HONEYCOMB Investment Trust’s monthly net asset value (NAV) returned to a 2019 high this year thanks to a “strong” performance in October.
The alternative finance focused fund posted an October NAV of 0.67 per cent – matching its July reading which was a 2019 high – taking its year-to-date performance to 6.44 per cent.
It has now returned 31.7 per cent since inception in January 2016.
“Honeycomb had another strong month in October generating a 8.1 per cent NAV return per share on an annualised basis, which is 0.67 per cent for the month,” the fund said in a stock market update.
“The strong performance in the month was driven by stable returns on the portfolio as well as a new structured facility that was signed in October, increasing investment assets by £7m.
“The pipeline of new deals remains strong.”
The investment trust is currently trading on a discount to NAV of 3.4 per cent.
This is just below the average discount for the debt-direct lending sector of 5.1 per cent.
Its dividend yield of 8.2 per cent is among the highest in the sector.
VPC Specialty Investments has the highest yield at 10.2 per cent but is on a discount to NAV of 15.8 per cent.
Hadrian’s Wall Secured Investments has the sector’s highest discount at 36.7 percent and a dividend yield of 10.1 per cent, followed by RDL Realisation which is in the process of closing and has a discount of 11.9 per cent and yield of 8.5 per cent.
Read more: Honeycomb reports strong quarter