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Good morning investment trust investors,
Contents
- Overview for the week
- Frostrow Events
- Investment Themes
- Sector data for the week
- Overview for the week
We now have up to two weeks reprieve before Trump enters strikes against Iran with Israel or doesn’t. One suspects that Trump wouldn’t want to be back into tariff negotiations at the same time as this so best to clear the decks before the 90 days deadline ends. The week of course started with the Israel / Iranian missile fire exchange. The G7 meeting didn’t last long following that with Trump exiting quickly. It is interesting to note the stock market reaction (essentially flat) with investors seemingly seeing right through tariffs and global conflict and taking all this in its stride. Investors have been buying the dips with retail investors in particular picking up $20bn worth of stock globally in the last three months. You could argue investors are feeling that there is ‘nothing to see here’, or you could take the view that retail investors are a bit smarter than that and are focused on the potential for inflation to remain higher for longer, the gold price is fully valued arguably and debt concerns are off-putting for investors to put money into sovereign bonds. Take your pick.
The bond market barely moved this week but there were multiple central bank interest rate decisions. The US Federal Reserve left interest rates unchanged for another month (the fourth month in a row). The Bank of England held rates at 4.25%. Out of 9 policy makers here, 3 voted for a rate cut, outvoted by the 6 others who wanted to hold. The Bank had the benefit of the latest inflation data remaining at 3.4% (we all know the price of a bar of chocolate is ridiculous now). In addition, Japan’s Central Bank held steady also.
In the UK equity market, another respected investor group, Scottish Widows, managing £72bn in pension assets, suggested that they are intending to cut allocation to UK equities from 12% to 4%, and as low as 1% for some portfolios. This withdrawal from UK equities has been linked to the Mansion House Accord. Meanwhile in the investment trust sector, average discounts did seem to widen somewhat (from 13.8% to 14.3%) but I suspect that the figures are skewed a little by the delisting of funds like BBGI Infrastructure and Harmony Energy in the week. It was more of the same in terms of newsflow this week with discount control, alignment of interest, more management fee amendments as well as more M&A announced. This week we saw Fidelity European seeking to combine with Henderson European and Hansa Trust seeking to acquire the issued share capital of Ocean Wilsons, whilst Syncona is seeking to move into orderly realization post its review. In terms of Frostrow clients, MIGO Opportunities Trust have put out a significant announcement to revise the offering to seek to take advantage of the market environment and make more use of the closed ended structure in this environment, as well as more closely align management with shareholders. Downing Renewable Energy’s announced accepted cash offer from Bagnall Energy sums up the opportunity though in the wider sector. A share price up 22% today for that is a pretty good illustration of some of the opportunities out there. At the risk of repetition, do not be short of investment trusts.
- Frostrow Professional Events
Frostrow Edinburgh investor event, Hanover room, The George Hotel, George Street, 19-21 George Street, Edinburgh EH2 2PB 2 September 2025, 9am to 2pm. Contact Frostrow IR to express interest in attending
Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £163.8m mkt capn, 40.4% discount to NAV): The latest Frostrow webinar from our London seminar in May 2025 is available to see on You Tube here.
https://www.youtube.com/watch?v=HsulTfN_o1A
Aurora UK Alpha (ARR LN, UK All Companies, £287.6m mkt capn, 10.4% discount to NAV): The last webinar was recorded on 20 January 2025 and is available on the following link:
https://www.youtube.com/watch?v=0hl0yNZgRlM
Kartik Kumar gives his updated thoughts at the time of our London investor seminar in May 2025 here:
https://www.youtube.com/watch?v=ZZGGM5Aw5sw
And via UK Investor Magazine also (May 2025):
Aurora UK Alpha Investment Presentation May 2025 - UK Investor Magazine
Biotech Growth Trust (BIOG LN, Biotechnology & Healthcare, £191.9m mkt cap, 9.6% 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
Geoff Hsu, lead manager, gives further thoughts at the time of the Frostrow London investor event in May 2025 here:
https://www.youtube.com/watch?v=VjloEBj9O1I
CC Japan Income & Growth Trust (CCJI LN, Japan, £249.9m mkt capn, 12.2% discount to NAV): The last webinar was recorded on 22 January 2025 and is available on the following link:
https://www.youtube.com/watch?v=MmbViKRnsdA
In addition, we highlight the most up-to-date thoughts from management at the time of our London investor seminar in May 2025 here:
https://www.youtube.com/watch?v=VcVErs9OUN8
CCJI management conducted a webinar on 17 June 2025 via Investor Meet Company, recording available here:
https://www.youtube.com/watch?v=7X_p5A3SXT8
CQS Natural Resources Growth & Income (CYN LN, Commodities & Natural Resources, £134.7m mkt capn, 6.6% discount to NAV): Please see the link to the last webinar on 4 November 2024:
https://www.youtube.com/watch?v=dhSC3wNKLxM
The managers presented on the investment opportunity on 10 June 2025, so please have a look if you were not able to make it:
https://www.youtube.com/watch?v=wJtWKAesmOI
Custodian Property Income REIT (CREI LN, Property UK Commercial, £375.7m mkt capn, 18.8% discount to NAV): The last webinar was recorded in January 2025 and is available on the following link:
https://www.youtube.com/watch?v=Qd1-ciXoC2o
Richard also gives his most updated thoughts at the time of the Frostrow London investor event in May 2025 here:
https://www.youtube.com/watch?v=XOQA7R2yBKk
Ecofin Global Utilities & Infrastructure (EGL LN, Infrastructure Securities, £217.4m mkt capn, 12.1% discount to NAV) : Jean-Hugues de laMaze, lead manager of the Trust presented at a webinar with Frostrow on Wednesday 23 April 2025. The link to the recording is available on the link below:
https://www.youtube.com/watch?v=lVkYbR67ecE
Finsbury Growth & Income Trust (FGT LN, UK Equity Income, £1,290.6m mkt capn, 7.9% discount to NAV): Nick Train’s AGM presentation (January 2025) 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
We also highlight our most recent recording of Nick’s presentation following our London investor event (May 2025):
https://www.youtube.com/watch?v=HeiFCPd5zS8
MIGO Opportunities Trust (MIGO LN, Flexible Investment, £67.4m mkt capn, 6.1% 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
To sign up to the update webinar (post the recent corporate announcement) taking place at 11am Monday 23 June 2025, please see below for the link:
https://us02web.zoom.us/j/88492789088
Mobius Investment Trust (MMIT LN, Global Emerging Markets, £154.1m mkt capn, 6.6% discount to NAV): Carlos Hardenberg, lead manager, presented at a webinar from his trip to Taiwan in April 2025. Please see below the link to the recording:
https://www.youtube.com/watch?v=sMBNxj6ZD-o
In addition, Carlos gives his thoughts at the time of the Frostrow London investor event in May 2025 here:
https://www.youtube.com/watch?v=E4GIjtAelhc
Carlos is also presenting via Investor Meet Company at 11am on 24 June 2025. Please use this link to sign up:
https://www.investormeetcompany.com/meetings/investor-presentation-845
Temple Bar Investment Trust (TMPL LN, UK Equity Income, £896.5m mkt capn, 2.2% 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 as well as the link to ‘reflections on current market volatility’ or to hear the Chairman, Richard Wyatt, or to see the recent AGM update
https://www.youtube.com/watch?v=wkaifQndXaQ
https://www.templebarinvestments.co.uk/media/insights/reflections-current-market-volatility/
https://www.investormeetcompany.com/updates/an-update-from-the-chairman/show
https://www.youtube.com/watch?v=AcVspDPT3-c
The Managers presented an update on 12 June 2025, click here to watch if you were not able to make it:
https://www.youtube.com/embed/M37EYIh-VCM?rel=o
Worldwide Healthcare Trust (WWH LN, Biotechnology & Healthcare, £1,398.1m mkt capn, 7.6% 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
Geoff Hsu gives updated thoughts at the time of the Frostrow London investor event in May 2025 here:
https://www.youtube.com/watch?v=VjloEBj9O1I
In addition, if you did not make the 30-year anniversary event 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. 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]”. 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. 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 listed fund vehicles using the structure appropriately available to use for savings and investment today, as there have been for the last 150 + years. For DB and DC pension schemes, it may be an idea to look at these before some form of mandation comes in (if that is a word). Do not be short of investment trusts – they represent the greatest financial secret on these fine shores.
Find us on the web: https://www.frostrow.com/
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Check out our May 2025 summary podcast also: https://www.investormeetcompany.com/companies/frostrow-capital/rns/4178459/view
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- Further investment themes evident in the investment trust sector this week include:
Discount control
Polar Capital Global Financials (PCFT LN, Financials & Financial Innovation, £615.5m mkt capn, 3.4% discount to NAV): 43.8% of issued share capital validly tender their shares. The Company subsequently announced that the Tender Price per Ordinary Share is 209.43 p, being equal to the NAV per Share as at the close of business on 18 June 2025 less the Tender Offer Expenses per Share. The Company's broker, Stifel, may now place any number of the Shares tendered under the Tender Offer at a Secondary Placing price of 210.47 pence per Ordinary Share with one or more of its institutional investor clients.
European Opportunities Trust (EOT LN, Europe, £412.5m mkt capn, 8.9% discount to NAV): The Tender Offer was taken up in full and, after taking account of rounding, the Company will purchase a total of 15,553,147 Shares at the Tender Price of 953.60 pence per share...The Tender Price is 98% of the NAV per Share as at close of business on the Calculation Date, less the pro rata costs of the Tender Offer, as more particularly set out in the Circular. The 2% discount to the NAV applied to the tendered Shares will result in an uplift in the NAV per Share of continuing holders of approximately 0.67%. Proceeds payable to shareholders expected on 27 June 2025
NextEnergy Solar Fund (NESF LN, Renewable Energy Infrastructure, £410.1m mkt capn, 24.8% discount to NAV): reduction in fees agreed to take place from 1 April 2025 likely to result in an investment management fee reduction of circa 31% in the FY to 31 March 2026. "The Board is working with its advisers to assess various options aimed at improving shareholder value. The Board will consult with major shareholders on certain options that it is considering before making any definitive proposals. The Board will set out progress made and, if appropriate, the proposed plans and/or actions which are aimed at improving shareholder value, in the circular to be sent to all shareholders convening the AGM, which will be held in the latter half of August. The business of the AGM will also include a discontinuation resolution, due to the Company's ordinary shares trading at an average discount of over 10% to the Company's NAV over financial year (as per the Company's Articles)."
RM Infrastructure Income (RMII LN, Debt – Direct Lending, £71.9m mkt capn, 11.8% discount to NAV) has confirmed its tender price will be 80.52pps, the 31 May 2025 NAV. The maximum aggregate value of the tender is £17,414,722 (21,627,821 shares), resulting in a basic entitlement of 22.18%.
M&A news
Assura plc (AGR LN, £1,630m mkt capn) has noted Primary Health Properties (PHP LN)’s announcement of the revised terms of its share and cash offer and “is reviewing the revised terms of the PHP Offer with its advisers and will continue to engage in extensive shareholder consultation.” “The Assura Board will, by no later than 27 June 2025 (except with the consent of the Panel), send a circular to Assura shareholders setting out its views on the PHP Offer.”
Hansa Investment Company (HANA LN, Flexible Investment, £201.6m mkt capn, 38.8% discount to NAV): have announced "that they have reached preliminary agreement on the key terms of a possible all-share combination of Hansa and Ocean Wilsons, under which Hansa would acquire the entire issued and to be issued share capital of Ocean Wilsons". It would create "an investment company with total net assets of in excess of £900 million under a simplified group structure...with a diversified, global portfolio of investment funds, direct equities and private assets". "The Combined Group will introduce a new capital allocation policy which is expected to enhance returns over time, principally through the implementation of on-market share buybacks of between 2% and 4% of its issued share capital." "The investment management fee payable by the Combined Group to HAML will be based on a tiered fee structure chargeable at 0.8% of Hansa's NAV up to £500 million and 0.7% thereafter, as compared to the existing management fee of 1.0% currently payable by each of Hansa and Ocean Wilsons under their respective investment management arrangements, and eliminates the additional performance fee that forms part of Ocean Wilsons' existing management fee arrangements."
Harmony Energy Income Trust (HEIT LN, Renewable Energy Infrastructure, £209.2m mkt capn, 0.3% discount to NAV) has confirmed the scheme of arrangement in relation to its acquisition by Foresight BidCo has become effective and the acquisition has now completed: shareholders on the register will receive 92.4pps cash no later than 1 July 2025.
Fidelity European Trust (FEV LN, Europe, £1,632.9m mkt capn, 2.1% discount to NAV): is proposing a combination with Henderson European Trust (HET LN). Vehicle to be managed by Fidelity in accordance with FEV's existing investment objective and policy (Sam Morse and Marcel Stötzel). They will introduce a reduced tiered management fee which is "currently expected to result in a blended annual management fee rate for the Combined Entity of 0.625% of net assets on completion of the Proposals". Fidelity is making a material cost contribution which is expected to "fully offset the direct transaction costs for FEV shareholders". There will be a cash exit option for up to one third of HET shareholders at a 1.75% discount to the FAV. Circular to shareholders to follow
Henderson European Trust (HET LN, Europe, £607.7m mkt capn, 3.8% discount to NAV): following "a comprehensive review of potential options for the Company's future following the resignation of both co-portfolio managers from Janus Henderson Investors" proposes a combination with Fidelity European Trust (FEV LN)
BBGI Global Infrastructure (BBGI LN, Infrastructure, £1,013.7m mkt capn, 0.4% discount to NAV): confirms that the listing and admission of shares on the Main Market of the LSE were each cancelled on 19 June 2025
Downing Renewables & Infrastructure Trust (DORE LN, Renewable Energy Infrastructure, £141.2m mkt capn, 28.8% discount to NAV) has reached agreement on the terms of recommend cash offer for the company at 102.6016pps [an 8.69% discount to the end-March 2025 NAV] with Bagnall Energy. Shareholders will retain the Q1 dividend in full and if the Effective Date of the Scheme falls after 31 August 2025, DORE will be entitled to a declared a 0.5pps special, to which shareholders would also be entitled. Bagnall has received commitments and indications of support for the acquisition from DORE shareholders in respect of 28,526,111 shares (16.76% of ISC). Separately, DORE has published its NAV as at 31 March 2025: -3.7% over calendar Q1 2025 to 112.3602pps, driven by long-term power price forecasts, FX and “other movements.”
Strategy update
Gore Street Energy Storage Fund (GSF LN, Renewable Energy Infrastructure, £314.2m mkt capn, 39.8% discount to NAV): provided a capital allocation and strategy update. Revised management fee structure effective from 1 October 2025 (from 1% of adjusted NAV) to one that is based on the average of market capitalisation and NAV (subject to a cap of 1% of adjusted NAV). Performance fees are being removed resulting in substantial fee reductions. After an extensive shareholder consultation, an independent advisor has been appointed to assess mid-term strategy options and inform a comprehensive capital allocation plan for the Company. "Going forward, the Company will link dividend distributions with operational cash flow, rather than maintaining a fixed distribution target. This strategy underscores the Board's commitment to financial sustainability. Further details of the dividend policy will be included in the upcoming annual results." "Until the conclusion of the review and the resulting capital allocation is announced, excess cash from the ITC proceeds will be used to repay the Company's revolving credit facility while maintaining the flexibility to fund future capital expenditure obligations of the portfolio companies."
Syncona Limited FY results to 31 March 2025 and strategy update (SYNC LN, Biotechnology & Healthcare, £567.1m mkt capn, 45.4% discount to NAV): NAV TR -9.5%; Board undertaken a comprehensive review of options to maximise value for shareholders. "Market conditions have been particularly challenging for early-stage life science companies, and cost of and access to capital has been impacted for biotech companies across all stages of the development cycle. The challenging market and broader negative sentiment towards listed investment companies have also continued to impact Syncona's ordinary shares, with the price moving from a premium to a material discount to NAV over the last three years." "The Board intends, subject to approval by the FCA, to propose to its shareholders a change to the Company's investment objective and policy to move to an orderly realisation of its portfolio assets, with a view to achieving a balance between returning cash to shareholders in a timely manner and maximising value." Further review to follow once significant proceeds have been realised or after three years. Company suspending previously announced 2032 targets
Results / updates
NextEnergy Solar Fund (NESF LN, Renewable Energy Infrastructure, £410.1m mkt capn, 24.8% discount to NAV) FY results to 31 March 2025: NAV -9.2% to 95.1pps; generation -5.3% vs budget with irradiation +0.1% vs budget; 8.43pps dividend 1.1x covered – FY dividend target of 8.463pps for period ending 31 March 2026 reconfirmed. LTV 29.7% (2024: 29.3%); As at 13 June 2025, 15,621,142 Ordinary Shares have been purchased for a total consideration of £11.5m (in the £20m share buyback programme). “The remaining 100MW of the Capital Recycling Programme is progressing through a competitive sales process to third-party buyers.” “The Board of NESF are committed to driving value for shareholders and apply a robust framework in assessing all strategic options. NESF continues to explore multiple strategic options for the future… [and] are in active discussion with the company's Investment Adviser regarding revising the IM fee to align with shareholders.”
US Solar Fund (USF LN, Renewable Energy Infrastructure, £120.1m mkt capn, 38.7% discount to NAV) NAV as at 31 March 2025: +1.3% over calendar Q1 2025 to $0.64; dividend of 0.56cps declared in respect of the period and annual dividend target increased to 3.5cps (from 2.25cps), with effect from calendar Q3 2025. “Generation by the company's portfolio in the first quarter was 9.1% below forecast (-11.6% for Q1 2024), with +2.2% attributable to favourable weather and -11.3% attributable to technical (non-weather) factors.”
Montanaro UK Smaller Companies FY results to 31 March 2025 (MTU LN, UK Smaller Companies, £132.0m mkt capn, 10.5% discount to NAV): NAV TR -6.9% vs Numis Smaller Companies Index (ex IC's) +2.3%; share price TR +1.0%; quarterly dividend increased from 1% to 1.5% of NAV in December 2024 given the changing interest rate environment; management fee based on net assets rather than gross since end December 2024 (0.5%); the Board continues with its view to maintain the discount in single digits in normal market conditions. "During the financial year, the Company bought back 24,927,148 shares (14.9% of outstanding shares) which are held in Treasury." Net gearing of 5.2%. Next continuation vote AGM 2027
Personal Assets Trust FY results to 30 April 2025 (PAT LN, Flexible Investment, £1,615.2m mkt capn, 0.9% discount to NAV): NAV TR +7.5% vs UK RPI +4.5% and FTSE All Share Index +7.5%; "During the year we bought back 26,087,000 Ordinary shares into Treasury, and issued 600,000 Ordinary shares from Treasury, under the Company's discount control policy, for a net outflow of £126 million." "High levels of inflation during the year, particularly in the United States, mean that the Company has again this year earned significantly more income on its holding of US TIPS than in previous years" (so will pay a special dividend). OCR 0.67% (2024: 0.65%). "Gold remains a cornerstone of the portfolio. As no one's liability, bullion has a special place, and it is once again being appreciated as the ultimate reserve asset. In a world of heightened geopolitical risk, and the desire to diversify away from the US dollar, central banks continued to add to their holdings during the past year. There are very rational reasons for the recent rise in the price, when compared to paper money."
Rockwood Strategic FY results to 31 March 2025 (RKW LN, UK Smaller Companies, £120.4m mkt capn, 3.3% premium to NAV): NAV TR +21.0% vs FTSE Small Cap +3.4% and FTSE Aim All Share -8.2%; average premium to NAV of 2.9m shares led to issuance of 7.6m hew shares. Post period end the Company entered into the FTSE All-Share Index and FTSE Small Cap Index, due to increased scale. "It seems clear that the pressure of UK market outflows and desire for liquidity by many professional investors is creating opportunities for our Manager to uncover the resulting pricing inefficiencies and opportunities for successful capital deployment to generate our medium and longer term performance targets."
Montanaro European Smaller Companies Trust FY results to 31 March 2025 (MTE LN, European Smaller Companies, £271.7m mkt capn, 6.7% discount to NAV): NAV TR -1.1% vs MSCI Europe ex-UK SmallCap Index (£) +1.3%; share price TR +5.1%; semi annual tenders for up to 5% of issued share capital at a 5% discount to NAV with the first to occur in Autumn 2025; share buyback of 9,502,921 Ordinary shares (held in treasury); reduction in management fee took place from 1 April 2025 (second fee reduction in four years); Montanaro now own 8% of the Company; Richard Curling stepping down as Chair at end of 2025 and Gordon Neilly to come in
JPMorgan Indian Investment Trust HY results to 31 March 2025 (JII LN, India / Indian Subcontinent, £695.3m mkt capn, 8.2% discount to NAV): NAV TR -7.2% vs MSCI India Index £ -10.6%; share price TR -4.8%; announced a suite of proposals in May 2025 to shareholders. "The Company repurchased 3,136,391 shares into Treasury during the six-month reporting period, equating to 3% of the Company's share capital." (discount contracted significantly in the period to date). Proposals include a tender offer for up to 30% of issued share capital, the introduction of a "a commitment to target a single digit discount through active market buybacks" and introduction of a "a triennial tender offer for 100% of the Company's outstanding share capital at a 3% discount to the prevailing NAV" (first in Q2 2028); as well as the next continuation vote at he AGM in 2029. Also an enhanced dividend policy with four dividends totalling 4% of NAV
Cordiant Digital Infrastructure FY results to 31 March 2025 (CORD LN, Infrastructure, £765.7m mkt capn, 23.4% discount to NAV): NAV TR +11.6%; share price TR +43.1%; 4.35p target dividend (+3.6%, 4.6x covered by portfolio EBITDA); No material debt maturities in the portfolio before June 2029. Net gearing 40.3% of GAV. 4.6m additional shares acquired by management / staff with total ownership of insiders now at 2.0%. "The Board and Investment Manager have continued to consider the different views of shareholders on capital allocation and during the year maintained a balanced approach to allocating the Company's available capital. In addition to pursuing a progressive dividend policy and, where appropriate, buy backs of the Company's shares, we have prioritised the Company's resources and those of its portfolio companies to focus on bolt‑on acquisitions and growth capital expenditure with above‑target IRRs; only seeking a further addition to the portfolio where it was within our disciplined investment criteria and in partnership with others."
JPMorgan European Discovery Trust FY results to 31 March 2025 (JEDT LN, European Smaller Companies, £525.2m mkt capn, 7.6% discount to NAV): NAV TR +2.9% vs MSCI Europe (ex UK) Small Cap Net TR +1.3%; share price TR +7.0%; gearing at 5.2%; "During the year, the Company repurchased 14,660,188 shares at an average discount of 9.8%. A further 16,347,505 shares have been re-purchased since the period end." Subsequent to the renewalm of buyback authority, the Company has continued to use this buy-back authority. "With effect from 1st April 2025, the fee is now charged on a tiered basis on the Company's net assets at an annual rate of 0.70% on the first £300 million and 0.65% of net assets above that amount, compared to the previous flat fee of 0.75%."
Wind up news
JPMorgan Global Core Real Assets (JARA LN, Flexible Investment, £129.3m mkt capn, 15.3% discount to NAV): the Company states that it has now fully redeemed its holding in the Mezzanine Debt Strategy and the majority of its holding in the Infrastructure Strategy, which in aggregate represented 29.3% of the Company's net assets as at 30 November 2024. The proceeds from these redemptions are US$16.7m and US$50.6m, respectively. A second capital distribution to Shareholders by way of a compulsory partial redemption of Shares is expected to occur in early Q3 2025. "At the time of the Circular, it was envisaged that the process of fully realising the Company's portfolio and distributing the resultant proceeds to Shareholders would be substantially completed by the end of 2026. But...it is now expected that JARA's redemptions from its real asset strategies will take longer than originally envisaged. The Board has been notified that, based on the Investment Manager's latest estimates, by the end of 2025 the Company should have realised and returned to Shareholders more than 55%, and by the end of 2026 more than 80% of the assets which it held as at the announcement of the Managed Wind-down proposals in December 2024, with the balance of unredeemed investments being represented predominantly by real estate holdings."
Schroders Capital Global Innovation (INOV LN, Growth Capital, £118.9m mkt capn, 32.7% discount to NAV): publishes a circular containing details of a tender offer to shareholders to return up to £37m less costs as part of the Company's ongoing managed wind down. "The Company is alert to events affecting the portfolio during the Tender Offer process. Accordingly, the Final Tender Price will be equal to the Estimated Net Asset Value per Share of 21.36 pence as at 31 May 2025, less the pro rata anticipated costs of the Tender Offer, but updated for any events in the Company's portfolio prior to 18 July 2025"
Continuation
Foresight Solar Fund (FSFL LN, Renewable Energy Infrastructure, £458.6m mkt capn, 25.6% discount to NAV): 13.6% of shareholders voted in favour of discontinuing the fund. Tony Roper taking over the Chair in September this year
Acquisition
Octopus Renewables Infrastructure Trust (ORIT LN, Renewable Energy Infrastructure, £399.5m mkt capn, 27.6% discount to NAV) has agreed to acquire, via a forward purchase agreement, a 32.6MW solar site in Ireland for approx. €27m. “Construction will commence shortly, with ORIT completing the purchase for the entire cash consideration after the project has completed operational testing. Completion is expected to take place in the second half of 2026 and no capital will be required to be paid by the company until then.” "This acquisition is in line with ORIT's stated disciplined capital allocation policy, to make selected accretive investments as part of its ongoing capital recycling programme."
Disposal
Partners Group Private Equity (PEY/S LN, Private Equity, £668.0m mkt capn, 29.4% discount to NAV) “has realised approx. 26% of its remaining investment in Vishal Mega Mart with an uplift of 6% compared to the last published monthly report” via a block sale of shares. “Prior to this transaction, Vishal's carrying value in PEY as of 30 April 2025 was €82.4m.”
Aquila European Renewables (AERI/S LN, Renewable Energy Infrastructure, £240.9m mkt capn, 24.4% discount to NAV) completed its previously announced sale of its stake in Sagres and received net sales proceeds of €14.7m. Further, AERI announced it’s “progressing DD with the preferred bidder for the proposed disposal of a portfolio of assets, which now represents less than a majority, but a substantial proportion of AERI’s assets… and AERI expects to be able to provide an update to shareholders in July 2025.” At the same time, AERI “continues to progress its focussed sales process in relation to the balance of assets operating across a single region… [and] expects to pursue an individual asset sale process for its Finnish wind asset referred to as Olhava.”
Portfolio news
Tetragon Financial Group (TFG NA/LN, Flexible Investment, £1,309.5m mkt capn, 55.5% discount to NAV) has announced that Hunter Point Capital has acquired a minority stake of 16.1% (approximately 14.6% from TFG Asset Management and 1.5% from Equitix management) in Equitix, implying an EV of £1.3bn. "This transaction enables Tetragon to realize some of the value created in the business, while remaining invested with a trusted partner in a sector where we continue to see significant runway for innovation and growth."
Sequoia Economic Infrastructure (SEQI LN, Infrastructure, £1,237.1m mkt capn, 13.1% discount to NAV) NAV as at 31 May 2025: -1.3% over the month to 91.79pps, driven by the dividend. No updates on the non-performing loans (1% of NAV) during the month.
Alignment of interest
MIGO Opportunities Trust (MIGO LN, Flexible Investment, £67.4m mkt capn, 6.1% discount to NAV): Nick Greenwood is stepping back from his role as MIGO's co-manager with Charlotte Cuthbertson, co-manager, being joined by Tom Treanor as co-manager from 18 June, backed by the 11-strong research team. "The board and AVI have concurrently decided to implement a higher conviction approach to managing MIGO, to align with the current opportunities in the investment trust sector. This will see MIGO's portfolio concentrating over time to focus on 10-15 core holdings. MIGO currently has 40 holdings in total. The board and AVI believe that larger stakes in a more targeted investment company portfolio will enable more influential engagement with boards, aiming to accelerate superior returns from the wide discount opportunities in the sector." Management fee being reduced from 0.65% on mkt capn to 0.35% pa on the lower of mkt capn and NAV, plus implementing a performance fee of 15% of NAV TR > SONIA +3% hurdle. "The Company estimates that the overall fee payable to AVI in any year will be lower under the new arrangement until NAV total return exceeds approximately 9% per annum". AVI propose to reinvest 25% of any performance fee paid into MIGO shares, subject to a 5% cap on AVI's interest in MIGO shares and a minimum 3 year holding period. NAV to be limited to £150m so that MIGO remains nimble and is best able to exploit the opportunity set. The bulk of the portfolio changes will be completed within 12 months, subject to market conditions and "the board also reiterates its ongoing commitment to MIGO's existing share buyback approach, dividend policy and 3-yearly realisation opportunity."
Supermarket Income REIT (SUPR LN, Property – UK Commercial, £1,044.3m mkt capn, 5.7% discount to NAV): announces the establishment of its Long Term Incentive Plan (LTIP) following shareholder consultation. "The Board recognises the importance of equity incentive schemes as a means to incentivise the Executive Directors, ensuring alignment with the objectives of the Company and its shareholders." Rob Abraham has 993,377 shares and Mike Perkins has 728,476 shares under the LTIP scheme. esting subject to performance to 2028 FY results (also vesting date). Aholding period of two years from the date of the vesting applies to the LTIP Awards
- Sector data this week (AIC data, as at Thursday’s close)
Equity Capital Markets
n/a (except PCFT placing possibility)
Ex Dividend
BEMO 6p, BGCG 2.20p, DIVI 1.10p, FCSS 8p & 1p special, III 42.50p, NRR 3.50p, PPET 4.40p, SMIF 0.50p, SREI 0.897p, VSL 0.55p
Amber weather warnings in place in the UK as the kids manage to finally get outside post exams. Hottest and longest days all coming this weekend to celebrate the end of GCSEs and A levels. Well done to all families involved.
Please also note that the next end of week update will be released on Friday 11 July. That will of course be the time when Trump’s 90-day tariff peace deal comes to an end. We will see where we are then.
Frostrow Investor Relations team – Grant Challis, Neil Winward, Matt Burrows, Matt Norfolk-Clarke, Nicholas Todd
Frostrow Capital LLP
Frostrow Capital LLP,
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London WC2A 1AL
020 3008 4912
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