Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
shutterstock_795017047
February 22 2019

Honeycomb NAV dips in January due to ‘seasonal rise in arrears’

Suzie Neuwirth Industry News, News alternative lending, Honeycomb Investment Trust, investment trust, NAV

HONEYCOMB Investment Trust reported a slight dip in net asset value (NAV) in January, which it attributed to “a seasonal increase in arrears”.

The London-listed fund, which invests in consumer, property and SME loans, posted a NAV return of 0.58 per cent last month under the new IFRS 9 accounting rules.

The new accountancy standards mean funds have to include potential losses in their portfolio.

“The company’s January return reflects the impact of an increase in IFRS 9 provisions related to organic portfolio due to a seasonal increase in arrears,” Honeycomb said.

“The performance of the structured and seasoned portfolios continues to be robust.”

Read more: Is there still life left in P2P investment trusts?

The fund’s NAV has been in decline for the past few months, falling from 0.67 per cent in October to 0.65 per cent in November and 0.6 per cent in December.

However, Honeycomb’s investment asset portfolio increased slightly during January from £603m to £608m.

“The company believes that consumer, property and SME loans are asset classes that have the potential to provide attractive returns for investors on a risk-adjusted basis,” it said.

“Changes in the focus of mainstream lenders together with the implementation of new models that utilise data, analytics and technology more effectively, provide an opportunity to deliver better products to borrowers while generating attractive returns for the company.”

In the previous month’s update, Honeycomb said that economic uncertainty had impacted returns.

However, it said that there are still “significant lending opportunities with attractive returns in the company’s chosen markets with the pipeline of new opportunities remaining strong”.

Read more: Honeycomb sees 13pc growth in assets in third quarter

By the end of January, Honeycomb was trading on a premium of 10.61 per cent to NAV.

Zopa: Workers would take pay cut for four-day week Landbay partners with MCI Club to target portfolio landlords

Related Posts

Calculator and binders with papers are waiting to be processed by business woman or bookkeeper back in blur. Internal Audit and tax concept

Industry News, News, Top 3

Business Loan Network appoints administrators

money UK

Industry News, News, Top 3

Lenders anticipate more small business defaults in second quarter

Andrea Rebusco

Industry News, News, Top 3

WiseAlpha hires chief commercial officer

Popular posts:

  • Metro Bank starts offering RateSetter loans in its branches
  • Assetz Capital launches new bridging product
  • Arrest made in Buy2Let Cars investigation
  • Business Loan Network appoints administrators
  • Funding Circle chief turns down £190,000 pay rise
  • Assetz Capital overhauls access accounts to boost liquidity
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by