Honeycomb Investment Trust delivered a NAV return of 0.64% in April, equivalent to 7.8% per annum.
Net investment assets increased in the month to £592mln, from £586mln at the end of March, as two full redemptions were redeployed into existing structured facilities.
Honeycomb, which specialises in loans to other non-bank lenders, added that the NAV return was driven by a risk-adjusted yield of 9% across its core sub-sectors.
The trust noted the macroeconomic risks and concerns in the market currently with the potential impact of inflation and the resulting squeeze on consumers and businesses the most immediate threat.
“We are watching the performance of the underlying assets very closely and we are seeing very consistent and good performance.
“We are also factoring in the impact of higher prices when underwriting and structuring new opportunities.“
A large diverse pool of financial and hard assets along with bespoke structuring it is well-positioned to perform through a more uncertain and volatile macro-environment, it added.
“In addition, the pipeline of opportunities remains strong with £400mln of well-progressed transactions and the broader European pipeline standing at over £1bn,” Honeycomb said in a statement.
Honeycomb also noted that higher inflation can also have a positive, de-risking effect if it translates to higher wages for consumers and higher asset prices that form part of its security.
At 930p, the shares stand at a discount to NAV (1,025.5p) of 9.3%.