Honeycomb Investment Trust has reported a £1.2bn pipeline of opportunities and noted “increasing momentum” for sustainable investments.
The alternative finance-focused trust posted a net asset value (NAV) return of 0.77 per cent in May, increasing its NAV to £362.9m.
It said that returns in the month were driven by a strong annualised credit asset return of 9.6 per cent, boosted by a strong performance in its property-backed investments.
Honeycomb also said that the sale of its listed bond portfolio – including Amigo Holdings – had resulted in a small profit, with the proceeds marginally exceeding the net book value of the portfolio.
“The pipeline of above-hurdle investment opportunities continues to be strong, with the current pipeline standing at £1.2bn plus,” Honeycomb said in the monthly update.
“The pipeline is well-diversified by asset class, with 37 per cent relating to small- and medium-sized enterprise lending, 36 per cent to property-backed and 27 per cent to consumer.”
Honeycomb’s performance has been heralded by analysts at Liberum, who said that the trust is “comfortably on track” to deliver another year of eight per cent-plus returns.
The London-listed trust also noted increasing interest in “the sustainability agenda” in the run-up to the 26th UN Climate Change Conference of the Parties later this year, and as economies look to grow coming out of Covid-19.
“We are excited to play our part in driving a positive social and environmental impact, including working with our partners to develop lending products that support financial inclusion and a positive environmental impact,” Honeycomb said.
“Some of our near-term opportunities comprise a strong impact agenda and we are excited to partner with businesses with a strong environmental and social focal point.”