Lenders that regularly communicate with their customers are getting better performance from their portfolio amid the pandemic, Honeycomb claims.
The alternative finance-focused investment trust said its portfolio has performed well in recent months with the majority of underlying loans now out of forbearance.
“Our partners have continued the strong performance that we have witnessed from the onset of the pandemic,” Honeycomb said in a monthly update for September.
“From that time, we have seen outperformance from those platforms whose business models rely on regular dialogue with their customers and who have close and on-going customer engagement to ensure they are prudently managing their portfolio and approach to new originations.
“The proximity to customers together with the agile deployment of digital capability to enhance that engagement has been extremely powerful and resulted in very robust performance across the board.”
The fund, managed by Pollen Street Capital, predicted that ongoing disruption brought about by Covid-19 would increase challenges for large incumbent lenders and create “compelling opportunities for the smaller, more nimble businesses.”
Honeycomb added that it is keeping a close watch on performance as tighter lockdown restrictions are introduced in the UK.
It also said a promotion from the specialist funds segment to becoming a premium listing on the London Stock Exchange last month would make its shares accessible to more investors.
The monthly report showed Honeycomb posted a net asset value return (NAV) of 0.28 per cent in September as it focused on renewing a debt facility and share buybacks.
It is currently trading at a discount to NAV of 7.6 per cent.