NAV return was driven by risk adjusted returns on underlying credit assets of 9.03%.
Investment assets, consisting predominantly of senior lending to non-bank lenders secured on their underlying loan portfolios, remained relatively flat in the month, totalling GBP619.5mln at the end of August from GBP620.0m at end July.
The trust’s manager reported that the pipeline of European credit opportunities is currently around GBP850mln, “enabling a high degree of selectivity when progressing deals to execution”.
The pipeline includes a number of transactions expected to complete by the end of the quarter, it added.
Broker Liberum noted that this past month’s return brings the year-to-date NAV return to 5.9% and means the company remains on track to exceed NAV returns in recent years.
“We believe HONY is well-placed to deliver highly attractive income returns over the long term as a result of strong asset backing, prudent provisioning and strong origination capabilities. HONY’s emphasis on senior secured loans has helped to drive cash generation and maintain the company’s track record through the challenges of the last 18 months,” the broker said.
“In our view, the 4% discount to NAV presents an attractive entry point into this high quality specialist lending fund.”