Contents

1. Overview for the week
2. Frostrow investor Events
3. Investment Themes
4. Sector data for the week

1. Overview for the week

The wasps have been out in force in the UK summer heat - aggressive and unpredictable with a sudden painful sting, a bit like markets so far this year. We started the week with the news from Trump that imports from Mexico and the EU will be hit by 30% tariffs from start of August. Most markets were off but not the UK given its 10% tariff agreed and a Royal visit in the diary for September to keep Mr Trump sweet. He then announced that Putin is on the naughty step thanks to Melania and he will be imposing very powerful secondary tariffs in 50 days if he doesn’t start to play ball. Secondary tariffs could be painful not just for Russia of course but those that trade with Russia including China (growing at 5.2% according to Q2 data) and India. We note US 30-year Treasury yield has landed on or around 5% this week also as US inflation hit 2.7% (up from 2.4%). The US market (S&P and NASDAQ) is closing at record highs this week.

In the UK, a review of the press this week would lead you to see the word “stagflation” a number of times. The number of people looking for a job has risen and the number of job vacancies has fallen to 736k over the three months to end May, the lowest level since Covid. It seems that Rachel Reeves' decision to raise NICs for employers is making the jobs market tougher and Andrew Bailey at the BoE is suggesting that the path for interest rates is downward despite inflation being above target and rising, this week hitting an unexpectedly high 3.6% in the year to June. Meanwhile the FTSE 100 Index briefly touched 9,000 points and is up circa 10% YTD. We saw positive regulatory news from the FCA this week having confirmed changes to lower costs for companies including lifting the threshold for when a prospectus is required for a listed company to raise more shares has increased to 75% of existing share capital, up from its current 20% level. We understand it will be 100% for investment companies. All positive newsflow for when investors decide that the UK is investable – we are clearly not there yet – 496 total LSE corporate announcements on Thursday this week for example, and 174 were in regard to share buybacks – that’s 35% of all corporate announcements relating to a share capital contraction. There are not 35% of issuance announcements I can assure you. Crypto currency is worth more than our UK equity market now. That may not move her to tears this week, but I am welling up.

We also note the news that LTAFs are being allowed into ISAs from the next tax year also. (If you recall the UK Long Term Asset Fund (LTAF) was introduced by the FCA in October 2021 to enable investments via an open-ended fund in long-term, illiquid assets such as private credit, venture capital, private equity, real estate, and infrastructure). We applaud the idea to get retail investing in stocks and shares generally in order to protect and enhance real returns for investors over time. We do find it odd though that the Chancellor did not do anything to promote the 150+ year old investment trust industry with a far more sensible closed ended structure for investing in less liquid asset classes, existing diversified portfolios, independent boards, and all at a 13% average discount to asset value. I fully admit I may be conflicted here, but I think I know where I would start to invest for that type of exposure and it is not via LTAFs. The canny professional with freedom to make their own investment decisions away from committees will note this and will be buying up cheap investment trust shares in these areas now, well ahead of the planned Government advertising to try to convince retail to change their mindset in regard to risk and reward. At the risk of sounding like a broken record, do not be short of investment trusts.

Custodian Property Income and Foresight Solar Fund announce more capital allocated for share buybacks with elsewhere more asset disposals largely to reduce debt and results out this week from a number of funds. The battle for Assura continues with Bidco (controlled by KKR) and PHP trying to get their bids across the line. Average sector discounts continued their path to grinding tighter.

2. Frostrow Events

Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £158.2m mkt capn, 41.4% discount to NAV): Please contact Frostrow for interest in seeing Tim Levene in London and the regions in 2025. The AUGM Capital Markets Day will take place on Wednesday 2 July 2025 at Searcy’s at The Gherkin, between approx. 8:30am and 1:30pm. Contact Frostrow to attend. The latest Frostrow webinar from our London seminar in May 2025 is available to see on You Tube here.

https://www.youtube.com/watch?v=HsulTfN_o1A

The IMC webinar from 1 July 2025 is available here:

AUGMENTUM FINTECH PLC - Annual results for the year ended 31 March 2025 on 1 July 2025 | Investor Meet Company

Aurora UK Alpha (ARR LN, UK All Companies, £281.8m mkt capn, 10.3% discount to NAV): the Phoenix investment team are available for meetings with investors in 2025. The last webinar was recorded on 14 July 2025 and is available to watch here:

https://www.youtube.com/watch?v=0hl0yNZgRlM

Kartik Kumar gives his updated thoughts at the time of our London investor seminar in May 2025 here:

https://www.youtube.com/watch?v=ZZGGM5Aw5sw

And via UK Investor Magazine also (May 2025):

Aurora UK Alpha Investment Presentation May 2025 - UK Investor Magazine

Biotech Growth Trust (BIOG LN, Biotechnology & Healthcare, £203.5m mkt cap, 7.1% discount to NAV): the latest webinar took place at 3pm UK on Tuesday 25 February 2025. You can hear the recording on the following link:

https://www.youtube.com/watch?v=wxOUIC0oT5s

Geoff Hsu gives further thoughts at the time of the Frostrow London investor event here:

https://www.youtube.com/watch?v=VjloEBj9O1I

The AGM recording, including presentation from portfolio manager Geoff Hsu, from 17 July 2025 should be available shortly also.

CC Japan Income & Growth Trust (CCJI LN, Japan, £261.4m mkt capn, 8.9% discount to NAV): please contact Frostrow Capital in order to arrange a meeting with management in 2025. In addition, the last webinar was recorded on 22 January 2025 and is available on the following link:

https://www.youtube.com/watch?v=MmbViKRnsdA

In addition, we highlight the most up-to-date thoughts from management at the time of our London investor seminar in May 2025 here:

https://www.youtube.com/watch?v=VcVErs9OUN8

CCJI management conducted a webinar on 17 June 2025 via Investor Meet Company, recording available here:

https://www.youtube.com/watch?v=7X_p5A3SXT8

CQS Natural Resources Growth & Income (CYN LN, Commodities & Natural Resources, £130.2m mkt capn, 6.1% discount to NAV): please contact Frostrow to arrange a one-on-one meeting with management in 2025. The managers presented on the investment opportunity on 10 June 2025, so please have a look if you were not able to make it:

https://www.youtube.com/watch?v=wJtWKAesmOI

Custodian Property Income REIT (CREI LN, Property UK Commercial, £377.0m mkt capn, 18.9% discount to NAV): Richard Shepherd-Cross, lead manager, available for meetings in 2025 (physical throughout UK, or zoom, as per preference). Richard also gives his most updated thoughts at the time of the Frostrow London investor event in May 2025 here:

https://www.youtube.com/watch?v=XOQA7R2yBKk

Ecofin Global Utilities & Infrastructure (EGL LN, Infrastructure Securities, £230.6m mkt capn, 9.9% discount to NAV) : Jean-Hugues de laMaze, lead manager of the Trust presented at a webinar with Frostrow on Wednesday 23 April 2025. The link to the recording is available on the link below:

https://www.youtube.com/watch?v=lVkYbR67ecE

Jean-Hugues also presented via IMC on 10 July 2025, with the presentation link below:

https://www.investormeetcompany.com/companies/ecofin-global-utilities-and-infrastructure-trust-plc

Finsbury Growth & Income Trust (FGT LN, UK Equity Income, £1,301.7m mkt capn, 8.4% discount to NAV): Nick Train’s AGM presentation (January 2025) was recorded and is available to view on the Frostrow You Tube page. Click the link here to see it, it is worth a view:

https://www.youtube.com/watch?v=yE9HV__Iwlc

We also highlight our most recent recording of Nick’s presentation following our London investor event:

https://www.youtube.com/watch?v=HeiFCPd5zS8

MIGO Opportunities Trust (MIGO LN, Flexible Investment, £70.0m mkt capn, 3.9% discount to NAV): Following on from the HY results release, Nick Greenwood and Charlotte Cuthbertson presented on a webinar at 11am on 24 January 2025. This one stop shop is a great way to play the discounts on offer generally in the listed fund sector. The recording can be accessed on Frostrow’s You Tube page here:

https://www.youtube.com/watch?v=XuSoFuNKSXk

To watch the most recent update which took place on Monday 23 June 2025, please see below for the link:

https://www.youtube.com/watch?v=1BT7aH0da04

Mobius Investment Trust (MMIT LN, Global Emerging Markets, £161.0m mkt capn, 5.9% discount to NAV): Carlos Hardenberg, lead manager, presented at a webinar from his trip to Taiwan in April 2025. Please see below the link to the recording:

https://www.youtube.com/watch?v=sMBNxj6ZD-o

In addition, Carlos gives his thoughts at the time of the Frostrow London investor event in May 2025 here:

https://www.youtube.com/watch?v=E4GIjtAelhc

Carlos also presented via Investor Meet Company on 24 June 2025, see below for the link to the recording:

https://www.investormeetcompany.com/meetings/investor-presentation-845

Temple Bar Investment Trust (TMPL LN, UK Equity Income, £927.8m mkt capn, 1.8% discount to NAV): Ian Lance and Nick Purves presented on the trust at a webinar on 18 March 2025. Please do click on the link below to see the recording as well as the link to ‘reflections on current market volatility’ or to hear the Chairman, Richard Wyatt, or to see the recent AGM update.

https://www.youtube.com/watch?v=wkaifQndXaQ

https://www.templebarinvestments.co.uk/media/insights/reflections-current-market-volatility/

https://www.investormeetcompany.com/updates/an-update-from-the-chairman/show

https://www.youtube.com/watch?v=AcVspDPT3-c

The Managers presented an update on 12 June 2025, click on the link below to watch if you were not able to make it:

https://www.youtube.com/embed/M37EYIh-VCM?rel=o

Read the quarterly Temple Bar IT newsletter here:

https://www.investormeetcompany.com/temple-bar-investment-trust-plc/register-investor

Worldwide Healthcare Trust (WWH LN, Biotechnology & Healthcare, £1,425.2m mkt capn, 6.0% discount to NAV): Sven Borho presented at this year’s AGM in July 2025, see below for the link to watch:

In addition, if you did not make the 30-year anniversary event this week and you would like a copy of the presentation, please contact Frostrow

Frostrow Investor Relations team – Messrs Grant Challis, Neil Winward, Matt Burrows, Matt Norfolk-Clarke & Nicholas Todd

Please contact us on ir@frostrow.com

Trump is doing his best to re-set the world trade order and in so doing will potentially re-set the investment landscape. Saba Capital have said they are “ready to buy billions more UK investment trusts [and they are] open to taking stakes in trusts that hold illiquid assets [now also]”. Rachel Reeves is promoting LTAFs whilst multiple asset classes via top class managers are already available at discounts to NAV in the investment trust sector. What has worked for the last few years (ie US Equity trackers, passive investments and short dated bonds) will not necessarily be the best idea in the coming periods. Whether there is a “crack” in the bond market or not, the investment trust sector is here offering best in class active management from the world’s top fund managers in a variety of liquid and less liquid asset classes. It continues to represent one third of the FTSE 250 Index and half of the FTSE Small Cap Index. There are highly valuable listed fund vehicles using the structure appropriately available to use for savings and investment today, as there have been for the last 150 + years. Do not be short of investment trusts – they represent the greatest financial secret on these fine shores even if our Chancellor has never heard of them.

Find us on the web:  https://www.frostrow.com/

Find us on You Tube:  https://www.youtube.com/channel/UCAptpfmx0HITqvlI68psd7Q

Check out our June 2025 summary podcast also: https://www.investormeetcompany.com/company/updates/frostrow-talks-trusts-june-2025-summary

Frostrow Capital, bringing you high quality, differentiated product in a UK listed closed-ended form

3. Further investment themes evident in the investment trust sector this week include:

Discount Control

Polar Capital Global Financials HY results to 31 May 2025 (PCFT LN, Financials & Financial Innovation, £359.4m mkt capn, 3.8% discount to NAV): NAV TR +3.5% vs MSCI ACWI Financials +2.5%; share price TR +6.4%; the first five yearly tender took place in May 2025. Shareholders representing 43.8% took the opportunity to tender their shares at close to NAV. The next opportunity takes place around 30 June 2025; The Board tend to "buy back Shares, with the intention of reducing the discount to a level of no greater than 5 per cent. (i) if the three-month average Share price discount to NAV is greater than 5 per cent. on any given date and (ii) the Share price discount is greater than 5 per cent." First interim dividend 2.6pps (2.5p 2024) plus special dividend of 1.6pps to retain IT status post the tender. The Company aims to pay an enhanced dividend equivalent to approximately 4 per cent. of the Company's NAV in a given year.

Foresight Solar Fund (FSFL LN, Renewable Energy Infrastructure, £508.0m mkt capn, 17.9% discount to NAV) has allocated a further £10m to its ongoing share buyback programme, bringing the total to a potential £60m. “Preliminary information from the global portfolio indicates that strong solar resource contributed to electricity production more than 5% above budget in the second quarter of 2025.” “The strong global operating performance… gives the board confidence in the 1.3x dividend cover target for this year.” “Good progress has been made in the divestment of the additional 75MW of operational solar projects, with advisors appointed and a live process underway in the market.”

Custodian REIT (CREI LN, Property – UK Commercial, £377.0m mkt capn, 18.9% discount to NAV) "Since 1 April 2023, the Company has executed 14 selective disposals for an aggregate consideration of £41.8m at an aggregate average premium to the prevailing valuation of 8.0%. Disposals have been focused on assets that the Investment Manager believed to have limited opportunities for future rental growth and represented attractive opportunities to crystallise profits for shareholders. The Board expects the Company to continue to make profitable sales during the remainder of the financial year with more than £5m of assets currently earmarked for disposal." The Board believes the market is materially under valuing the shares and has launched a share buyback programme for up to £5m.

Redemption / tender opportunity

Fair Oaks Income (FA17 LN, Debt – Structured Finance, £18.7m mkt capn) will return $7.25m to Realisation Shareholders by way of a compulsory partial redemption of 41.31% of FA17 shares at $0.5297.

M&A news

Assura plc (AGR LN, £1,630m mkt capn) declared a special dividend of 0.84pps, conditional on the Revised Offer from Primary Health Properties (PHP LN) becoming Unconditional. “PHP has confirmed that any such Special Dividend would not reduce the value of the Revised Offer.” Separately, AGR published a response to the offer document published by Sana Bidco (wholly owned by funds advised by KKR and Stonepeak Partners): “The Assura Board unanimously recommends that Assura shareholders take no action in respect of their Assura shares in relation to the Bidco Offer. The Response Document sets out in detail the reasons behind the recommendation of the Assura Board.”

Results / updates

Sequoia Economic Infrastructure (SEQI LN, Infrastructure, £1,252.5m mkt capn, 12.6% discount to NAV) NAV as at 30 June 2026: +0.8% over the month to 92.56pps, driven by net interest income and asset valuations. SEQI’s portfolio consists of “55 private debt investments and 5 infrastructure bonds… [with] an annualised yield-to-maturity (or yield-to-worst in the case of callable bonds) of 9.86% and a cash yield of 7.34% (excluding deposit accounts).”

Tufton Assets (SHIP LN, Leasing, £303.5m mkt capn, 19.2% discount to NAV) NAV as at 30 June 2025: -4.3% over calendar Q2 2025 to $1.316 (96.1pps); SHIP has “extended the employment of Exceptional and agreed a new charter for Octane by up to three and two years respectively, securing a minimum of $9.5m of EBITDA for SHIP.” $0.025 dividend announced in respect of the period.

TwentyFour Income Fund (TFIF LN, Debt – Structured Finance, £850.5m mkt capn, 1.8% premium to NAV) FY results to 31 March 2025: NAV TR +13.6%; record dividend of 11.07pps for the period; “European ABS has performed strongly across the Board.” Outlook: “The current market environment, coupled with strong supply in the sector, is creating opportunities for the Manager to allocate to higher yielding and higher quality, secured assets. With the expectation of higher for longer rates, the asset class should continue to deliver ongoing and attractive levels of income.”

Invesco Asia Dragon FY results to 30 April 2025 (IAD LN, Asia Pacific Equity Income, £733.7m mkt capn, 9.8% discount to NAV): NAV TR +2.8% vs MSCI AC Asia ex Japan Index £ +3.9%; share price TR +7.1%; Company has entered the FTSE 250 Index post combination with Asia Dragon; "Corporate Proposition now includes a rolling 3-year 100% unconditional tender and a 4% dividend yield paid quarterly at a rate equal to approximately 1% of NAV. Together, these provide a unique opportunity to invest in Asia’s future." OCR 0.73% (1.03% 2024). "The Board retains its stated average discount target of less than 10% of NAV calculated on a cum-income basis over the Company’s financial year, although the Directors are cognisant of the fact that the Company’s share rating at any particular time will reflect market conditions and a combination of various factors, a number of which are beyond the Board’s control."

Baker Steel Resources end June NAV update (BSRT LN, Commodities & Natural Resources, £71.9m mkt capn, 35.3% discount to NAV): NAV +16.4% vs MSCI World Mining & Metals Index £ +3.6%; The Company has carried out its usual half yearly review of general market movements in mining equities, taking into consideration company-specific factors, as well as an assessment of whether these should impact the carrying values of its unlisted holdings.

Requisition news

Gore Street Energy Storage Fund FY results to 31 March 2025 (GSF LN, Renewable Energy Infrastructure, £304.6m mkt capn, 41.4% discount to NAV) NAV -4% to 102.8pps, driven by updated third-party revenue curves; TR +1.1%. “The portfolio generated operating revenue of £35.3m and operating EBITDA of £21m from an average of 408.9 MW of operating capacity during the financial year (FY2023/24: £41.4m revenue, £28.4m operational EBITDA based on an average of 311.5 MW operating capacity).” “Investment Manager's fee will be reduced from 1 October 2025. Based on the average share price during the 2024/25 financial year, this would have resulted in an estimated saving of 22% or £1.14m.” “The Board conducted an extensive shareholder consultation, which confirmed support for a special 3pps dividend funded by ITC proceeds… and the results of Alexa Capital's independent assessment [of GSF’s strategy] agreed with GSF’s capital allocation approach.” GSF has acknowledged receipt of a requisition notice from RM Funds to convene a General Meeting “to consider resolutions pertaining to changes in the composition of the Board.” Earlier in the week GSF announced that they have agreed to see the final tax credit on Big Rock and will use the proceed to reduce gearing.

Debt reduction

Taylor Maritime (TMI LN, £296.1m mkt capn): sold ten assets for $176.3m at an average discount to Fair Market Value of 1.1%. Three assets sales have completed with the rest due to complete by December. Since January 2023 there have been 49 vessel divestments at an averae 3.1% discount to Fair Market Value. TMI has "now paid off all our bank debt."

Managed wind down update

abrdn Property Income Trust (API LN, Property – UK Commercial, £20.8m mkt capn, 29.5% discount to NAV) NAV as at 30 June 2025: -6.4% over H1 to 7.45pps, driven by a reduction in the value of Far Ralia (from £10m to £8m “due to a lower forecast carbon unit price and an increase in the discount rate, both reflecting a less positive background to the carbon market.”) Far Ralia update: “The Board and Manager had hoped to have disposed of Far Ralia in H1. While several discussions have taken place with interested parties, given the unique nature of the property and a relatively narrow set of potential purchasers, it is difficult to estimate when, and at what value, the property will be sold.”

Crystal Amber Fund (CRS LN, UK Smaller Companies, £100.8m mkt capn, 16.5% discount to NAV) has now received the cash proceeds, following a final payment of £18m, from the takeover from De La Rue (DLAR LN), “and the Board is considering the future strategy CRS and the use of proceeds from DLAR, including the return of capital to shareholders via the ongoing share buyback programme and potential distributions.” CRS’ “primary focus beyond DLAR is to achieve the regulatory approvals for MMI's RESET® device to enable sales to commence. The Board of Crystal Amber believes that this should not only underpin but should significantly enhance the value of this core investment.” CRS “is consulting with shareholders and advisers over the future structure of the fund, as well as considering strategy and ensuring returns to shareholders are made in a timely fashion whilst continuing to maximise value from its investments.”

Acquisition

Supermarket Income REIT (SUPR LN, Real Estate, £1,010m mkt capn) has acquired a Tesco omnichannel supermarket in Ashford, Kent for £54.1m (excluding acquisition costs), reflecting a 7% NIY. “The store is being acquired with an unexpired lease term of nine years with annual RPI-linked rent reviews (subject to a 5% cap and a 0% floor).” "The Company believes that current market conditions provide an attractive buying opportunity, at an inflection point in the real estate cycle where supermarket property valuations are at multi-year lows and long lease inflation linked assets can be acquired at accretive yields."

Apax Global Alpha (APAX LN, Private Equity, £661.0m mkt capn, 30.7% discount to NAV) will invest approx. €4.5m in Foods Connected, via Apax Global Impact Fund.

Disposal

Partners Group Private Equity (PEY(S) LN, Private Equity, £672.1m mkt capn, 29.6% discount to NAV) manager “Partners Group has agreed to exit from its initial investment in PCI Pharma Services and reinvests in the next phase of growth,” valuing PEY’s stake in PCI at €83m, in-line with the 31 May 2025 carrying value. PEY will reinvest approx. €18m “to retain participation in the company's future growth.”

Workspace Group (WKP LN, £760.4m mkt capn) calendar Q2 update: “As expected, occupancy declined slightly in the quarter and we have more large vacations to come in Q2. Our immediate focus remains on stabilising and, over time, rebuilding occupancy.” LFL occupancy -0.3% to 82.2%; LFL rent roll -3% to £111.6m; LTV unch at 34%; further progress on disposal of non-core assets, with £15m completed since 31 March 2025 and a further £15.4m exchanged and due to complete in the next 12 months.

abrdn European Logistics Income (ASLI LN, Property – Europe, £267.9m mkt capn, 9.1% discount to NAV): announced the sale of two separate transactions of two further assets in the Netherlands as part of its managed wind-down (Eur34.7m in total, a 3% discount to Q1 value), and its second capital distribution under the B Share Scheme of £49.5m

Litigation update

Home REIT (HOME LN, Property – UK Residential, £300.8m mkt capn, 38.7% premium to NAV) has noted “the recent announcement that AlTi RE Limited and Alvarium Fund Managers Limited have entered administration… [and HOME] is in contact with the administrators.”

4. Sector data this week (AIC data, as at Thursday's close)

Equity Capital Markets

n/a

Ex Dividend

DNA3 2.0625p, GSF 1p, JCGI 2.73p, MTU 1.74p, NBPE/U $0.47, SERE €0.0148, SMIF 0.50p & 0.25p special, SOI 2p, TFIF 2p

Moving on from tennis and cricket to golf this weekend.


Frostrow Investor Relations team – Grant Challis, Neil Winward, Matt Burrows, Matt Norfolk-Clarke, Nicholas Todd