End of week note for investment trust investors

alks remain ongoing between Iran and Oman in regard to the SoH, according to some sources, which has helped the oil price fall this week. US Treasury Secretary Scott Bessent did though announce an economic D Day against Iran and those who trade with her to ensure that all economic ties are severed to isolate Iran. In response, Iran has vowed to retaliate against any country that cooperates with the US in attempting to impose fresh sanctions. China, of course one of these countries, has vowed to take “all necessary measures” to safeguard its own rights. US and Canadian trade talks collapsed with Trump imposing 50% tariffs on some Canadian goods which Carney matched with tariffs on $20bn of US goods. Russia made thinly veiled threats to Britain and other NATO countries as Putin’s desperation grows with respect to Ukraine.

Treasury bond yield rises have thankfully calmed post the Treasury stepping in and also post stating that it would at least double debt purchases of longer dated bonds. Nvidia quarterly earnings numbers were very positive mid-week, the US consumer confidence index fell from 90.2 to 89.4, the lowest level for seven months and US inflation continued at 3.7%, the same as June, still well above the Fed’s 2% target. As such, equity markets continued to show some signs of nervousness in the run up to Fed Chair Kevin Warsh’s Jackson Hole speech, where markets hope he provides more clarity on how inflation will be dealt with.

“Working 9 to 5, what a way to make a livin’. Barely getting’ by, it’s all takin’ and no givin’.” Dolly Parton was right it seems. With two months to go to the next UK Budget, new PM Andy Burnham has not ruled out further tax rises. In the investment trust sector, average discounts to NAV (ex 3i Group) continue to grind tighter, this week contracting by circa 20bps to 10.6%. In a quieter week, it was really all about that four-letter word again – “Saba”. Saba Capital acquired yet more shares in Gore Street Energy Storage Fund and SDCL Efficiency Income as well as also writing a public letter in regard to their activities with the former. In addition, Saba have also requisitioned Baillie Gifford US Growth Trust now in an attempt to appoint three of their stooges onto the Board at the next AGM.

In the week where the FCA have confirmed that four in five less experienced investors rely on AI for help with investing, we would humbly suggest that this is not a time to be short of differentiated, actively managed investment trusts.

Forthcoming Frostrow events to note round the corner include:

Aurora UK Alpha annual investor event: to be held from 4pm on Wednesday 14 October 2026 at Chartered Accountants’ Hall, One Moorgate Place, London EC2R 6EA

2. Frostrow Investor Events

Aurora UK Alpha (ARR LN, UK All Companies, £274.1m mkt capn, 10.0% discount to NAV): the Phoenix investment team are available for meetings with investors in 2026. 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, Healthcare & Biotechnology, £335.7m mkt cap, 5.9% discount to NAV): Co-portfolio manager, Josh Golomb, provided an update for investors via Investor Meet Company on 10 March 2026: https://www.investormeetcompany.com/meetings/investor-presentation-1001

A link to the presentation by Geoff Hsu at the AGM on 16 July 2026 can be found here: https://www.youtube.com/watch?v=izwHIML8spU

Kepler video: The Biotech Growth Trust: why now for global biotech innovation?

CC Japan Income & Growth Trust (CCJI LN, Japan, £367.8m mkt capn, 7.3% discount to NAV): please contact Frostrow Capital in order to arrange a meeting with management in 2026. In addition, we note CCJI QuotedData In the Hot Seat interview to view here:

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

An Investor Meet Company webinar took place on 18 March 2026. Do view it here:

https://www.investormeetcompany.com/meetings/investor-presentation-1002

CQS Natural Resources Growth & Income (CYN LN, Commodities & Natural Resources, £167.1m mkt capn, 6.9% premium to NAV): investor meetings available again post 14 September 2026

Custodian Property Income REIT (CREI LN, Property UK Commercial, £370.8m mkt capn, 21.4% discount to NAV): Richard Shepherd-Cross, lead manager, is available for meetings in 2026 (physical throughout UK, or zoom, as per preference). Richard also gives his most updated thoughts in the Investor Meet Company webinar which 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, £243.9m mkt capn, 0.2% premium to NAV) : Jean-Hugues de laMaze, lead manager of the Trust conducted an Investor Meet Company webinar on 27 May 2026, and for those who missed it, you can access it here:

https://www.investormeetcompany.com/meetings/investor-presentation-1038

Finsbury Growth & Income Trust (FGT LN, UK Equity Income, £826.7m mkt capn, 7.1% discount to NAV): Frostrow highlight Nick Train’s presentation at the Company’s AGM on 15 January 2026, available to view here:

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

In addition, we highlight FGT Quoted Data In the Hot Seat interview here from 6 March 2026:

https://quoteddata.com/events/in-the-hotseat-nick-train-finsbury-growth-income/

Link to follow in due course for the webinar of 15 July 2026:

https://www.youtube.com/watch?v=jE9n4ut7xl0

MIGO Opportunities Trust (MIGO LN, Flexible Investment, £70.4m mkt capn, 4.4% discount to NAV): To watch the most recent update which took place on 24 March 2026 with Tom Treanor and Charlotte Cuthbertson, click here:

https://www.investormeetcompany.com/meetings/investor-presentation-995

To watch the latest MIGO webinar post FY results and 30 June 2026 factsheet update, please view the event recorded on 27 July 2026 here - MIGO OPPORTUNITIES TRUST PLC - Annual Results

Temple Bar Investment Trust (TMPL LN, UK Equity Income, £1,286.0m mkt capn, 1.0% premium to NAV): Read the latest 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/century-value-investing/

An Investor Meet Company webinar took place on 11 March 2026 and is available to view on this link:

https://www.investormeetcompany.com/meetings/investor-presentation-1008

See co-portfolio manager, Nick Purves’ interview on Citywire from July 2026 here: https://lnkd.in/ezCQ6qZN

Worldwide Healthcare Trust (WWH LN, Healthcare & Biotechnology, £1,382.6m mkt capn, 6.5% discount to NAV): 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

See below the link to the latest WWH AGM presentation recording from 14 July 2026:

https://www.youtube.com/watch?v=-phskZBx8gE

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 geopolitical and 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]”. The UK Government have finally seen sense to allow their pension funds to invest in investment trusts to access a variety of assets such as infrastructure and private equity. 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 July 2026 summary podcast here: https://www.investormeetcompany.com/updates/frostrow-talks-trusts-july-2026-podcast/show

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 389 corporate announcements from Monday this week on the LSE, of which 152 were in reference to share buybacks (39.1% of total). 9 referred to equity issuance.

BlackRock American Income Trust (BRAI LN, North America, £193.5m mkt capn, 1.5% premium to NAV): published a shareholder circular and notice of general meeting with the Board seeking approval from shareholders to allot and sell out of treasury up to an amount equal to approximately 30% of share capital

Saba Capital and activist update

Baillie Gifford US Growth Trust (USA LN, North America, £933.4m mkt capn, 6.4% discount to NAV): the Company has received a requisition notice from Saba Capital requesting that the appointments of Jason Chen, Thomas H. McGlade and James Waterlow as directors of the Company are put forward as ordinary resolutions at the forthcoming AGM.

Gore Street Energy Storage Fund (GSF LN, Renewable Energy Infrastructure, £242.5m mkt capn, 35.6% discount to NAV): Saba Capital holding increased from 18.1% to 19.0%

SDCL Efficiency Income Trust (SEIT LN, Renewable Energy Infrastructure, £392.4m mkt capn, 52.6% discount to NAV): Saba Capital holding increased from 26.0% to 27.0%

M&A update

Alternative Income REIT (AIRE LN, Property – UK Commercial, £55.9m mkt capn, 16.1% discount to NAV): 1.9m shares (2.4% of share capital) have validly accepted the offer from Glenstone REIT. The AIRE Board's view continues to be that the Glenstone Offer fundamentally undervalues the Company and as a result, the AIRE Board continues to recommend that AIRE Shareholders.

AEW UK REIT (AEW LN, Property – UK Commercial, £166.6m mkt capn, 0.9% discount to NAV): Following Glenstone's public statement that it would not support an offer from AEWU and subsequent attempts to engage with Glenstone to discuss the merits of AEWU's proposals, notwithstanding the indicated support from the board of AIRE, AEWU confirms that it does not intend to make a firm offer for AIRE. Glenstone's support, as AIRE's major shareholder, is fundamental to the orderly implementation of any scheme or offer combining the two companies with AEWU as the successor company, and Glenstone has made a cash offer for AIRE at a substantial discount to its net asset value, with an existing holding of 25.4% of share capital of AIRE. The Possible Offer, had it been implemented, could have led to the combination of two REITs with aligned portfolios, offering greater portfolio diversification, the benefits of increased scale, a reduction in operating costs and an attractive ongoing dividend per share, with AEWU currently paying an annual dividend of 8 pence. The Possible Offer would have been expected to be earnings accretive for AEWU, had it been implemented. AEW further announced a quarter end 30 June update (AEW LN) with NAV TR 1.3%; share price TR +7.5%; EPS 1.89ppss (1.71pps 31/3/26); interim dividend of 2pps; Loan to GAV of 25.3% (25.2% 31/3/26). The Company continues to benefit from a low fixed cost of debt of 2.959% until July 2027 and has arranged an interest rate cap to protect against the risk of higher rates when it refinances. Finally, the AIRE Board continue to state that the Glenstone offer remains at a material discount to AIRE's NAV and are seeking control "without paying an appropriate premium"

Glenstone REIT: In the two days since 26 August 2026, when AEW UK REIT plc announced that it does not intend to bid for AIRE, Glenstone has purchased a total of 1,764,439 AIRE Shares in the market at 70.0pps. The Glenstone Group and its concert parties now own 29.9% of AIRE's issued share capital.

Dual share class structure

Partners Group Private Equity Limited HY results to 30 June 2026 (PEY LN, Private Equity, £509.8m mkt capn, 33.6% discount to NAV): NAV TR -8.6%; the Company receiving proceeds equivalent to approximately 14% of net assets during the period. A total of EUR 35.7m was returned to shareholders during the first half of 2026, comprising EUR 22.3m through the first interim dividend paid to shareholders in June and EUR 13.4m through share buybacks, with the buyback programme extended to 30 September 2026. The Company invested a total of EUR 13.5m in the period, has a cash balance of Eur51.2m and RCF of Eur150m undrawn. Further to the announcement in June of a proposed dual share class structure, a circular and prospectus providing details of the structure, for approval and election, has been sent to shareholders.

Results / updates

Literacy Capital HY results to 30 June 2026 (BOOK LN, Private Equity, £181.2m mkt capn, 36.1% discount to NAV): NAV -2.4%, reflecting a more challenging trading environment for smaller UK businesses and limited valuation uplift across the portfolio during the period. FTSE All Share +7.2%; share price TR -20.6%, reflecting a material widening of the discount to NAV despite continued realisation activity. Further initiatives are planned to stimulate awareness and demand for BOOK shares, including discussions to explore moving the Fund's listing to the official list on the Main Market, which Literacy and its brokers believe will create significantly more liquidity over time. £36.6 million of cash proceeds were received in the period, and no new platform investments were completed

NB Private Equity July 2026 NAV (NBPE LN, Private Equity, £588.7m mkt capn, 27.7% discount to NAV): NAV TR +2.4%; Approximately 76% of valuation information based on 30 June 2026 private company valuations or quoted holdings; additional Q2 private company valuation information is expected in the coming weeks. On a pro forma basis for 2026, including expected realisations from announced but not yet closed transactions, NBPE’s total realisations would be $150m. $12m of cash and liquid investments with $175m of undrawn credit line available, with approximately $61m of pending realisations

EJF Investments Limited quarter end 30 June 2026 update (EJFI LN, Debt – Structured Finance, £79.6m mkt capn, 19.9% discount to NAV): NAV TR +5.4%; share price TR +4.7%; dividend yield 8.8%; quarterly dividend 2.8625pps (11.45pps pa); OCR 1.9%; 2.3m 2029 Zeros issued (now at full capacity). At 30 June 2026 there were 26.9 million 2029 ZDP Shares in issue, representing a gearing ratio of 29.6% and 2029 ZDP Cover of 3.27x.

Pantheon International July 2026 update (PIN LN, Private Equity, £,1509.5m mkt capn, 24.6% discount to NAV): NAV TR -0.9%; 8% of reported valuations from 31 July 2026, 5% from 30 June 2026, 80% from 31 March 2026, 7% from 31 December 2025. Of the 8% of valuations dated 31 July 2026 or later, 4.2% reflect the mark-to-market fair value adjustment for listed company holdings. Net available cash balances of £43m. £400m multi tranche, multi-currency RCF with £29m drawn and £150m of private placement notes outstanding giving net debt of 4.8%. £68.5m of new commitments made in the month. £27m of share buybacks made at an average discount of 24.9%

PPHE Hotel Group Limited HY results to 30 June 2026 (PPHE LN, £638.8m mkt capn): EBITDA +6.3%; interim dividend of 17pps; EPRA NRV -1.4%, largely due to FX. Acquisition of the freehold of Park Plaza London Waterloo for £147.9m, funded by a new £136.5 million loan facility from Bank Hapoalim. Trading across the Group's city locations has remained consistent with trends seen in the first half, particularly the Group's UK properties which continue to perform strongly.

CT Private Equity HY results to 30 June 2026 (CTPE LN, Private Equity, £45.9m mkt capn, 30.4% discount to NAV): NAV TR -0.2%; share price TR -9.3% (discount widened); Deputy fund manager, Andrew Carnwath, succeeded Hamish Mair as lead fund manager from the AGM. Portfolio companies delivered annual revenue growth of 16% and EBITDA growth of 23%. Portfolio remains conservatively valued at 9.8x EV/EBITDA, with prudent leverage of 2.7x net debt/EBITDA. Strong realisations of £63.6m during the period, up 135% on H1 2025, and exceeding drawdowns by £23.0m. Exits completed during the period at an average uplift of 32% to carrying value, returning to the long-term average of 29% (H1 2025: 18%). Quarterly dividend of 7.1pps. Net gearing represents gearing of 17%

Wind down / asset realization news

JPMorgan Global Core Real Assets Limited (JARA LN, Flexible Investment, £24.1m mkt capn, 10.7% discount to NAV): the Company has now been placed into voluntary liquidation with an initial distribution expected of approximately £21.6m around 17 September 2026 and a final distribution expected around May 2028

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

sieH8kkFBAA7

Equity Capital Markets / Investor demand

n/a

Ex Dividend

JGGI 6.2pps, HICL 2.12pps, ALW 7.33pps, RIII 12.5pps, PAC 3.8pps, RESI 1.53pps, CTHT 2.565pps, JAM 2.75pps, AEI 5.7pps, FAIR 10cps, ASLI 2pps, LMP 3.15pps, CGI 31cps

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

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