Honeycomb Investment Trust plc (LON:HONY) said its near-term pipeline of attractive opportunities has continued to strengthen and that it is seeing “increasing momentum” for investments with a sustainability agenda.
The investment company, which provides senior finance to non-bank lenders, reported a net asset value (NAV) return of 0.77% for the month of May, or 9.0% on an annualised basis, as NAV increased to GBP362.9m at the end of the month from GBP360.2mln in April.
Returns in the month were driven by a strong annualised credit asset return of 9.6%, manager Pollen Street Capital said in its monthly newsletter to investors, with the trend consistent across asset classes, particularly supported by strong performance in property-backed investment returns.
In June, the manager sold Honeycomb’s listed bond portfolio (including Amigo Holdings PLC), realising a small profit with the sales proceeds marginally exceeding the net book value of the portfolio.
The near-term pipeline of opportunities above its 5% ‘hurdle’ continues to be strong, Pollen Street said, with the current pipeline standing above GBP1.2bn split 37% to SME lending, 36% to property-backed and 27% to consumer.
Pollen Street highlighted that it is seen more near-term opportunities with a strong social and environmental impact ahead of the United Nations Climate Change Conference, also known as COP26.
“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,” the investment manager said.
“Pollen Street prides itself on its partnership approach; bringing expertise to deliver performance and accelerate ESG impact.”
It noted that its approach is set out in recent media articles in Investment Week and Global Banking and Finance Review.
Pollen Street Capital was recently shortlisted for ‘diversity and inclusion leader of the year 2021’ in the Private Equity Awards.
“This recognises our commitment to promote diversity and inclusion in our business and the wider industry, including our recent involvement in initiatives to accelerate female entrepreneurship,” the investment manager added.