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:
Contents
- Overview for the week
- Frostrow Investor Events
- Investment Themes
- Sector data for the week
- Overview for the week
We start off the week with Zelensky, accompanied by hand holders from the EU, heading to Washington to meet with Trump. It was potentially a very significant meeting but is now looking increasingly like Putin has kicked a follow up meeting into the long grass. All eyes turn to the Jackson Hole meeting this week which started on Thursday evening and goes through the weekend. We may see some hints about thoughts for interest rates from that, but the last 24-48 hours do feel more hawkish. Certainly yields, mainly at the long end (so less in the control of the central banks), are on the up again in the US, UK and also Japan.
In the UK CPI inflation rose to 3.8% in the 12 months to end July, more than expected, the highest since January 2024 and the highest in the G7. None of that is ideal but the fact it is food prices which are 4.9% higher makes it hard for all (and even worse if you are like me and enjoy coffee and chocolate). Rail fare increases for next year, having been 4.6% this year, are expected at 5.8% now. Cue the tube workers in London due to now down tools in early September for a week. UK borrowing numbers have come in slightly less than expected in July, but not enough to prevent continuing chatter about potential tax rises in the Autumn Statement. Total borrowings over the first four months of the financial year have now reached £60bn which is up £6.7bn from the same period last year. Despite all this, the FTSE 100 Index is up 2.0% for the week, putting some daylight between the UK and US markets YTD, with the US largely down this week driven by technology stocks (albeit the Small Cap 2000 has had a good bounce on Friday).
In the investment trust world, discounts widened by 40bps (from 13.3% to 13.7%), with a tough week for technology in particular (given too many “clankers” delivered on AI currently) and a much better week for the healthcare sector. Fidelity European Values have published their circular and prospectus to combine with Henderson European Trust, TwentyFour Income Fund have published their circular in regard to their triennial realization event, the APAX Global Alpha take private process remains ongoing, and the rate of share buyback announcements remains very high. Will there be more of this demand / supply rebalance to come? Erh, in a word, yes. So if you hold investment trust shares, wise not to sell at these discounts. If you don’t hold, then start buying. With record numbers of open-ended funds converting themselves to ETFs in the pursuit of assets in order to deliver investor clients ‘liquidity’ and LTAFs being pushed to provide investors access to private assets, retaining an allocation to the 150-year-old investment trust sector makes real sense.
Continuing with that theme, we note the AIC Investment Showcase is being promoted now for its event on 10 October. The link to the registration page is https://www.theaic.co.uk/the-investment-company-showcase-2025 . From Frostrow’s stable, there will be manager representatives from Finsbury Growth & Income, MIGO Opportunities and Ecofin Global Utilities & Infrastructure, but there are many more high-quality managers who will be there. With sector wide average discounts on offer of circa 13.7% and enormous institutional underweight in UK portfolios, the time is now to consider attendance. Do not be short of investment trusts.
- Frostrow Investor Events
Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £148.5m mkt capn, 45.0% 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, £283.7m mkt capn, 10.0% 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
Biotech Growth Trust (BIOG LN, Biotechnology & Healthcare, £211.5m mkt cap, 10.5% 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, £280.2m mkt capn, 7.1% 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, £141.8m mkt capn, 2.8% 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, £360.5m mkt capn, 21.3% 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, £228.5m mkt capn, 11.2% 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, £1,244.1m mkt capn, 6.6% 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, £69.0m mkt capn, 4.7% 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
Please also see the link below for the latest webinar held with Investor Meet Company:
MIGO OPPORTUNITIES TRUST PLC - Investor Update Webinar - YouTube
Mobius Investment Trust (MMIT LN, Global Emerging Markets, £164.2m mkt capn, 4.5% 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, £976.2m mkt capn, 0.5% 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, £1,424.6m mkt capn, 6.2% 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
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.
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- Further investment themes evident in the investment trust sector this week include:
Discount control
As an example, Wednesday saw 70 listed fund share buyback announcements and only 5 for issuance (in an LSE market with a total 437 announcements across the spectrum of which 184 referred to a buyback, 42% of total)
Redemption / tender update
TwentyFour Income Fund (TFIF LN, Debt – Structured Finance, £859.8m mkt capn, 1.2% premium to NAV) has published a circular in relation to its three-yearly realisation opportunity.
M&A news
Apax Global Alpha (APAX LN, Private Equity, £789.2m mkt capn, 17.6% discount to NAV) has confirmed the Court Hearing to sanction the Scheme (in relation to the recommended acquisition by Janus Bidco) will take place on 15 September 2025 and the Scheme is expected to become effective on 17 September 2025 with the shares delisting by 0800 BST on 18 September 2025.
Assura plc (AGR LN, £1,570m mkt capn) Chair Ed Smith will retire with immediate effect. In the context of the offer for Assura by Primary Health Properties, the Senior Non-Executive Director, Jonathan Davies, is now Chair. Separately, Primary Health Properties (PHP LN, £1,240m mkt capn) applied for 73,665,754 new shares to be issued in relation to its recommended combination with Assura (AGR LN), with the shares expected to be admitted to trading. It further announced that it has received valid acceptances totalling 81.37% for its cash and share offer for Assura plc (AGR LN).
Warehouse REIT (WHR LN, Property – UK Logistics, £484.3m mkt capn, 11.5% discount to NAV) The Takeover Panel announced an auction will proceed for if, by end of 25 August 2025 a competitive situation continues to exist, with neither Wapping Bidco’s Recommended Cash Offer or Tritax Big Box REIT (BBOX LN)’s Cash and Share Offer declared final. Subsequently, Tritax Big Box REIT (BBOX LN) confirmed “that it will not be increasing the financial terms of the BBOX Offer for the entire issued share capital of Warehouse REIT (WHR LN) because "it does not believe that increasing the financial terms would be in the interests of BBOX shareholders" and, accordingly, the BBOX Offer is now final.” In addition, Wapping Bidco (Blackstone) has updated on the acceptance level for its recommended cash offer for WHR, which currently stands at 1,134,118 shares (0.26% of ISC). Offer closes 1pm on 8 September
Fidelity European Trust (FEV LN, Europe, £1,647.2m mkt capn, 3.4% discount to NAV): produces a circular and prospectus in regard to the proposed combination of the assets of the Company with the assets of Henderson European Trust plc. The "Company's existing investment objective and policy will not change as a result of the implementation of the Proposals, and the Portfolio will continue to be managed by Fidelity, with Sam Morse and Marcel Stötzel continuing as the Portfolio Managers." Shareholders will benefit from a lower tiered management fee expected to drop from circa 70bps to circa 63bps with target OCR of 68bps (down from 76bps). The cash option maximum is 33.3% of HET shares " offered at a discount of 1.75% to the Residual HET Formula Asset Value". New shares to commence on 29 September
Results / updates
Bluefield Solar Income Fund NAV as at 30 June 2025 (BSIF LN, Renewable Energy Infrastructure, £550.6m mkt capn, 21.9% discount to NAV): -4.26% over calendar Q2 2025 to 117.77pps, driven by power prices, REGO updates and a rebasing of OpEx costs. “Generation for the period was 4.4% above forecast. Whilst solar generation had a very strong quarter (+8.4%), poor generation across the wind assets (-23.8%) led to combined generation being lower than expected, although irradiation was above forecast (+18.3%).” “Whilst wind speeds improved during the quarter (+2.2%), availability was negatively impacted by several turbine outages.” Third interim dividend of 2.2pps for period, with company reaffirming FY guidance of “not less than 8.9pps.” (31 March 2025: 8.8pps); LTV 45% (2024: 44%). The Company also announced the sale of a c. 250MW portfolio of solar and BESS assets for £38m, in line with the March 2025 valuation. "Following completion of the sale, the Company's operational net capacity will reduce from 883MW to 850MW."
Pershing Square Holdings HY results to 30 June 2025 (PSH/D LN, North America, £7,513.3m mkt capn, 31.0% discount to NAV) NAV TR +15.5%/+17.7% vs S&P 500 Index +6.2%; share price TR+9.9%/+16.5%. “The Board and the Investment Manager remain focused on initiatives to enhance long-term shareholder value while maintaining an efficient capital structure aligned with PSH’s investment objectives.” “PSH’s leverage has generally been within a range of 15% to the low 20s% of total assets.” In June 2025, the Board determined that it was appropriate to authorize a share buyback programme for $200m of PSH’s shares.
HarbourVest Global Private Equity (HVPE LN, Private Equity, £2,030.0m mkt capn, 32.1% discount to NAV) NAV as at 31 July 2025: +0.3% over the month to $56.46 (4274pps), driven by the IPO of Figma, partially offset by FX. Distributions of $30m received during the month vs $13m of calls; the Distribution Pool balance was $36.9m at 31 July 2025.
Gearing news
Gresham House Energy Storage (GRID LN, Renewable Energy Infrastructure, £441.0m mkt capn, 30.5% discount to NAV): announced the signing of a new debt facility which will refinance existing debt facilities, reduce its cost of debt, release capital for its three-year Plan and pave the way for a revised Capital Allocation Policy. £220m loan facility with margin of 225bp over SONIA compared with 300bp previously, term of 7 years. "The significantly higher contracted minimum revenue base, c.50% of projected revenues, combined with a more conventional amortising debt structure, repositions our Company as a lower risk business, while preserving its substantial growth potential. The Board looks forward to sharing details of its revised Capital Allocation Policy in the coming weeks."
Requisition news
Gore Street Energy Storage Fund (GSF LN, Renewable Energy Infrastructure, £306.1m mkt capn, 41.6% discount to NAV) announced all four resolutions at its requisitioned General Meeting were voted down (in-line with the Board’s recommendation), although “the Board acknowledges that a significant minority voted for the resolutions… [and] intends to maintain an open and constructive dialogue with shareholders.” Subsequently investor and requisitioner RM Funds published a statement in relation to the results of the Requisitioned General Meeting
Wind down news
VPC Specialty Lending Investments (VSL LN, Debt – Direct Lending, £47.0m mkt capn, 49.8% discount to NAV) NAV as at 30 June 2025: -6.09% over calendar Q2 2025 to 28.26pps, bringing YTD returns to -14.03%.
Home REIT (HOME LN, Property – UK Residential, trading suspended) has entered into revised IMA terms with its manager, AEW, to better reflect the managed wind down and ongoing sale process. AEW will receive £167,000 per month to expire three months after the date on which the Company holds fewer than 10 properties, thereafter, £120,000 per month for a period of three months, thereafter, £42,000 per month until termination of the revised IMA. All subject to an aggregate annual cap of £1 million, 10% of gross rent collected from assets owned by the Company and 10% of rent arrears collected, including those recovered through liquidations. The Board are looking to preserve "the incentive to recover rent arrears and optimise the performance of the portfolio whilst also unlocking significant potential cost savings as the sale process progresses".
NB Distressed Debt Investment Fund HY results to 30 June 2025 (NBDD/X/G LN, Debt – Loans & Bonds, £9.2m / £24.8m / £7.7m mkt capn, 18.0% / 28.3% / 31.5% discount to NAV): "...the final 10% of the total return (NAV plus cumulative distributions) in respect of any class of participating shares in NBDDIF to be returned to shareholders with a final liquidation of the relevant class. Consequently, there have been limitations on the extent to which the Company has been able to make distributions of realisation proceeds in respect of the NBDD and NBDX shares...The Board believes that the time has now arrived to wind-up the Company and therefore expects to put proposals to Shareholders by the end of the year to appoint a liquidator and place the Company into voluntary liquidation."
Continuation / Discontinuation news
NextEnergy Solar Fund (NESF LN, Renewable Energy Infrastructure, £400.3m mkt capn, 23.4% discount to NAV) announced the results of voting at its AGM, at which 12% of those who voted were in favour of discontinuation. The Interim Chair acknowledged the votes and “continue[s] to engage with these shareholders to address their concerns.” Subsequently the NAV as at 30 June 2025 was released: -3.6% over calendar Q2 2025 to 91.7pp, driven by power price forecasts, BESS revenue forecasts and “other movements in residual value.”
Manager news
Cordiant Digital Infrastructure (CORD LN, Infrastructure, £759.6m mkt capn, 23.1% discount to NAV) has amended its IMA with manager to remove the requirement to reinvest 10% of the annual management fee into shares. "A total of 2,394,292 shares have been purchased by the Investment Manager through its affiliate Cordiant Digital Infrastructure Management LLP (CDIM) under the Reinvestment Requirement since IPO. None of the Ordinary Shares bought under the Reinvestment Requirement have been sold." "Cordiant Capital and members of the Digital Infrastructure team currently own 15,393,552 Ordinary Shares in aggregate, representing 2.01% of the entire issued share capital of the Company, of which Mr Marshall personally owns a total of 13,265,578 Ordinary Shares. In conjunction with the amendment to the IMA, Cordiant Capital and Mr Marshall have committed to ensure that the number of shares held in aggregate by Cordiant Capital and Mr Marshall will never be lower than the minimum amount that would have been required to be held by the Investment Manager under the IMA prior to the amendment." (ie 10% of management fee in prior 6 months)
Pacific Assets Trust (PAC LN, Asia Pacific, £421.5m mkt capn, 10.0% discount to NAV): Co-portfolio manager, David Gait, has resigned from Stewart Investors, the Company's portfolio manager. "Stewart Investors have appointed Jack Nelson as co-portfolio manager, to support Douglas Ledingham who will remain as the lead manager assigned to the Company. Jack is an experienced portfolio manager with over a decade of leadership in the Stewart Investors Global Emerging Markets strategies, including lead and co-portfolio manager roles across the All Cap and Leaders funds. He joined Stewart Investors in 2011." (Frostrow client)
Acquisition / Disposal / Lease news
HICL Infrastructure (HICL LN, Infrastructure, £2,375.5m mkt capn, 19.6% discount to NAV): disposes of a portfolio of 7 UK PPP assets to APG, the largest Dutch pension services provider, for a total consideration of c. £225m, at a price "in line with the Company's last audited valuation of the assets as at 31 March 2025." "Following completion of the transaction, HICL's exposure to healthcare assets will reduce from 22% to 16% of gross portfolio value. The two largest assets in the portfolio sale are the Southmead Hospital and the Pinderfields and Pontefract Hospitals, where HICL will retain 31.25% and 50% shareholdings respectively." £725m of assets sold in the last 24 months. Company also issues an interim update statement for period 1 April to 15 August where it states "The Company remains on track to deliver its covered target dividend of 8.35p per share for the financial year to 31 March 2026 and the Board reiterates its dividend target of 8.50p for the year ending 31 March 2027." "As at 15 August 2025, the Company has repurchased a total of 89,467,218 shares under its expanded £150m share buyback programme. This has generated 1.8p of NAV accretion for shareholders since the buyback programme commenced in May 2024." "...the Company allocated up to £50m of RCF capacity to fund buybacks, where the share price discount to NAV is greater than 15% at the time of drawing."
- Sector data this week (AIC data, as at Thursday’s close)
Equity Capital Markets
n/a
Ex Dividend
AAS 1.63p, JUGI 3.63p, LTI 42p, PNL 1.40p, RCOI $0.015, SMIF 0.50p, TMPL 3.75p
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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020 3008 4912
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