Governance

Honeycomb Investment Trust plc has a highly experienced Board of Directors.

The Company’s investment objective is to provide shareholders with an attractive level of dividend income and capital growth through the acquisition of loans made to consumers and small businesses as well as other counterparties.

The Company may also invest in equity stakes in selected equity investments 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 have the potential to provide attractive 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 governance of the Company is the responsibility of the Directors who are also responsible for managing the business affairs of the Company in accordance with the Company’s Articles of Association and the investment policy and establishing appropriate corporate governance practices and policies which it believes are appropriate to an investment trust and to ensure the Company complies with the Association of Investment Companies’ Code of Corporate Governance.

The Directors also have overall responsibility for the Company’s activities, including its investments, and reviewing the performance of the Company’s portfolio.

The Directors may delegate certain functions to other parties such as the Investment Manager, the Administrator, the Company Secretary, the Depositary and the Registrar. In particular, the Directors have delegated responsibility for day-to-day management of the investments comprised in the Company’s portfolio to the Investment Manager. However, the Directors are responsible for reviewing the Investment Manager’s performance.

The Company has established an Audit Committee which is responsible for examining the effectiveness of the Company’s control systems and reviewing the half-yearly and annual reports. The principal duties of the audit committee will be to consider the appointment of external auditors, to discuss and agree with the external auditors the nature and scope of the audit, to keep under review the scope, results and cost effectiveness of the audit and the independence and objectivity of the auditor.

The Company has established a Management Engagement Committee which will meet formally at least once a year for the purpose of, amongst other things, reviewing the actions and judgments of the Investment Manager and also the terms of the Investment Management Agreement.

The Company has also established a Remuneration and Nominations Committee which will meet formally at least once a year for the purpose of, amongst other things, considering the framework and policy for the remuneration of the Directors pursuant to the Company’s Articles of Association and to review the structure, size and composition of the Board.

Terms of Reference:

Audit Committee Terms of Reference

Management Evaluation Committee Terms of Reference

Remuneration & Nomination Committee Terms of Reference

Board of Directors

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Investment Manager

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