HONEYCOMB Investment Trust reported a “strong” third quarter, generating a net asset value (NAV) return of two per cent per share over the period, or eight per cent on an annualised basis.
The alternative finance-focused fund said on Monday that this brings the year-to-date return to 5.77 per cent and 31.08 per cent since inception.
“The underlying portfolio performance for the third quarter of 2019 remained stable with investment yield of 10.7 per cent, impairments and write-offs of 1.1 per cent and a risk-adjusted yield of 9.7 per cent,” Honeycomb said.
“The effect of expenses and leverage were modest, resulting in a NAV return of eight per cent.”
During the third quarter, Honeycomb secured a new £82m debt facility, which it said will reduce the cost of funds.
Looking ahead, the London-listed trust said that “the pipeline remains strong with several new opportunities with attractive risk adjusted returns”.
Honeycomb’s latest factsheet also revealed a NAV return of 0.66 per cent in September, which was flat on the previous month.
In August, it emerged that discussions over a possible £1bn merger between Honeycomb and another trust, P2P Global Investments (P2PGI), had ended to due fears over the combined company’s exposure to troubled fund manager Neil Woodford.
Woodford had sold off his stake in P2PGI before closing down two of his funds this month but still had a stake of around 25 per cent in Honeycomb.