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Good afternoon investment trust investors,
Contents
- Overview for the week
- Recorded Frostrow Investor Events
- Investment Themes
- Sector data for the week
- Overview for the week
Iranian backed Houthi rebels seized control of Yemen’s entire Red Sea coast via a simple AI voice trick, and subsequently two strategic islands in the Red Sea putting them more or less in control of a vital shipping lane, with subsequent drone attacks forcing the closure of the east-west crude pipeline. The oil price pushed higher to circa $109 per barrel on fears of depleted stocks before pulling back later in the week to circa $102. India and China have now seemingly put aside their differences in this increasingly uncertain world and noticeably worked towards closer reconciliation at the Delhi BRICS conference last weekend. The Russian foreign minister, Sergei Lavrov, is reportedly due to meet with US Secretary of State, Marco Rubio, for peace talks over Ukraine later in September, albeit while fighting continues. The EU is offering Canada a new associate membership status in an interesting manifestation of the changing shape of geopolitics.
The 10-Year US Treasury yield initially moved higher and through 5% this week. However, the bond (and equity) market was pleased to see the Federal Reserve unanimously raising interest rates by 25bps to 3.75% to 4%, leaving bond yields lower and helping equities to recover losses earlier in the week. The Bank of England held interest rates at 3.75% and chose to reduce the supply of gilts that will be hitting the market in the coming months. The Bank of Japan also increased interest rates from 1% to 1.25% in a widely expected move. UK inflation increased from 2.9% to 3.1% in the year to end August, albeit with core inflation unchanged at 2.6%. Eurozone inflation was revised down in August from 3.3% to 3.2. The UK Labour market report showed further weakness with unemployment remaining at 4.9% in the quarter to end July. In the UK, the nationalist parties of Scotland, Wales and Northern Ireland have all expressed interest in devolution, as has a small village in Oxfordshire bizarrely.
In the investment trust sector, average discounts (ex 3i Group) remained steady at 11.6%. It was another massive newsflow week with Saba pushing its stance hard with Gore Street and Baillie Gifford US Growth, along with an announced combination by the boards of JPMorgan UK Small Cap and Aberdeen UK Smaller Companies. Frostrow client City Natural Resources Growth and Income (CYN LN) saw investment managers Keith Watson and Robert Crayfourd arrive at Tufton Investment Management Ltd with no change to the Company's strategy or risk profile continuing with its established investment approach but with a new Trust name.
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, 9th 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, £261.7m mkt capn, 11.7% 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, £309.4m mkt cap, 6.8% 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, £377.2m mkt capn, 7.1% 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
A webinar took place on 13 July 2026, do view it here:
https://www.youtube.com/watch?v=-ZQLFVnEnHM
CQS Natural Resources Growth & Income (CYN LN, Commodities & Natural Resources, £166.9m mkt capn, 1.7% premium to NAV): investor meetings available again post 14 September 2026
Custodian Property Income REIT (CREI LN, Property UK Commercial, £371.0m mkt capn, 21.8% 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
A Custodian webinar took place on Monday 14 September 2026, do view it here:
https://www.youtube.com/watch?v=NG7CbqC3pFM
Ecofin Global Utilities & Infrastructure (EGL LN, Infrastructure Securities, £234.0m mkt capn, 0.8% discount 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, £784.1m 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 for the webinar of 15 July 2026:
https://www.youtube.com/watch?v=jE9n4ut7xl0
MIGO Opportunities Trust (MIGO LN, Flexible Investment, £69.5m mkt capn, 3.5% 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, £1,295.3m mkt capn, 0.3% 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/
See co-portfolio manager, Nick Purves’ interview on Citywire from July 2026 here: https://lnkd.in/ezCQ6qZN
An Investor Meet Company webinar took place on 10 September 2026 and is available to view on this link:
https://www.youtube.com/watch?v=mcRiU-TVj0U
Worldwide Healthcare Trust (WWH LN, Healthcare & Biotechnology, £1,320.8m mkt capn, 7.7% discount to NAV): Trevor Polischuk’s comments at the Winterflood’s Annual conference were recorded here (January 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
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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 379 corporate announcements from Tuesday this week on the LSE, of which 101 were in reference to share buybacks (26.6% of total). 4 referred to equity issuance.
River UK Micro Cap Limited (RMMC LN, UK Smaller Companies, £79.7m mkt capn, 16.2% discount to NAV): the Company has extended its share buyback programme for up to an additional maximum aggregate consideration of £2m
Vietnam Enterprise Investments Limited (VEIL LN, Country Specialist, £904.0m mkt capn, 12.4% discount to NAV): 0.5% of share capital repurchased in August 2026 at an average discount of 11.9%
Conditional tender / tender news
Aberdeen New India Investment Trust (ANI LN, India / Indian Subcontinent, £299.2m mkt capn, 11.1% discount to NAV): announced that five-year performance from 1 April 2022 to end August 2026 has NAV TR +23.9% vs Benchmark TR +19.2%; the assessment period runs to 31 March 2027. If the Company's adjusted NAV per share total return fails to equal or exceed the total return of the benchmark, the Board will put forward proposals for a tender offer for 25% of the Company's share capital at a price equal to 98% of the NAV, after deduction of implementation costs."
HarbourVest Global Private Equity Limited (HVPE LN, Private Equity, £2,279.0m mkt capn, 25.2% discount to NAV): as previously announced, the Board has committed to put forward a $400m tender offer as part of its commitment to distribute at least $500m to shareholders in 2026. Following the passing of the continuation vote at the AGM, the Board has now confirmed that it will be put forward in November 2026. The Company will announce the full timetable for the tender offer alongside the Company's semi-annual results for the six months ended 31 July 2026, which will be published in October 2026. The timetable will include the date for a General Meeting of the Company to approve the Tender Offer. As announced previously, the tender offer is expected to be priced at around a 10% discount to NAV per share. This will be based on the estimated NAV and actual share count as of 30 September 2026.
CT Healthcare Trust (CTHT LN, Healthcare & Biotechnology, £55.3m mkt capn, 4.2% discount to NAV): the Company announced that it has acquired 3,885,283 ordinary redeemable shares in regard to the tender offer for up to 15% of share capital. All Shares repurchased by the Company will be held in treasury.
Shareholder consultation update
Gresham House Energy Storage Fund (GRID LN, Renewable Energy Infrastructure, £556.5m mkt capn, 25.5% discount to NAV): the Board has undertaken an extensive consultation with shareholders over the summer. Overall, shareholders expressed strong support for the Company and its current strategy. The Board has concluded that initiating a formal sale process for the Company now would not be in the best interests of shareholders noting that there is a lot more growth to come which is yet to be recognised in the NAV
Saba news
Gore Street Energy Storage Fund (GSF LN, Renewable Energy Infrastructure, £242.9m mkt capn, 33.9% discount to NAV): Saba Capital's holding increased from 19% to 20.1%. The Company subsequently announced that all resolutions proposed by the Company at the AGM were passed, with the two resolutions requisitioned by Saba Capital not passing. The Board is cognisant of the range of views expressed, particularly from the Company's largest shareholder, and will seek to engage to establish a productive way forward for the Company and all shareholders so that ongoing disruption can be avoided in the interest of best delivering enhanced value.
Baillie Gifford US Growth Trust FY results to 31 May 2026 (USA LN, North America, £1,016.5m mkt capn, 3.1% discount to NAV): NAV TR (debt at fair value) +31.0% vs S&P 500 Index £ +29.8%; share price TR +44.5%; hold 27 private companies representing 45% of total assets, with two new private investments made (Anthropic and OpenAI). Separately published a circular with the notice of AGM suggesting that this year's AGM is critical to the future of the Company and suggesting "Saba is counting on you not voting your shares so it can gain control." "If the Saba Resolutions pass and the Saba Nominees are elected to the Board, Shareholders will no longer be represented by a wholly independent and conflict-free Board. Beyond reference to a liquidity event, Saba has not made clear its longer-term intentions for the Company, or for those Shareholders who wish to remain invested in the current strategy." 4.5m shares repurchased at a discount to NAV. Net gearing of 3% (-4% 2025). The Company subsequently announced that the Board was advised by the Manager of an upwards adjustment in the valuation of the Company's holding in Zipline in line with its policy for valuing private company investments. Following that adjustment in valuation the proportion of the Company's total assets made up by Zipline stands at 4.0% at close of business on 16 September 2026, compared with 2.0% on 31 July 2026.
M&A update
Alternative Income REIT (AIRE LN, Property – UK Commercial, £55.1m mkt capn, 17.6% discount to NAV): announced that it has received a reservation of rights letter from HSBC UK Bank plc in relation to the £41m facility agreement. The letter has been issued by HSBC following the offer by Glenstone REIT plc being declared unconditional which constituted a change of control for the purposes of the Facility Agreement. As a result of the Change of Control, HSBC is not obliged to fund any future utilisations under the Facility Agreement, and has the right, amongst other matters, to demand repayment of the amounts drawn down under the Facility Agreement together with accrued interest. As at the date of this announcement, HSBC has not requested repayment of any amounts outstanding under the Facility Agreement.
Schroder Asian Total Return Investment Company HY results to 30 June 2026 (ATR LN, Asia Pacific, £641.4m mkt capn, 5.1% discount to NAV): NAV TR +34.4% vs Reference Index +25.6%; share price TR +27.8%; There was a wide dispersion in returns across Asian markets and relative outperformance was driven primarily by the portfolio's overweight exposure to Taiwanese technology stocks. The discount widened with the Board's discount control policy aiming to achieve a discount no wider than 5% in normal market conditions buying back a total of 688,852 shares at an average discount of 4.8% in the period. Gearing of 5.8% of total assets (5.5% 31 December 2025). The Company is being combined by way of a scheme of reconstruction with Pacific Assets Trust, with a further general meeting to be held on 24 September 2026
JPMorgan UK Small Cap Growth & Income (JUGI LN, UK Smaller Companies, £410.5m mkt capn, 8.2% discount to NAV): announced that heads of terms have been agreed for a combination of AUSC and JUGI following a private review process undertaken by the AUSC board. The combination is to be implemented through a proposed members' voluntary winding up of AUSC by way of a scheme of reconstruction of AUSC. AUSC shareholders will be entitled to receive new shares in JUGI or to elect some or all of their shares for cash at NAV less 2%, subject to an aggregate limit of 35% of AUSC's share capital. The enlarged JUGI will continue to be managed by JPMorgan Funds Limited in accordance with its existing investment objective and policy. JPMF has agreed to reduce the management fees it charges the enlarged JUGI to 0.60% pa on net assets up to and including £200m and 0.55% pa on net assets thereafter (currently 0.65% and 0.55% respectively). Further, JPMF has committed to make a substantial financial cost contribution to the Proposals. JUGI has an enhanced dividend policy of paying an annual dividend based on 4% of NAV
Aberdeen UK Smaller Companies Growth Trust (AUSC LN, UK Smaller Companies, £216.1m mkt capn, 9.2% discount to NAV): the Board has agreed heads of terms for a combination of AUSC and JUGI given the reduction of scale and liquidity in recent years
Fund Manager and manager fee news
City Natural Resources Growth and Income (CYN LN, Commodities & Natural Resources, £166.9m mkt capn, 1.7% premium to NAV): Tufton Investment Management Ltd has now assumed the role as investment manager with Keith Watson and Robert Crayfourd commencing as portfolio managers. There is no change to the Company's strategy or risk profile, and it will continue with its established investment approach. The proposed name change to 'City Natural Resources Growth and Income PLC' is awaiting registration at Companies House, albeit the ticker will remain the same. "Keith and Rob have built enviable track records in natural resources investing. Their reputation and skills will dovetail with the institutional-grade investment management skills...built at Tufton over four decades in maritime, energy and real assets through investment vehicles such as SHIP". The Company subsequently confirmed that the Company name has changed to City Natural Resources Growth and Income PLC (Frostrow client)
Invesco Asia Dragon Trust (IAD LN, Asia Pacific Equity Income, £982.2m mkt capn, 6.9% discount to NAV): Ian Hargreaves, one of the three portfolio managers, will retire from Invesco on 31 March 2027 after more than 30 years with the firm. Fiona Yang will continue in her role as lead co-portfolio manager alongside Marc Ye, with Ian Hargreaves continuing as co-Portfolio Manager of the Company until his retirement. The Board remains confident that the Company's Portfolio Managers, supported by the Invesco Asia and Emerging Market Equities team, will continue to implement the Company's investment strategy in accordance with its investment objective. The Company's investment philosophy, process and portfolio construction framework remain unchanged.
Results / updates
RTW Biotech Opportunities HY results to 30 June 2026 (RTW LN, Healthcare & Biotechnology, £767.9m mkt capn, 18.1% discount to NAV): NAV TR +16.5% vs Russell 2000 Biotechnology Index +28.2% / NASDAQ Biotechnology Index +15.4%; share price TR +12.0%; "A combination of geopolitical de-escalation, change of leadership at the FDA, active M&A, and positive clinical data drove the sector sharply higher in June...Five public portfolio companies announced acquisitions during the period: Penumbra, RAPT, Apellis, Centessa, and Apogee, the latter acquired by AbbVie in June in a transaction valued at approximately US$10.9 billion. Several of these were struck at substantial premiums, underlining the latent value embedded within the portfolio and validating the Group's long-term, full life cycle approach to building exposure to high-quality innovation."
HgCapital Trust HY results to 30 June 2026 (HGT LN, Private Equity, £1,895.8m mkt capn, 21.3% discount to NAV): NAV TR -4.9%; share price TR -24.9%; interim dividend 2pps (2pps 2025); £146m invested and realisations of £134m. LTM revenue and EBITDA growth of 16% and 19%; Reduction in weighted portfolio average valuation multiple (EV/EBITDA) from 25.2x at 31 December 2025 to 22.9x3 at 30 June 2026. Reduction in net debt to EBITDA ratio to 6.9x (31 December 2025: 7.4x). £19m of share buybacks. The RCF expiration date was extended from March 2027 to September 2029, and the total credit available increased from £375m to £450m, with significant further upsizing above £450m available on an uncommitted basis at no additional cost to HgT unless utilised. The margin on the revolving credit facility has been reduced to 3% over SONIA with a commitment fee of 1.15%, both more favourable than the previous terms of 3.40% and 1.30% respectively.
Greencoat Renewables HY results to 30 June 2026 (GRP LN, Renewable Energy Infrastructure, £829.1m mkt capn, 20.7% discount to NAV): NAV -1.8%; Net cash generation of €59.8m equating to robust net dividend cover of 1.6x, and Illustrative five-year contracted cash flow profile of 73% through to 31 December 2030, providing meaningful revenue visibility. Profit for the period after tax increased to €11.9m (June 2025: €68.0m loss after tax). Earnings and headline earnings increased to 1.08 cps (June 2025: 6.11 cps losss). Dividends of 3.41 cps paid or declared with respect to the period, in line with the full year dividend target (June 2025: 3.41 cps). €50m of share buyback programmes announced since March 2026, with 36,059,472 million shares repurchased at a cost of €27.3m so far. 1,851 GWh of renewable electricity generated during the period, with production 6% below budget due to lower wind resource predominantly in Q1.
GCP Asset Backed Income Fund HY results to 30 June 2026 (GABI LN, Debt – Direct Lending, £64.3m mkt capn, 13.6% discount to NAV): NAV TR -1.8%; repayments of £46.4m received by the group; 3.16pps paid and declared (with the Board aiming to maintain the existing level of dividend of 6.325pps pa whilst the Company remains substantially invested); strong progress made on the managed wind down such that post the most recent redemption £266.6m has been returned to investors (75.9% reduction in share capital). 14 loans remain valued at £61.1m
The City of London Investment Trust FY results to 30 June 2026 (CTY LN, UK Equity Income, £3,022.8m mkt capn, 1.2% premium to NAV): NAV TR +21.9% vs FTSE All Share Index +21.9%; share price TR +21.0%; The £30m 2.67% secured notes (maturing in 2046) and the £50m 2.94% secured notes (maturing in 2049) will continue to provide low-cost debt financing over the next 20 years for investment in equities. Over the last 15 years, the Company's prevailing share price premium and discount to NAV has stayed within narrow bands rarely exceeding 3%. The Company sold 9.1m shares from treasury and issued 12.4m new shares - all at a premium to NAV for total proceeds of £114.8m.
Nippon Active Value Fund HY results to 30 June 2026 (NAVF LN, Japanese Smaller Companies, £446.1m mkt capn, 4.0% discount to NAV): NAV TR +5.2% vs MSCI Japan Small Cap Index £ +17.7%; share price TR +9.4%; performance in the Japanese market was led by companies involved in AI and defence with neither sector well represented in the Investment Adviser's universe. The focus remains on medium and small capitalised companies, where they can build stakes to facilitate productive engagement with their management. Unlisted assets account for 2.4% of net assets and the £80m gearing facility was undrawn. "Japan is now the second largest market for activist investment, after the US." The Company issued 3.9m shares into demand
Supermarket Income REIT FY results to 30 June 2026 (SUPR LN, £1,160m mkt capn): EPRA EPS 5.7p (-4.1%), IFRS EPS 6.9p (+39.4%), dividend per share 6.2p (+1.0%, although targeting sustainable minimum dividend growth of 2% pa from FY27); acquired £454m of accretive properties in the year, diversifying the portfolio and scaling the JV with Blue Owl to £855m. Continued to reduce the Company's operational costs achieving one of the lowest EPRA cost ratios in the sector of 9.2%, and on track to achieve below 9% in the near-term. LTV of 43.9%. "Actionable pipeline of over £500 million high-quality grocery assets"
Mid Wynd International Investment Trust FY results to 30 June 2026 (MWY LN, Global, £206.2m mkt capn, 2.6% discount to NAV): NAV TR +2.0% vs MSCI AC World Index £ +27.7%; share price TR +1.9%; total dividends 8.6pps (8.35pps 2025); OCR 0.62% (0.54% 2025); "Equity market returns have been driven by passive investment flows and concentrated enthusiasm for AI-related stocks, while quality companies have fallen out of favour" and "the Board believes that we are seeing an unusual opportunity to invest in high quality businesses at current valuations." 32.2% of share capital was repurchased with shares held in treasury. With effect from 1 May 2026, the rate of the Company's investment management fee was reduced by 20% for a period of 24 months.
Baillie Gifford Shin Nippon HY results to 31 July 2026 (BGS LN, Japanese Smaller Companies, £330.4m mkt capn, 9.8% discount to NAV): NAV TR +22.9% vs MSCI Japan Small Cap Index £ +13.3%; share price TR +19.8%; "While it is still relatively early to draw firm conclusions, the changes Brian and Jared made to the portfolio during 2025 are beginning to deliver encouraging results." Gearing of 12.9% (14.9% 31 January 2026). The Company has in place a performance-triggered tender offer for up to 100% of its issued share capital. This will be undertaken if the NAV total return does not equal or exceed the total return on the MSCI Japan Small Cap Index (£) over the five‑year period to 31 December 2030. As at 31 July 2026, the Company's performance was ahead of the comparative index by 8% since 31 December 2025. 5.5% of share capital repurchased in the period
AVI Japan Opportunity Trust HY results to 30 June 2026 (AJOT LN, Japanese Smaller Companies, £402.4m mkt capn, 1.8% discount to NAV): NAV TR -2.2% vs MSCI Japan Small Cap Index £ +18.0%; Marks the first HY period since the enlarged AJOT incorporated the additional assets arising from the combination with Fidelity Japan Trust plc. "AVI continued to engage actively with portfolio companies, seeking to improve corporate governance, capital allocation and shareholder returns." AVI is to be acquired by Pacific Asset Management, part of the Pinnacle Investment Management Group with the investment team to remain in place. Net gearing of 5.6%. 6.2m shares were issued into demand and 27.2m shares were repurchased
JPMorgan US Smaller Companies Investment Trust HY results to 30 June 2026 (JUS LN, North American Smaller Companies, £201.3m mkt capn, 8.0% discount to NAV): NAV TR +17.2% vs Russell 200 Index +24.1%; share price TR +12.1%; the Russell 2000 outperformed the large-cap focused S&P 500 Index, as market participants began to respond to the significant valuation differential between small and large cap stocks that we have highlighted over recent years. 3.2m shares were repurchased into treasury at an average discount of 8.7%. Gearing of 9.1% (9.7% 31 December 2025)
The Merchants Trust HY results to 31 July 2026 (MRCH LN, UK Equity Income, £992.1m mkt capn, 5.3% discount to NAV): NAV TR +9.3% vs FTSE All Share Index +7.9%; share price TR +8.4%; two interim dividends of 7.5p each (7.3p each 2025); 44 years of dividend growth. The Company last repurchased shares in November 2025 with the position under review
The North American Income Trust HY results to 31 July 2026 (NAIT LN, North America, £495.4m mkt capn, 2.2% discount to NAV): NAV TR +13.6% vs Russell 1000 Value Index £ +17.7% / S&P High Yield Dividend Aristocrat Index £ +7.9%; share price TR +17.3%; revenue return of 7.28pps; two interim dividends of 3pps each (+7.1% 2025); 50,554 shares were repurchased at an average discount of 7.7%. Net gearing of 5.8%. Manager, Janus Henderson changed ownership and went from being a publicly listed company to being privately owned. on 30 June 2026.
Wind down / asset realization news
Schroders Capital Global Innovation Trust HY results to 30 June 2026 (INOV LN, Growth Capital, £111.2m mkt capn, 22.3% discount to NAV): NAV +1.3%; 39% of original NAV will have been returned to shareholders via tender in the managed wind down post the second tender. The Board has further increased the size of the second tender offer to £28m less costs. Tender elections remain open until 23 September 2026, but platforms may have an earlier deadline. The Board and the Investment Manager continue to focus on delivering an orderly wind-down, balancing the timely return of capital to shareholders with the objective of maximising value. The Company subsequently announced that the Final Tender Price is 22.299135pps, equal to the NAV as at 30 June 2026, less costs. As previously stated, the Tender Offer has been increased to £28m less costs and the Company confirms that the final Basic Entitlement is 19.56%
VPC Specialty Lending Investments (VSL LN, Debt – Direct Lending, £34.8m mkt capn, 40.4% discount to NAV): the largest debt position in the portfolio, Essor Group, Inc has been repaid at its carrying value as at 30 June 2026 plus all outstanding interest. Accordingly, the Company has received approximately £9.3m and the Board intends to distribute substantially all the Heyday proceeds to the Company's shareholders as soon as practicable and expects to make a further announcement in due course.
Home REIT (HOME LN, UK Residential): the Company has now passed written resolutions to appoint liquidators over its wholly owned subsidiaries, Home Holdings 1 Limited, Home Holdings 2 Limited, Home Holdings 3 Limited and Home Holdings 4 Limited. The Board considers that the Subsidiary Liquidations is a necessary step to allow the Company to advance and finalise the planning for any subsequent return of capital to shareholders
Schroder European Real Estate Investment Trust quarter end June 2026 update (SERE LN, Property – Europe, £77.0m mkt capn, 44.9% discount to NAV): NAV TR -3.8%; wind down approved by shareholders on 3 September 2026 with net proceeds from asset realisations will be used to repay borrowings and return capital to shareholders. third quarter dividend of 1.48cps (three interim dividends of 4.44cps financial year to date). Net LTV 27% (30% gross of cash)
RM Infrastructure Income HY results to 30 June 2026 (RMII LN, Debt – Direct Lending, £29.1m mkt capn, 33.4% discount to NAV): NAV TR -2.2%; the Company has been in managed wind down since December 2023. Three tenders have taken place so far returning £12.4m representing 50% of the shares outstanding at the time of the wind down confirmation. The Investment Manager continues to make progress in seeking a return of capital to Shareholders from the outstanding investments
abrdn Property Income Trust Limited HY results to 30 June 2026 (API LN, Property – UK Commercial, £6.9m mkt capn, 53.4% discount to NAV): £11.4m of net assets, including £4.3m of cash. The Board and Investment Manager remain firmly focused on achieving the Company’s principal objective of disposing of its remaining asset, Far Ralia, at an appropriate value and on acceptable terms. No sale imminent at this time.
Ecofin US Renewables Infrastructure Trust HY results to 30 June 2026 (RNEW LN, Renewable Energy Infrastructure, £20.2m mkt capn, 51.9% discount to NAV): in managed wind down since January 2025. NAV TR -24.1%; the escrow holdback for the disposal of the Texas wind project ($11m) has still not been lifted, with the Board now writing down the value of the holdback and repowering earnout. There was a 7.24cps return of capital in May 2026. The valuation applied a pre-tax contract discount rate of 7.75% and a merchant discount rate of 8.75%, a blended weighted average pre-tax rate of 8.25% (31 December 2025: 7.50% and 8.25%, blended weighted average pre-tax rate of 7.9%; 30 June 2025: blended weighted average pre-tax rate of 8.8%). Group gearing is nil.
Asset purchase / disposal / portfolio news
Oryx International Growth Fund Limited (OIG LN, UK Smaller Companies, £185.8m mkt capn, 34.4% discount to NAV): the Board noted the proposed acquisition of Tribal Group Plc. Based on the expected sale proceeds of 86pps, this will increase the most recent NAV of Oryx by approximately 44pps.
Scottish Mortgage Investment Trust (SMT LN, Global, £16,028.5m mkt capn, 9.9% discount to NAV): the Board was advised by the Manager of an increase in the valuation of the Company's holding in Zipline in line with its policy for valuing private company investments. Following that adjustment in valuation the proportion of the Company's total assets made up by Zipline stands at 3.8% at close of business on 16 September 2026, compared with 1.8% on 31 July 2026.
4. Sector data this week (AIC data, as at Thursday’s close)
Equity Capital Markets / Investor demand
M&G Credit Income Investment Trust (MGCI LN, Debt – Loans & Bonds, £190.0m mkt capn, 0.3% discount to NAV): announced a placing and WRAP Retail Offer given the compelling investment opportunity for investors seeking attractive long-term yield with low NAV volatility through a high-quality, diversified portfolio of public and private credit investments. New shares will be issued at a 1.5% premium to the last published NAV prior to closing on 20 October. The Company also announced HY results to 30 June 2026
Ex Dividend
UTG 12.8pps, PPHE 17pps, BRWM 5.5pps, FEV 4.2pps, RGL 2pps, SVCT 1.5pps, HYG 4pps, SMIF 0.5pps
Frostrow Investor Relations team – Messrs Grant Challis, Neil Winward, Matt Burrows, Nicholas Todd & Max Smith
Frostrow Capital LLP,
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London WC2A 1AL
020 3008 4912
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