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Good morning investment trust investors,
Contents
- Overview for the week
- Frostrow investor Events
- Investment Themes
- Sector data for the week
- Overview for the week
We started the week with the South Korean leader visiting the White House to talk tariffs. Trump found time to fire a governor at the Federal Reserve, Lisa Cook (although she is now suing him), stepping up his unhelpful war on Fed independence. Given she was someone who tended to vote with the Federal Reserve majority, the likelihood of a rate cut in September likely increased (even more so if you include the psychological effect on the others watching from the side lines). Trump has imposed 50% tariffs on most US imports from India acting on a threat to impose secondary tariffs on those who buy oil from Russia, in a move that risks pushing India and Russia (and China) closer together. India responded by pushing their population to buy local produce. We note the military parade China are hosting next week where Putin will attend alongside others like Kim Jong Un, albeit we understand Modi will not be there.
We’ve seen long bonds in the UK rise a little and we note Catherine Mann, MPC member, arguing that the UK has more persistent inflation to deal with now as wall as weaker growth. France is no better where “dependence on debt has become chronic”. With a persistent annual spending shortfall, no budget agreed and a confidence vote to be held on 8 September, the PM Francois Bayrou may well get a “non merci” from their politicians. Macron has only just appointed him really post a brief stint by Michel Barnier previously, so it may be difficult to ‘offer the other cheek’ again and find yet another PM. Equity markets have been up and down a little in the US (S&P 500 Index -0.1%) and down a little in the UK (FTSE 100 Index -1.3%), both are trending lower today ahead of inflation data in the US and news of a potential bank windfall tax in the UK. Nvidia reported second quarter earnings although up 56% compared to last year the markets deemed the results fairly inconsequential in share price terms.
In the investment trust sector, discounts widened a little, the third week in a row, however, it was mainly in the alternatives sectors that the pain was felt. We saw a few listed private equity fund results this week but generally newsflow was quite limited, save for the normal onslaught of share buybacks. It is back to school next week, so likely to pick up pace one feels in the coming days. The schools in Scotland are already back of course so next week Frostrow host their Edinburgh investor event at the George Hotel. At a time when open ended funds are converting to ETFs en masse to offer ‘liquidity’ and in particular, for active strategies bizarrely enough, for those investment trusts that use the closed ended structure to great effect, this is a superb time to hear from some of the investment trust sectors finest managers with the potential to provide real alpha, not just benchmark plus a bit. At Frostrow, we believe ETFs are the ‘eggs’ to investment trusts’ ‘bacon’, so enjoy a full breakfast and you may fill up with eggs, but don’t be short of bacon and do not be short of investment trusts.
- Frostrow Investor Events
Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £147.5m mkt capn, 45.4% 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, £278.5m mkt capn, 10.3% 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, £214.3m mkt cap, 8.1% 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, £276.2m mkt capn, 9.4% 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, £149.5m mkt capn, 4.5% 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, £354.9m mkt capn, 22.6% 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, £226.4m mkt capn, 10.4% 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, £1,220.9m mkt capn, 6.8% 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, £81.8m mkt capn, 4.0% 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, £165.6m mkt capn, 6.0% 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, £973.3m mkt capn, 0.4% 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, £1,409.6m mkt capn, 6.3% 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 actively managed listed fund vehicles using the structure appropriately available for savings and investment today, as there have been for the last 150 + years. They act as a strong complement to passive ETF holdings also. 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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Check out our July 2025 summary podcast here: https://we.tl/t-VlIbvFNOyv
Frostrow 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
As an example, Thursday saw a total of 492 LSE market announcements across the spectrum of which 186 referred to a buyback, 38%). 4 announcements were in reference to issuing new shares.
Vietnam Enterprise Investments (VEIL LN, Country Specialist, £1,249.1m mkt capn, 18.5% discount to NAV): the Company has purchased 16.2m shares at a total value of £100m (US$133m), representing 8.8% of shares outstanding as at 1 January 2025. This milestone reflects the Board's continued use of share buybacks to manage VEIL's share price discount to net asset value
M&A news
Primary Health Properties (PHP LN, £1,230mkt capn): PHP is pleased to announce that it had received valid acceptances of the Revised Offer in respect of 2,996,755,673 Assura Shares, representing approximately 92.02% of the issued ordinary share capital of Assura. The Company subsequently confirmed that the revised offer for Assura remains open until 1pm on 10 September
Warehouse REIT (WHR LN, Property – UK Logistics, £481.8m mkt capn, 12.1% discount to NAV): Tritax Big Box REIT has confirmed to WHR that it has no intention to exercise its right to implement the BBOX offer by way of a takeover offer as an alternative to the proposed scheme of arrangement.
Apax Global Alpha Limited HY results to 30 June 2025 (APAX LN, Private Equity, £786.3m mkt capn, 18.0% discount to NAV): NAV TR -6.1%, share price TR -11.8%; €39.7m was returned to shareholders in H1 2025 through dividends and share buybacks (5.1m shares repurchased in the period). As announced on 21 July, Janus Bidco Limited, a newly-formed Guernsey limited company, funded by entities managed or advised by Ares Management LLC, made an offer for APAX. The Board concluded that the Bidco proposal is in the best interests of shareholders as a whole compared to alternatives available to the Company. In particular, Bidco's offer provides shareholders with a full cash exit. It enables shareholders to receive cash quickly, rather than waiting for a managed wind-down that would take considerable time to execute and carry material uncertainty and cost. For those who wish to remain invested, the Bidco proposal offers a rollover alternative. The Board remain firm believers in the value of the closed-ended listed structure for holding illiquid assets which offer substantial advantages over Long-Term Asset Funds.
Results / updates
Literacy Capital HY results to 30 June 2025 (BOOK LN, Private Equity, £232.8m mkt capn, 25.3% discount to NAV): NAV TR +5.4% vs FTSE All Share Index +9.1%; share price TR -4.0%; "Whilst BOOK's most recent (30 June 2025) NAV per share is just 0.6% below its all-time high, its share price remains more significantly below the range within which it traded during 2024. The recently improved NAV performance and additional positive news flow from the portfolio provide potential catalysts for a reduction in the discount to NAV in the coming period. This would also be aided by a pick-up in M&A activity and renewed confidence amongst trade and financial buyers, both of which were in short supply in H1 2025."
Partners Group Private Equity HY results to 30 June 2025 (PEY LN, Private Equity, £719.2m mkt capn, 24.6% discount to NAV): NAV TR -5.7%; share price TR -5.5%; 1st interim dividend of 37.5cps; "This distribution aligns with the objective of paying 5% of previous year-end NAV for each financial year through semi-annual payments in June and December. The dividends paid to shareholders over the last twelve months correspond to a dividend yield of 7.5% based on the closing share price of EUR 9.72." PEY has cash and cash equivalents of EUR 8.3m and EUR 120m undrawn credit facility. "During the six months ended 30 June 2025, the Board agreed material revisions to the investment management terms, that should deliver meaningful financial savings and will better align the Investment Manager and shareholders, updated the Company's investment objective and policy to reflect the focus on direct private equity investments, and proposed a number of amendments to the Company's Articles of Incorporation to bring them in line with current best practice"
CT Private Equity Trust HY results to 30 June 2025 (CTPE LN, Private Equity, £343.2m mkt capn, 28.6% discount to NAV): NAV TR -2.5%; share price TR +0.1%; two quarterly dividends of 14.02p in total, divdend yield 7.9%; "The Company's innovative dividend policy was introduced in 2012 and remains the cornerstone of the Company's capital allocation policy." "It is worth remembering that only approximately 10% of valuations are fully up to date 30 June 2025 valuations, with the remainder based on 31 March adjusted for cashflows, this is typical due to the time lag of valuations." Net gearing of 17.2% (31/12/24 13.2%)
Globalworth Real Estate Investments preliminary HY financial information (GWI LN, £688.5m mkt capn): 0.6% portfolio gain; 85.9% commercial occupancy (-0.9%); "In July 2025, Fitch reaffirmed Globalworth's investment grade rating and maintained the stable outlook. S&P changed our rating to BB (from BB+) with stable outlook during H1-2025." "We continue to maintain a strong cash balance, being €325.5 million." LTV 38.0% (38.1% 31/12/24)
Patria Private Equity Trust (PPET LN, Private Equity, £815.3m mkt capn, 30.9% discount to NAV): NAV TR +0.6% in July; the fund has £770.6 million of outstanding commitments although the Manager believes that around £91.9 million of the Company's existing outstanding commitments are unlikely to be drawn. The syndicated revolving credit facility is drawn to £193.6 million at 31 July 2025. The fund has short term cash and consideration of £323.4. The Company bought back 255,000 ordinary shares into treasury during July.
Gearing news
Majedie Investments (MAJE LN, Flexible Investment, £125.6m mkt capn, 17.0% discount to NAV): entered into a new one year £15m revolving credit facility for flexible gearing
Reduction in management fee
Octopus Renewables Infrastructure Trust (ORIT LN, Renewable Energy Infrastructure, £372.0m mkt capn, 29.9% discount to NAV): announce a management fee reduction from 0.95% per annum of the net asset value of the Company ("NAV") up to £500m and 0.85% pa of NAV in excess of £500m. "Effective 1 November 2025, the Company and the AIFM have agreed that these percentage rates, rather than being applied to NAV on a standalone basis, will be applied to an equal weighting of (i) the average of the closing daily market capitalisation during each quarter and (ii) the published NAV for that quarter. The fee calculation will be capped such that it is the lower of the new fee arrangement and a calculation based solely on NAV, as per the previous AIFM agreement."
Wind down news
Riverstone Energy HY results to 30 June2025 (RSE LN, Commodities & Natural Resources, £218.1m mkt capn, 19.5% discount to NAV): shareholders voted that the Company commence a managed wind-down process with the objective of realising all the existing assets in an orderly manner (to maximise value for shareholders). "The Investment Manager will continue to oversee the investment portfolio during the anticipated wind-down period to 31 December 2027, and perhaps beyond, but any future new or follow on investments (to the limited extent permitted by the new investment objective and policy) or asset disposals will require Board approval. As part of the Managed Wind-Down, the management fee has reduced from 1.5 per cent. per annum (including cash) to 1 per cent. per annum (excluding cash), subject to a minimum of $500,000 per annum, pro-rated for any partial year, through to 31 December 2027, and the performance allocation structure has been discontinued." "With the passing of the resolutions at the EGM held on 22 August 2025, the Company and the Investment Manager intend to return a substantial majority of the Company's cash balances (net of provisions referred to above) to Shareholders by 21 November 2025 together with an orderly realisation of the Company's publicly listed investments also by this date and subsequent distribution of those net proceeds by no later than 20 February 2026. The Company is therefore now preparing its financial statements on a basis other than going concern due to the Company being in a Managed Wind-Down process."
Abrdn European Logistics Income (ASLI LN, Property – Europe, £192.3m mkt capn, 21.1% discount to NAV): Following the completion of recent asset sales, the Board has resolved to return approximately £53.5 million in aggregate net sales proceeds to Shareholders under the B Share scheme (the third distribution). The B Shares will be issued and immediately redeemed on 17 September 2025, with redemption proceeds equivalent to 13.0 pps. Payments will be made on 30 September 2025 through CREST to uncertificated Shareholders or via cheque to certificated Shareholders.
Fixed life fund update
Doric Nimrod Air Three (DNA LN, Leasing, £138.6m mkt capn, 9.5% premium to NAV): the Board is pleased to announce that sale proceeds of £32.70m have been received with transfer of title for MSN 133 successfully passing to Emirates. For the Company's three remaining Airbus A380-861 aircraft, operating leases will continue as contracted until the respective Lease End Dates. The Board intends to provide further updates in due course regarding the distribution of total sale proceeds
Listing cancellation news
Downing Strategic Micro-Cap IT: Further to the announcement made by the Company on 21 February 2025, the bulk of shareholder value having been realised in advance of the members' voluntary liquidation and returned to Shareholders by a series of special dividends, and the payment of the Initial Distribution to Shareholders on 3 March 2025 of 2.0 pps, the Company announces that, following an application by the Company, the FCA has cancelled the listing of the Shares on the Official List and the London Stock Exchange has cancelled the trading of the Shares from the London Stock Exchange's main market for listed securities. The liquidation of the Company is proceeding as planned and, as set out in the Circular, the Liquidators, with the assistance of the Investment Manager, have been seeking to realise the Company's remaining assets. The Liquidators intend to make a further cash distribution to Shareholders by the end of 2025, ideally including the recovery expected on the secured loan note
Disposal news
Foresight Environmental Infrastructure (FGEN LN, Renewable Energy Infrastructure, £497.3m mkt capn, 24.9% discount to NAV): announced that it has exchanged contracts for the sale of its 50% equity stake in Lunanhead, a 50MW lithium-ion battery energy storage development project located in Perthshire, Scotland. Lunanhead was jointly owned with Foresight Solar Fund and has been sold to a third-party buyer at a value consistent with the asset's carrying value as at 30 June 2025, which represents less than 0.2% of the Company's total portfolio value. The deal is expected to complete later this quarter.
Foresight Solar Fund (FSFL LN, Renewable Energy Infrastructure, £454.6m mkt capn, 24.0% discount to NAV): exchanged contracts for the sale of its 50% stake in Lunanhead, a 50W battery storage asset located in Perthshire, Scotland. The project was jointly owned with Foresight Environmental Infrastructure Fund (FGEN) and has been sold to a third-party buyer at a price in line with the 30 June 2025 carrying value. The deal is expected to complete later this quarter.
- Sector data this week (AIC data, as at Thursday’s close)
Equity Capital Markets
n/a
Ex Dividend
JGGI 5.75pps; PMGR 2pps; HSL 20.5pps; ALW 7.08pps; RIII 12.25pps; JAM 2.75pps; BSIF 2.2pps; ASLI 0.86pps; LMP 3.05pps; CGI 27cps
Next week in markets, its back to school so bums on seats and full attention again on markets (albeit the US will be closed on Monday for Labor Day).
Frostrow Investor Relations team – Grant Challis, Neil Winward, Matt Burrows, Matt Norfolk-Clarke, Nicholas Todd
Frostrow Capital LLP
Frostrow Capital LLP,
25 Southampton Buildings,
London WC2A 1AL
020 3008 4912
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