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:
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Good morning investment trust investors,
Contents
- Overview for the week
- Frostrow Investor Events
- Investment Themes
- Sector data for the week
- Overview for the week
We survived Storm Bram and have almost survived 2025, just one full working week to go. China's trade surplus exceeded $1tr for the YTD (the first time ever reaching in excess of that number) with higher sales to non-US markets this year making up for a sharp drop in sales to the US (-18.9% YoY). We also saw the report on wealth dis-equilibrium, with now just 56,000 people who control as much wealth as half of the world’s population. Mexico has approved tariffs on imports of up to 50% on countries including China and India and there has been a dramatic escalation of tensions between the US and Venezuela in regard to oil distribution. We saw a US interest rate cut of 25bps come through mid-week down to a range of 3.5% to 3.75%, the lowest level in three years. Internal divisions at the Fed do though create more uncertainty about the prospects of further rate cuts to come in 2026 given conflicts in the dual mandate to keep price stability and maximum employment. It was a tougher week for US tech shares with Oracle falling 10.8% on Thursday with a small revenue miss, with financial analysts cutting price targets for 2026 accordingly.
In the UK, it was suggested by the OBR that the UK Budget could reduce inflation by 0.4% and we note the Bank of England will report on interest rates next week. ONS figures showed that the UK economy contracted by 0.1% in October and by 0.1% in the quarter to end October despite the UK Government having economic growth as one of its key priorities. The CBI have separately forecast growth of 1.3% for 2026 and 1.5% for 2027 saying the "spend now, tax later" approach will lead to slightly higher growth but leave UK public finances in a more ‘vulnerable’ position. We do note Martin Lewis, founder of Money Saving Expert, after many years of pushing cash, has finally come round and started to promote investing to the UK populous this week. It does feel quite coordinated with the efforts centrally to change the thinking around investment, pensions and risk in the UK. The FCA is also allowing registered banks the ability to make investment and pensions recommendations with the FCA calling it "game changing". FCA data has suggested about seven million adults in the UK with £10,000 or more in cash savings could receive better returns through investing.
In the investment trust sector, discounts contracted by 25bps to 12.9% with a tougher week for renewables and technology and a decent week for commodities. The FCA has seemingly listened to concerns from the industry in regard to cost disclosure. The new rules will highlight the OCF as the key pre-sale retail cost disclosure and exclude investment company costs, gearing costs and the costs of maintaining real assets from the OCF. "The new approach will make investment companies more attractive to retail investors and funds. It will remove a misleading disclosure that has been a barrier to the purchase of investment company shares and provide better information to investors." Again, it feels part of a wider move by the FCA to change the way we highlight "risk" on marketing and regulatory documents in order to boost retail investment over time. In addition to that, Saba have increased their position in SDCL Efficiency Income at the same time as the pressure on the manager to reduce gearing intensifies. Also, Baillie Gifford Japan are looking to put in place some amended discount control provisions, Pacific Assets Trust has formally launched a strategic review and at Frostrow, Ecofin Global Utilities and Infrastructure Trust has announced full year results stating that “Over the nine years since inception, your Company has delivered annualised NAV per share and share price total returns of 10.7% and 12.3% respectively.” “The long-term drivers of growth in listed infrastructure remain compelling.”
One way or other, where there are discounts, capital will be sucked in to fill the vacuum (and the excess supply is clearly being taken care of also at pace) so I would not be short of investment trusts.
2. Frostrow Professional Events
Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £151.2m mkt capn, 44.0% 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:
The IMC webinar from 5 December 2025 will be available to see here next week:
https://www.investormeetcompany.com/company/meetings/interim-results-535
Aurora UK Alpha (ARR LN, UK All Companies, £290.5m mkt capn, 9.5% 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, £260.3m mkt cap, 6.4% discount to NAV): Geoff Hsu, lead manager, gives his thoughts at the AGM on 17 July 2025:
https://www.youtube.com/watch?v=qHK5hrdFehI&t=16s
The update webinar which took place with Frostrow on 7 October 2025 is available here:
https://www.youtube.com/watch?v=5L0wbJrxbwk
The Edison webinar from early November 2025 is also available here: https://lnkd.in/gea-wUbH
CC Japan Income & Growth Trust (CCJI LN, Japan, £295.7m mkt capn, 7.5% 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, £115.3m mkt capn, 0.4% 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
The IMC webinar from 2 December 2025 will be available here next week:
https://www.investormeetcompany.com/company/meetings/investor-update-87
Custodian Property Income REIT (CREI LN, Property UK Commercial, £367.8m mkt capn, 17.3% 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
The Company is provided a further investment update via Investor Meet Company on 30 October 2025, which you can access here:
https://www.youtube.com/watch?v=zUOgnWAEsEA
Ecofin Global Utilities & Infrastructure (EGL LN, Infrastructure Securities, £223.0m mkt capn, 5.3% 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
Frostrow conducted an investor webinar with Jean-Hugues on 5 November 2025, with link below for those who missed it:
https://www.youtube.com/watch?v=nZDYoUZjy18
Finsbury Growth & Income Trust (FGT LN, UK Equity Income, £968.4m mkt capn, 5.8% 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
The IMC webinar from 5 December 2025 will is available here:
https://www.youtube.com/embed/7j91YsLT3sI?rel=0
MIGO Opportunities Trust (MIGO LN, Flexible Investment, £65.9m mkt capn, 4.9% 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, £160.4m mkt capn, 9.7% 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
The Investor Meet Company webinar recorded on 17 October 2025 is available on the following link:
https://www.youtube.com/embed/Fd7sgkz2T-w?rel=0
Temple Bar Investment Trust (TMPL LN, UK Equity Income, £1,070.4m mkt capn, 1.1% 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, £1,466.1m mkt capn, 6.3% 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 was held on Tuesday 21 October, which if you missed is available here to view here:
https://www.youtube.com/watch?v=tcdiOnFPHjI
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, Nicholas Todd & Max Smith
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 November 2025 summary podcast here: https://www.investormeetcompany.com/updates/frostrow-talks-trusts-november-2025-podcast/show
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3. Further investment themes evident in the investment trust sector this week include:
Discount control
As an example, Tuesday saw a total of 521 LSE market announcements across the board, with 158 in reference to a buyback or tender, 30.3% of total. 10 referred to equity issuance
Baillie Gifford Shin Nippon (BGS LN, Japanese Smaller Companies, £314.4m mkt capn, 10.2% discount to NAV): the lead portfolio managers have made a number of changes to the portfolio during the quarter whilst the "Company's recent performance has continued to be impacted by the ongoing underperformance of small cap growth-focused companies in Japan and the Board has been considering what steps it should take in response." Post consultation with 43% of shareholders by value, investors are supportive of the mandate and believe the managers be given time. As such, the Board is seeking shareholder approval for a tender offer for up to 15% of share capital in Q1 2026, to remove the 2027 conditional tender, to introduce a performance triggered tender for up to 100% of share capital over a five year period to 31 December 2030 (comparing to the MSCI Japan Small Cap Index £) and to put a one-off continuation vote to shareholders in 2028
Redemption / tender update
India Capital Growth (IGC LN, India / Indian Subcontinent, £143.3m mkt capn, 8.7% discount to NAV): the redemption price is 182.7081p per redemption share
AVI Japan Opportunity Trust (AJOT LN, Japanese Smaller Companies, £409.2m mkt capn, 3.5% discount to NAV): the Company published a circular containing details in regard to the up to 100% annual tender offer at a 2% less transaction costs. "None of the Directors nor the Investment Manager will tender any of their own Shares under the Tender Offer." (Minimum NAV of £100m before the Company reserves the right to terminate the tender offer)
Saba Capital update
Aberdeen UK Smaller Companies Growth Trust (AUSC LN, UK Smaller Companies, £261.5m mkt capn, 9.2% discount to NAV): Saba Capital holding reduced from 5% to 4.8%
Capital allocation update
Molten Ventures (GROW LN, £860.3m mkt capn): announced a Series B investing £12.5m in Modo Energy and partial realisation of its holding in ICEYE at a valuation above the 30 September valuation, generating c£17.5m in cash. Post partial realisation the remaining holding will be valued at c£85m. Total cash increased to £104m (7.6% of opening gross portfolio value). Of the £50m committed to share buybacks, £44m has been completed to date.
GCP Infrastructure Investments FY results to 30 September 2025 (GCP LN, Infrastructure, £590.5m mkt capn, 30.1% discount to NAV): NAV TR +3.1%; generated c£80m of cash proceeds from the realisation of various renewable assets; leverage has been reduced from £104m to £20m; equity exposure has been materially reduced; in addition, £35.6m has been returned to shareholders through share buybacks since March 2023; "...the Company benefits from long-dated revenues underpinned by real assets providing critical services. This income is defensive and non-correlated with the wider macro environment...Following publication of this report, and completion of the capital allocation policy, the Company intends to engage with shareholders early in 2026 to propose a future strategy for the recycling and use of capital, which will ultimately be linked to the evolution of the Company's share price discount to net asset value per share and the broader market opportunities for investment activity."
International Public Partnerships trading update from 1/7 to 12/12 (INPP LN, Infrastructure, £2,273.8m mkt capn, 15.6% discount to NAV): over £70m of share buybacks, over £85m of asset realisations all completed above the most recently published valuations, approx £40m of selective reinvestments; "The Board reaffirms its commitment to prudent capital allocation and announces that the buyback programme of up to £200 million has been increased to up to £225 million and extended from 31 March 2026 to 31 March 2027." Two quarterly interim dividends of 2.14pps, fully covered by net operating cash flows and the annual increases projected of c2.5%pa. " From 1 July 2025, the base fee payable in respect of each quarter is based on the equal weighting of the average of the closing daily market capitalisation of the Company during that quarter; and the most recently published NAV. This fee change enhances alignment of interests with shareholders."
Taylor Maritime Limited (TMI LN, £283.1m mkt capn): produced HY results to 30 September 2025 but also announced intention to distribute approx $143.4m in Q1 2026 by way of a partial compulsory redemption of ordinary shares for which a circular will be produced in January 2026. The quarterly dividend of 2cps is also expected to be declared in January. "The Company's dividend target for the current financial year remains 8 cents per share but will be reviewed going forward."
M&A news
The PRS REIT (PRSR LN, Property – UK Residential, £622.8m mkt capn, 20.6% discount to NAV): the Board announced the completion of the sale of the entire issued share capital of the Company's operating subsidiary that holds the entirety of PRSR's property assets
Continuation vote
JPMorgan Asia Growth & Income FY results to 30 September 2025 (JAGI LN, Asia Pacific Equity Income, £296.2m mkt capn, 6.7% discount to NAV): NAV TR +19.9% vs MSCI Asia Pacific Index £ +16.8%; share price TR +23.9%; "Enhanced dividend policy was increased to 1.5% of NAV per quarter, equating to a notional yield of 6% per annum effective March 2025 (This is designed to differentiate the Company from its peers and respond to evolving investor needs in a higher interest rate environment, while also generating additional demand for our shares)...The Company repurchased 10.8 million shares during the year (13.7% of issued share capital), increasing NAV per share by 5.8p." Net gearing of 5.2% (4.0% 31/3/25); triennial continuation vote coming at the AGM in February 2026; "The Board believes that the long-term outlook for Asian markets is favourable and that the Investment Manager has the resources and processes to continue to deliver good results for shareholders, as shown by the Company's long-term performance."
Strategic review update
Pacific Assets Trust (PAC LN, Asia Pacific, £416.0m mkt capn, 9.0% discount to NAV): the Board has formally launched a strategic review post shareholder consultation. "Investec Bank plc has been appointed by the Board to assist it with a review of the Company's strategic options, including the Company's investment management arrangements and future investment strategy. The Board welcomes proposals for the future of the Company from investment managers and other investment companies that deploy investment strategies focused on, or substantially exposed to, the Asia Pacific region...The Board currently anticipates that the Strategic Review will conclude in early Q2 2026 and will make further announcements in due course."
Results / updates
SDCL Efficiency Income Trust HY results to 30 September 2025 (SEIT LN, Renewable Energy Infrastructure, £564.4m mkt capn, 41.5% discount to NAV): NAV 87.6p (31/3 90.6p) "reflecting more cautious valuation assumptions amid market volatility"; aggregate dividends of 3.18pps in line with guidance, dividend cover of 1.2x (Sept 2024: 1.1x); target FY dividend remains 6.36p; gearing at 71.9% of NAV (max of 65% of NAV as per the investment policy) with disposals underway to reduce leverage; "Disposal progress includes sale of ON Energy at an 18.75% premium to NAV and exclusivity agreed on a further disposal expected around year-end." "The Board and the Investment Manager are committed to achieving disposals to raise liquidity, to reduce gearing and in due course, to facilitate a return of capital to shareholders. However, there are also important implications for the portfolio. As debt has become the primary source of capital for growth by those investments requiring capital, there is a risk that until such sources of capital - or any alternatives that are not borrowings - are available again, this could lead to further impacts on valuation where successful future growth is assumed in current valuations. This is clearly of concern to the Board...The Company has a continuation vote at its AGM in 2026 (as set out in the Company's Articles), and without some material success in making disposals, reducing our drawing under our RCF and with the potential to return capital to shareholders, the Board is unlikely to recommend continuing in the current form." Saba Capital subsequently announced an increased position from 5% to 10%
Templeton Emerging Markets Investment Trust HY results to 30 September 2025 (TEM LN, Global Emerging Markets, £2,225.3m mkt capn, 7.8% discount to NAV): NAV TR 25.3% vs MSCI Emerging Markets Index +18.8%; share price TR +30.8%; "The prize on offer in the long term from investment in emerging markets is exposure to lower valued companies based in higher growth economies." Managers awarded Citywire AAA rating. The Board continue to find the discount unsatisfactory. 53.6m shares were bought back for £101.2m at an average discount to NAV of 11%, leading to NAV uplift of 0.6%
Fidelity China Special Situations HY results to 30 September 2025 (FCSS LN, China / Greater China, £1,456.2m mkt capn, 7.5% discount to NAV): NAV TR +29.7% vs MSCI China Index +18.0%; share price TR +28.7%; "China remains a fertile ground for structural growth opportunities, particularly in sectors benefiting from rapid technological innovation, such as automation, electric vehicles, AI and advanced manufacturing. Meanwhile, the fruits of strong R&D in healthcare and ongoing import substitution in tech hardware and high-end industrial components further broaden the opportunity set." Net gearing 19.6% (31/3/25 20.5%). "The MSCI China Index now trades at around 13 times 12-month forward earnings, still more than 40% below the prospective multiple of the S&P 500."
Aberdeen Equity Income Trust FY results to 30 September 2025 (AEI LN, UK Equity Income, £192.7m mkt capn, 2.0% premium to NAV): NAV TR +21.8% vs FTSE All Share Index +16.2%; share price TR +25.7%; 25th year of dividend growth with a total of 23pps paid; revenue reserves of 15.68pps; shares traded at a premium to NAV and the Company issued 1m shares from Treasury, raising over £3.6m; Company has drawn £22.5m of its £30m RCF
Baillie Gifford European Growth Trust FY results to 30 September 2025 (BGEU LN, Europe, £328.0m mkt capn, 7.8% discount to NAV): NAV TR +5.5% vs FTSE Europe ex UK Index +15.5%; share price TR +14.5%; 6 unlisted investments accounting for 15.5% of net assets (6.4% in 5 companies at YE 2024); final dividend of 0.72pps being recommended; net gearing of 14% of shareholder funds; 27.1m shares repurchased at a cost of £26.9m (7.7% of share capital); OCR 0.66%
Lowland Investment Company FY results to 30 September 2025 (LWI LN, UK Equity Income, £342.1m mkt capn, 9.3% discount to NAV): NAV TR +20.8% vs FTSE All Share Index +16.2%; share price TR +24.4%; "Performance was driven primarily by strong stock selection, particularly among the largest companies, with standout contributions from HSBC, Barclays and Standard Chartered." "The portfolio as a whole saw five takeovers over the course of the year, as foreign and private investors took advantage of the UK market's modest ratings and solid fundamentals. While this boosts short-term performance, the net effect is a depletion in both size and quality of the UK stock market. It is disappointing that stock market investors still do not appear to appreciate this value, and the UK market therefore continues to shrink and lose successful companies. Aside from the takeover candidates, there continued to be a lack of interest in mid and small-cap UK companies." FY dividend of 6.625pps (+3.1%) from EPS of 6.73pps; gearing at 11.5% (11% 2024); OCR 0.71% (0.66% 2024); 50.2m shares repurchased
Polar Capital Technology Trust HY results to 31 October 2025 (PCT LN, Technology & Technology Innovation, £5,259.3m mkt capn, 10.1% discount to NAV): NAV TR +66.0% vs DJ Global Technology Index, £) +48.4%; share price TR +65.2%; "In the United States, market returns were driven by both positive earnings revisions and multiple expansion." "...the real driver of relative performance was our 'AI maximalist' positioning, which aligned well with accelerating AI adoption and surging infrastructure investment." Gearing 1.2% of net assets; 38.8m shares repurchased into treasury (2.8% of share capital)
TwentyFour Select Monthly Income Fund FY results to 30 September 2025 (SMIF LN, Debt – Loans & Bonds, £286.8m mkt capn, 2.5% premium to NAV): NAV TR +12.2%; 7.3pps total annual dividend (6p target dividend pa plus a target capital return of 2p-4p pa); no gearing used; issued 54.3m shares at a 2% premium to NAV less issue costs; c950k shares were tendered at the four quarterly tender opportunities in the year (and subsequently placed); "We expect government bond volatility to remain elevated, particularly at the longer end of yield curves (which are more affected by influences other than base rates), whilst we expect credit spreads to continue to be well supported for several reasons: improving real GDP growth, stable credit metrics and solid technical tailwinds. All-in yields remain attractive and offer good downside protection if credit spread volatility were to pick up."
Partners Group Private Equity October 2025 update (PEY LN, Private Equity, £690.0m mkt capn, 26.7% discount to NAV): NAV Eur14.15 per share with +0.9% of positive value creation and +0.8% of currency movements; Eur89m was received from two investments and Eur17.2m was invested in two assets; October saw the commencement of its share buyback programme acquiring 150k shares "having increased the available capital allocation for share buybacks from EUR 2.7 million to up to EUR 15 million under its capital allocation policy. The programme commenced following receipt of PCI proceeds and is expected to continue through 31 January 2026."
JPMorgan Global Core Real Assets Quarter end November 2025 update (JARA LN, Flexible Investment, £57.8m mkt capn, 20.7% discount to NAV): NAV 95.42p (31/8/25 93.46p); NAV TR +2.1%; "During the three months to 30th November 2025, all strategies delivered positive returns in local currency terms, with private transportation contributing +0.3%, private real estate equity contributing +0.6%, and private infrastructure contributing minimally due to its limited remaining allocation"
Ashoka Whiteoak Emerging Markets Trust HY results to 30 September 2025 (AWEM LN, Global Emerging Markets, £57.7m mkt capn, 1.5% premium to NAV): NAV TR +19.9% vs MSCI EM £ Index +18.8%; share price TR +18.8%; issued 3.275m shares (9.4% of share capital) leading to a lower OCR; "The Company has benefited from this significant outperformance of its mid and small cap holdings, notably amongst Indian stocks. The Investment Manager’s local extensive and established Indian research presence and connections allowed it to identify and access a series of high-quality anchor and pre-IPO opportunities, which remain a major positive source of differentiation compared to open-ended emerging markets focused funds." "The next Redemption Point [annual] for the Ordinary Shares is 31 December 2025, for which valid redemption requests have been received for 92,088 Ordinary Shares"
Ecofin Global Utilities and Infrastructure Trust FY results to 30 September 2025 (EGL LN, Infrastructure Securities, £223.0m mkt capn, 5.3% discount to NAV): NAV TR +15.0% vs S&P Global Infrastructure Index £ +15.4% / MSCI World Utilities Index £ + 11.7%, share price TR +16.6%; the closed ended structure was well utilised via borrowings to enhance returns (albeit reduced from 14.2% to 10.2%) and paying attractive and growing dividends; the FY 2026 dividend will increase by 5.9% to 9pps (greater than the rate of inflation this year and on average since inception); 4.8% of share capital was repurchased enhancing NAV by 0.8% (Frostrow client)
Wind down / asset realization news
GCP Asset Backed Income (GABI LN, Debt – Direct Lending, £117.1m mkt capn, 14.4% discount to NAV): the Company has compulsorily redeemed 43.7m shares at 76.6275pps, circa 20.3% of share capital. "Following the redemption, the Company has 171,903,104 ordinary shares in issue."
RM Infrastructure Income (RMII LN, Debt – Direct Lending, £49.3m mkt capn, 18.8% discount to NAV): the Company exited its largest position and received £15.1m, circa 25% of NAV. "As per previous shareholder communications, the majority of this capital will form part of the next scheduled tender offer which is expected to occur early Q1-2026. A further announcement in that regard will be made by the Company as and when appropriate." Also, it is anticipated that a £5m position will be successfully tendered in the coming days. In addition, the Empowered Brands position, currently marked at £9.7m, a 16% discount to NAV, will either need a longer realisation period or will have "probable near-term impairment." As such, the Company is considering providing additional capital of up to £3m in the form of a loan to facilitate initiatives for growth. "...the Company intends to consult with RMII's largest shareholders in order to gauge investor sentiment to this strategy."
Ground Rents Income Fund FY results to 30 September 2025 (GRIO LN, Property – UK Residential, £24.2m mkt capn, 53.6% discount to NAV): NAV 54.5pps (30 Sept 2024: 59pps); £10m of asset sales completed marginally above the valuation leading to a reduced bank loan from £19.5m to £8.2m; the loan facility was refinanced to January 2028 with reduced margin from 2.75% to 2.5% over SONIA; "Judicial Review of the Leasehold and Freehold Reform Act 2024 dismissed by the High Court; the Company and its peers have lodged a formal application seeking permission to appeal, with a decision on the application expected in early 2026."
Starwood European Real Estate Finance (SWEF LN, Property – Debt, £48.2m mkt capn, 8.2% discount to NAV): announced the tenth capital distribution of £30m via compulsory redemption; in addition, the Board is contemplating the possible extension of the Company's year end from 31 December 2025 to 28 February 2026 in connection with the continuation of the orderly winding up. A shareholder circular has been produced accordingly
Doric Nimrod Air Three Limited (DNA3 LN, Leasing, £138.6m mkt capn, 3.3% discount to NAV): announced HY results to 30 September 20205 and stated sales of Airbus A380-861 have been completed as previously reported. The Directors confirm the intention to distribute the sale proceeds to shareholders by the end of January 2026 by way of a redemption of the Ordinary Preference Shares at approx 64pps. Further details will be announced in due course
Gearing news
Supermarket Income REIT (SUPR LN, £980.3m mkt capn): Fitch has reaffirmed the BBB+ with stable outlook rating
Acquisition / Disposal / portfolio news
BlackRock World Mining Trust (BRWM LN, Commodities & Natural Resources, £1,459.9m mkt capn, 4.9% discount to NAV): announced the sale of its unquoted holding, BHP Brazil Royalty Contract for $70m, a premium of 105% to the current holding value of $34.1m. The uplift results in a 1.8% NAV uplift and the Company will also receive all revenue from the Royalty owed for production in 2025 which has not yet been paid. "The Manager is currently engaged in a number of processes that could result in the deployment of capital into new unquoted investments."
Regional REIT (RGL LN, Property – UK Commercial, £168.2m mkt capn, 50.1% discount to NAV): completed the disposal of Oakland House, Manchester for £13m, a 1% premium to 30 June valuation. The disposal "aligns with the Group's strategy to reduce gross indebtedness and vacancy levels. Including this sale and six other asset sales since 30 September 2025, total disposals for the financial year-to-date generated £51.7m of proceeds before costs, which reflects 1% above book value and exceeds the £40m-£50m target for 2025." Subsequently the Company announced that from 1 January 2026, the management fee will move from being calculated 100% based on EPRA net tangible assets to being 75% based on that and 25% based on market capitalisation, and then 50/50 on that basis from 1 January 2027; all performance fees will be discontinued and the term of the management contract reduced to a rolling two year period; "The Board believes that the new arrangements will better align the interests of shareholders and the Managers and will deliver material cost savings to the Company and its shareholders."
NewRiver REIT (NRR LN, £291.2m mkt capn): entered into a conditional agreement to form a joint venture with Mid Sussex District Council to deliver the mixed-use regeneration of The Martlets shopping centre in Burgess Hill, Mid Sussex. "It is anticipated that the Agreement's conditionality will be satisfied by the end of March 2026, with construction due to commence summer 2026 and completing in 2028."
Manager alignment with shareholders
EJF Investments (EJFI LN, Debt – Structured Finance, £71.7m mkt capn, 26.1% discount to NAV): EJF Capital Limited, an affiliate of the Manager, has utilised approximately 10% of the Q3 2025 EJFI management fee to purchase 16,722 ordinary shares. "This is in line with the Manager's previously announced plan to reinvest up to 10% of the EJFI management fee earned for at least four quarters, for so long as the average share price during the prior quarter traded at least 15% below the Net Asset Value (NAV) per share at the prior quarter end. To date, EJF Capital Limited has bought a total of 189,030 ordinary shares under the current re-investment program and the previous 2024-2025 re-investment program."
4. Sector data this week (AIC data, as at Thursday’s close)
Equity Capital Markets / Investor demand
n/a
Ex Dividend
SRE Eur3.18cps, HHI 2.775pps, SDV 2.5pps, JEMI 1.5pps, TRY 5.75pps, AEI 5.9pps, PPET 4.4pps, NRR 3.1pps, PNL 1.4pps, UIL 2pps, CTUK 4.15pps, CMPI 1.9pps, MIG3 1pps, MIG5 0.5pps, MIG1 1pps, MAV4 1pps, VSL 1.44pps
Frostrow Investor Relations team – Messrs Grant Challis, Neil Winward, Matt Burrows, Nicholas Todd & Max Smith
Frostrow Capital LLP,
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020 3008 4912
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