Honeycomb buzzing about ‘diverse’ investor base

Honeycomb has reported an influx of institutional investor interest in its investment trust which is helping maintain liquidity.

It comes as the alternative finance-focused fund reported a net asset value (NAV) return of 7.8 per cent for 2019, down slightly on the 8.4 per cent it posted in 2018.

“During the start of 2020, the composition of the share register changed materially,” Robert Sharpe, chairman of Honeycomb, said.

“A number of high quality new global institutional investors were welcomed onto the share register.

“This is an important strategic development for the company and has removed the ‘overhang’ associated with shareholders with liquidity pressure and places the company with a significantly more diverse shareholder base for 2020.”

Read more: Honeycomb puts new investments on pause amid coronavirus outbreak

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A monthly update for April 2020 showed Honeycomb delivered a NAV return of 0.42 per cent last month, up from 0.25 per cent in March.

It said forbearance requests and cash collections remain broadly in line with March and April as it focuses on supporting its existing portfolio during the coronavirus pandemic.

The fund also added that it is in a “strong position” after signing a £125m debt facility that refinances previous commitments.

It is currently trading at a discount to NAV  of 27.5 per cent.

Read more: Alternative finance-focused investment trusts facing ‘existential crisis’

Analysts at Numis said sentiment towards direct lending funds would remain “muted” until there is further clarity on how loan performance has been impacted during the pandemic.