By Daniel Lanyon on 16th November 2018
The closed-ended portfolios, also known as investment trusts, both operate across the non-bank lending, private debt and alternative credit markets.
The £451m Honeycomb Investment Trust and the £332m VPC Specialty Lending Investments have declared dividends for the third quarter of 2018, showing the two investment trusts, both focused towards illiquid credit assets.
Honeycomb, which is managed by Pollen Street Capital has declared an interim dividend of 20p for the three-month period to 30 September 2018 while VPC Specialty Lending, managed by Victory Park Capital declared a 2p dividend for the same period.
These numbers, both consistent with their target income payouts put Honeycomb on 7.1 per cent dividend yield and VPC on a 9.8 per cent although in both cases it is important to remember this is backward looking and does not indicate future income potential necessarily.
Closed ended funds listed on the London Stock Exchange, also known as investment trusts, that are focused on this area of lending have expanded in number over the past three or four years. While some have encountered difficulties, most notably Ranger Direct Lending which is now in the process of winding up, Honeycomb has been a veruy consistent performer. VPC has seen its own protracted challenges but it now appears a turn-around in strategy is nearing completion with its discount to Net Asset Value at 11 per cent, compared to nearly 30 per cent at its widest.
Now in its sixth year, the AltFi London Summit returns on 18th March 2019 to 155 Bishopsgate. Last year proved to be a crucial turning point for the key players building the future of finance. Leading platforms launched oversubscribed IPOs, digital banks proliferated and mainstream financial institutions started their own disruptive propositions. With 2019 certain to be another landmark year, more questions will be asked by regulators with investor interest in disruption also poised for more rapid growth.