BALANCE sheet investments continue to make up the bulk of returns for the VPC Specialty Lending (VSL) investment trust.
The alternative finance-focused fund reported balance sheet investments made up 1.02 per cent of gross returns during May but after costs and slow performance in the rest of its portfolio, its net asset value (NAV) return for the month was 0.56 per cent.
This was down from 1.03 per cent during April.
The investment trust said it was fully invested, with 88 per cent in balance sheet lending and the rest in equity, marketplace lending and securitisations.
The majority of the fund is invested in the US at 73 per cent, with 14 per cent in Kenya, eight per cent in the UK and the rest across Europe and Mexico.
Its update also revealed that the fund repurchased 14,962,912 shares between 1 June and 27 June 2019, which it believes will boost its NAV by approximately 0.9 per cent.
The investment trust is currently trading on a discount to NAV of 20.3 per cent, which is the largest in the debt- direct lending sector.
In comparison, the Honeycomb investment trust is on a premium to NAV of 10.2 per cent, while P2P Global Investments and the Funding Circle SME Income Fund continue to battle discounts of 11.4 per cent and 10.1 per cent respectively.