The investment trust has seen new accounting rules change how it models future losses.
Alternative credit focused investment trust Honeycomb has announced its January NAV, which is up 0.66 per cent, the first time a debt fund has produced a monthly NAV under the new IFRS9 regulations.
The new IFRS 9 rules mean a one-off mark down - of 0.81 per cent in Honeycomb’s case – in changes to how such direct lending and P2P loan funds value loans at amortised cost.
As analysts at Numis Securities note, it is purely an accounting change that does not impact the fundamental cash flows and returns over the life of the loans but investors will be pleased to note the hit is below the 1 per cent Honeycomb’s investment manager Pollen Street Capital suggested last month.
Alongside the new NAV Honeycomb has also revealed highlighting that 65 pet cent of the portfolio is in Consumer loans, 31 per cent in Property and 4 per cent in SME loans, as shown in the graph below.
While it has previously revealed its largest holdings, the full asset mix or portfolio breakdown has not been known.