Frostrow Capital are intending on putting out on the newswires a weekly recap of the investment trust news and themes seen. If it looks interesting for you, please subscribe to receive it:
Good morning investment trust investors,
Contents
- Overview for the week
- Frostrow Investor Events
- Investment Themes
- Sector data for the week
- Overview for the week
US and Chinese officials met in Spain on Sunday / Monday to continue to discuss trade. Then we saw US retail sales were up 0.6% month-on-month in August, a little more than expected, but we still got the expected 25bps interest rate cut to a range of 4% to 4.25% come through mid-week (albeit with a lot of volatility noted on the 30 Year US bond on the day) around that announcement. The Fed also now has a new member voted through in Stephen Miran, a Trump pick. Trump has had his second, unprecedented, UK State visit and, amongst the pomp and ceremony, we note the £150bn package of US investment into the UK, the ‘Tech Prosperity Deal’. Blackstone's £90bn and Microsoft's £22bn represent the largest chunks of that investment but there are others involved such as Google.
Business leaders have been saying the Chancellor’s £25bn increase in employer national insurance contributions is being passed on to consumers in the form of higher prices. Lo and behold, we saw that with UK inflation coming in at 3.8% in August (the same as July), but with food price inflation at 5.1%, having risen for the fifth month in a row. For example, it now costs an incredible £8.25 for a packet of Lurpak butter! It is these types of shocks we all feel when popping into the supermarket for a couple of bits that will influence voting and savings. As such, the Bank of England held rates steady and has also announced a slowdown in the pace of government bond sales to help keep a lid on yields at the longer end. Keir Starmer has clearly had a better week than last (not difficult) but we note he lost an aide, Paul Ovenden, and MP Danny Kruger defected from the Tories to Reform.
In the financial markets, equities were up in the main again (except the FTSE 100 Index, down 0.9% for the week). Bank of America's latest Global Fund Manager survey indicated that investors are at their most bullish since February as fears of a trade war reduce although September has also seen the biggest monthly rotation out of UK equities since April 2004 (into global and tech). Unsurprisingly, a second wave of inflation remains the key tail risk investors are watching for. In the investment trust universe, discounts narrowed marginally. Strategic Equity Capital are offering investors their money back, PRS REIT has agreed to sell its portfolio to Wayport leading to a positive move for shares, Life Science REIT has confirmed it is now moving into managed wind down, Premier Miton Global Renewables announced a voluntary winding-up and we have seen the ‘normal’ swathe of buyback announcements.
At Frostrow, Augmentum Fintech announced holding Gemini Space Station Inc closed its IPO in the US, with the fund retaining its interest, and Biotech Growth Trust appointed Professor Dame Jenny Harries as an independent non-executive director – not unusual many would say but it is pleasing to see someone with literally unrivalled experience in the healthcare sector come on, and on this occasion, many of us will remember seeing Jenny on the TV back in those Covid days.
- Frostrow Investor Events
Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £143.7m mkt capn, 46.8% 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:
Aurora UK Alpha (ARR LN, UK All Companies, £275.5m mkt capn, 10.9% 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, £222.1m mkt cap, 10.3% 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, £284.3m mkt capn, 8.1% 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, £175.8m mkt capn, 1.3% 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, £366.9m mkt capn, 20.8% 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, £226.8m mkt capn, 8.3% 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, £1,171.0m mkt capn, 6.8% 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, £69.7m mkt capn, 3.5% discount to NAV): To watch the most recent update which took place on Monday 23 June 2025 with Tom Treanor and Charlotte Cuthbertson, please see below for the link:
https://www.youtube.com/watch?v=1BT7aH0da04
Please also see the link below for the latest webinar held with Investor Meet Company:
MIGO OPPORTUNITIES TRUST PLC - Investor Update Webinar - YouTube
Mobius Investment Trust (MMIT LN, Global Emerging Markets, £167.9m mkt capn, 5.8% 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, £991.8m mkt capn, 0.2% premium 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, £1,343.1m mkt capn, 7.4% 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. Record ETF issuance continues, with now more active ETFs than passive and record open ended funds converting into ETFs also. 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 actively managed listed fund vehicles using the structure appropriately available for savings and investment today, as there have been for the last 150 + years. They act as a strong complement to passive ETF holdings also.
DO NOT BE SHORT OF INVESTMENT TRUSTS
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Find us on You Tube: https://www.youtube.com/channel/UCAptpfmx0HITqvlI68psd7Q
Check out our August 2025 summary podcast here: Frostrow Talks Trusts August 2025 Summary | Updates | Investor Meet Company
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- Further investment themes evident in the investment trust sector this week include:
Discount control
As an example, Tuesday saw a total of 466 LSE market announcements across the spectrum of which 179 referred to a buyback, 38.4% of total.
Strategic Equity Capital (SEC LN, UK Smaller Companies, £165.0m mkt capn, 6.5% discount to NAV): having decided in 2022, the Company published a circular to implement a tender offer for up to 100% of the Company's ordinary shares, to be effected by way of a realisation pool mechanism. Shareholders are being asked to vote on this. "The Company’s portfolio will be realised in line with market conditions and the liquidity of the respective investments – Shareholders should therefore be aware that this means Tendered Shares may be held in escrow for up to 12 months or more.”
Saba Capital update
Smithson IT (SSON LN, Global Smaller Companies, £1,685.7m mkt capn, 9.6% discount to NAV): Saba Capital position increased from 13.1% to 14.1%
Gearing / rating news
Greencoat Renewables HY results to 30 June 2025 (GRP LN, Renewable Energy Infrastructure, £808.3m mkt capn, 28.0% discount to NAV): NAV per share 101.0c (H2 2024: 110.5c); incorporating reduction in P50 wind resource budgets previously announced; "Agreed the disposal of a portfolio of Irish assets for €156 million in the period representing a 4% premium to last reported book value with proceeds allocated to debt repayment (total accretive disposals now >€200 million)". Total cost of debt locked in at 3.9% (relating to Facility A). "Progress on strategic initiatives through revised management fee agreement and additional listing on the JSE ." "Deleveraging through NAV-accretive disposals, the extension of our RCF, and the fixing of Facility A at an all in cost of debt of 3.9% through to October 2030, further strengthens our balance sheet and enhances our financial flexibility."
Sirius Real Estate Limited (SRE LN, £1,480m mkt capn): issued Eur105m nominal value of notes to be consolidated and form a single series with its existing Eur359.9m 1.75% bonds due November 2028. "The proceeds of the new notes will be used toward the Company's pipeline of potential acquisitions in Germany and the U.K., as well as for general corporate purposes."
Templeton Emerging Markets Investment Trust (TEM LN, Global Emerging Markets, £2,099.3m mkt capn, 9.3% discount to NAV): announces that it has authorised the investment managers to invest in equity options and equity Contracts for Difference which will enable more flexibility and potentially lower costs in managing the portfolio's geared exposure to equities
Regional REIT (RGL LN, Property – UK Commercial, £194.5m mkt capn, 42.4% discount to NAV): announced the successful completion of the disposal of Clearblue Innovation Centre in Bedford, having fulfilled its asset management objectives, for a total consideration of £8.8 million (before costs), representing an 11.4% premium over the 30 June 2025 book value. Proceeds from the transaction will be used to reduce debt and further strengthen the Company's balance sheet.
M&A news
Fidelity European Trust (FEV LN, Europe, £1,652.0m mkt capn, 2.2% discount to NAV): the ordinary resolution relating to the issue of New Shares in connection with the proposed combination of the assets of the Company with the assets of Henderson European Trust plc was approved by the Company's shareholders at the general meeting of the Company
Downing Renewables & Infrastructure (DORE LN, Renewable Energy Infrastructure, £174.4m mkt capn, 9.5% discount to NAV) has confirmed potential acquiror Polar Nimrod Topco (AKA Bagnall Energy) has received regulatory clearance from the Icelandic authorities to proceed.
Apax Global Alpha (APAX LN, Private Equity, £793.0m mkt capn, 17.6% discount to NAV) has cancelled its listing, following the company’s acquisition by Janus Bidco.
Capital allocation update
Pantheon International (PIN LN, Private Equity, £1,474.4m mkt capn, 34.4% discount to NAV) has updated on its corporate strategy programme: “to introduce greater flexibility, the existing CAP framework is being enhanced and 20% of gross distributions will be allocated to a share buyback pool. The Board will exercise its discretion to use the buyback pool to implement buybacks when the share price discount exceeds 20%...In the past, PIN has strategically sold assets in the secondary market as a tool through which to optimise its underlying portfolio. We intend to do this more actively in the future and when the timing is right to do so.”
Foresight Solar Fund HY results to 30 June 2025 (FSFL LN, Renewable Energy Infrastructure, £423.4m mkt capn, 29.4% discount to NAV): NAV (pre-announced) -3.4% over the period to 108.5pps, principally driven by lower power price forecasts. “Global generation was 4.0% above budget in the six months to June,” thanks to “plentiful” solar resource in the UK. Board has reiterated its 1.3x dividend guidance for FY2025. “The Board remains committed to the sale of the Australian portfolio and the targeted divestment of a further 75MW of operational solar capacity to unlock cash.” "The buyback programme was increased to a total of up to £60 million. In the first half of 2025, Foresight Solar distributed £29 million to Shareholders between dividends and buybacks." Chairman: “"The Directors and I remain focused on finding acceptable solutions in a difficult market for alternative investment trusts and will continue our active engagement with investors to ensure we understand your views.”
Zero Discount Policy
M&G Credit Income Investment Trust HY results to 30 June 2025 (MGCI LN, Debt – Loans & Bonds, £182.4m mkt capn, 1.7% premium to NAV) : NAV TR +3.0% vs SONIA +4% (+4.26%); "The Investment Manager kept the portfolio defensively positioned throughout the half year because it believed, and continues to believe, that credit spreads (which are close to historic lows) are not compensating investors for longer term corporate risk." "During the half year, your Company increased its market capitalisation by over £31 million as sustained demand for share issuance continued to support its growth. This helps to improve liquidity in your Company’s shares as well as reducing the ongoing charges ratio. Share issuance at an appropriate premium to NAV underpins the Zero Discount Policy which seeks to ensure that Ordinary Shares trade close to NAV in normal market conditions."
Move to ETF
Middlefield Canadian Income HY results to 30 June 2025 (MCT LN, North America, £145.6m mkt capn, 3.1% discount to NAV): NAV TR +2.6% vs benchmark +4.3%; share price TR +13.9%; "Since the start of 2025, the discount to NAV at which the Fund’s shares traded narrowed from 13.5% at the start of the year to 4.2% by 30 June 2025. This narrowing in the discount in part reflects the buying activity by Saba Capital which first announced a notifiable holding in the Fund’s shares in April 2024 and has since announced further increases in its position. Saba’s current total interest in the Fund’s shares is estimated to be approximately 29%....In addition, the Fund’s discount to NAV narrowed appreciably following the announcement by the Fund on 2 May 2025 that it was proposing a voluntary wind up and offering its shareholders either (i) a rollover into a newly established, actively managed, LSE listed ETF; or (ii) an uncapped cash exit at close to the NAV per share; or (iii) a combination of both shares in the ETF and cash. Net gearing 18.4%
Advantage of investment trust – use of revenue reserves
CQS New City High Yield Fund FY results to 30 June 2025 (NCYF LN, Debt – Loans & Bonds, £329.6m mkt capn, 6.4% premium to NAV): NAV TR +7.0%; share price TR +7.4%; dividend yield 8.8% (4.51pps dividend); 6.3% premium to NAV leading to issuance of £33.6m of new shares; gearing 10.0% (8.3% 30/6/24); revenue 4.43pps (missed coupon from Selecta Group meant using a minimal amount of the strong revenue reserves in the period. "The ability to use revenue reserves to smooth dividend payments in this way is one of the benefits of the investment trust structure, which the Board was happy to take advantage of this year. "
Results / updates
Sequoia Economic Infrastructure (SEQI LN, Infrastructure, £1,183.5m mkt capn, 17.2% discount to NAV) NAV as at 31 August 2025: +0.7% over the month top 92.48pps, driven by interest income. Well positioned to benefit from current high interest rates; 58.5% of the portfolio is in fixed rate investments. 56 private debt investments, 3 infrastructure bonds, across 8 sectors; 55.3% in senior secured loans; weighted average loan life 3.1 years
HgCapital Trust HY results to 30 June 2025 (HGT LN, Private Equity, £2,206.2m mkt capn, 10.9% discount to NAV): NAV TR -0.4%; share price TR -3.8%; £432m of available liquid resources (including £375 credit facility); £1.4bn of outstanding commitments to be drawn over the 4-5 years. "Resilient trading performance underpinned by the mission-critical nature of products and services provided by portfolio companies."
Nippon Active Value Fund HY results to 30 June 2025 (NAVF LN, Japanese Smaller Companies, £413.7m mkt capn, 2.0% discount to NAV): NAV TR +7.6% vs MSCI Japan Small Cap Index (£) +5.0%; share price TR +8.5%; "Our strategy does not target any index or seek to reflect the Japanese market as a whole. The focus remains on medium and small capitalised companies, where we can build up significant stakes to enable productive engagement with their management. The strategy focuses on improving the representation of independent directors on boards, and targets companies with inefficient capital management, usually trading on a low price to book ratio and with high levels of cash reserves." Two unlisted holdings. Circa 1.5m shares isssued at a premium to NAV in the period. Next continuation vote in June 2027
US Solar Fund HY results to 30 June 2025 (USF LN, Renewable Energy Infrastructure, £120.1m mkt capn, 40.0% discount to NAV): NAV +3.2% over the half to $0.65, driven by “changes in certain tax and macroeconomic assumptions and discount rates (which had a positive impact) and changes in merchant curves (which had a negative impact).” $0.0056 dividend for Q2 2025 declared; target of $0.035 reaffirmed to take effect from Q3 2025. Generation during the period was 10.2% below budget due to “unscheduled outages and other non-irradiance related factors.”
Supermarket Income REIT HY results to 30 June 2025 (SUPR LN, £979.5m): EPRA NTA unchanged to 87.1pps; EPRA EPS -2% to 6pps vs DPS 6.12p; LTV 31%. SUPR is “positioned for materially improved earnings and dividend cover” thanks to the internalization and targeting FY2026 dividend of at least 6.18pps. Portfolio valuation +1.9% on a LFL basis over the half, valued on a 5.9% NIY. "In November 2024, we set out a series of key strategic initiatives, aimed at reducing costs, delivering sustainable and growing earnings, and ultimately narrowing the share price discount to NTA. Having successfully delivered on these initiatives, including recycling capital, lease renewals on three of our supermarkets and completing the Internalisation of the business, it is encouraging to see a positive market response. In the calendar year-to-date, SUPR's share price has risen 16%, versus the FTSE EPRA NAREIT UK Index which is down 2% (based on the closing share price as at 15 September 2025) and the discount to NTA has narrowed markedly. However, we recognise that there is still more work to be done."
BH Macro HY results to 30 June 2025 (BHMG/U LN, Hedge Funds, £1,276.7m / £102.7m mkt capn, 10.1% / 10.5% discount to NAV): NAV TR 0.3% (£) “The discount to net asset value (“NAV”) per share has narrowed from the levels we have experienced in the last couple of years and, compared to many in the sector, is at a low level. However, as was the case last year, it is at too great a level for the Board to feel comfortable. None of the issues which bedevilled the sector last year have changed. Factors such as the concentration of shareholdings, the concentration of the wealth management industry and continuing uncertainty around the investment environment contribute to a most difficult set of conditions for the closed-ended fund sector. Whilst the Board retains its confidence in the Manager and the strategy that it has pursued so successfully for many years, neither we nor the Manager are complacent. We continue to search for ways to improve the Company’s returns.”
The City of London Investment Trust FY results to 30 June 2025 (CTY LN, UK Equity Income, £2,478.7m mkt capn, 2.1% premium to NAV): NAV TR +16.8% vs FTSE All Share Index +11.2%; share price TR +21.8%; "The UK stock market benefited from a return to confidence in the UK banks, which delivered good profit and dividend growth. Life insurance had a good year, as did the tobacco industry where profits were more resilient than in most other consumer staples sectors. Takeovers of UK companies by overseas companies and private equity firms continued at a pace, demonstrating the value in the UK equity market." FY dividend 21.6pps (+3.4%); OCR 0.36% (0.37% 2024)
Manager alignment
AVI Japan Opportunity HY results to 30 June 2025 (AJOT LN, Japanese Smaller Companies, £244.5m mkt capn, 0.5% premium to NAV): NAV TR +11.7% vs MSCI Japan Small-Cap +6.5%. Chairman: “AVI continues to identify compelling opportunities in Japan's under-researched small to mid-cap space, employing its constructive engagement strategy to unlock substantial corporate value.” During the Period, the Company bought back 535,000 shares. The Company subsequently announced the investment manager of AVI Japan Opportunity Trust plc, has today announced the purchase of a further 80,000 AJOT shares in connection with AVI's commitment to invest at least 25% of its investment management fee into AJOT shares. This purchase takes AVI's total current holding to 2,140,000 shares.
Cordiant Digital Infrastructure (CORD LN, Infrastructure, £736.6m mkt capn, 25.6% discount to NAV) trading update for calendar Q2 2025: “aggregate portfolio company EBITDA increased 9.6% on the prior comparable period to £41.3m… driven by contributions from contract wins, cost control, the beneficial effects of contractual and other price escalators on revenue, and the addition of Datacenter United (DCU) to the portfolio in March 2025.” “The dividend target of 4.35p per share is 4.7x covered by EBITDA and 1.7x covered by AFFO.” “CORD's net leverage is 4.6x LTM 30 June 2025 EBITDA, post company-level costs, and 40.8% on a net debt divided by GAV basis.” "The Directors, Steven Marshall and other members of the Investment Manager's team made further purchases of shares totalling 0.4 million since the publication of the Company's annual results in June 2025. Insiders now own 15.8 million or 2.1% of the Company's ordinary shares as at the date of this trading update"
Wind down / asset realization news
Riverstone Energy Limited (RSE LN, Commodities & Natural Resources, £222.8m mkt capn, 17.7% discount to NAV): Permian Resources Corporation has announced the pricing of the previously announced underwritten public offering of an aggregate of 46,112,899 shares of its Class A common stock by certain stockholders of Permian Resources at a price of $13.53 per share. RSE participated in the offering alongside affiliates of Riverstone Investment Group LLC, amongst others. The company subsequently announced that it “participated for the whole of its investment in Permian Resources comprising 10,052,173 shares of Class A common stock at a price of $13.46 per share. The price received represents a 1.75% discount to the closing price on 13 September 2025. REL will receive in total gross proceeds (prior to applicable taxes and expenses) from the investment of $135 million… Following the two transactions, REL will hold net cash of approximately $250 million. In accordance with the managed wind-down investment policy adopted by the Company on 22 August 2025, the Company expects to return a substantial proportion of this amount to shareholders, net of reasonable provisions for running costs in the expected managed wind-down period, by way of a pro rata compulsory redemption of ordinary shares. Further details will be announced by the Company in due course.”
The PRS REIT (PRSR LN, Property – UK Residential, £611.9m mkt capn, 20.1% discount to NAV) has agreed to sell its portfolio of property assets to Waypoint for approx. £633.2m net of taxes and fees. PRSR shareholders will also receive a dividend of up to 1.1ps in respect of Q1 2026, payable in November 2025. “The company and Waypoint will work together with a view to completing the Proposed Sale by 30 November 2025.” Break fee of approx. £5.7m payable to Waypoint if PRSR receives a firm offer from a third party. "Subject to completion of the Proposed Sale, the Board intends to seek further shareholder approval for the voluntary liquidation of the Company with a view to distributing the Company's net assets to shareholders as soon as reasonably practicable. Details of the net assets to be distributed to shareholders will be announced in due course."
Starwood European Real Estate Finance (SWEF LN, Property – Debt, £170.7m mkt capn, 8.4% discount to NAV) NAV as at 31 August 2025: -2.2% over the month to 95.75pps, driven by the previously-announced write-down of the Irish Office Portfolio loan. Total cash and equivalents = £80.1m and SWEF has separately announced an eighth capital distribution of £65m to be effected by way of compulsory partial redemption of shares at NAV (95.75pps) for shareholders on register at COB on 22 September 2025. 45.9% of company’s ISC will be redeemed.
Schroders Capital Global Innovation Trust HY results to 30 June 2025 (INOV LN, Growth Capital, £88.9m mkt capn, 34.6% discount to NAV): NAV TR +7.4% to 21.42pps… “The Company confirmed a capital return of £37 million less costs, an increase from the initially projected £30 million, at a price of 21.119983 pence per ordinary share. The Board is keen that the company can communicate directly with its shareholders during the managed wind-down. Communications in relation to future distributions of cash to shareholders will be sent directly via email.”
Premier Miton Global Renewables Trust (PMGR LN, Infrastructure Securities, £19.2m mkt capn, 6.5% discount to NAV): The Board has concluded that it is in the best interests of Shareholders to put forward proposals for a scheme of reconstruction under Section 110 of the Insolvency Act 1986 and the voluntary winding-up of the Company. The Company has entered into non-binding heads of terms regarding the Scheme with Premier Portfolio Managers Limited, the Alternative Investment Fund Manager to the Company and Authorised Corporate Director of Premier Miton Investment Funds 3. Shareholders will have the option of electing to (a) roll over their investment in the Company into Sterling Class B Income Shares in Premier Miton Global Infrastructure Income Fund, an FCA authorised open-ended investment company with assets of approximately £70.6m, which is a sub fund of Premier Miton Investment Funds 3; and/or (b) receive an uncapped cash exit, in each case at net asset value, subject to agreed adjustments for the Company’s costs to the extent not already reflected in the Company’s NAV. The Rollover Option will be the default option pursuant to the Scheme.
Life Science REIT (LABS LN, Property – UK Commercial, £138.6m mkt capn, 48.3% discount to NAV) will, following its strategic review and formal sales process, put forward proposals for a managed wind-down of the company. “The Board received a number of non-binding offers for the company and/or its assets from parties representing a range of sources of capital and comprising alternative transaction structures. Certain shortlisted parties were granted access to additional due diligence materials and meetings with Ironstone Asset Management and were subsequently invited to submit revised proposals. This culminated in a period of extensive negotiation between the parties over a number of months… [But] the Board has determined that the indicative potential value from the Managed Wind-Down would be materially in excess of the value achievable from the indicative offers received, which represented material discounts to LABS’ latest NAV.” “It is anticipated that the realisation of the portfolio will be concluded over a 12-18 month period, depending on, amongst other things, the prevailing market environment.”
Management team news
JPMorgan Global Growth & Income (JGGI LN, Global Equity Income, £3,275.5m mkt capn, 1.9% discount to NAV): Further to the announcement made on 30th July 2025 that Tim Woodhouse, one of the three portfolio managers to the Company, would be stepping down from his role as a portfolio manager to the Company, effective from 30th September 2025, the Board is pleased to announce that Sam Witherow is joining the existing portfolio management team. Sam will work alongside current portfolio managers, Helge Skibeli and James Cook in the management of the Company's portfolio. The investment process and investment objective of the Company and its strategy will not change. Sam, who is based in London, is a portfolio manager within the JPMorgan Asset Management International Equity Group, managing Global Equity Income strategies. He has worked closely with Helge for more than six years. Sam joined the firm as a graduate trainee in 2008 and was previously a research analyst responsible for covering the energy sector. Sam obtained a BSc (Hons) in Economics and Politics from the University of Bristol and is a CFA charterholder.
Asset / Lease news
Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £143.7m mkt capn, 46.8% discount to NAV): the Company notes the IPO of Gemini Space Station Inc, the NY-based cryptocurrency exchange and custodian bank founded by Cameron and Tyler Winklevoss, in which AUGM has an equity interest. AUGM first invested in Gemini in November 2021. The Company holds a liquidation preference in Gemini and therefore is entitled to receive shares with a value at IPO equal to its original investment and current carrying value. The holding is subject to a six month post-IPO lock up and represents 3.4% of AUGM's NAV
Crystal Amber Fund (CRS LN, UK Smaller Companies, £96.6m mkt capn, 18.4% discount to NAV): notes the announcement by portfolio company Morphic Medical Inc that it has appointed Jane Wright as its CFO.
Grainger PLC (GRI LN, 1,350m mkt capn) has achieved a full lease-up on The Kimmeridge in 7-months, ahead of the 12-month period expected.
Acquisition / Disposal news
Oakley Capital Investments (OCI LN, Private Equity, £962.0m mkt capn, 24.4% discount to NAV): has, via Fund IV, agreed to sell its majority stake in the K12 portfolio and retain a minority position, generating £25m of proceeds for OCI at a 6% premium to the valuation as at 30 June 2025, adding 3pps to NAV. “As part of the transaction, Fund VI will invest new capital into the portfolio,” with OCI’s contribution expected to be… £25m.
FTSE Index changes
FTSE Russell quarterly UK Index changes take effect from COB today, 19 September 2025 with the following changes:
- Unite Group (UTG LN) will be removed from the FTSE 100;
- BioPharma Credit (BPCR LN), Oakley Capital Investments (OCI LN) and Partners Group Private Equity (PEY LN) will be added to the FTSE 250 and All Share indices;
- NextEnergy Solar Fund (NESF LN) and Polar Capital Financials Trust (PCFT LN) will be removed from the FTSE 250.
- Sector data this week (AIC data, as at Thursday’s close)
Equity Capital Markets
n/a
Ex Dividend
ESCT 3.45p, JEGI 1.20p, PPET 4.4p, PPH 17p, RGL 2.50p, SMIF 0.50p, SOHO 1.4055p, UTG 12.8p
Frostrow Investor Relations team – Grant Challis, Neil Winward, Matt Burrows, Matt Norfolk-Clarke, Nicholas Todd
Frostrow Capital LLP
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