https://www.investormeetcompany.com/frostrow-capital/register-investor

 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

 “Buckle up: uncertainty is the new normal” is what the IMF’s Kristalina Georgieva told us this week.  We started with a Zut Alors moment, with Lecornu only making it to 28 days in power as French PM, making Liz Truss’s 49 days as UK PM seem positively long-term. In Japan the Nikkei 225 was up 5.0% on Monday closing at a record high (and for the week), with the Japanese Yen falling as the country's ruling party leadership was surprisingly won by Sanae Takaichi.  She is known as a supporter of Margaret Thatcher, higher government spending and lower borrowing costs. Japan's bond yields rose particularly at the long end as bonds sold off in expectation of higher borrowing costs.  The common theme in Japan, France, and frankly most developed markets, including the UK, continued to be too much public debt and party politics seemingly not able or willing to deal with it.  Bond yields ticked up slightly accordingly. The gold price went through $4k per ounce in what is likely to be the strongest year for gold since 1979 also likely heavily influenced by this debt theme.  The US shut down continues with a lack of market data potentially leaving market analysts flying blind at a time when you don’t want that.

 In the UK, as business confidence and wage growth legs down to a three-year low, Keir Starmer visited Mumbai, India, with business delegation to discuss trade.  We also had the Conservative party conference in Manchester, with quite a lot of empty seats, likely due to the multiple defections to Reform or perhaps popping off to spelling class for some in the party.  Good news at Shawbrook, a UK bank, announcing that it is planning a London listing via an IPO, which will be eligible for FTSE Indices, so that plus Princes also confirming means more signs that the IPO market in the UK could be waking up.  In the markets, The Bank of England and Jamie Dimon, long-standing CEO at JPMorgan warned of potential exuberance in the market saying “I’m more worried than others about the stock market.” We also note the corporate bond market continues to be priced for perfection.  For example, credits like Microsoft offer lower yields than those issued by the US Government.

 In the investment trust sector, a much more modest quantum of newsflow was seen this week and discounts actually widened 40bps on average, providing us all with greater time to consider our exposure.  Not a great week for student accommodation funds, but good for biotech and space equity.  Calastone has reported that £3.6bn was pulled out of equity funds in the three months to end September and yet markets have continued to push on higher, at least until midweek.  City AM has reported that private asset funds are forecast to grow another 70% over the next 5 years to hit $23.9 trillion by 2030.  As an observer of markets, it is very interesting to see when we have significant and high-profile funds investing in private market assets all trading at significant discounts to NAV, notwithstanding, in many cases, the same manager raising new money at NAV in other structures.  Makes no sense of course and it continues to be a once in a generation opportunity for investors who spot this. Those discounts will evaporate over time.  Do not be short of investment trusts.

 We note UK Equity Income client, Temple Bar Investment Trust has flagged some important milestones in its latest quarterly update, so if your Bar is set high and your portfolio is your Temple, worth a read: Lessons learnt from the first five years - Temple Bar

 

1. Frostrow Investor Events

 Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £146.9m mkt capn, 45.6% 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, £279.3m mkt capn, 9.9% 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

 We also enclose the invitation for the Aurora UK Alpha plc Investor Event on 15 October 2025

See below for link to reserve a spot

 

Biotech Growth Trust (BIOG LN, Biotechnology & Healthcare, £247.1m mkt cap, 9.5% 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

 The webinar which took place on 7 October 2025, will be available on the Frostrow Capital You Tube website shortly for those interested

  

CC Japan Income & Growth Trust (CCJI LN, Japan, £288.3m mkt capn, 9.6% 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, £111.9m mkt capn, 0.2% 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, £354.5m mkt capn, 23.8% 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, £232.9m mkt capn, 11.6% 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, £1,117.8m mkt capn, 6.4% 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 (May 2025):

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

 

MIGO Opportunities Trust (MIGO LN, Flexible Investment, £67.0m mkt capn, 6.7% 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, £166.8m mkt capn, 4.5% 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

 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

 Carlos will be speaking via Investor Meet Company on Friday 17 October 2025 at 11am, available for all to dial in at this time and post the event with the recording

 

Temple Bar Investment Trust (TMPL LN, UK Equity Income, £1,033.1m mkt capn, 1.2% 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 if your Bar is set high and your portfolio is your Temple: Lessons learnt from the first five years - Temple Bar

 The webinar held on 24 September 2025 can be found here, with Ian Lance presenting:  https://www.youtube.com/watch?v=04U0gX4KpOU

 

Worldwide Healthcare Trust (WWH LN, Biotechnology & Healthcare, £1,421.3m mkt capn, 7.0% 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

 An investor webinar for Worldwide Healthcare Trust is being held on Tuesday 21 October at 3pm.  Please join us via the enclosed link:

  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

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

 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

 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

As an example, Wednesday saw a total of 469 LSE market announcements across the board, with 180 in reference to a buyback or tender, 38.4% of total.  16 referred to equity issuance of some point (which feels like some progress to me).

 Partners Group Private Equity (PEY LN, Private Equity, £753.8m mkt capn, 21.0% discount to NAV):  the Company pays a dividend equivalent to 5% of NAV in line with the dividend objective.  Such dividends are an important return of cash to shareholders.  Free cash is at Eur5.4m currently, and noting the Company's shares continue to trade at a discount of more than 20% to NAV, the Board has agreed to uplift the amount available for share buybacks from Eur2.7m to Eur15m (expected to be implemented between October 2025 and end January 2026). (The Company last undertook share buybacks in July 2014)

 

Conditional tender

Schroder Japan Trust FY results to 31 July 2025 (SJG LN, Japan, £333.3m mkt capn, 10.3% discount to NAV):  NAV TR 6.8% vs TOPIX Index TR +4.8%; share price TR +5.6%; paid out a dividend equivalent to 4% of its average NAV (declared quarterly); the Company offered a 5 year conditional tender a year ago, such that if the Company underperforms in the five year period to 31 July 2029, a tender offer for 25% of issued share capital at NAV less costs will be proposed; gearing at 13.4% (14.8% 2024)

 

Saba Capital update

Smithson Investment Trust (SSON LN):  Saba Capital holding increased from 14.1% to 15%

 

M&A news

The PRS REIT FY results to 30 June 2025 (PRSR LN, Property – UK Residential, £616.3m mkt capn, 21.6% discount to NAV):  earnings in line with Board expectations; adjusted EPRA EPS 4.4p (3.7p 2024; +19%); NAV +7%; rent collection 99%; occupancy 96%; EPRA LTV 35% (36% 2024); 81% of debt fixed at 3.8%; total dividend 4.3pps; dividend target of 4.5pps; proposed sale announced on 17 September to a fund advised by Waypoint Asset Management Limited, whose underlying investors are UK local government pension funds. A further announcement on this point will be made in due course

 Warehouse REIT (WHR LN, Property):  the listing was cancelled this week

 

De-listing / Change of structure

Petershill Partners (PHLL LN, Growth Capital, £3,437.1m mkt capn, 11.6% discount to NAV):  following on from the announcement late last month, the Board has published a scheme circular document which encapsulates the detail in regard to the proposed return of capital and cancellation and de-listing of the Ordinary shares.  Subsequently, the Board announced that it has received an irrevocable undertaking from Crown Sigma UCITS to vote in favour of the Scheme in respect 0.87% of the issued share capital (4.23% of free float). Total irrevocables now stand at 1.6% of share capital (7.82% of free float)

 

Results / updates

Fidelity Emerging Markets Limited FY results to 30 June 2025 (FEML LN, Global Emerging Markets, £616.7m mkt capn, 8.6% discount to NAV):  NAV TR +11.8% vs MSCI Emerging Markets Index +6.3%; share price TR +14.0%; NAV TR has beaten the S&P 500 Index for two years running; "Furthermore, while US equity market valuations are well above long-term averages, the EM universe is trading at a record valuation discount to the US (based on 12-month forward price/earnings ratios), a large discount versus the rest of the world, and well below its own long-term average valuation." "...there are many other factors to commend emerging markets: positive demographic trends, with (in most cases) young and increasingly educated populations, under-penetrated markets for goods and services, and a degree of fiscal rectitude largely lacking in the larger developed economies. Coupled with low valuations and signs of greater investor attention". Conditional tender for up to 25% of shares should the NAV TR performance be behind the Index for the five years to 30 September 2026 (currently 8% behind); 13.8% of share capital repurchased in the period

 Alternative Income REIT FY results to 30 June 2025 (AIRE LN, Property – UK Commercial, £57.3m mkt capn, 15.1% discount to NAV):  NAV +3.4%; 6.2pps dividend (in line with target, +5.1% 2024); LTV 36.9% (37.7% 2024); OCR 1.57% (1.46% 2024); weighted average unexpired lease term 15.6 years (16.5 years 2024);

 Sirius Real Estate Limited HY trading update to 30 September 2025 (SRE LN, £1,470m mkt capn):  On a like-for-like basis, underlying rent roll increased by 5.2%; Following a period of highly acquisitive growth in the U.K. we are now transitioning to a phase of intense asset management of our new assets, leveraging the strength of our platform. In this calendar year the Group has secured nearly €300 million of acquisitions across Germany and the U.K., completing the deployment of capital from its equity raise in July 2024. Has current free cash reserves of Eur400m (enough to repay the Eur400m bond)

 LondonMetric Property trading update to 30 September 2025 (LMP LN, £,4240m mkt capn):  portfolio performing well post Highcroft and Urban Logistics acquisitions; 14% increase in net rental income to £219m; EPRA cost ratio of 7.7%, with a target to get below 7.5%; occupancy 98%; top 10 occupiers account for 33% of rent. The Company also announced that Investment Director, Valentine Beresford will retire at the end of the financial year with Will Evers becoming sole Head of Investment

 Schroder European Real Estate IT Quarter to end September valuation (SERE LN, Property – Europe, £81.5m mkt capn, 37.4% discount to NAV):  value of Eur194.0m (+0.1%). The Company continues to prioritise long-term value creation and liquidity through active management

 Ashoka India Equity IT FY results to 30 June 2025 (AIE LN, India / Indian Subcontinent, £469.9m mkt capn, 0.5% premium to NAV):  NAV TR -0.2% vs MSCI India IMI -6.6%; share price TR -0.9%; promoted to the FTSE 250 Index in June 2025; "India is currently exposed to potential US tariffs and affected by a degree of economic uncertainty worldwide. As the US is India's largest export market, it is hoped that the first issue will soon be resolved and that both will have only a short-term impact." "In total, 14,849,496 new shares were issued during the year under review, raising a total of £42.2 million." 2.5m shares sought to redeem at the 30 September annual opportunity (proceeds on 13 October). No annual management fee paid, just a performance fee based on performance relative to the benchmark

 

Wind down / asset realization news

Baker Steel Resources Trust investment update to 30 September 2025 (BSRT LN, Commodities & Natural Resources, £80.4m mkt capn, 32.2% discount to NAV):  NAV +2.9% in the month; Silver X Mining Corporation and Blue Moon Metals Inc both raised equity in the period demonstrating "the increasing willingness by investors to invest in quality development projects particularly as both raisings had to be upsized due to strong demand"

 Weiss Korea Opportunity Fund (WKOF LN, Country Specialist, £6.8m mkt capn, 8.4% discount to NAV):  confirmed that it has compulsorily redeemed 21.7m shares at 161.15p (equivalent to NAV). Post the redemption and cancellation the Company's issued share capital consists of 16,367,416 shares of which 11,752,246 shares are held in treasury

 Riverstone Energy Limited (RSE LN, Commodities & Natural Resources, £227.7m mkt capn, 15.9% discount to NAV):  the Company announced that it will return approximately £190m by way of a compulsory partial redemption of up to 17,257,038 shares on 22 October (70% of share capital) at £11.01pps (equivalent to NAV).  The Company subsequently announced that it has disposed of its remaining warrants in Solid Power Inc generating $343k for the Company (full exit now)

 

Acquisition / Disposal news

Schroder British Opportunities Trust (SBO LN, Growth Capital, £54.7m mkt capn, 33.0% discount to NAV):  confirms a new private equity investment in CSL Group, its 12th

 Biopharma Credit (BPCR LN, Debt – Direct Lending, £1,045.7m mkt capn, 6.3% discount to NAV):  announces a new investment of US$30m in Valneva Austria GmbH. The loan will mature in October 2030 and will bear interest at 9% pa

 Value and Indexed Property Income HY update to 30 September 2025 (VIP LN, Property – UK Commercial, £82.5m mkt capn):  Portfolio value £132.3m (TR of +2.5%); sold four properties for £12.95m with the Premier Inn at Catterick having its lease extended to 2050.  All 26 properties are now freehold with WAULT of 13.4 years to earliest break.  100% of rental income is index-related and / on fixed increases. No unlet properties and no offices. LTV 36%

 Marwyn Value Investors (MVI LN, UK Smaller Companies, £75.5m mkt capn, 46.6% discount to NAV):  MAC III and Palmer have entered into a non-binding Heads of Terms to support the next phase of Palmer's growth. The agreement outlines discussions regarding a potential acquisition of Palmer, aimed at securing additional investment for Palmer to pursue strategic opportunities, led by the Palmer management team, and further accelerate development of its market-leading platform to support clients across jurisdictions. The Company also noted the announcement by holding 450 plc that it has signed a non-binding Heads of Terms for the potential acquisition of Silvercloud Holdings Limited, which owns a majority interest in Le Chameau

 

Shareholder alignment

Finsbury Growth & Income Trust (FGT LN, UK Equity Income, £1,117.8m mkt capn, 6.4% discount to NAV):  Nick Train, lead manager, purchased another 25k shares, so that he now holds 5.735m shares (4.3% of share capital).  Subsequently, the Company announced that it published a circular giving notice of a shareholder meeting seeking to renew the Company's buyback policy.  Since the last AGM the Company has repurchased 13.7% of share capital. "The Board's policy, within normal market conditions, is to buy-back Ordinary Shares when the Company's share price discount to the NAV per Share approaches 5 per cent."

 Residential Secure Income (RESI LN, Property – UK Residential, £109.2m mkt capn, 34.0% discount to NAV):  manager, Gresham House Asset Management Limited, purchased 132,802 shares in the secondary market in accordance with the terms of the fund management agreement (12 month lock up)

 

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

 

 

Equity Capital Markets / Investor demand

n/a

 

Ex Dividend

MWY 4.35pps, USF 0.56cps, AJOT 2.2pps, PHP 1.775pps, FGT 11.4pps, JMG 1.45pps, JMG 1.261pps, MRCH 7.3pps, RICA 3.35pps, AA$ 2pps, JAGI 7.1pps, BRLA 7.06cps, GSF 1.5pps, AIE 0.5pps

 

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