Background and Investment Objective

Honeycomb Investment Trust plc (the "Company") is a specialist lending fund whose investment objective is to provide shareholders with an attractive level of dividend income and capital growth through the acquisition of interests in loans made to consumers and small business as well as other counterparties.

The Company may also make investments in selected equity securities that are aligned with the Company's strategy and that present opportunities to enhance the Company's returns from its investments.

The Company believes that consumer loans are an asset class that has the potential to provide active returns for investors on a risk- adjusted basis, and that changes in the focus of mainstream lenders together with the implementation of new models that make the best use of data, analytics and technology, provide an opportunity to deliver attractive products to borrowers while generating attractive returns for the Company.

The Company has entered into an origination agreement with Honeycomb Finance Limited (the "Origination Partner") whereby the Origination Partner has agreed to provide the Company with opportunities to acquire credit assets originated or acquired by it which meet the specified underwriting criteria of the Company. The Origination Partner has, in turn, entered into agreements with a number of referral partners in order to source such lending opportunities which include: a leading UK challenger bank; the UK's largest unsecured loan broker; and a UK retail point of sale finance broker.

The Company and the Investment Manager will also actively seek opportunities to acquire portfolios and to enter into further similar arrangements with other counterparties to deploy the Company's capital.

Investment Features

  • Investment team has a combined 100+ years credit underwriting and consumer lending experience.

  • 10% + targeted annual returns (after accrual for loan write-offs) on loan investments to the fund.

  • 8% targeted dividend on issue price when fully invested and leverage applied, payable quarterly.

  • 85%+ of net income distributed as dividend.

  • UK Investment Trust tax treatment.

Key Details

Net Assets (Cum Income)

£304.75m

Net Assets (Ex Income)

£300.32m

Monthly Total NAV Return

0.55%

YTD Total NAV Return

5.16%

ITD Total NAV Return*

13.16%

Debt to Equity

17.00%

Shares in Issue

29,926,110

Share Price

1,170p

Market Capitalisation

£350.14m

NAV per Share (Cum Income)

1,018p

NAV per Share (Ex Income)

1,004p

Premium / (Discount) to NAV (Cum Income)

14.89%

*ITD: Inception to Date - excludes IPO Issue Costs

Fund Facts

Type of Fund

Closed - Ended Fund

Listing

Specialist Fund Segment of the London Stock Exchange

Ticker

HONY

ISIN

GB00BYZV3G25

Inception Date

23 December 2015

Dividend

Quarterly

NAV Calculation

As of last day of each month

Management Fee

1%

Performance Fee*

10%

*subject to 5% preferred return hurdle and high watermark

Investment Manager's Commentary

Following the share issue in May, June delivered a strong performance with fully diluted NAV return per share of 0.55%. Each of the company's portfolios continues to perform well and the return was supported by the rapid deployment of the equity raised with a purchase of an unsecured personal loan book on 9 June followed by a portfolio of secured consumer loans in early July. This brings the total NAV return to 13.2% since inception.

On 21st June the Company increased the size of its debt facility to £80m, extended the term and brought in another European bank to the syndicate. The Company continues to have a strong pipeline of opportunities.

Performance and Dividend History

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

YTD

ITD*

Total NAV Return

2016

0.04%

0.13%

0.19%

0.92%

0.60%

0.79%

0.68%

0.70%

0.88%

0.89%

0.92%

0.94%

7.85%

7.83%

Total NAV Return

2017

0.69%

0.69%

0.78%

0.62%

1.80%

0.55%

-

-

-

-

-

-

5.16%

13.16%

Share Price Performance**

2016

1.50%

1.50%

1.50%

1.50%

1.50%

1.50%

1.50%

1.50%

1.50%

1.50%

1.50%

2.05%

2.05%

2.05%

Share Price Performance**

2017

6.05%

10.00%

10.50%

12.50%

11.50%

17.00%

-

-

-

-

-

-

17.00%

17.00%

Dividend Per Share (Pence) ***

2016

-

-

-

-

2.11

-

-

-

19.66

-

23.13

-

44.90

44.90

Dividend Per Share (Pence) ***

2017

-

-

23.50

-

24.50****

-

-

-

-

-

-

-

48.00

92.90

* ITD: Inception to Date - excludes IPO Issue Costs

** Based on IPO Issue Price of 1000p

*** Recognised in the month when marked ex-dividend

**** based upon the number of shares at the ex-dividend date

Important Disclosures

This newsletter is published in the United Kingdom by Honeycomb Investment Trust plc (the "Company"). It is provided for the purpose of information only, and if you are unsure of the suitability of this investment you should take independent advice. All data in this factsheet is at or to the final day of the calendar month identified in the heading of the factsheet's front page unless otherwise stated.

Net Asset Value performance is not linked to share price performance and shareholders may realise returns that are lower or higher in performance.

Past performance should not be seen as an indication of future performance. The value of investments and any income may fluctuate and investors may not get back the full amount invested. The views expressed are those of the Company's Investment Manager, Pollen Street Capital Limited, as at the time of writing. These are subject to change without notice and do not constitute investment advice. Although the Company and Pollen Street Capital Limited have used reasonable efforts to ensure the accuracy of the information contained in this newsletter, neither the Company nor Pollen Street Capital Limited make any warranties or representations with respect to the completeness or accuracy of the information set forth herein. Examples of investment process, risk management, due diligence, position sizes, diversification, leverage, assessment of risk and similar information (together, the "Investment Programme") are presented as general guidelines used for illustration purposes only and are subject to change without notice to investors at any time at the sole discretion of Pollen Street Capital Limited. In addition, the composition and size of, and risks associated with, current or future investments of the Company may differ substantially from examples set forth in this newsletter. Accordingly, actual implementation of the Investment Program may vary from the examples presented herein.

This newsletter may not be distributed or transmitted in any jurisdiction outside the United Kingdom where such distribution may lead to a breach of law or regulatory requirements, or transmitted, distributed or sent to or by any national, resident, or citizen of any nation other than the United Kingdom. The distribution of this document in certain jurisdictions may be restricted by law and therefore persons into whose possession this document comes should inform themselves about and observe any such restrictions. Any such distribution could result in a violation of the law of such jurisdiction.

Honeycomb Investment Trust plc

Registered in England and Wales number 09888024.

Registered office address: Veritas House, 125 Finsbury Pavement, London, United Kingdom, EC2A 1NQ.

Registered as an investment company in England under section 833 of the Companies Act 2006.

Website: www.honeycombplc.com

For enquiries please email ir@honeycombplc.com

Pollen Street Capital Limited

Registered in England and Wales number 08741640.

Registered office and trading address: 8 Hanover Street, London, United Kingdom, W1S 1YF.

Authorised and regulated by the Financial Conduct Authority (611337).

Website: www.pollencap.com

For enquiries please email enquiries@pollencap.com or telephone

+44 20 3728 6750.

Glossary

"NAV (Cum Income)" will include all income not yet moved to reserves (both revenue and capital income), less the value of (i) any dividends paid in respect of that income and (ii) any dividends in respect of that income which have been declared and marked ex dividend but not yet paid.

"NAV (Ex Income)" will be the NAV (Cum-Income) excluding net income (both revenue and capital income) that is yet to be transferred to reserves as described below. For this purpose net income will comprise all income not yet moved to reserves (both revenue and capital income), less the value of (i) any dividends paid in respect of that income and (ii) any dividends in respect of that income which have been declared and marked ex dividend but not yet paid.

Any income in respect of a financial year, which is intended to remain undistributed will be moved to reserves on the first business day of the immediately following year, meaning that each figure for NAV (Ex-Income) reported during a financial year will equate to the NAV (Cum-Income) less undistributed income which has not been moved to reserves.

"Share Price" closing mid-market share price at month end (excluding dividends reinvested).

"Premium / (Discount)" the amount by which the price per share of an investment trust is either higher (at a premium) or lower (at a discount) than the net asset value per share (cum income), expressed as a percentage of the net asset value per share.

"Net Assets" total assets minus any liabilities.

"Market Capitalisation" the closing mid-market share price multiplied by the number of shares outstanding at month end.

"Total NAV Return" is calculated as NAV (Cum Income) at the end of the period, plus dividends declared during the period, divided by NAV (Cum Income) calculated on a per share basis at the start of the period.

Service Providers

Investment Manager: Pollen Street Capital Limited Fund Administrator: Apex Fund Services (UK) Limited Corporate Broker: Liberum Capital Limited Depositary: INDOS Financial Limited

Statutory Auditor: PricewaterhouseCoopers LLP Registrar: Computershare Investor Services plc Company Secretary: Apex Fund Services (UK) Limited

Source: Pollen Street Capital Limited

CONFIDENTIAL TO RECEPIENT; NOT FOR REPRODUCTION OR REDISTRIBUTION. 3

Honeycomb Investment Trust plc published this content on 21 July 2017 and is solely responsible for the information contained herein.
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