Good morning investment trust investors,

 Contents

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

1. Overview for the week

 We are now experiencing a pullback in equities given the focus on tariffs with the S&P 500 Index and FTSE 100 Index down 2.2% and 0.8%.  The jobs numbers in the US have really shifted short term bond yields lower also indicating that the rate cut is coming sooner rather than later.

 We started the week focusing on Trump holding court in Scotland with a EU / US trade deal struck.  Meanwhile negotiations were resurrected in Stockholm between the US and China and Mexico now has a 90-day extension to allow for continued negotiations.  In addition, a tariff deal has been struck with South Korea and Trump, having suggested the recognition of a Palestine state may muddy the trading waters with Canada, has put a 35% tariff on them.  He has also vowed to put a 25% tariff on Indian imports plus an unspecified penalty in the first sign of him imposing "secondary tariffs", to impact those who trade with Russia.  Many of the deals announced start on 7 August so there will be a scramble in the days ahead of that.

 The IMF has predicted stronger global economic growth than it forecast in April in part due to some US tariffs on goods being softened. It forecast global growth of 3% in 2025 and 3.1% in 2026, up from 2.8% and 3% in its April report. But states the bleeding obvious that US policies remain ‘highly uncertain’.  In amongst all this, the US Federal Reserve held interest rates despite the pressures to cut from Trump. Save that we note a week dominated by a significant amount of tech earnings, mostly good with the exception of Amazon, and healthcare stocks in the spotlight given Trump’s letters to 17 pharmaceutical CEOs to cut drug prices.

 Meanwhile in the UK, the focus is on the Autumn Budget given the growing expectation that tax rises may be coming, with the Institute of Directors having indicated that business confidence is at a low due to the potential for that.  In another example of the City fight back, there was the first of hopefully more regular events by TEA – The Engagement Appeal, to discuss with top market participants issues such as AGM forums, encouraging younger retail investors, the attractions of the LSE for corporates and investors also.  There are topics here, in particular regarding retail investment, which are likely to hot up now given the “flow” has moved arguably from institutional investors 20 years ago, to private wealth groups 10 years ago and to retail investors today. This will be a key debate for the investment trust sector to be involved in of course.

 The sector saw a week generally of more stable discounts to NAV, with continued newsflow in regard to discount control, wind up news, and potential M&A.

1. Frostrow investor Events

Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £154.6m mkt capn, 42.8% discount to NAV): Please contact Frostrow for interest in seeing Tim Levene in London and the regions in 2025.  The AUGM Capital Markets Day took place on Wednesday 2 July 2025 at Searcy’s at The Gherkin, between approx. 8:30am and 1:30pm.  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, £285.3m mkt capn, 8.8% 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, £210.3m mkt cap, 9.3% discount to NAV): Geoff Hsu, lead manager, gives further thoughts at the time of the Frostrow London investor event in May 2025 here:

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

The AGM recording, including presentation from portfolio manager Geoff Hsu, from 17 July 2025 is available on the following link:

https://www.youtube.com/watch?v=qHK5hrdFehI&t=16s

CC Japan Income & Growth Trust (CCJI LN, Japan, £264.1m mkt capn, 10.2% discount to NAV): please contact Frostrow Capital in order to arrange a meeting with management in 2025.  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, £143.2m mkt capn, 1.1% premium 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, £367.1m mkt capn, 19.9% 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, £230.2m mkt capn, 10.6% 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, £1,409.4m mkt capn, 8.0% 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 (May 2025):

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

MIGO Opportunities Trust (MIGO LN, Flexible Investment, £70.1m mkt capn, 4.0% 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, £168.7m mkt capn, 4.6% 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, £949.2m mkt capn, 1.0% 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 here 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/updates/finding-value-in-modern-markets/show

Worldwide Healthcare Trust (WWH LN, Biotechnology & Healthcare, £1,415.5m mkt capn, 6.8% discount to NAV): Sven Borho presented at this year’s AGM in July 2025, see below for the link to watch: 

https://www.youtube.com/watch?v=x0K6RxlI40c

In addition, if you did not make the 30-year anniversary event 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

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

Discount control

We note 72 share buybacks vs 3 share issuance announcements yesterday (as an example) of the ongoing buyback trend

 Pantheon International (PIN LN, Private Equity, £1,446.0m mkt capn, 33.8% discount to NAV) NAV as at 30 June 2025: -0.8% over the month to 492.3pps, driven primarily by FX. “6% of reported valuations are dated 30 June 2025 or later, 85% are dated 31 March 2025, 9% are dated 31 December 2024.” During June, PIN “received distributions of £37.9m relative to £19.3m of calls from existing commitments to private equity funds… [and] made a total of £29.8m of commitments.” “In recognition of the continued wide discount on PIN's shares and in light of currently anticipated cash flows, the Board has allocated £30m to share buybacks. to be deployed between 1 June 2025 and the August NAV publication date.”

 Picton Property Income Qtr update to end June 2025 (PCTN LN, £402.5m mkt capn) EPRA NTA +1% over calendar Q2 2025 to 100.9pps; LTV 25.1% (31/3 24.1%); interim dividend of 0.95pps declared for the period. "Share buyback programme continued with 9.1 million shares purchased and cancelled in the period for £6.9 million, a discount of 25% to the June 2025 NAV"

 Aberforth Geared Value & Income Trust FY results to 30 June 2025 (AGVI LN, UK Smaller Companies, £90.2m mkt capn, 16.3% discount to NAV):  NAV TR +1.3%, share price TR -14.8%; the Company "has a fixed life of seven years from launch to 30 June 2031". Ordinary Shares and Zero Dividend Preference Shares were issued in a ratio of 8:3. "For AGVIT to succeed for its Ordinary Shareholders over the seven-year life, capital returns at the total asset level should exceed the hurdle rate imposed by the ZDP shares (7% pa). "As to the broader issue of discount control, we ought not to lose sight of an important advantage of AGVIT’s fixed life structure, which gives investors the opportunity to exit at near net asset value on planned wind-up."

M&A news

Assura plc (AGR LN, £1,620m mkt capn) has published updates on the acceptance levels for both the KKR offer and the Primary Health Properties (PHP LN) recommended offer. Assura Shareholders who have not yet accepted the Revised Offer / Offer are urged to do so as soon as possible but, in any event, by no later than 1.00 p.m. (London time) on 12 August 2025.

 Apax Global Alpha (APAX LN, Private Equity, £785.3m mkt capn, 17.8% discount to NAV) has received further irrevocables totalling 17,157,164 (3.56% of ISC) in relation to its recommended cash acquisition by Janus Bidco. Therefore, Bidco has received irrevocable undertakings and letters of intent to vote in favour for 185,374,838 AGA Shares, representing 38.43% of AGA. It has also received irrevocable undertakings to elect for the Alternative Offer, in respect of, in aggregate, 49,850,175 AGA Shares, representing approximately 10.13% of share capital

 Empiric Student Property (ESP LN, £633.6m mkt capn):  following on from the indicative proposal from The Unite Group regarding a possible share and cash offer, Unite and ESP remain in positive discussions, and ESP has requested an extension to the deadline from 31/7 to 14/8 whereupon it must either announce a firm intention to make an offer for ESP or announce that it does not intend to make an offer

 Downing Renewables & Infrastructure Trust (DORI LN, Renewable Energy Infrastructure, £173.1m mkt capn, 9.9% discount to NAV):  the General Meeting resolutions were passed in regard to the recommended cash offer made by Polar Nimrod Topco Limited.  Completion of the Acquisition remains subject to the satisfaction....of the Scheme Document

Debt news

Literacy Capital (BOOK LN, Private Equity, £260.4m mkt capn, 16.5% discount to NAV):  As at 31 March 2025 (the date of BOOK's most recent published NAV), Velociti was Literacy Capital's second largest holding. Its carrying value was £33.8 million (equating to 11.0% of NAV) at the end of Q1. Asset was sold for £51.4 million (after all transaction related costs), a 52.0% premium to the most recently stated carrying value in the Q1 2025 factsheet. Literacy Capital will retain a significant minority stake alongside CBPE, as a result of its re-investment. The cash received by BOOK following completion will be used to repay amounts drawn under its Revolving Credit Facility. A quarterly update was announced in the week also

 Gresham House Energy Storage (GRID LN, Renewable Energy Infrastructure, £456.4m mkt capn, 27.9% discount to NAV) has agreed long-term floor-pricing agreements with EDF, covering 100MW of currently operational projects and a further 637MW of exclusive pipeline projects for “more than 10 years.”  “The refinancing expected to be unlocked by the floor and tolling agreements relating to the operational portfolio is key to progressing the growth laid out in [the] three-year plan...We look forward to concluding our refinancing shortly to unlock the next phase of our Three-year Plan and implementing a revised Dividend Policy”

 SDCL Efficiency Income (SEIT LN, Renewable Energy Infrastructure, £615.4m mkt capn, 37.8% discount to NAV) "..both the Investment Manager and independently the Chair (on behalf of the Board) have met with a number of SEIT's shareholders to present the results and discuss possible strategic options for the Company.  Feedback emphasised the importance of continued portfolio performance and sufficient cash generation to cover the dividend whilst there was also a consensus around the importance of achieving successful asset disposals with benefits of this including a reduction in debt levels, and the opportunity for returning cash to shareholders in due course."  Company has sold “its convertible loan in ON Energy to the issuer for $7.6m, representing an 18.75% premium to the current holding value of $6.4m.” “The proceeds from the sale will be used to reduce SEIT's drawings on its RCF.” Chairman: “The Board remains focussed on finding solutions to narrow the discount… with disposals being key to simplifying the portfolio and reducing debt levels. The Board is taking a more active role in supporting the disposal processes the Investment Manager is working on and will continue to explore all strategic options to achieve these important objectives.”

 NewRiver REIT (NRR LN, £335.4m mkt capn) trading update for calendar Q2 2025, CEO: “We have made an excellent start to the new financial year. Consumer spending growth across our portfolio is robust and continues to outperform the national average which has supported another strong leasing quarter.” Following Abbey Centre disposal, LTV as at 30 June 2025 (using March 2025 portfolio valuation) reduced to 38%, back within LTV guidance of <40% giving capacity to redeploy into accretive opportunities, supported by strong Net debt to EBITDA and Interest Cover ratios

Results / updates

Ruffer Investment Company FY results to 30 June 2025 (RICA LN, Flexible Investment, £854.6m mkt capn, 3.9% discount to NAV):  NAV TR +5.3%; share price TR +7.3%; "A year ago, we were confident that one key conventional portfolio assumption was under threat – the bond/equity correlation. Now we see two, because the US dollar has also shown itself to be unreliable...It serves as another warning shot to investors to reappraise their approach to diversification." " We are entering a more inflation-prone, volatile era. The US – having been a dominant outlier – is becoming relatively less exceptional. This evolution undermines the traditional sources of protection relied upon by balanced portfolios."

 CT Global Managed Portfolio Trust FY results to 31 May 2025 (CMPG/I LN, Flexible Investment,£92.2m / £65.2m mkt capn, 4.2% discount / 2.0% premium to NAV) NAV TR (per Income / Growth share) +4.2% /+2.5% vs FTSE All Share +9.4%; share price TR (per Income / Growth share) +3.8% / 1.6%; "Recent years have been challenging for investment companies.  Returns from major stock markets have been dominated by the largest companies, creating a difficult environment for active investment managers to outperform benchmarks, whilst higher interest rates have adversely affected alternative asset valuations. In addition, investment company discounts widened." "In normal circumstances we aim to ensure the discount to NAV at which our shares trade is no more than 5% and, during the financial year ended 31 May 2025, the Income shares and Growth shares traded at an average premium of +0.8% and an average discount of -1.8 respectively." Peter Hewitt retired as manager and "from 1 June 2025, the Portfolios are now managed by London-based Investment Managers Adam Norris and Paul Green, supported by the broader EMEA Multi-Asset Solutions team (of which they are members)." "...with effect from 1 September 2025. The Fee will be reduced to 0.60% per annum of the net asset value of each portfolio of the Company (rather than 0.65% per annum of the total assets of each portfolio) and there will no longer be any charge on any assets which are invested in other investment vehicles managed by the Manager."

 Unite Group (UTG LN, £3,650m mkt capn) H1 results to 30 June 2025: adjusted EPS 29.5p vs DPS 12.8p; EPRA NTA +1% to 986pps; LTV 26%. LFL “income growth of 7%, reflecting strong occupancy and rental growth” and UTG has reiterated “FY2025 adjusted EPS guidance of 47.5-48.25p.” “Targeting rental growth of 4-5% and occupancy of at least 97% for 2025/26.”

 Amedeo Air Four Plus (AA4 LN, Leasing, £164.1m mkt capn, 43.4% discount to NAV) FY results to 31 March 2025:  The Group currently owns six A380-800 aircraft, two 777-300ER aircraft and four A350-900 aircraft. The six A380s and the two 777 aircraft are leased to Emirates and the four A350 aircraft are leased to Thai Airways. Chairman: “What next? Our first Emirates lease expires in a little over 12 months, with the others also coming to an end at regular intervals over the next two years. The Board is spending most of its time focused on formulating an exit strategy that gives the best possible return to our shareholders.”

 Aberforth Smaller Companies Trust HY results to 30 June 2025 (ASL LN, UK Smaller Companies, £1,281.1m mkt capn, 11.7% discount to NAV):  NAV TR +6.3% vs Deutsche Numis Smaller Companies Index (excluding Investment Companies) +7.0%; share price TR +7.3%; "It does seem likely that American policy has called some investors to question their exposure to US equity markets. As investment horizons broadened over recent months, interest in other stockmarkets – notably Germany’s but also the UK’s – has improved. The frustration for ASCoT is that larger UK companies have been the main beneficiaries so far." Gearing 4.7%. Next continuation vote is March 2026 (every three years)

 Tetragon Financial  (TFG NA/LN, Flexible Investment, £1,399.4m mkt capn, 56.7% discount to NAV) H1 results to 30 June 2025: NAV +9.3% to $38.74 – “performance during H1 was mainly driven by the same three investments which were the strongest performers in 2024:” Equitix, Ripple and Hawke’s Point. $0.11 dividend declared in respect of calendar Q2 2025.

 Greencoat Renewables (GRP ID/LN, Renewable Energy Infrastructure, £850.6m mkt capn, 24.8% discount to NAV) NAV as at 30 June 2025: -4% over calendar Q2 205 to €1.01, driven by a P50 generation revision that was partially offset by cash generation, a disposal, higher near-term CPI and “other operational updates.” “Q2 generation 16.1% and H1 generation 14.7% below budget, primarily due to European wind speeds significantly below long-term average.” “Q2 gross cash generation of €21.2m equating to 1.1x gross dividend cover.

 Greencoat UK Wind HY results to 30 June 2025 (UKW LN, Renewable Energy Infrastructure, £2,657.6m mkt capn, 16.8% discount to NAV):  NAV 143.4p; 5.18pps dividends declared; dividend cover 1.4x; the Company has bought back 35m of its own shares at an average cost of 115pps; Post period end, the Company announced part disposals of three wind farms for £181 million which will bring total divestments in the past year to £222 million. GAV to fall from 41.5% to 39.5% accordingly; "Whilst the Company's share price has increased by 11.9 per cent since the end of the last quarter, shares continue to trade at a material discount to NAV. With that in mind, the Company maintains its disciplined approach to capital allocation."

 Oakley Capital Investments (OCI LN, Private Equity, £946.2m mkt capn, 25.6% discount to NAV) NAV as at 30 June 2025: TR +7% over H1 to 742pps, with vLex the largest contributor. OCI’s shares are expected to transfer to the main market with effect from 1 August 2025.

 Pantheon International (PIN LN, Private Equity, £1,446.0m mkt capn, 33.8% discount to NAV) FY results to 31 May 2025: NAV +1.2%; “PIN's distribution rate was 12% for the year ended 31 May 2025… below the company's long-term average” vs a call rate of 20% (also below average).PIN has appointed Anthony Morgan (existing NED) as Chair from effect 1 January 2026. Current Chair John Singer: “a number of decisions have already been made which aim to improve PIN's long-term NAV performance and stimulate demand for PIN's shares… As I step down at the end of the year, we have a truly experienced and perfect successor as Chair in Tony Morgan. The path ahead is exciting. Our strategy is clearer, our structure is stronger, and our commitment - to putting shareholders first - remains at the heart of everything we do.”

 SEGRO plc (SGRO LN, £8,590m mkt capn) H1 results to 30 June 2025: adjusted EPS +6.5% to 18.1p vs DPS 9.7p; adjusted NAV +0.3% to 910pps; LTV 31%. 7.8% LFL net rental income growth from existing portfolio with “significant progress [made] in building data centre platform.”

 F&C Investment Trust HY results to 30 June 2025 (FCIT LN, Global, £5,658.1m mkt capn, 6.6% discount to NAV):  NAV TR +0.0% vs FTSE All-World Index +0.8%; share price TR +0.8%; "...we have continued to buy back shares, albeit less than last year, with 1.35 million shares bought back over the first half of 2025...We regard the recent discount levels as unreflective of the strength of our investment proposition. We have continued to pursue an active marketing programme which aims to communicate the benefits of our offering for current and prospective shareholders. The Board remains focused on good governance and long-term sustainability." "It remains the aspiration of the Board to continue the Company's track record of delivering rises in dividends which exceed inflation over the long-term and we retain a substantial revenue reserve to help meet this objective if required."

 Alliance Witan HY results to 30 June 2025 (ALW LN, Global, £5,049.5m mkt capn, 4.1% discount to NAV):  NAV TR -0.7% vs MSCI All Country World Index +0.6%; share price TR -0.7%; "Although discounts in the investment trust industry have started to narrow, they remain wide by historical standards across much of the sector." "The total of the first two interim dividends declared for 2025 is 14.16p (2024: 13.24p), representing an increase of 6.9% on the same payments for 2024. Barring any unforeseen circumstances, it is anticipated that the Company's third and fourth interim dividends will be at least equal to the first and second interim dividends."

 BlackRock Energy & Resources Income Trust HY results to 31 May 2025 (BERI LN, Commodities & Natural Resources, £140.3m mkt capn, 7.8% discount to NAV):  NAV TR -10.0% vs Reference Index -9.2% (MSCI ACWI Select Metals & Mining Producers Ex Gold and Silver IM (Mining), the MSCI World Energy Index (Traditional Energy) and S&P Global Clean Energy Index (Energy Transition) with a 40:30:30 mix of the 3 indices); share price TR -6.5%; Gearing 8.1%; "The Board stepped in actively to manage the discount, buying back 4,708,000 shares in the period under review at a cost of £5,497,000 and at an average discount of 9.7%. This discount management activity has continued since the period end, and up to 29 July 2025, the Company repurchased 1,875,000 ordinary shares for a net consideration of £2,161,000 at an average discount of 9.4%...The Board recognises that shareholders experience the share price performance of the Company and, in conjunction with our Broker and the Manager, keep the share rating under continuous review seeking to understand and address the drivers of the discount."

Strategic review update

Life Science REIT (LABS LN, Property – UK Commercial, £138.6m mkt capn, 48.1% discount to NAV) has produced an update to its strategic review which states that it “has received a significant amount of interest from a range of sources, with certain parties being granted access to additional DD." EPRA NTA as at 30 June 2025: -10.9% over H1 2025 to 66.3pps, reflecting a “uniform decline across each of the company's five assets and is representative of the continued challenging backdrop overall together with slower than anticipated leasing activity in the Life Science market.” In parallel to the interest noted above, “the Board continues to carry out an assessment of the likely return to shareholders that could be delivered in a managed wind-down of its portfolio.” LABS “has entered into a Deed of Variation with Oxtec, the developer at OTP, having agreed a new amended scheme for the design of the final assets, buildings 10 & 11,” for a cost of £5m. “During 2025 LABS has signed leases with 4 new occupiers, increasing contracted rent to £17.4m (31 December 2024: £15.9m) and occupancy to 85.1%.” "In the last assessment period there was a minor technical covenant breach on the projected interest cover ratio ("ICR") test as at 30 June 2025, for which a waiver has been agreed; the cover test result was 193.1% for the period against the required threshold of 200%." "The Board continues to evaluate the potential options available to the Company to determine which is most likely to achieve best value for shareholders and will provide a further conclusive update in due course."

 Gore Street Energy Storage Fund (GSF LN, Renewable Energy Infrastructure, £323.3m mkt capn, 38.1% discount to NAV) has completed its strategy review and announced a capital allocation plan comprising four elements:  Sale or co-investment for the company's c.495 MW of pre-construction assets; Increase key GB and Irish assets' duration; Increase revenues through proprietary and proven revenue optimisation models… assessing and implementing, where appropriate, emerging tolling and floor price arrangements to further reduce revenue volatility; and further cost reductions. Separately, the company has completed an independent review of the NAV (in line with market) and published a circular in relation to the Requisition General Meeting, with the Board unanimously recommending shareholders vote against all resolutions proposed by RM.

Managed wind down update

Aquila European Renewables (AERI/S LN, Renewable Energy Infrastructure, £207.6m mkt capn, 35.3% discount to NAV) has received a “revised offer from the preferred bidder” for fewer assets than previously indicated at a “further reduced” price. "The revised offer would mean a less material proportion of the portfolio would be sold and is expected to lead to a situation which is potentially prejudicial to the marketability of the balance of the portfolio." “The Board has decided to pause the sales process with the preferred bidder, who is no longer in exclusivity but with whom dialogue remains open. The Board will provide an update to shareholders on the sales process once the implications and alternatives have been properly explored.”

 abrdn European Logistics Income (ASLI LN, Property – Europe, £200.9m mkt capn, 18.3% discount to NAV) has sold a portfolio of nine assets in Gavilanes, Madrid for a net consideration of €146m. “As at 31 March 2025, the portfolio was valued at €168.6m within the company's net asset value [but] it is estimated that the after-tax proceeds from a direct asset sale, assuming disposal values in line with the Q1 2025 valuation, would have been broadly comparable to those achieved through the corporate disposal.” “This transaction significantly progresses the managed wind-down, with 16 of the 27 assets in the company's portfolio now sold, generating aggregate gross sales proceeds of over €293m. Of the 11 remaining assets, one disposal is expected to complete shortly and a further three transactions are anticipated to complete in Q4 2025.” ASLI “intends to make an additional capital distribution in September 2025, also by way of B shares.”

 Residential Secure Income (RESI LN, Property – UK Residential, £107.3m mkt capn, 35.7% discount to NAV) EPRA NTA as at 30 June 2025: +2.1% over calendar Q2 2025 to 66.4pps; rent collection 99%. Interim dividend of 1.03pps declared in respect of the period. “Following a period of targeted marketing for the Shared Ownership portfolio the Board have received a number of offers to acquire ReSI Housing Limited (the For-Profit Registered Provider owned by the company) and its portfolio,” with detailed DD taking place.

 Premier Miton Global Renewables Trust HY results to 30 June 2025 (PMGR LN, Infrastructure Securities, £21.7m mkt capn, 6.4% discount to NAV):  NAV TR +23.9%, share price TR +21.9%; "...barring a major change in circumstances, over the coming months the Board intends to bring forward proposals to wind up the Company and distribute its assets to shareholders. We aim to do this as cost effectively as possible, while also offering a roll- over investment option for those shareholders who wish to remain invested. I am grateful to shareholders for approving the continuation resolution at the AGM held in April, which allows the Board maximum flexibility in this regard. The Board expects to make an announcement in the third quarter as to the future of the Company and options for shareholders."

 Starwood European Real Estate Finance (SWEF LN, Property – Debt, £171.1m mkt capn, 13.5% discount to NAV):  provides an update on the Office portfolio, Ireland, representing 7.8% of NAV.  "...the Board has continued to evaluate the alternative business plan scenarios available to the Company in relation to this loan investment. Based on that evaluation, and the continuing challenging Dublin office market dynamics, the Board has now decided to write down the carrying value of the loan investment as of 30 June 2025 to €6.75 million by means of providing a further €7.3 million impairment provision against it (which equates to circa 4.2 pence per share impairment).  The Board considers that there are a wide range of possible outcomes whereby the loan asset may have varying degrees of recoverability due to the various business plan scenarios being evaluated.  The Investment Adviser will continue to actively manage the position to maximise the opportunity for value recovery and the Board will continue to closely monitor the position and ongoing developments.  The Company looks forward to providing further updates as appropriate."

Management team news

HydrogenOne Capital Growth (HGEN LN, Renewable Energy Infrastructure, £36.4m mkt capn, 68.4% discount to NAV) will pursue a managed realisation of the company's remaining investments and will “terminate the existing arrangements with the current investment adviser… [and appoint] RWC Asset Management LLP, part of the Redwheel Group.” The advantage to shareholders is to benefit from a reduction in the ongoing management fees...as well as appointing an investment adviser experienced in public and private market energy transition investments."  “ Redwheel's immediate priority will be to… establish the NAV as at 30 June 2025 with input from an external independent valuation agent.” The Company's name will be changing

 JPMorgan Global Growth & Income (JGGI LN, Global Equity Income, £3,343.0m mkt capn, 1.1% discount to NAV):  Tim Woodhouse, one of the three Portfolio Managers to the Company, will be standing down from his role as Portfolio Manager to the Company, with effect from 30th September 2025. Tim will be transitioning to a new position within JPMorgan Asset Management. The Company's portfolio will continue to be managed by the existing Portfolio Managers, Helge Skibeli and James Cook and will make a further announcement regarding the agreed successor to Mr Woodhouse in due course.

 Henderson Smaller Companies IT FY results to 31 May 2025 (HSL LN, UK Smaller Companies, £577.7m mkt capn, 7.8% discount to NAV):  NAV TR -5.1% vs Deutsche Numis Smaller Companies Index (ex IC's, TR) +5.0%; share price TR -2.3%; Following discussions, "the Fund Managers have implemented a series of refinements to the investment process. The core philosophy, however, of investing in growth at the right price remains". "The Company bought back 6,017,157 shares in the year under review, representing 8.1% of share capital". Neil Hermon, who has been Fund Manager of the Company since 2002, intends to retire in September 2025, with Indriatti van Hien, his Co-Manager, taking over. Continuation vote at the AGM (three yearly)

Shareholder consultation

Chrysalis Investments (CHRY LN, Growth Capital, £628.3m mkt capn, 30.3% discount to NAV) NAV as at 30 June 2025: share price +13.7% over calendar Q2 2025 to 173.57pps, driven by a “material increase in the valuation of Starling” and a “double-digit percentage increase in the assessed valuation” of Klarna. “The Board has reviewed the scope of the shareholder consultation which was announced in May 2025. The intention is that this process will launch in September 2025.”

Change of investment policy

Schroder British Opportunities Trust FY results to 31 March 2025 (SBO LN, Growth Capital, £54.7m mkt capn, 33.9% discount to NAV):  NAV TR +0.5%; Board proposes to amend the Company's investment objective and policy so that its strategy is focused exclusively on private equity investments. The Board also proposes to seek approval to adopt new Articles of Association, which would bring forward the date on which shareholders may vote on the Company's continuation from early 2028 to early 2027 (General meeting 9 September) . Both the investment manager and Board believe that concentrating on private equity presents a more attractive opportunity for shareholder returns. "The Portfolio Managers continue to identify a robust pipeline of opportunities in the UK private equity market, with strong and consistent deal flow across their focus sectors."

Acquisition / Disposal / Lease news

Tritax Big Box REIT (BBOX LN, Property UK Logistics, £3,505.2m mkt capn, 21.5% discount to NAV) has “signed an agreement for lease with a leading data management company for its recently completed 391,000 sq ft logistics facility at Symmetry Park, Rugby” for 15 years with open market reviews every five years.

Sector data this week (AIC data, as at Thursday’s close) 

Equity Capital Markets

n/a

 Ex Dividend

AEWU 2p, AFL 3.85p, BUT 6.25p, CREI 1.50p, CYN 4.25p, EGL 2.125p, GABI 1.5813p, HICL 2.08p, MGCI 1.92p, NCYF 1.51p

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