Honeycomb Investment Trust expects to return the value of its portfolio to £600m in the coming months, having fallen to a new low amid the pandemic.
The alternative finance-focused fund said its investment portfolio hit a low of £509m in August, as it cut back on new investments and focused on existing commitments getting repaid.
It collected £153m of cash in the six months to October 2020 compared with £141 in the same period of 2019.
“The strong level of cash collection along with the low levels of new investments during the Covid period has meant that the investment portfolio has repaid down from £595m in February 2020 to a low £509m in August,” Honeycomb said in a stock market update.
“This increased to £553m in October through drawdowns under existing investments and the completion of three new investments.
“The pipeline of new opportunities is looking strong and the company expects the investment assets to build back towards the £600m level over the coming months.”
Honeycomb reported its net asset value (NAV) return for October was 0.58 per cent, up from 0.28 per cent in September.
The investment trust is currently trading at a discount to NAV of six per cent.