End of week note for investment trust investors

Oil prices nudged a little higher this week as the US moved its third battleship in position to basically surround Iran. Japan’s economy grew by 0.2% in Q4 2025 vs 1.6% expected, following Q3 contraction, so markets took a breather there.

In the UK, we are now seeking to accelerate spending on defence post the European meeting at the weekend, likely reaching 3% of GDP by the end of the current parliament. In terms of personal finance, although consumer confidence fell according to a survey this week, as households worry more about debt levels, and UK unemployment has now risen to 5.2% in the quarter to end December, up from 5.1%, and with unemployment in the 18 to 24 year olds sadly at 16%, we have also seen some good news. UK CPI has fallen to 3% in January, down from 3.4% in December, the lowest rate of inflation since March 2025. The likelihood of an interest rate cut is now surely higher. In terms of trade, there was a surplus in January of £30.4bn, a record, of course noting that the January number is always strong after tax bills are paid. The provisional net debt to GDP ratio is now 92.9%. We have also seen better than expected retail sales. UK gilt yields and equities are responding accordingly.

It is the Chinese year of the ‘fire horse’ now, a once in 60-year event, and you can choose to trot along, cantor or gallop your way through the year as you like as an investor. Either way, this is a year for moving forward, particularly in the investment trust sector. A bit like the late Robert Duvall in 2022 film, ‘The Hustle’, the AIC have taken this view of moving forward to heart by saying “Never back down!” They have come out hard by writing to the FCA and the Department of Trade and Business in seeking to help protect retail shareholders by facing down Saba, who are currently having a third bite of the cherry with respect to Edinburgh Worldwide.

Elsewhere in the investment trust sector, average discounts contracted by 40bps to 11.5%. It was a delight to also see Sirius Real Estate raise £77m in an accelerated book build at a 1% premium to NAV in a deal which was “multiple times oversubscribed”. It may well be that equity capital markets are not dead in the UK! Frostrow’s REIT client, Custodian Property Income REIT, announced the purchase of a £35.9m portfolio via the acquisition of Grove Court Properties (Holdings) Limited, a family property company, by issuing 24.1m shares at NAV and paying £9m cash. More consolidation in the sector also again was seen, this week we note BlackRock are proposing to combine their two UK small cap trusts whilst getting Saba off their backs at the same time. In addition, we note Chrysalis Investments board looking to implement a three-year wind-down.

These discounts to NAV are going, one way or another. No doubt about it. Do not be short of investment trusts.

2. Frostrow Professional Events

Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £146.0m mkt capn, 45.3% 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 5 December 2025 is available here:

https://www.investormeetcompany.com/company/meetings/interim-results-535

Aurora UK Alpha (ARR LN, UK All Companies, £291.6m mkt capn, 10.5% 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

The latest update from the management team, from 26 January 2026, is available to view here:

https://www.youtube.com/watch?v=8BbZc9dgjB0

Biotech Growth Trust (BIOG LN, Biotechnology & Healthcare, £256.8m mkt cap, 7.8% 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

There will be a webinar update from management for all to join at 3pm on 11 March. See link below to register:

CC Japan Income & Growth Trust (CCJI LN, Japan, £336.8m 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

We note a recent interview of management via QuotedData In the Hot Seat:

https://www.youtube.com/live/eBmf8nisElM?si=O11Cr1IHSuQbv2A0

An Investor Meet Company webinar is planned for 12pm on 18 March 2026. Do subscribe here:

https://www.investormeetcompany.com/cc-japan-income-growth-trust-plc/register-investor

CQS Natural Resources Growth & Income (CYN LN, Commodities & Natural Resources, £152.6m mkt capn, 2.3% 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

The IMC webinar from 2 December 2025 is available here:

https://www.investormeetcompany.com/company/meetings/investor-update-87

Custodian Property Income REIT (CREI LN, Property UK Commercial, £409.9m mkt capn, 7.5% 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 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

An Investor Meet Company webinar took place on 13 February 2026. You can view it here:

https://www.investormeetcompany.com/meetings/investor-presentation-997

Ecofin Global Utilities & Infrastructure (EGL LN, Infrastructure Securities, £243.8m mkt capn, 6.0% discount to NAV) : Jean-Hugues de laMaze, lead manager of the Trust conducted an investor webinar with Frostrow on 5 November 2025, with link below for those who missed it:

https://www.youtube.com/watch?v=nZDYoUZjy18

An Investor Meet Company webinar is planned for 10am on 25 February 2026. Do subscribe here:

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

Finsbury Growth & Income Trust (FGT LN, UK Equity Income, £860.6m mkt capn, 6.4% discount to NAV): Frostrow highlight Nick Train’s presentation following our London investor event (May 2025):

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

The IMC webinar from 5 December 2025 is available here:

https://www.youtube.com/embed/7j91YsLT3sI?rel=0

The Company’s AGM of 15 January 2026, including Nick Train’s presentation is available to view here:

https://www.youtube.com/watch?v=2zZXsxaL9xQ

MIGO Opportunities Trust (MIGO LN, Flexible Investment, £68.1m mkt capn, 2.9% 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, £95.6m mkt capn, 10.5% 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

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, £1,183.1m mkt capn, 0.8% premium to NAV):

Read the quarterly Temple Bar IT newsletter here if your Bar is set high and your portfolio is your Temple: https://www.templebarinvestments.co.uk/media/insights/investing-through-pessimism/

Co-portfolio manager, Nick Purves, recorded some comments at the Winterfloods Annual investor event in January 2026, available to view here:

Nick Purves, Temple Bar - Finding Value in UK Equities | Winterflood Conference 2026

The Frostrow webinar which took place on 29 January 2026 is available here to view:

https://www.youtube.com/watch?v=laU-UtHBp8Q

An Investor Meet Company webinar is planned for 11am on 11 March 2026. Do subscribe here:

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

Worldwide Healthcare Trust (WWH LN, Biotechnology & Healthcare, £1,365.2m mkt capn, 8.2% 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

Trevor Polischuk’s comments at the Winterflood’s Annual conference were recorded here (January 2026):

Trevor Polischuk, Worldwide Healthcare Trust - Innovation in Healthcare | Winterflood Conference 2026

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 – despite Elon Musk’s views. 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 January 2026 summary podcast here: https://www.investormeetcompany.com/company/updates/frostrow-talks-trusts-january-2026-podcast

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

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

Discount / Premium control

A total of 439 corporate announcements from Monday this week on the LSE, of which 153 were in reference to share buybacks (34.8% of total). 9 referred to equity issuance

International Public Partnerships (INPP LN, Infrastructure, £2,317.2m mkt capn, 13.3% discount to NAV): £128m out of the £225m buyback programme has been used, with the programme running until end of March 2027

Tender update

Strategic Equity Capital (SEC LN, UK Smaller Companies, £152.0m mkt capn, 3.7% discount to NAV): Company announced a second interim payment to tendering shareholders. The Company will repurchase 2,444,164 shares at a tender price at 410pps (50% of the remaining tender pool). The Company subsequently announced HY results to 31 December 2025 (SEC LN): NAV TR +1.8% vs FTSE Small Cap (ex IT's) TR +3.1%; share price TR +3.1%; the Board implemented a tender with 22% of share capital electing to exit and 78% remaining. The Board anticipated that the realisation process will conclude by end October 2026, subject to market conditions. "...50% of net gains from realised profitable transactions will be allocated to share buybacks at discounts of up to 5% to NAV per share. The Board also reaffirmed its intention to provide a further realisation opportunity in 2030, ensuring ongoing alignment with shareholder liquidity requirements...The Board maintains that the valuation opportunity within UK smaller companies remains compelling. Public market valuations for UK smaller companies are at historically depressed levels relative to both larger UK stocks and international peers, creating a meaningful relative value opportunity."

India Capital Growth (IGC LN, India / Indian Subcontinent, £105.8m mkt capn, 10.1% discount to NAV): published a circular introducing a new five-yearly conditional performance-related tender offer for up to 25% of share capital, to replace the existing biennial redemption facility, as well as the introduction of a new dividend policy which shall seek to pay to Shareholders an annual dividend, expected to initially equate to approximately 2% of the Company's NAV with the intention of increasing over time if circumstances permit, to be paid semi-annually and the introduction of a dividend re-investment scheme plan which will allow Shareholders to elect to have their dividends automatically re-invested in shares in the Company through the secondary market; and the adoption of MSCI India SMID as the appropriate benchmark for the Company from 1 January 2026. The Company will continue its existing share buyback policy

Strategic review

European Opportunities Trust HY results to 30 November 2025 (EOT LN, Europe, £412.5m mkt capn, 5.7% discount to NAV): NAV TR -0.2% vs MSCI Europe TR £ +10.1%; share price TR +0.9%; recently announced a strategic review having consulted with shareholders; net gearing of 13.7% (7.2% 31 May 2025); Manager, Devon Equity Management acquired by River Global PLC on 6 October 2025; the Board have implemented a reduced management fee from 1 October 2025 (0.65%pa on net assets up to £400m, 0.4% £400m to £600m and 0.55% above £600m; tender for 25% of shares was fully subscribed in June 2025

NextEnergy Solar Fund Limited Quarterly update to 31 December 2025 (NESF LN, Renewable Energy Infrastructure, £283.9m mkt capn, 41.2% discount to NAV): NAV 84.9p (30/09/25 88.8p), falling largely due to reduction in power price forecasts, and would be a NAV of 82.9p if including the ROC and FiT inflation changes; financial gearing of 29.5% (29.4% 30/09/25); gearing including preference shares of 49.9% (49.2% 30/09/25); dividend of 2.11pps and reconfirmed FY dividend target for YE 31 March 2026 of 8.43pps with estimated dividend cover of 1.1x-1.3x. An update on the strategic review expected on 11 March 2026

M&A news

Custodian Property Income REIT (CREI LN, Property – UK Commercial, £409.9m mkt capn, 7.5% discount to NAV): announced the purchase of a £35.9m portfolio via the acquisition of Grove Court Properties (Holdings) Limited, a family property company, by issuing 24.1m shares at NAV and paying £9m cash, and potentially another 0.8m shares in deferred consideration. The transaction provides the Company a highly complementary portfolio of mixed-use investment properties with c97% occupancy and demonstrates its ability to build scale by marrying effectively its investment strategy and listed REIT structure to provide an effective tax efficient solution to family property companies. "With an average lot-size of ?5.3m, the seven assets within the Investment Portfolio are located in close proximity to the M25 motorway on the eastern outskirts of Greater London (Beaconsfield and Gerrards Cross). The Investment Portfolio generates an annual aggregate passing rent of £2.7m, adding c. 6% to the Company’s annual rent roll, and has a net initial yield of c.6.8%, with the largest tenant by income becoming the Company’s eleventh biggest contributor of annualised rent." Post transaction net gearing is 26% (Frostrow client)

Franklin Global Trust (FRGT LN, Global, £168.7m mkt capn, 0.2% discount to NAV): all resolutions were voted through the first EGM in regard to the proposed scheme of reconstruction and members' voluntary winding-up of the Company. The second EGM takes place on 27 February where the shares will be suspended

BlackRock Smaller Companies Trust (BRSC LN, UK Smaller Companies, £547.5m mkt capn, 13.0% discount to NAV): the Board has agreed a proposed combination with BlackRock Throgmorton Trust (THRG LN, UK Smaller Companies, £493.0m, 9.3% discount to NAV) to create a vehicle with net assets of approximately £780m, the largest growth-focused trust in the AIC's UK Small Companies sector. Investors will have the option to elect for cash at NAV less 1% also, capped at 28% of the Company's issued share capital. THRG's shareholders will have a cash exit opportunity capped at 38% of share capital. Saba, a 10.4% shareholder in BRSC and 17.8% in THRG, has provided an irrevocable undertaking to vote in favour of proposals and come out in the cash exit. The Companies have also received letters of intent to vote in favour of the proposals from 23.9% of shareholders. BlackRock will continue to be managers under Roland Arnold and deliver greater scale, cost savings (via a reduced management fee) and a cash exit opportunity as well as a triennial 100% conditional tender offer linked to performance against the benchmark. Saba's standstill agreement with BlackRock will be amended so that the terms extend to 30 June 2030, subject to completion of the scheme. There will also be a 5 for 1 share sub-division to make the shares easier to invest in for regular retail investors

Gearing reduction news

Regional REIT update to 31 December 2025 update (RGL LN, Property – UK Commercial, £165.3m mkt capn, 51.3% discount to NAV): like for like value reduction of 5% in 2025; completed £51.6m of disposals in 2025 at a 1.3% premium to book value, reducing LTV to 39.9% including post period disposals. Fully covered dividend of 10pps (7.8pps 2024); target a dividend of 8pps in 2026; the £72.4m debt was refinanced ahead of its August 2026 maturity and the management contract was restructured

Capital allocation update

Partners Group Private Equity Limited December 2025 (PEY LN, Private Equity, £643.4m mkt capn, 27.2% discount to NAV): NAV -2.8%; NAV TR -8.7% in 2025; Eur8.1m of cash held and an undrawn credit facility of Eur150m. Company spent Eur5.8m on share buybacks in Q4 2025, acquiring 562,025 shares under the Eur15m programme announced in October 2025. "Portfolio activity overall remained robust. PGPE Ltd received EUR 57.7 million in December, bringing the full year proceeds to more than EUR 200 million and marking the highest quantum of distributions received since 2021. This is in contrast to continued low levels of distributions across the global private equity industry as a whole." Eur57.6m distributed to shareholders in total in 2025 via Eur51.8m in dividends and Eur5.8m via share buybacks. "...the Company has extended its share buyback program through to 30 April 2026, enabling utilisation of the remaining allocated amount. With approximately EUR 8.1 million in cumulative share buybacks as of the end of January, the Board remains focused on deploying the program proactively to create shareholder value."

The Renewables Infrastructure Group Limited Q4 2025 update (TRIG LN, Renewable Energy Infrastructure, £1,549.1m mkt capn, 37.3% discount to NAV): NAV -5.7pps (104.0p); 7.55pps total 2025 dividend delivered with gross cash cover of 2.1x before the repayment of £192m project level debt. 2026 dividend target is maintained at 7.55pps, with the Board prioritising "restoring net dividend cover to the range 1.1x-1.2x and future growth of the NAV." The Managers continue to progress disposal activities to reduce short-term borrowings further (c£200m now). £32m of value enhancements out of total target in 2025 and 2026 of £70m. £80m of £150m share buyback programme completed, and following private placement debt raised, the pace of buybacks will increase

Results / updates

Rights and Issues Investment Trust FY results to 31 December 2025 (RIII LN, UK Smaller Companies, £110.4m mkt capn, 15.3% discount to NAV): NAV TR +4.2% vs FTSE All Share Index TR +24.0%; share price TR -12.4%; the discount to NAV widened and in the year the resolution authorising the Company to buy back its own shares was defeated. This impacted share price performance, as did the continuing lack of appetite for investment in the small cap sector. "The Management Engagement Committee carried out its third formal review of Jupiter's performance in January 2026. It noted the continuity of investment style, the changes that had been made to increase the diversity of the portfolio and discussed the new positions that have been taken. The Board will continue to keep the Investment Manager's performance under regular review, particularly in light of the disappointing performance in 2025. The increase in marketing activities for the Company reported on last year have continued."

Polar Capital Global Financials Trust FY results to 30 November 2025 (PCFT LN, Financials & Financial Innovation, £377.5m mkt capn, 2.2% discount to NAV): NAV TR +13.9% vs MSCI ACWI Financials +13.9%; share price TR +14.5%; five yearly tender offers offered, with the first in May 2025 leading to 43.8% tendering their shares at close to NAV. The next is June 2030. The Company repurchased 6.5m shares at an average discount of 5.2% also. The Company paid an interim and special dividend in August of 2.6pps and 1.6pps respectively. A further interim dividend of 2.55pps has been declared, leading to a total of 6.75pps for the year (+40% 2025). With effect from 1 December 2025, the Board has adopted an enhanced dividend policy aiming to pay the equivalent to 4% of NAV pa, paid quarterly. Dividends will be paid from available revenue reserves and may be topped up from distributable capital reserves. Net cash of 2.4%. Post the tender the management fee was reduced

The Scottish American Investment Company Fy results to 31 December 2025 (SAIN LN, Global Equity Income, £852.8m mkt capn, 9.1% discount to NAV): NAV TR (debt at fair value) +2.4% vs FTSE All-World Index £ +14.7%; share price TR +6.8%; total dividends of 15.92pps (+7% 2024); aiming to deliver real dividend growth over the long term, now 52 years of dividend growth; the discount which emerged at the beginning of 2024 has persisted. Gearing of 10% of shareholders' funds, at a cost of just under 3%pa. The Company has bought back 12.7m shares (7.2% of share capital) boosting NAV by just under 0.5%. Proposed incoming chair is Angus Macpherson

Residential Secure Income quarter end update to 31 December 2025 (RESI LN, Property – UK Residential, £102.5m mkt capn, 36.3% discount to NAV): rent collection over 99%, like for like rental growth of 2.5%, occupancy at 96%; EPRA return of 0.5%; With the Company in managed realisation, "…the Board will continue to balance dividend payments against capital preservation." "Following a comprehensive, adviser-led, sales process both the shared ownership and retirement portfolios are in exclusivity with the respective purchasers undertaking further diligence. Prospective purchasers are expecting to acquire the portfolio with the existing debt facilities being ported; accordingly, any associated break gain would remain unrealised and should not be interpreted as distributable value under the expected transaction structures. The Board continues to evaluate pricing and terms carefully to ensure any transaction reflects best outcome for shareholders."

Wind down / asset realization news

Amedeo Air Four Plus Limited quarterly update to 31 December 2025 (AA4 LN, Leasing, £154.7m mkt capn, 44.3% discount to NAV): it intends to ground MSN 157 on 4 August 2026 and MSN 164 on 3 October 2026, in anticipation of a potential aircraft redelivery. In December 2025, the Company also received a notice from Emirates in respect of MSN 187 exercising the “half-life” option for a potential aircraft return. Amedeo anticipates that Emirates will exercise the same “half-life” option on the remaining three A380 aircraft as the respective option dates fall due

Digital 9 Infrastructure (DGI9 LN, Infrastructure, £45.8m mkt capn, 83.8% discount to NAV): published a shareholder circular to implement a compulsory redemption mechanism as part of the managed wind down of the Company. The first Compulsory Redemption is expected to take place in late April 2026, following completion of the Company's year‑end process, with the precise timetable confirmed in the Redemption Announcement.

Chrysalis Investments Limited (CHRY LN, Growth Capital, £463.4m mkt capn, 42.4% discount to NAV): announced an EGM date of 24 March 2026 in regard to the already announced intention to propose a new investment policy concerning an orderly realisation. A circular is also being published. "Given the New Investment Policy does not envisage new investments and is focused on realising assets in an orderly manner, the Board has sought to secure changes to the investment management and advisory agreement which more appropriately reflect the New Investment Policy. At the time of this announcement, the Board's proposals for a new investment management and advisory agreement have not been agreed to by CIP...Unless other arrangements can be reached with the Investment Adviser during its six month notice period, the Company's intention after the expiry of that notice period is to operate with a self-managed model"

abrdn European Logistics Income (ASLI LN, Property – Europe, £111.7m mkt capn, 16.0% discount to NAV): following a requisitioned EGM, of the total votes cast, 74.6% were cast against DL Invest's resolutions, in line with the recommendation of the Board. Excluding the votes cast by DL Invest in favour of its own resolutions (73.4 m votes, representing approximately 24.5% of the votes cast), only a further 0.9% of the votes cast were in favour. Shareholders representing 72.6% of the total issued share capital voted on the resolutions. Tony Roper, Chairman said: "The result of today's General Meeting reaffirms the strong shareholder support for the managed wind-down. As the Company enters the concluding stages of this process, we can now focus on successfully completing the final four asset sales, which are at an advanced stage, and returning the remaining capital to shareholders in a timely manner."

Asset disposal news

Taylor Maritime Limited (TMI LN, £149.9m mkt capn): selling a Handysize vessel, but no other transaction details provided as yet. A previously announced sale from October 2025 generated gross proceeds of $15.3m

PPHE Hotel Group Limited (PPHE LN, £822.1m mkt capn): has entered into an agreement for the sale of its development site located in Manhattan, New York. This New York City site was acquired in 2019 with a view to developing the Group's first hotel in the US. However, subsequent to the acquisition, the regulatory landscape for ground-up hotel developments in New York significantly altered, which led the Group to conclude that a hotel development is not viable for this site. The Group has optimised the site to maximise its exit value through demolition works and the acquisition of air rights. The transaction has been structured as a sale of the freehold of the site to a US real estate developer for a purchase price of $33.5m. There are no due diligence conditions to consummate the sale, and it is expected that the disposal will close in the coming months. The sale proceeds will be used to repay the associated debt of $8.3m, with the balance of funds to be deployed in accordance with the Group's capital allocation strategy.

Manager alignment with shareholders

Cordiant Digital Infrastructure Limited (CORD LN, Infrastructure, £804.0m mkt capn, 24.8% discount to NAV): Steven Marshall, co-founder of Cordiant Digital Infrastructure Management, purchased 530k shares, now owning 15.2m shares. Directors and members of the management team own 17.6m shares, 2.3% of issued share capital

Dividend reinvestment

TwentyFour Income Fund Limited (TFIF LN, Debt – Structured Finance, £953.4m mkt capn, 1.7% premium to NAV): announced the introduction of a dividend reinvestment plan in response to shareholder demand.

Management fee news

Pantheon International (PIN LN, Private Equity, £1,585.4m mkt capn, 27.9% discount to NAV): the Company has agreed a reduced management fee with its investment manager so that from 1 June 2026 the fee will be a flat 1% on NAV with no fee payable on undrawn commitments. The Company has estimated that this would have resulted in a 19% reduction in management fee applying this to 2025 figures. The old fee, for reference, is 1.5% on investments up to £150m, 1% over £150m and 0.5% on undrawn commitments

Valuation update

Seraphim Space Investment Trust (SSIT LN, Growth Capital, £372.4m mkt capn, 31.3% premium to NAV): each of the Company's top four holdings recorded an increase in valuation resulting in a combined fair value uplift of £69m, equivalent to a 24% increase in the Company's 30 September 2025 NAV. "Given the strong momentum in these four portfolio companies and indeed the overall portfolio, we anticipate there being further positive news and commensurate increases in valuations over forthcoming quarters"

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

+oSD6ISEGYiECIiIOoiEuYiIeoiI2IiM+oiQ6IiVGYiVCIiZOoiVuYiZeoiZ2Iid+oih6IimGYimCIiqO4hbmICu2oiu+IizmREAAADs=

Equity Capital Markets / Investor demand

Sirius Real Estate Limited (SRE LN, £1,700m mkt capn): announced that it intends to raise gross proceeds of approximately £75m to enable the Company to execute on two attractive acquisition opportunities in Germany with a particular focus on defence-related assets and tenants in the near term, with an estimated total value of Eur130m. "The Directors believe that the real estate market dynamics in Germany, characterised by a very resilient and well-diversified economy spread across several large autonomous markets, a strong SME market and high replacement costs for light-industrial buildings, provide a sound backdrop to pursue its organic and acquisitions-led growth strategy over the medium-term...The Company's net loan-to-value is expected to remain below the targeted 40% target level. The Group also intends to maintain the progressive dividend policy which has delivered over the last 12 years, with 24 consecutive half yearly dividend increases since its first dividend in 2014." The Company subsequently announced that it raised £77m in total (about 5% of share capital) at 102p, a 1% premium to closing price. According to the announcement, the deal was "multiple times oversubscribed" and the secondary share price move corroborated that sentiment

Ex Dividend

PU13 3pps, TPV 2pps, GRP 1.7025cps, BPCR 3.196044cps, SHRS 10pps, AAS 1.6pps, JUGI 3.63pps, SMIF 0.5pps

Frostrow Investor Relations team – Messrs Grant Challis, Neil Winward, Matt Burrows, Nicholas Todd & Max Smith

B1PnQsu6P8DUkZJJIud3EIAAAAASUVORK5CYII=

Frostrow Capital LLP,
25 Southampton Buildings,
London WC2A 1AL
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