Frostrow Capital are intending on putting out on the newswires a weekly recap of the investment trust news and themes seen. If it looks interesting for you, please subscribe to receive it:
Good morning investment trust professionals,
Contents
- Overview for the week
- Frostrow investor Events
- Investment Themes
- Sector data for the week
- Overview for the week
By the time I had pressed send on my end of week last Friday, Trump had already decided to send two nuclear submarines towards the Russia region and sacked the producer of the US Labour statistics, given he did not like the numbers. Not sure how Jerome Powell felt after watching that. Later in the week Putin, having moved four of his own submarines, met with US envoy, Steve Witkoff to kick around the potential for a Ukraine ceasefire. Meanwhile Trump is putting the screws on India with a 50% tariff to try to encourage them to not take Russian oil. One suspects that story has more legs yet given there is just over two weeks before those tariffs kick in, just as the new story surrounding reciprocal tariffs has on certain types of gold bars.
Coinbase Global, a US cryptocurrency exchange with $400bn in assets posted an advert “Everything is just fine” taking a tongue in cheek kick at life in the UK. It gives one a real insight into the ‘perception’ of life in the UK (whether you agree or disagree), currently all priced in to the UK equity market. Given markets are driven by greed and fear - and it is blatantly clear which emotion this is pulling at - this is a great contrary indicator as per the Warren Buffett theory to be greedy when others are fearful. By way of a more specific example to this in the week also, we saw some UK banks experience strong share price rises (ie Close Brothers, Lloyds Bank etc) on the back of the car finance appeal ruling.
The UK services sector, accounting for circa 80% of the economy, saw total new work contract with the downturn in order books the fastest for over two-and-a-half years. Risk aversion and low confidence were cited as the main reasons. At the same time, the National Institute of Economic and Social Research has suggested that tax rises are required in the UK. Rachel Reeves is certainly getting more pressure after her bet that UK growth would improve has not materialized as yet. With nowhere to turn (at least easily) for her, it seems, according to John Stepek of Bloomberg, that she is in a “sticky situation.” I think I would go one further than that and say “we’re in the stickiest situation since Sticky the Stick insect got stuck on a sticky bun.” (to quote the great Blackadder, Blackadder Goes Forth, “Major Star” and yes I am a fan). The Bank of England played ball and cut interest rates from 4.25% to 4% (the lowest level in two years) albeit it needed an unprecedented two votes to get there and there is seemingly now less certainty about the direction of travel for the next meeting given inflation is expected to creep up towards 4% as we hit September. No doubt the Budget will need to get kicked out into November to allow the inflation numbers to improve and to give her time to work out what to do. At least Glencore has decided this week to retain its London listing and not move to the US "at this point in time”. Equity markets have looked cooly through all this and have gently risen with the S&P 500 Index up 2.2% and FTSE 100 Index up 0.2%.
Neil Woodford and Woodford Investment Management (WIM) have been fined £46m by the FCA this week. They say that WIM made "unreasonable and inappropriate investment decisions" including selling more liquid investments and buying less liquid investments. One would think that a lot has been learned from this episode, that being the case, caveat emptor still applies and it demonstrates clearly that less liquid investments (alternatives, small, mid-caps, as well as concentrated portfolios etc) should be held in a fund structure that is appropriate – by that I mean a UK investment trust. Not an LTAF, not an ETF, not an active ETF, not an open-ended fund.
In the investment trust sector, this is really the first week we have seen some discount widening (of roughly 50bps) since Liberation Day. Share buybacks continue to dominate the corporate announcements though, if nothing else, in terms of sheer numbers of announcements (see further below). At some point, this re-dress of supply will impact on the market and shares will re-rate. Meanwhile, the battle for Assura continues, Third Point and the Investor Group battle things out to win hearts and minds, Bellevue Healthcare announce a strategic review and Utilico Emerging Markets announce some shareholder initiatives. Frostrow client, Mobius Investment Trust announced half year results noting that “smaller, high‑quality companies have been disproportionately affected by weak market sentiment, particularly in the technology sector” with significant opportunity remaining. Now Rachel Reeves may not know that the UK investment trust sector is one of the great long-term sectors for investors in the City of London, but hopefully she works it out before November. For sure though, just as the banks rose in price this week on some positive news, once the supply / demand imbalance is reset in the investment trust sector, the share price reactions will be swift. Do not be short of investment trusts.
- Frostrow Investor Events
Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £151.0m mkt capn, 44.1% discount to NAV): Please contact Frostrow for interest in seeing Tim Levene in London and the regions in 2025. The AUGM Capital Markets Day took place on Wednesday 2 July 2025 at Searcy’s at The Gherkin, between approx. 8:30am and 1:30pm. 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
The IMC webinar from 1 July 2025 is available here:
Aurora UK Alpha (ARR LN, UK All Companies, £280.8m mkt capn, 10.5% discount to NAV): the Phoenix investment team are available for meetings with investors in 2025. The last webinar was recorded on 14 July 2025 and is available to watch here:
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
We also enclose the invitation for the Aurora UK Alpha plc Investor Event on 15 October 2025
See below for link to reserve a spot
Biotech Growth Trust (BIOG LN, Biotechnology & Healthcare, £202.6m mkt cap, 11.0% discount to NAV): 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
The AGM recording, including presentation from portfolio manager Geoff Hsu, from 17 July 2025 is available on the following link:
https://www.youtube.com/watch?v=qHK5hrdFehI&t=16s
CC Japan Income & Growth Trust (CCJI LN, Japan, £269.5m mkt capn, 10.2% discount to NAV): please contact Frostrow Capital in order to arrange a meeting with management in 2025. 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, £137.3m mkt capn, 3.3% discount to NAV): please contact Frostrow to arrange a one-on-one meeting with management in 2025. 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, £363.7m mkt capn, 20.8% discount to NAV): Richard Shepherd-Cross, lead manager, available for meetings in 2025 (physical throughout UK, or zoom, as per preference). 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, £231.0m mkt capn, 10.9% 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
Jean-Hugues also presented via IMC on 10 July 2025, with the presentation link below:
https://www.investormeetcompany.com/companies/ecofin-global-utilities-and-infrastructure-trust-plc
Finsbury Growth & Income Trust (FGT LN, UK Equity Income, £1,267.0m mkt capn, 7.8% 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, £70.1m mkt capn, 3.2% 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
To watch the most recent update which took place on Monday 23 June 2025 with Tom Treanor and Charlotte Cuthbertson, please see below for the link:
https://www.youtube.com/watch?v=1BT7aH0da04
Mobius Investment Trust (MMIT LN, Global Emerging Markets, £162.7m mkt capn, 4.8% 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 also presented via Investor Meet Company on 24 June 2025, see below for the link to the recording:
https://www.investormeetcompany.com/meetings/investor-presentation-845
Temple Bar Investment Trust (TMPL LN, UK Equity Income, £943.5m mkt capn, 1.7% 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
Read the quarterly Temple Bar IT newsletter here: https://www.investormeetcompany.com/updates/finding-value-in-modern-markets/show
Worldwide Healthcare Trust (WWH LN, Biotechnology & Healthcare, £1,366.8m mkt capn, 6.0% discount to NAV): Sven Borho presented at this year’s AGM in July 2025, see below for the link to watch:
https://www.youtube.com/watch?v=x0K6RxlI40c
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]”. Rachel Reeves is promoting LTAFs whilst multiple asset classes via top class managers are already available at discounts to NAV in the investment trust sector. 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. Do not be short of investment trusts – they represent the greatest financial secret on these fine shores even if our Chancellor has never heard of them.
Find us on the web: https://www.frostrow.com/
Find us on You Tube: https://www.youtube.com/channel/UCAptpfmx0HITqvlI68psd7Q
Check out our July 2025 summary podcast here: https://we.tl/t-VlIbvFNOyvFrostrow Capital, bringing you high quality, differentiated product in a UK listed closed-ended form
- Further investment themes evident in the investment trust sector this week include:
Discount control
We note 75 share buybacks vs 3 share issuance announcements on Wednesday this week (as an example) of the ongoing buyback trend (out of a total of 422 announcements on the LSE, nearly 18%)
River UK Micro Cap Limited (RMMC LN, UK Smaller Companies, £69.5m mkt capn, 13.8% discount to NAV): Company maintains the NAV at approximately £100m as per the original prospectus as the Board believes at this level of NAV the Company can fully capitalise on the underlying investment opportunity available in UK micro-cap companies. "To reaffirm its long term confidence in the sector and the Portfolio Manager, should no capital be returned to shareholders by way of a compulsory partial capital redemption under the existing redemption mechanism ("Redemption Mechanism") before 30th June 2028, the Board will put forward proposals to provide a full cash exit for shareholders by way of voluntary winding up of the Company or other corporate action. In order to achieve this capital redemption, the Company must deliver a net asset value ("NAV") performance of c.11.1% compounding per annum." (this seems to take into account the views of 42.4% of shareholders). The Company also announces a share buyback programme for up to a maximum of £2m and subject to being able to purchase shares at a 10% discount to NAV
Molten Ventures (GROW LN, £665.9m mkt capn): announces the completion of its £15m share repurchase programme and an additional £10m to the programme to commence. "The Programme will be financed through existing cash resources and will continue until the earlier of either the expiration of the general authority received at the Company's 2025 AGM or upon reaching the maximum purchase amount intended under the Programme."
Crystal Amber Fund (CRS LN, UK Smaller Companies, £98.5m mkt capn, 16.8% discount to NAV): announced that it intends to continue to conduct on-market purchases to buyback. The Company intends to continue the share buyback programme with up to an aggregate amount of £2.5m until 30 September 2025
Foresight Solar Fund (FSFL LN, Renewable Energy Infrastructure, £480.7m mkt capn, 19.4% discount to NAV) NAV as at 30 June 2025: -2.3% over calendar Q2 2025 to 108.5pps, driven by a fall in UK power price forecasts. “Electricity production from the global portfolio was 5.5% above budget in the three months between April and June, with higher-than-expected irradiation of 11.3%... Higher irradiation in the UK and Australia contributed to above-budget electricity production.” “A sustained rise in long-dated Australian government bond yields over the last 12 months resulted in a subsequent increase in the portfolio valuation's discount rates by 30bps… The divestment process for the Australian assets is ongoing and, while bids are expected, they have not yet been received.” The Company continued its buyback programme, repurchasing roughly 3 million shares, returning £2.3 million to shareholders, and adding 0.2pps to NAV in the second quarter of 2025. In July, Foresight Solar allocated up to £10 million more to its buyback programme. Since repurchases began, they have delivered a cumulative 2.8pps increase in NAV.
Foresight Environmental Infrastructure NAV as at 30 June 2025 (FGEN LN, Renewable Energy Infrastructure, £510.4m mkt capn, 22.8% discount to NAV): -1.8% over calendar Q2 2025 to 104.6pps, driven by power price forecasts and (to a lesser extent) BESS assets. Production was -4.8% below budget for the quarter due to low wind resource and an extended period of downtime at the company's biomass facility. 1.99pps quarterly dividend declared in respect of the period. Active discount control through the repurchase of 7,502,400 shares in the quarter ended 30 June 2025. Total buybacks to date since 15 August 2024 of £26.7 million as part of the ongoing £30 million programme. 30% gearing
Smithson Investment Trust HY results to 30 June 2025 (SSON LN, Global Smaller Companies, £1,689.3m mkt capn, 10.4% discount to NAV): NAV TR +2.4% vs MSCI World SMID Cap Index, £ TR -0.3%; share price TR +1.0%; “The Board has sought to mitigate the discount through a share buyback programme that commenced in April 2022. Up to the end of December 2024 the Company had bought back 46.6 million shares, representing 26% of the issued share capital. The buybacks have continued in 2025 and a further 15.9 million shares (12% of the number in issue at the start of the year) bought back in the first half of the year. The Company has therefore now bought back 35% of the total shares in issue before the buyback programme began. While the buyback programme has not yet materially reduced the Company's discount to single digits - which is the Board's objective - the Board remains confident this can be achieved over the medium term. Although buybacks gradually reduce the size of the Company, with a market capitalisation of approximately £1.7 billion, this is not expected to impact share liquidity. The Company continues to be one of the largest and most liquid in its investment trust sector. The Board intends to maintain the buyback programme while the discount persists at current levels. Shareholders have expressed support for the approach, which also enhances NAV per share."
The Renewables Infrastructure Group HY results to 30 June 2025 (TRIG LN, Renewable Energy Infrastructure, £1,966.8m mkt capn, 25.1% discount to NAV): as previously announced, NAV -6.6% to 108.2pps, “predominantly due to external factors including lower power price forecasts.” “Generation in the period was 10% below budget driven by poor wind resource. Dividend cover was 1.0x in the period [and] dividend guidance of 7.55pps for FY2025 is reaffirmed by the Board.” “The weighted average portfolio discount rate increased by 0.2% in the period to 8.8%,” driven by a 30bps increase in the rate used for projects in mainland Europe. TRIG is “progressing new debt financings and further disposals. Share buybacks continue to set the hurdle rate for new investments. Since commencement of TRIG's share buyback programme, 80m shares have been repurchased for £67m, recognising the accretive investment opportunity presented by acquiring TRIG's shares when they are trading at their current discount to NAV.”
Ashoka India Equity Investment Trust (AIE LN, India, £464.7m mkt capn, 0.1% discount to NAV): annual full redemption opportunity coming at the end of September allowing investors to exit at the redemption price. "The Directors of the Company have discretion over the operation of the redemption facility and the calculation of the Redemption Price."
Saba updates
Impax Environmental Markets (IEM LN, Environmental, £799.3m mkt capn, 9.1% discount to NAV): Saba holding moved from 5.23% to 10%
Brown Advisory US Smaller Companies (BASC LN, North American Smaller Companies, £148.7m mkt capn, 9.1% discount to NAV): Saba position increased from 10% to 11.1%
M&A news
Third Point Investors (TPOU/S LN, Hedge Funds, £455.7m mkt capn, 22.7% discount to NAV) monthly performance update for July 2025: NAV +4.5% vs S&P 500 +2.2%. Separately, ISS are recommending shareholders to vote against the proposed transaction, in line with the Investor Group. "The Group restates its belief that the Proposed Transaction does not have the support of a majority of Independent Shareholders."
Tritax Big Box REIT HY results to 30 June 2025 (BBOX LN, Property UK Logistics, £3,507.7m mkt capn, 27.2% discount to NAV): adjusted EPS +4.6% to 4.29p vs DPS 3.83p [1.95pps dividend declared today in respect of calendar Q2 2025]; EPRA NTA +1.4% to 188.17pps; EPRA cost ratio 13.8%; LTV 30.9% (30/6/24 28.8%). “1.4% portfolio capital value increase driven by income growth and asset management alongside development gains.” Growth coming from record rental reversion to drive earnings growth, developing best in class logistics and data centres; " In line with this, on 25 June 2025, we announced a cash and share offer for Warehouse REIT following extensive due diligence. The Board believes the combination with Warehouse REIT would further diversify our logistics portfolio by property size, location and use, offers sizeable near-term rental reversion we can capture, creates immediate financial synergies and generates returns above our cost of capital over the short to medium term. For Warehouse REIT shareholders, our offer provides both value certainty via a cash element plus the ability to participate in the future growth of the combined business. The Board believes the offer as presented is compelling to both Warehouse REIT and Tritax Big Box shareholders, reflecting our informed view on the value of the underlying assets of the business. While the combination is potentially compelling, the Board continues to remain highly disciplined on capital allocation and will assess any M&A opportunities relative to our range of organic opportunities to ensure that capital is appropriately and most efficiently allocated."
Assura (AGR LN, £1,590m mkt capn) has updated acceptance levels for both offers (ie Primary Health Properties and KKR). KKR has subsequently provided an update to shareholders following a discussion with the Assura Board and the Assura Board have subsequently confirmed that they continue to consider that the terms of the Increased PHP Offer are in the best interests of Assura Shareholders and accordingly continue to recommend unanimously that Assura Shareholders accept, or procure the acceptance of, the Increased PHP Offer.
Warehouse REIT (WHR LN, Property – UK Logistics, £488.6m mkt capn, 10.6% discount to NAV) has published an update on the acceptance level for Blackstone’s recommended cash offer.
Continuation vote
Utilico Emerging Markets Trust (UEM LN, Global Emerging Markets, £454.3m mkt capn, 11.3% discount to NAV): announced a comprehensive suite of initiatives to be adopted by UEM which seeks to increase demand for its shares and enhance the rating of the Company's shares over time. The proposed initiatives include a new conditional tender offer structure of up to 25% of issued share capitalmeasured over a 5 year period vs MSCI Emerging Markets TR Index; a buyback programme with the ambition of maintaining a single digit discount in normal market conditions; and a continuation of the commitment to increase the total annual dividend; finally UEM is proposing to bring forward the planned 2026 continuation vote to the 2025 AGM (to align with the performance-related tender)
Results / updates
Invesco Global Equity Income Trust FY results to 31 May 2025 (IGET LN, Global Equity Income, £241.7m mkt capn, 2.6% premium to NAV): NAV TR +11.9% vs MSCI World Index (£, TR) +7.4%; share price TR +24.6% (reflecting the discount of circa 8% moving to a premium of 1.7% in the year); net gearing currently nil; the Company adopts an enhanced dividend strategy which allows freedom for the portfolio manager to select the best ideas unhindered. "Your Board is pleased to see that the strength of your Company’s investment proposition is now being reflected in the price at which the shares are trading relative to their NAV. However, your Board recognises that a key concern for investors is not only the price at which shares trade relative to their NAV, but also the volatility in that relative price. So, your Board intends, in normal market conditions, to actively use its share issue and buy-back authorities to manage that volatility." "Since the year end, the Company has sold 3,610,000 shares from treasury (equivalent to 5.7% of the shares in circulation at 31 May 2025) at an average premium of +1.9%, raising £13.2 million. At 30 July 2025, the shares were trading at a premium of +2.7% and the yield on the shares was 3.6%, based on the projected annualised dividend for the year ending 31 May 2026."
HgCapital Trust preliminary trading update for HY to 30 June 2025 (HGT LN, Private Equity, £2,352.7m mkt capn, 5.0% discount to NAV): estimated NAV TR -0.3%, share price TR -3.8%; invested £306m, including new and follow-on investments in IFS, P&I, Citation and Scopevisio, including £34 million of co-investment. Co-investments now represent c. 10% of NAV, in line with HgT's long-term goal of 10-15%. Gross proceeds from realisations during the period of £165 million. This includes proceeds from P&I, Citation, Trackunit and smartTrade.
Mobius Investment Trust HY results to 31 May 2025 (MMIT LN, Global Emerging Markets, £162.7m mkt capn, 4.8% discount to NAV): NAV TR -8.2%, share price TR -5.2%; "This uncertain environment has been challenging for investors-and MMIT has been no exception. Smaller, high‑quality companies have been disproportionately affected by weak market sentiment, particularly in the technology sector. Despite strong fundamentals, these businesses have shown greater vulnerability to recent market volatility." "... the portfolio was prudently rebalanced, with disciplined decisions made to take advantage of market dislocations-including increasing positions in MMIT's highest-conviction holdings, selectively adding quality names from the watchlist trading at attractive valuations, and exiting others that had reached elevated multiples or whose investment cases appeared weakened by the changing macro environment...Though the portfolio was impacted by recent external turbulence, we believe it has emerged stronger and is well positioned for the opportunities ahead." "The Company operates a redemption facility through which Shareholders are entitled to request the redemption of all or part of their holding of ordinary shares on a periodic basis. The next redemption point for the ordinary shares will be 1 December 2025. The Company expects to issue a regulatory announcement in early October 2025 ahead of the redemption point, setting out the process for redemption." (Frostrow client)
Impax Environmental Markets HY results to 30 June 2025 (IEM LN, Environmental, £799.3m mkt capn, 9.1% discount to NAV): NAV TR -3.0% vs MSCI AC World Index +0.6% and FTSE ET100 Index -4.1%; share price TR -2.3%; net gearing 8.9% (31/12/24 7.6%); The Company has bought back 33,725,441 shares in the Period, equivalent to 14.1% of the Company's issued share capital at the start of the year. A positive side effect of a wide discount is the greater accretion to NAV from share buy backs. So far this year buy backs have enhanced NAV by 1.4%. "...companies that are investing in the transition to a more sustainable world now will be the long-term financial success stories, and the Board feels very confident for the outlook ahead"
RIT Capital Partners HY results to 30 June 2025 (RCP LN, Flexible Investment, £2,729.8m mkt capn, 27.3% discount to NAV): NAV TR +3.4% with positive returns from quoted equities, private investments and uncorrelated strategies; share price TR -1.0%; Continued active buyback programme, acquiring £52 million or 2.7 million shares in the half year ended 30 June 2025, adding an estimated 0.5% to the NAV per share total return. "Since 2023, RIT has bought back 10% of its share capital, adding an estimated 2.5% to the NAV per share return". Gearing 5.8% (31/12/24 8.9%); "During the first half of the year, we paid an interim dividend of 21.5p per share (approximately £30m) and we have declared a second interim dividend of the same amount, to be paid to shareholders in October. This will provide a total dividend in 2025 of 43p per share, an increase of 10.3% since 2024 and representing the 12th consecutive year of dividend increases."
Rights & Issues IT HY results to 30 June 2025 (RIII LN, UK Smaller Companies, £102.3m mkt capn, 18.2% discount to NAV): NAV TR +4.3% vs FTSE All Share Index +9.1%; share price TR -6.7%; "The Board sought to renew the authority again at a subsequent general meeting in early May 2025, without success. The Board was very disappointed that these resolutions were defeated by the narrowest of margins." "Our partnership with Jupiter continues to work well and we have seen a good level of marketing activity with the purpose of raising awareness of the Company to a wider audience." With respect to the UK, "...clearly the public finances remain challenging, but given the UK's relatively strong position in the current global environment, hopefully a more optimistic mindset will translate into activity and growth."
Patria Private Equity (PPET LN, Private Equity, £801.8m mkt capn, 30.8% discount to NAV) NAV as at 30 June 2052: +1.5% over the month to 790.3pps. 95.1% by value of portfolio dated 31 March 2025. “PPET paid £25.8m of drawdowns to existing investments and £8.6m towards new investments [vs] £25.8m of distributions during the month.” Total RCF drawn increased to £173.9m (+£27.4m); held £21.3m of cash plus £96.4m expected in September as deferred consideration from a sale
Managed wind down update
abrdn European Logistics Income (ASLI LN, Property – Europe, £196.8m mkt capn, 20.1% discount to NAV) has sold its warehouse in Zeewolde, Netherlands for €27.2m, a 2.5% discount to Q1 2025 valuation. “17 of the original 27 assets in the company's portfolio [have] now [been] sold, generating aggregate gross sales proceeds of over €320m… Of the 10 remaining assets, three disposals are anticipated to complete in Q4 2025. The final seven assets remain at various stages of the sales process, with further completions targeted from Q4 2025 onwards.” ASLI intends to return at least £50m to shareholders in September by way of an issue and redemption of B shares. “Following the sale of the Zeewolde asset and previous repayments of associated asset level debt, ASLI’s total outstanding debt has been reduced further to €80.2m.”
VH Global Energy Opportunities (ENRG LN, Renewable Energy Infrastructure, £265.2m mkt capn, 34.0% discount to NAV) published a circular in relation to the proposed asset realisation strategy and change in investment management fee ahead of a General Meeting on 28 August 2025.
JPMorgan Global Core Real Assets (JARA LN, Flexible Investment, £139.6m mkt capn, 10.2% discount to NAV) has completed its second compulsory redemption, redeeming 95,613,410 shares (55.9% of share capital) at 89.116731pps. Following the redemption, the Company has 75,458,150 Shares in issue.
Menhaden Resource Efficiency (MHN LN): the joint liquidators provided an update on the two remaining unlisted investments. Although the sales have not completed as yet, the liquidators have determined that it is in the best interest of shareholders to make a third cash distribution and then a further distribution once the final two assets have been fully realised. The third payment will be made on 29 August of 36pps. A total then of 138p will have been paid. The joint liquidators currently estimate that the total return to shareholders in the liquidation should be at least 160pps
Change of investment policy
Gore Street Energy Storage Fund (GSF LN, Renewable Energy Infrastructure, £312.7m mkt capn, 40.2% discount to NAV): the Board note that PIRC and ISS have advised shareholders to vote against all resolutions proposed by RM Funds. Subsequently GSF noted that adviser Glass Lewis has recommended shareholders vote against all resolutions at the upcoming requisitioned General Meeting.
Acquisition / Disposal / Lease news
Target Healthcare REIT (THRL LN, Property – UK Healthcare, £614.0m mkt capn, 18.0% discount to NAV) EPRA NTA as at 30 June 2025: +1.6% over calendar Q2 2025 to 114.8pps, “reflecting a LFL valuation uplift primarily driven by the portfolio's inflation-linked rent reviews and supplemented by capital returns from property sales.” EPRA EPS 1.48p vs DPS 1.471p; Net LTV 21.8%, wgtd ave cost 3.84% (31/3 22.9%, 3.94%); WAULT 25.9 years. “Portfolio of 93 assets let to 34 tenants valued at £929.9m reflecting a LFL valuation increase of 0.9% offset by a reduction of 0.9% in absolute value following a property disposal.” "The Group sold one home for a value of £9.6 million, net of costs, which represented a premium of 8% compared to the external valuation as at 31 March 2025."
Sirius Real Estate (SRE LN, £1,590m mkt capn) has acquired a business park in Dresden, Germany for €23.4m and a business park in Bedford, UKK for £16.13m. “So far in 2025, the Company has notarised to acquire or acquired approximately €165 million of income-producing assets across the UK and Germany. This includes the recently completed acquisition of a property in Lübeck, along with earlier acquisitions in Munich, Reinsberg, Monchengladbach, Oldham and Chalcroft."
Alignment of interest
Finsbury Growth & Income Trust (FGT LN, UK Equity Income, £1,267.0m mkt capn, 7.8% discount to NAV) manager Nick Train acquired 12,500 more shares taking his total shareholding to 5,710,280 shares (4.1% of ISC). (Frostrow client)
- Sector data this week (AIC data, as at Thursday’s close)
Equity Capital Markets
n/a
Ex Dividend
AGVI 3.50p & 0.85p special, ASL 14.30p, CVCG/E 2.3125p / €0.018125, DIG 3.20p, GCP 1.75p, MNKS 0.50p, PCFT 2.60p & 1.60p special, PCGH 1.20p, PCTN 0.95p, RESI 1.03p, SGRO 9.70p, TMI/P $0.02, TORO €0.0176, UTL 2p
Frostrow Investor Relations team – Grant Challis, Neil Winward, Matt Burrows, Matt Norfolk-Clarke, Nicholas Todd
Frostrow Capital LLP
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