on Friday.
“Growth in investment assets has been funded through an increase in debt drawings to a 34 per cent debt equity ratio or £135m.”
Read more: Honeycomb NAV keeps improving
It comes as Honeycomb plans to boost its SME exposure, after revealing last month that it saw an “attractive opportunity” in this area.
Honeycomb’s half-year report showed the majority of the portfolio, 60 per cent, is in consumer loans, with 33 per cent invested in property and seven per cent in credit to SMEs.
The investment trust is currently trading on a premium to NAV of 12.2 per cent, which is up from 10 per cent last month.