Contents

1. Overview for the week
2. Frostrow Retail Investor Events
3. Investment Themes
4. Sector data for the week

1. Overview for the week

“There are decades where nothing happens; and there are weeks where decades happen.” (Quote: Vladimir Ilyich Lenin). If ever there was a week where decades happened, this was it. Markets went into risk off mode post Trump’s ‘Liberation Day’ speech and as such the VIX Index pushed up towards 40, bond markets rallied and equities fell. China retaliated by also subsequently adding 34% additional tariffs and sent equities further into the red. At the time of writing, Europe have done nothing, but given China’s move, it will be tough to do nothing unless they want to look weak. This (at the time of writing) has been the worst week for the S&P 500 Index since June 2022 and Thursday was the worst day since we were at the height of Covid five years ago and volumes have been high. 10-year UK Gilt and US Treasury yields fell considerably (US Treasuries down from circa 4.7% at the start of the year now yielding well below 4%), as the market prices in rate cuts to a higher level of probability as the likelihood of recession has sadly increased somewhat.

What was all this about? Trump wants to stop the US being ‘ripped off’ by other countries and introduced reciprocal tariffs accordingly. That has essentially meant though that all the fine tuning of the international trade systems built up over the decades since WW2 have been upended – a re-set of world trade. No doubt Trump will use this position to negotiate over time, but that in itself creates uncertainty for corporates and investors alike and they don’t like that. It will take time to work through what the new world order looks like. Ahead of 'Liberation Day', some of the world's largest investment banks like Goldman Sachs and JPMorgan and a major credit ratings agency (Moody's) had already upped their expectations of a recession in the US and globally. Post the event, Evercore ISI estimate that America's effective tariff rate will have risen now from about 2% to 24%, the highest in over a century. In announcing the tariffs on Wednesday night, Trump has concentrated the pain on Europe (albeit market estimates were in line with reality) and Asia, which has had worse than feared. For example, in terms of China, they could now face an effective tariff rate of 65% according to Citigroup. If ever the moment had arrived for the UK to find its more flexible status outside of Europe helpful, this is it. Go and do something with that now Mr Starmer.

In the UK, a whole range of price increases are coming through now on bills including water, energy, council tax, car tax and TV licence to name a few. Again, not ideal. As we enter the new tax year in the UK, one would think that with global stock markets a little cheaper than a few weeks ago, there would be healthy appetite to put some risk capital to work with the new ISA and SIPP allowances, but perhaps only when things calm down. In addition to that, perhaps UK investors will now consider other geographic regions other than the US as options for investment. It has been the right decision to be in US equity low-cost trackers for some years given ‘American exceptionalism’. “The country’s stocks have risen by 360% since 2010, against a rise of 40% in the rest of the world.” (The Economist: 4 April 2025). That does not mean sitting on a S&P 500 Index ETF position will necessarily be the right decision in the weeks and months ahead. The investment trust sector (comprising one third of the FTSE 250 Index and one half of the FTSE Small Cap Index) remains highly attractive from a valuation standpoint, and indeed, became even better value this week, with the sector average discount widening by over 1% from sub 15% to near 16%. As we have noted, private equity investors have, in recent weeks, recognized the value in the listed funds sector, particularly for alternative assets. Warehouse REIT, Harmony Energy and Assura have all been under the microscope this week. We have seen other equity trusts looking to merge also (see AJOT’s attempt to combine with FJV). That activity is all in recognition of the disconnect between public and private markets. The leg down in equities this week also works the other way to bridge that gap. While no one is safe from tariffs, not even islands of penguins in the Antarctica seemingly, there continues to be significant value in the investment trust sector for when the moment to put risk capital to work arrives in the new tax year.

2. Frostrow Retail Investor Events

Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £134.8m mkt capn, 50.9% discount to NAV): Please contact Frostrow for interest in seeing Tim Levene in London and the regions in 2025. The AUGM Capital Markets Day will take place on Wednesday 25 June 2025 at Searcy’s at The Gherkin, between approx. 8:30am and 1:30pm (timings and line up still to be finalised). The latest Frostrow webinar is available to see on You Tube.

https://www.youtube.com/channel/UCAptpfmx0HITqvlI68psd7Q

Aurora UK Alpha (ARR LN, UK All Companies, £258.4m mkt capn, 10.4% discount to NAV): the Phoenix investment team are available for meetings with investors in 2025. The last webinar was recorded on 20 January 2025 and is available on the following link:

https://www.youtube.com/watch?v=0hl0yNZgRlM

Biotech Growth Trust (BIOG LN, Biotechnology & Healthcare, £192.5m mkt cap, 7.3% discount to NAV): the latest webinar took place at 3pm UK on Tuesday 25 February 2025. You can hear the recording on the following link:

https://www.youtube.com/watch?v=wxOUIC0oT5s

CC Japan Income & Growth Trust (CCJI LN, Japan, £229.4m mkt capn, 11.7% discount to NAV): please contact Frostrow Capital in order to arrange a meeting with management in 2025. In addition, The last webinar was recorded on 22 January 2025 and is available on the following link:

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

CQS Natural Resources Growth & Income (CYN LN, Commodities & Natural Resources, £118.5m mkt capn, 5.6% discount to NAV): please contact Frostrow to arrange a one-on-one meeting with management in 2025. Please see the link to the last webinar on 4 November 2024:

https://www.youtube.com/watch?v=dhSC3wNKLxM

Custodian Property Income REIT (CREI LN, Property UK Commercial, £325.4m mkt capn, 25.0% discount to NAV): Richard Shepherd-Cross, lead manager, available for meetings in 2025 (physical throughout UK, or zoom, as per preference). In addition, the last webinar was recorded in January 2025 and is available on the following link:

https://www.youtube.com/watch?v=Qd1-ciXoC2o

Ecofin Global Utilities (EGL LN, Infrastructure Securities, £209.1m mkt capn, 10.8% discount to NAV) : Jean-Hugues de laMaze, lead manager of the Trust will be presenting at a webinar with Frostrow at 10am on Wednesday 23 April 2025. See link to register:

Finsbury Growth & Income Trust (FGT LN, UK Equity Income, £1,269.8m mkt capn, 7.5% discount to NAV): Nick Train’s AGM presentation was recorded and is available to view on the Frostrow You Tube page. Click the link here to see it, it is worth a view:

https://www.youtube.com/watch?v=yE9HV__Iwlc

There is also a good “insider interview” from Interactive Investor as Nick explains the “generational” opportunity to buy UK growth firms

https://www.ii.co.uk/analysis-commentary/nick-train-generational-opportunity-buy-uk-growth-firms-ii534473

MIGO Opportunities Trust (MIGO LN, Flexible Investment, £65.4m mkt capn, 1.2% discount to NAV): Following on from the HY results release, Nick Greenwood and Charlotte Cuthbertson presented on a webinar at 11am on 24 January 2025. This one stop shop is a great way to play the discounts on offer generally in the listed fund sector. The recording can be accessed on Frostrow’s You Tube page here:

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

Mobius Investment Trust (MMIT LN, Global Emerging Markets, £143.7m mkt capn, 8.2% discount to NAV): Carlos Hardenberg, lead manager, presented at webinar this week from his trip to Taiwan. Please see below the link to the recording:

https://www.youtube.com/watch?v=sMBNxj6ZD-o

Temple Bar Investment Trust (TMPL LN, UK Equity Income, £816.8m mkt capn, 3.2% discount to NAV): Ian Lance and Nick Purves presented on the trust at a webinar on 18 March 2025. Please do click on the link below to see the recording:

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

Worldwide Healthcare Trust webinar (WWH LN, Biotechnology & Healthcare, £1,453.2m mkt capn, 11.1% discount to NAV): Sven Borho and Trevor Polischuk recently completed the latest webinar overview (November 2024). See the Frostrow You tube page for the recording. Further updates available on request.

https://www.youtube.com/watch?v=tppMeH6W9Zo

In addition, if you did not make the 30 year anniversary event this week and you would like a copy of the presentation, please contact Frostrow

Frostrow Investor Relations team – Messrs Grant Challis, Neil Winward, Matt Burrows, Matt Norfolk-Clarke & Nicholas Todd

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. What has worked for the last few years (ie US Equity trackers, passive investments and short dated bonds) will not necessarily be the best idea in the coming periods. The investment trust sector in the UK represents one third of the FTSE 250 Index and half of the FTSE Small Cap Index. There are highly valuable listed fund vehicles available to use for savings and investment today, as there have been for the last 150 + years. We are taking meetings for 2025 now on behalf of our client list. Call or email us to arrange with you, physical or zoom

Find us on the web:  https://www.frostrow.com/

Find us on You Tube:  https://www.youtube.com/channel/UCAptpfmx0HITqvlI68psd7Q

Check out our inaugural podcast also, released today:  FROSTROW CAPITAL - Frostrow Talks Trusts - AI Podcast - InvestorMeetCompany

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 Control

Foresight Environmental Assets (FGEN LN, Renewable Energy Infrastructure, £447.7m mkt capn, 34.6% discount to NAV) will extend its current buyback programme by a further £10m, bringing total maximum consideration to £30m. "The extension of the Programme will be funded from the Company's own resources in accordance with its stated approach to capital allocation."

Abrdn Asia Focus HY results to 31 January 2025 (AAS LN, Asia Pacific Smaller Companies, £407.6m mkt capn, 12.1% discount to NAV): NAV TR +7.1% vs MSCI AC Asia Ex Japan Small Cap Index -1.9%; share price TR +8.8%; "...it is not possible to replicate the exposure to these fast-growing, often unheard of, smaller companies through passive investing. It's where active stock picking really delivers genuine alpha through unearthing these hidden gems." "...your Manager continues to add depth to its small-cap capabilities in Asia, with the recent hires of two further research analysts with a primary focus on small and mid-cap companies in India as well as a senior technology analyst." "The Board believes that your Company's discount to NAV is wider than merited by its future prospects. This is despite proactive steps taken as part of the strategic review in 2021, in particular the introduction of a five-year conditional tender opportunity, the linking of investment management fees to market cap rather than NAV and the move to progressive and more frequent dividends. In order to show continued commitment to Shareholders' interests, the Board has now significantly stepped-up share buybacks over the past half-year to not only provide additional liquidity but seek to limit the share price volatility for shareholders. During the period the Ordinary shares have traded at an average discount of 16.4% and we have bought back 3,355,000 Ordinary shares (2.2% of the Company's outstanding shares) in the market at a discount to the prevailing NAV per share (six months to 31 January 2024: 2,022,500), ending the period on a discount of 13.1%."

Montanaro UK Smaller Companies (MTU LN, UK Smaller Companies, £131.0m mkt capn, 9.3% discount to NAV): share buyback authority renewed at General Meeting

Picton Property Income (PCTN LN, £389.1m mkt capn) has "bought back 11,705,596 Ordinary Shares for consideration of approximately £7.8 million". It has now increased its maximum aggregate consideration for the buyback by 25% from £10m to £12.5m. "The Board continues to believe that the share price materially undervalues the Company, and that the Programme represents an attractive use of proceeds, alongside continued investment into the existing portfolio."

Capital allocation update

Petershill Partners (PHLL LN, Growth Capital, £2,519.0m mkt capn, 32.1% discount to NAV) H1 results to 31 December 2024: +11% growth in Partner Distributable Earnings to $323m; four acquisitions vs three disposals… “As a Board, we take our role as stewards of Shareholder capital seriously. In line with this, we are focused on optimising capital efficiency. So, as well as funding the $205 million spent on...acquisitions, the operating cashflows and proceeds raised from the various sales enabled us to return a total of $563 million to Shareholders through a combination of a tender offer, special dividends, a buyback programme and our progressive dividend policy. We approved all these steps over the course of the year because, in our view, they represented efficient uses of capital. Subsequent to year end the Board announced a special dividend of $151 million representing the majority of the profit realised on the General Catalyst sale. The balance of the proceeds from that transaction will be retained for redeployment into new investments."

M&A

Warehouse REIT (WHR LN, Property UK Logistics, £456.3m mkt capn, 15.6% discount to NAV): "Put up or shut up" deadline pushed out to 5pm on 28 April 2025 "In order to facilitate ongoing discussions with Blackstone and to provide additional time for Blackstone to progress its due diligence…" [with regard to its bid for the Company]

Care REIT (CRT LN, Property UK Healthcare, £449.2m mkt capn, 12.1% discount to NAV) published a scheme document in relation to its recommended acquisition by CareTrust REIT (CTRE US). Court and General Meetings are expected to be held on 29 April 2025. Effective date expected to be 9 May 2025, with shares delisting by 12 May 2025 and proceeds expected within 14 days of the effective date;

Harmony Energy Income Trust (HEIT LN, Renewable Energy Infrastructure, £200.3m mkt capn, 4.5% discount to NAV) confirmed the irrevocable signed by Harmony Energy Ltd in respect of 27.338m shares (12.04% of ISC) in relation a potential acquisition of the company by Foresight Group LLP lapsed on 31 March 2025.

Primary Health Properties (PHP LN, £1,300m mkt capn) has made an indicative cash and share proposal to the Board of Assura (AGR LN) based on an adjusted NTA exchange ratio of 0.3848 new PHP shares and 9.08pps in cash. AGR shareholders would be able to retain the quarterly dividend of 0.84pps to be paid on 9 April 2025. Assura subsequently confirmed receipt of a revised indicative proposal from Primary Health Properties (PHP LN) regarding a possible share and cash offer. “The Board is currently reviewing the PHP proposal with its advisers in light of the Board's objective to maximise value for shareholders. A further announcement will be made as appropriate.”

AVI Japan Opportunity Trust (AJOT LN, Japanese Smaller Companies, £205.2m mkt capn, 6.2% discount to NAV) agreed an increase in its RCF to ¥6.6bn (from ¥2.93bn). The facility was structured to provide the Company with flexible financing options. The Board constantly reviews the level of the facility as performance evolves and this decision to increase its size comes off the back of strong NAV growth over a sustained period of time for the Company. Maximum gearing expected of 15% of net assets. Post that announcement, AJOT also announced a proposed merger with Fidelity Japan Trust (FJV LN) which is supported by FJV’s largest shareholder, City of London which holds approx. 23% of FJV’s ISC. FJV shareholders would be offered a cash exit of up to 25% in connection with the transaction and would be eligible to participate in AJOT's annual uncapped redemption offered every October. “AJOT Board has made efforts to explore discussions with the FJV Board, beginning with a written proposal to merge the two trusts in August 2024. Since then, prompted by FJV shareholders who had not been consulted on AJOT's proposal, the AJOT Board met with two of the directors of the FJV Board in March 2025 to discuss the proposals further. No further response had been received from the FJV Board since this meeting.” “AJOT is making this proposal public ahead of FJV's continuation vote in May, such that FJV shareholders can independently assess FJV's performance and consider the alternative solution presented to their Board.” Michael Sugrue at City of London IM comments: "City of London Investment Management supports consolidation in the UK Investment Trust sector. We believe Trusts that deliver outperformance whilst protecting shareholder value through active discount management should be the beneficiaries. The manager of AJOT has delivered strong investment performance since inception and the ongoing discount control mechanisms implemented by the Board have protected shareholder value in an environment where many other listed closed end funds have seen their discounts significantly widen."

Fidelity Japan Trust (FJV LN, Japan, £189.8m mkt capn, 7.8% discount to NAV) "The Board confirms that it considered, reviewed and rejected a non-binding indicative proposal it had received from AJOT in August 2024. In addition, prior to publishing the Company’s 2024 final results on 27 March 2025, in which the Board recommended continuation of the Company at the forthcoming AGM, the Board gave careful deliberation to various options as well as verbal proposals from parties, including from the Board of AJOT." "The Board believes that investing requires an ability to withstand the gyrations of the markets and take a long-term view and that it will again see such levels of outperformance from FJV." "...at the forthcoming AGM in May shareholders are being asked to vote in favour of continuation of FJV"

Strategic review update

The PRS REIT (PRSR LN, Property UK Residential, £630.5m mkt capn, 17.8% discount to NAV) HY results to 31 December 2024: EPRA EPS 2.1p; EPRA NTA +5% to 139.6pps; 41 new homes were added to the company's portfolio. Interim dividend for Q2 raised to 1.1pps. "The Board will consider the opportunity of raising the total dividend payout target for the financial year while also maintaining full dividend cover on a recurring earnings per share basis, in due course, alongside the Strategic Review and Formal Sale Process. " “Discussions with a number of parties are ongoing” regarding a potential sale and “the Board continues to explore all the options available to the company, with a view to maximising value… Further updates will be made in due course, and by no later than the end of calendar Q2 2025.”

Third Point Investors (TPOU LN, Hedge Funds, £430.5m mkt capn, 20.0% discount to NAV): The Strategy Committee "is pleased to confirm that it has made significant progress and is in the advanced stages of diligence and negotiations on this option. The Committee currently expects to be able to recommend to the Board that it puts forward its proposals to shareholders in May 2025. The Board looks forward to engaging with shareholders on this option."

Debt changes

SDCL Energy Efficiency Income Trust (SEIT LN, Renewable Energy Infrastructure, £513.9m mkt capn, 47.8% discount to NAV) trading update for period 1 September 2024 – 31 March 2025: "portfolio has delivered substantial income...in line with previous years...ensures that we can cover the target dividend of 6.32p which represents a double digit yield for investors at the current share price." RCF of £240m is £235m drawn. "The Manager continues to seek opportunities to balance the portfolio and release capital from targeted disposals to pay down the RCF, recycle into the remaining portfolio and return to shareholders where appropriate." “Our priority remains reducing the current discount to NAV. We are highly focused on preserving value and upside for shareholders, while at the same time considering ways to cut costs and find capital efficiencies at project and company level.” “The manager previously announced formal processes to sell both part or all of Onyx in the US, and EVN in the UK, committing to a further update by the end of the financial year.” The “current expectation is that the discount rates to be used for the 31 March 2025 valuation will be similar to those used for the 31 March 2024 valuation.”

Majedie Investments (MAJE LN, Flexible Investment, £130.4m mkt capn, 12.7% discount to NAV): has fully repaid the £20.7m 7.5% Debenture stock due 31 March 2025, which will not be replaced. A smaller RCF allowing a more flexible approach to employing leverage is being negotiated

Change to REIT

Value and Indexed Property Income Trust (VIP LN, Property UK Commercial, £75.9m mkt capn, 18.5% discount to NAV): has entered the UK REIT regime, and its tax status has changed from an Investment Trust to a Real Estate Investment Trust (REIT). In addition, VIP announced a trading update to YE 31 March 2025. Property portfolio valued at £146m, a net initial yield of 6.3%. Portfolio TR of +9% in 12 months to 31 March 2025, ahead of MSCI UK Quarterly Property Index. Over the year to 31 March 2025, six properties were sold for a total of £11.85 million, +5.0% above their valuation total at a net initial yield of 7.4%. Conditional contracts exchanged on a long lease asset which would leave VIP being 100% freehold

Results / updates

3i Infrastructure (3IN LN, Infrastructure, £2,896.2m mkt capn, 16.3% discount to NAV) pre-close trading update for period 1 October 2024 – 28 March 2025: “We expect to report another period of good performance for the company and are on track to deliver the dividend target for the year, which is expected to be c2.5x covered by net income.” “Total income and non-income cash in the period was £273m, 163% higher than the comparable period in the prior year. The increase was principally due to distributions following the refinancing activity in the period.” TCR, Infinis, GCX and Tampnet all continue to perform well with SRL, Ionisos and DNS:NET experiencing some softness.

Pantheon Infrastructure (PINT LN, Infrastructure, £442.4m mkt capn, 19.4% discount to NAV) FY2024 results to 31 December 2024: NAV TR +14.3% to 119.1pps; share price TR +11.5%; FY dividend of 4.2pps, covered 0.7x (0.3x 2023). “Conditional sale of investment in US power company Calpine, marking PINT's first realisation since IPO.” “Valuation gains materialised across several assets, most notably driven by the AI boom benefiting Calpine and the data centre owner, developer, and operator CyrusOne, but also with notable gains from GD Towers and National Broadband Ireland.”

Baillie Gifford China Growth Trust (BGCG LN, China / Greater China, £152.8m mkt capn, 8.9% discount to NAV) FY results to 31 January 2025: NAV TR +35.4% vs MSCI China All Share +32.4%. Share price TR +29.4%; “The Board's agenda has been resolutely focussed on enhancing shareholder value: an in depth analysis of the company's strategy, a 4.5% share buyback [and the] introduction of a performance related Conditional Tender Offer for 100% of the share capital in 2028.” Net gearing 3%. "The Company owns one private investment, ByteDance, which was 9% of NAV as at 31 January 2025". "In the period since acquisition to 31 January 2025, ByteDance has increased in value 74% in sterling terms and is the largest single contributor to outperformance. Whilst the ByteDance IPO is not imminent, it is an indication of the value offered by private investment." OCT 1.1% (1.0% 2023)

Volta Finance H1 results to 31 January 2025 (VTA NA/LN, Debt Structured Finance, £233.9m mkt capn, 15.7% discount to NAV): NAV TR +7.0%; share price TR +18.3%. "...it is a very welcome development to see some correction in value. There is still some way to go and the investment trust sector is suffering generally but the factors which are in Volta’s control remain well managed and underlying asset performance is positive." "The portfolio assets are now almost exclusively (over 99%) in CLO investments as the Investment Manager has worked to simplify the portfolio for greater transparency." "The one predictable outcome currently is unpredictability."

Invesco Bond Income Plus FY results to 31 December 2024 (BIPS LN, Debt Loans & Bonds, £354.4m mkt capn, 1.6% premium to NAV): NAV TR +8.5%; share price TR +8.8%; ICE Bank of America Merrill Lynch European Currency High Yield Index £ +10.2%; "We expect to be able to build on the Company’s long record of providing shareholders with a high level of income relative to interest rates in 2025. Consequently we are targeting a dividend of 12.25 pence per share for 2025 which would mark a 4.8% increase compared to 2024’s outcome." "Long standing shareholders will recall that Invesco Bond Income Plus Limited is the product of a merger in May 2021 between City Merchants High Yield Trust Limited and Invesco Enhanced Income Limited. In the period since the merger we have been able to steadily increase the Company’s shares by 20.2%. The growth in the Company benefits shareholders by putting downward pressure on the Ongoing Charges Ratio and by improving the liquidity of our shares." Net gearing 9.9%

VH Global Energy Infrastructure (ENRG LN, Renewable Energy Infrastructure, £223.2m mkt capn, 45.4% discount to NAV) FY2024 results to 31 December 2024: NAV -11.5% to 103.21pps; DPS 5.71p (0.96x covered) – FY2025 dividend target 5.8pps. “The Board continues to closely monitor the company's share price and shares the deep frustration over its prolonged discount to NAV… During 2025, the Board will announce concrete steps it will be proposing to shareholders to deal with the share price discount to NAV.”

Baillie Gifford Shin Nippon (BGS LN, Japanese Smaller Companies, £281.5m mkt capn, 15.5% discount to NAV) FY results to 31 January 2025: NAV TR -5.1% vs BM +8.9%... “Given the extent of the underperformance in recent years, and the negative impact that this has had on the share price discount, the Board has accelerated the rate of share buybacks, engaged with shareholders and undertook a thorough performance review at its strategy meeting in November.” “Brian Lum has been appointed as deputy portfolio manager” and the market cap restriction of less than ¥150bn will be replaced “with a restriction that, while the company will invest primarily in companies that, at the time of initial investment, are constituents of the index, it would typically expect to invest in 'small' companies that have market capitalisations at or below the average of the companies within the index.”

European Assets Trust FY results to 31 December 2024 (EAT LN, European Smaller Companies, £282.3m mkt capn, 10.5% discount to NAV): NAV TR £-0.8% vs MSCI Europe (ex UK) Small Mid Cap (Net Return) +2.4%. "The longer-term performance of the Company has also been disappointing." "We are closely monitoring the new team's implementation of the investment process to assess the impact on performance relative to both the Benchmark and the Company's peer group." "The level of dividend paid each year is determined in accordance with the Company's distribution policy. The Company has stated that, barring unforeseen circumstances, it will pay an annual dividend equivalent to six per cent of its NAV at the end of the preceding year. As the NAV per share of the Company has decreased since 31 December 2023, the dividend has also decreased from 5.90 pence per share in 2024 to 5.52 pence per share in 2025." "The Board is steadfast in prioritising Shareholders' interests. We expect the Manager to clearly demonstrate that the measures taken over the past 18 months are translating into improved investment performance against the Benchmark and peers. This is coupled with the Board's recognition of the Company's longer-term underperformance. With this in mind, and given the more favourable outlook for Europe, the Board remains focused on delivering performance for Shareholders and is alert to considering all opportunities for the Company to achieve this."

Home REIT (HOME LN, Property UK Residential, £300.8m mkt capn, 38.7% discount to NAV) has made it available its H1 results to 28 February 2023

Global Opportunities Trust FY results to 31 December 2024 (GOT LN, Flexible Investment, £84.7m mkt capn, 25.5% discount to NAV): NAV TR +4.1% vs FTSE All-World Total Return Index +19.8%, Bloomberg Global Bond Index "declined slighty"; share price TR -4.0%; "The Company’s discount to underlying NAV averaged 20.5% during the year, and at the year end stood at 23.5%. The Board is very conscious of the level of the discount and will look closely at a range of options for improving the marketability of the Company." "If the global economy were to follow normal historic patterns, then there will be significant scope for negative corporate profit outcomes which would quickly puncture the current prevailing sanguine view of equity markets."

JPMorgan Global Emerging Markets Income Trust HY results to 31 January 2025 (JEMI LN, Global Emerging Markets, £353.6m mkt capn, 14.1% discount to NAV): NAV TR +5.9% vs MSCI Emerging Markets Index TR £ +4.9%; share price TR +3.4%; "The Company's outperformance in NAV terms was due in part to the Portfolio Manager's asset allocation decisions, and the result of share buybacks undertaken to support the share price, as buybacks are accretive to the value of remaining shares." "Similar to prior years, the Company expects to earn the bulk of its dividend income during the second half of its financial year." "It has not been the Company's policy to hedge currency risk as this is expensive and, for many currencies, impracticable....Despite any such currency fluctuations, your Board and the Investment Manager are of the view that over the long term, Emerging Markets offer attractive income prospects alongside the prospects for strong earnings growth." Gearing at 7.2% "somewhat higher than the 6.1% level at 31st July 2024. This increase in gearing reflects the number of attractive investment opportunities currently available within the Company's investment universe." "The Company has been actively engaged with share buybacks, and during the reporting period, the Company repurchased 9,368,500 shares into Treasury at a weighted average discount of 12.8% and at a total cost of £12.7 million. It did not issue any shares. Such purchases underscore your Board's belief that there is attractive value in the investments held by the Company."

Wind up news

Starwood European Real Estate Finance (SWEF LN, Property Debt, £167.2m mkt capn, 14.9% discount to NAV) FY2024 results to 31 December 2024: NAV TR +2.1% to 100.49pps. £125m returned to shareholders during the year and an additional £46m in February 2025; portfolio expected to continue to support 5.5pps annual dividend. “The loan book is performing broadly in line with expectations.”

Management fee amendment

Life Science REIT (LABS LN, Property UK Commercial, £152.6m mkt capn, 42.5% discount to NAV) has amended its IMA, such that with effect from 1 April 2025 the fee will move “from being calculated on NAV to the lower of NAV and the average market capitalisation for the quarter. In addition, the rate applied to the initial fee threshold of £500m has been lowered from 1.1% to 1%.” “For the period from 1 April 2025 to 31 December 2027, under [a] transitional arrangement, the basis of the fee calculation will be subject to a floor of no lower than 70% of NAV.”

abrdn UK Smaller Companies Growth Trust (AUSC LN, UK Smaller Companies, £294.8m mkt capn, 9.9% discount to NAV): "With effect from 1 April 2025, the Company's management fee will continue to be charged on a tiered basis, but at reduced rates of 0.60% per annum on the first £200 million of the Net Asset Value ("NAV") and 0.55% on NAV above this figure. Prior to 1 April 2025, the Company's management fee was charged at a rate of 0.75% per annum of the NAV up to £175 million, 0.65% above £175 million and below £550 million, and 0.55% above £550 million."

Acquisition

HgCapital Trust (HGT LN, Private Equity, £2,190.2m mkt capn, 11.9% discount to NAV) has invested a further £53m in Personal & Informatik, as part of the acquisition of a minority stake from Permira.

Disposal

Picton Property Income (PCTN LN, £389.1m mkt capn) has completed the sale of a vacant office building in Cardiff for £8.37m, in-line with December 2024 valuation.

ICG Enterprise Trust (ICGT LN, Private Equity, £777.2m mkt capn, 38.8% discount to NAV) has sold eight “mature primary fund investments,” at a 5.5% discount to their end-September 2024 valuation, generating £62m of net proceeds. The sale also releases undrawn commitments of £10m. The proceeds “will be deployed into opportunities in line with ICGT’s investment objectives and capital allocation policy.”

BioPharma Credit (BPCR LN, Debt Direct Lending, £985.1m mkt capn, 10.3% discount to NAV) received an $8.25m settlement payment from Biogen, representing BPCR’s portion of the $16.5m settlement agreed with Biogen following its acquisition of Reata Pharmaceuticals. Assuming approx. $1.25m of legal and other expenses, BPCR will receive a net $7m in revenue from this payment.

Chrysalis Investments (CHRY LN, Growth Capital, £492.4m mkt capn, 42.0% discount to NAV) sold its entire holding in Cognitive Logic (InfoSum) for a 16.4% premium to its carry value as at 31 December 2024, adding 1.23pps to NAV and generating cash proceeds of $63m (£48m). These proceeds will increase CHRY’s liquidity to approx. £164m (or £94m net of loan balances).

HgCapital Trust (HGT LN, Private Equity, £2,190.2m mkt capn, 11.9% discount to NAV) manager Hg sold smartTrade, which represented 1.3% of the pro-forma 28 February 2025 NAV, to TA Associates, returning approx. £30.3m to HGT. “Based on the pro-forma 28 February 2025 estimated NAV, the new pro-forma NAV of HGT is expected to be 544.6pps.”

Portfolio news

Cordiant Digital Infrastructure (CORD LN, Infrastructure, £653.9m mkt capn, 31.4% discount to NAV) portfolio company Emitel “has signed a long-term agreement with Orange Polska S.A.,a leading mobile network operator in Poland, to expand mobile network coverage in the country.”

Patria Private Equity (PPET LN, Private Equity, £822.4m mkt capn, 30.4% discount to NAV) NAV as at 28 February 2025: -0.5% over the month to 780.1pps, driven by FX. “PPET paid £12.5m of drawdowns and received £0.4m of distributions during the month.”

Nippon Active Value Fund (NAVF LN, Japanese Smaller Companies, £348.0m mkt capn, 8.1% discount to NAV) manager Rising Sun Management has written to the Board of Fuji Media Holdings and Fuji Television to give an initial reaction to the release of the Third-Party Committee's investigation report published on 31 March 2025

Partners Group Private Equity (PEY/S LN, Private Equity, £712.3m mkt capn, 31.8% discount to NAV) NAV as at 28 February 2025: -1.2% over the month to €14.91. PEY received €7.9m of distributions during the month. "In February, the NAV decrease was primarily due to the revaluation of listed holdings in the portfolio, which were impacted by the public market correction during the reporting period."

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



Equity Capital Markets

n/a

Ex Dividend

BPCR $0.0175, CHI 1.74p, CHIB 1.74p cap return, EAT 1.38p, ESCT 1.45p, FGT 8.80p, HHI 2.675p, LWI 1.625p, MNP 1.50p, MYI 4.30p, NSI 1.70p, POLN 27.10p, RCP 21.50p, RLE 0.40p, SCF 3.25p, SDV 3.25p, SHRS 3.20p, SSON 0.58p, STS 1.586p, VOF $0.0725

End of tax year in the UK. Buckle up and stay tuned for next week.

Frostrow Investor Relations team – Grant Challis, Neil Winward, Matt Burrows, Matt Norfolk-Clarke, Nicholas Todd