HONEYCOMB Investment Trust has maintained its record net asset value (NAV) return for April.
The alternative-finance focused fund posted an NAV return of 0.67 per cent, a five-month high and level with its March performance.
The fund is now up eight per cent annually and has returned 27.67 per cent since inception in January 2016.
Almost half of the fund is currently invested in consumer loans with the rest consisting of equity investments and property.
“The pipeline remains strong and the investment manager remains highly selective in the opportunities it pursues,” a stock market update from Honeycomb said.
Its positive performance is in stark contrast to the struggles at other investment trusts in the specialist debt sector, with Ranger Direct Lending closing its fund due to poor performance and litigation issues, while P2P Global Investments is slowly restoring its NAV returns.
Honeycomb is currently on a premium to NAV of 12.4 per cent, which is the highest in the specialist debt sector, while its rivals are predominantly on discounts that they are trying to reduce.
It comes as trade body the Association of Investment Companies said it has decided to separate the Sector Specialist: Debt category into three sub-segments. From 28 May, there will be three specialist debt categories: Debt – Direct Lending, Debt – Loans & Bonds and Debt – Structured Finance.
This means funds such as P2P Global Investments, VPC Specialty Lending, the Funding Circle SME Income Fund and the Honeycomb Investment trust will move into the direct lending sector.