End of week note for investment trust investors

The US launched military attacks on Iran for the first time in a month, firing missiles and drones at their rocket launchers on an island in the SoH, prompting their armed forces to attack US military bases in Jordan and the United Arab Emirates. The leaders of China, Russia and India gathered with other heads of state in Kyrgyzstan on Monday for the summit of the Shanghai Cooperation Organisation, a group billed as a counterweight to US global influence. Indian PM Modhi interestingly asked Putin to get himself closer to the end of the Ukraine war. The Japanese Yen has increased against the US$ as speculation increased that the Bank of Japan is set to raise interest rates later in September. The gold price has neared $4,500 per ounce and the oil price is up circa 8% this week.

Despite calming towards the end of the week, the global bond market has again shown signs of weakness as investors remained concerned about increasing geopolitical tension, inflation and AI-related bond issuance. The US and UK 30-year bonds for example now yield 5.24% and 5.79% respectively. It looks increasingly likely that if the UK Government are not going to consider spending reductions, tax rises are coming at the forthcoming UK Budget. It was well noted that “vibes” are unlikely to be enough to keep paying welfare and also increase defence spending, so the bond vigilantes will no doubt be watching. Lord O’Neill, ex Goldmans economist who recently turned down a senior advisory role in the Government, believes the situation is pressing enough to warrant that the triple lock should go now. Meanwhile, despite all the doom and gloom, UK equities remain incredibly attractive, with this week, Bodycote, Capricorn and Gamma Communications taken out by US private equity.

In the investment trust sector, the average discount to NAV (ex 3i Group) was 11.2%, widening by 60bps this week. Frostrow client Custodian Property Income REIT issued a quarterly update to end June highlighting another positive quarter of stable valuations and fully covered dividend. Custodian was one of six leading Frostrow client funds presenting this week to the Edinburgh investor community and highlighting the benefits of investing in long term themes providing tailwinds, as well as using the fund structure to generate returns through active management.

Do not be short of investment trusts and actively managed funds.

Forthcoming Frostrow and industry 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

AIC Investor Showcase, 9^th October 10am – 4.30pm at 133 Houndsditch EC3A 7BX. Investors can attend in person or online - The Investment Company Showcase 2026 | The AIC

The discount code for free entry is INVEST 26

2. Recorded 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 345 corporate announcements from Wednesday this week on the LSE, of which 78 were in reference to share buybacks (22.6% of total). 6 referred to equity issuance.

Conditional tender / tender news

The Scottish Oriental Smaller Companies Trust (SST LN, Asia Pacific Smaller Companies, £308.9m mkt capn, 8.4% discount to NAV): The five-year measurement period ended on 31 August 2026 and over this period, the Company's NAV TR was 28.0% compared with a total return of 48.4% for the MSCI AC Asia ex Japan Small Cap Index £. As such a tender offer for up to 25% of share capital will be put to shareholders at formula asset value less 2%. A circular to shareholders containing further details regarding the tender offer, including the expected timetable, arrangements for shareholders wishing to participate and notice of general meeting, will be published in due course with the expectation that, subject to the timely realisation of the assets comprising any tender pool, the tender proceeds will be paid to shareholders before the end of 2026. The Board recognises the disappointing returns over the performance measurement period and is considering whether additional actions are required to ensure that the Company meets the needs of investors. As part of that exercise, the Board and its advisers are currently engaging with a number of the Company's shareholders.

CT Healthcare Trust (CTHT LN, Healthcare & Biotechnology, £65.1m mkt capn, 0.0% discount to NAV): in regard to the tender offer for up to 15% of share capital, 3.9m shares were validly tendered equal to approximately 8.4% shares in issue

Gearing news

The Global Smaller Companies Trust (GSCT LN, Global Smaller Companies, £784.9m mkt capn, 5.5% discount to NAV): the Company has extended the maturity date of its existing unsecured multicurrency revolving loan facility of up to £35m with The Royal Bank of Scotland International Limited from 11 September 2026 to 10 September 2027.

M&A update

SEGRO (SGRO LN, £12,790m mkt capn): announced that a circular in relation to the Scheme (SEGRO and Prologis announced that they had reached agreement on the terms of a recommended share offer with a partial cash alternative) has been published containing, among other things, a letter from the Chair of SEGRO, the full terms and conditions of the Scheme, an expected timetable of principal events, notices of the Court Meeting and the General Meeting and details of the actions to be taken by SEGRO Shareholders. The SEGRO Directors recommend unanimously that Scheme Shareholders vote in favour of the Scheme and that SEGRO Shareholders vote in favour of the Special Resolution to be proposed at the General Meeting, as the SEGRO Directors who hold SEGRO Shares have irrevocably undertaken to do in respect of their own personal beneficial holdings approximately 0.245% of the issued share capital

Alternative Income REIT (AIRE LN, Property – UK Commercial, £54.7m mkt capn, 18.0% discount to NAV): The Board has carefully considered the views of all shareholders throughout the offer period and is grateful for the support it has received for its recommendation to reject the Glenstone Offer. In summary, the Glenstone Offer has received acceptances in respect of only c1.8m AIRE Shares, representing less than 2.25% of AIRE's share capital, from shareholders who are neither part of Glenstone's concert party nor subject to Hawksmoor's letter of intent. The Board continues to believe that the Glenstone Offer fundamentally undervalues AIRE and its prospects and, accordingly, unanimously recommends that AIRE shareholders do not accept Glenstone's offer. Glenstone REIT subsequently announced that it has 45.9% of AIRE shareholders voting towards satisfaction of its 50% acceptance condition (including shares held by the Glenstone Group and any valid acceptances received by that time)

Picton Property Income Limited (PCTN LN, £368.7m mkt capn): A majority in number of Scheme Shareholders who voted (either in person or by proxy), representing not less than 75% by value of those Scheme Shares, voted in favour of the resolution to approve the Scheme (regarding the terms of a recommended all-share offer in which LondonMetric and SREIT will acquire the entire issued share capital of Picton)

Fund Manager news

JPMorgan Global Growth & Income (JGGI LN, Global Equity Income, £3,339.8m mkt capn, 1.5% discount to NAV): Helge Skibeli, one of the three Portfolio Managers of the Company, plans to retire from J.P. Morgan Asset Management in February 2028, after almost four decades in the industry. Helge Skibeli will continue in his role as a Portfolio Manager of the Company until his retirement in 18 months’ time. At that time, his responsibilities will be transitioned to the Company's existing Portfolio Managers, Sam Witherow and James Cook.

Results / updates

Onward Opportunities Limited (ONWD LN, UK Smaller Companies, £52.5m mkt capn, 4.3% discount to NAV): now has a net asset value in excess of £50m having more than quadrupled in size since IPO in March 2023

Custodian Property Income REIT quarter end 30 June 2026 update (CREI LN, Property – UK Commercial, £379.2m mkt capn, 19.8% discount to NAV): another positive quarter of stable valuations and fully covered dividend. 1.5p dividend per share , fully covered by EPRA earnings per share, in line with target of at least 6.0p for the year ending 31 March 2027 (FY26: 6.0p). This represents a 7.4% dividend yield and is in line with the Company’s goal of being the REIT of choice for investors seeking high and stable dividends from well-diversified UK real estate. There was positive leasing activity during the quarter. NAV per share increased to 100.0p (31 March 2026: 99.7p) with valuation gains of £1.4m leading to a 1.8% Q1 NAV total return per share. Sold assets in line with valuation in the period. Net gearing of 26.1% LTV (31 March 2026: 25.9%) and weighted average cost of aggregate borrowings remained at 4.1% (31 March 2026: 4.1%). The Board is targeting a dividend per share of no less than 6.0p for the year ending 31 March 2027. This target dividend is in line with the Company’s goal of being the REIT of choice to investors seeking high and stable dividends from well-diversified UK real estate. (Frostrow client)

Gresham House Energy Storage Fund trading update for interim results to 30 June 2026 (GRID LN, Renewable Energy Infrastructure, £586.1m mkt capn, 21.6% discount to NAV): NAV per share +15.8%, the biggest driver was the revaluation of the 397MW of projects now under construction on a discounted cash flow basis. EBITDA +14.5%; The proportion of revenues from contracted revenues increased to 61% (H1 2025: 35%), continuing to de-risk the portfolio's revenue profile. The Alternative Revenues strategy has moved from concept to the start of delivery and its target under the Growth Plan is unchanged: £25mn in incremental annual EBITDA when fully operational.

CT Managed Global Portfolio Trust FY results for 31 May 2026 (CMPG/I LN, Flexible Investment, £110.1m / £80.6m, 2.2% / 1.7% discount to NAV): NAV TR (Growth shares) +25.1% / Income shares +23.3% vs FTSE All Share +21.6%; share price TR (Growth shares) +25.6% / Income shares +21.2%; From 1 June 2025, the investment Portfolios have been managed by Adam Norris and Paul Green, supported by the Manager's broader EMEA Multi-Asset Solutions team (of which they are members). Four interim dividends have been paid totalling 7.85p per Income share (+3.3% 2025), 15th year of dividend increase. It has become the Board's aim to seek to increase dividends by at least as much as inflation (as measured by CPI) over rolling three-year periods (based on financial years). The Board also intends to change the frequency of Income shareholders' dividends from quarterly to monthly, with effect from the next financial year which commences on 1 June 2027.

Baker Steel Resources Trust Limited August 2026 update (BSRT LN, Commodities & Natural Resources, £145.7m mkt capn, 10.1% discount to NAV): NAV +17.3%, largely due to the increase in Tungsten West following the announcement of financing by the UK National Wealth Fund, as well as the recovery of the other listed shares in the portfolio on the back of stronger commodity prices. No shares repurchased

Wind down / asset realization news

Taylor Maritime Limited (TMI LN, £69.9m mkt capn): announced that it has reached agreement to sell three handysize vessels for a gross cash consideration estimated at $48.6m. The disposals are part of the Company's strategy of the managed realisation of its assets. The sales are expected to complete in Q3 of this calendar year and it is expected that the majority of the net sale proceeds once received will be returned to shareholders of the Company by means of a further compulsory partial redemption of shares.

VH Global Energy Infrastructure (ENRG LN, Renewable Energy Infrastructure, £279.4m mkt capn, 32.7% discount to NAV): entered into agreement to sell an operating liquid storage asset in Texas to a continuation vehicle managed by the investment manager. The total sale price of the asset is $134m subject to some customary closing conditions. The total value delivered to shareholders since the Reference NAV date of 31 December 2024 including dividends will be approximately 105% of the asset's NAV as of 31 December 2024 ($149.8m); and the investment will have generated a 13.4% IRR and 1.78x MOIC over ENRG's ownership period, exceeding the Company's target return of 10%pa. The Company continues to make progress with the sale of the remaining assets within the portfolio as part of its asset realisation strategy. The Company subsequently announced its second disposal under the realisation programme, an agreement for the sale of six operational solar PV assets in Brazil to Energea Portfolio 2 LP. The total consideration for the Assets will be approximately £5.4m, representing 92% of the Assets' NAV as of 31 March 2026. Despite the strong performance of the consortium of offtakers to date, these assets command a lower value per MWp versus the assets with large corporates as offtakers. This dynamic is reflective of the M&A market appetite for this type of asset. Net proceeds from the transaction will be returned to shareholders via a bonus issue of redeemable B shares, under the B share scheme.

Schroder European Real Estate Investment Trust (SERE LN, Property – Europe, £78.6m mkt capn, 39.3% discount to NAV): shareholders voted to approve the new investment objective and policy, a managed wind down, at the general meeting

Asset purchase / disposal / portfolio news

3i Infrastructure (3IN LN, Infrastructure, £3,578.7m mkt capn, 4.0% discount to NAV): has completed its c.€263m investment in Lefdal Mine Datacenter, a Norwegian data centre campus with significant growth potential. The initial investment completed on 28 August 2026. A majority stake was acquired from Columbia Threadneedle Investments, the largest investor in that fund reinvested alongside 3IN. A further stake in LMD was acquired from a minority investor at a price in line with the terms of the initial investment. This additional investment completed on 2 September 2026 and was funded by new third-party co-investors managed by 3i. Following completion, 3i manages 90% of the equity in LMD. Of this, 3IN holds just over 45%, and third-party co-investors managed by 3i hold approximately 45%. The existing minority investor elected to retain 10% in LMD. In addition, 3i Infrastructure has committed a further €19m of available funding alongside the same amount from third-party co-investors.

LondonMetric Property (LMP LN, £4,310m mkt capn): the Company has sold seven assets for £85m, reflecting a NIY of 5.3% and in line with March 2026 book values. Including these sales, LMP has sold 32 assets for £175m in this financial year. Acquisitions in the year total £62m, reflecting a yield of 5.9%, and include a recently signed £20m forward funding of a 50,000 sq ft foodstore in Nuneaton, pre-let to Tesco on a 20-year lease. LMP is under offer on £140m of additional acquisitions at a yield in excess of 6%. These primarily comprise long-let assets with occupiers including Lidl, M&S, Tesco and Waitrose.

Great Portland Estates (GPE LN, £1,340m mkt capn): has completed its prime St James's development, on time and on budget, with all office and retail space pre let ahead of completion. The successful leasing campaign secured average rents 6.7% ahead of ERV, supporting an anticipated development profit on cost of 37.1% and an ungeared IRR of 30.5%.

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

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Equity Capital Markets / Investor demand

n/a

Ex Dividend

MIGO 2pps, HMSO 9.67pps, CLC 1.69pps, DLN 26pps, FGEN 2.01pps, GMP 5cps, ASLI 6.6pps, UEM 2.42pps, GWI 7cps

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

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