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 investors,

 

Contents

 

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

 

1. Overview for the week

 

What a week.  In a world where we all spend time in the markets talking about AI and robotics and the impact on jobs, it seems pretty short-sighted of the tube drivers in London to have been striking.  With the likelihood of driverless tubes ever closer, forget 32 hours of work, just give them 168 hours of rest and have done. Back in the financial world, the news this week is frankly all driven by too much debt and fiscal deficits. Plenty of it, not so much the bond vigilantes this week but certainly no political solutions on the horizon and you can pretty much pick your geographic location in regard to that.  That and tube problems bring a whole new meaning to “Mind the Gap” for everyone.

 The world again seems a slightly scarier place given the second bombing in Doha this year and Russia seriously infringing Polish airspace effectively giving NATO a real warning.  In the US, it seems that the US economy added just over 900k fewer jobs than initial estimates suggested in the year to end March (which seems like a remarkable level of inaccuracy). US CPI increased 2.9% in the year to end August, up from 2.7% in July.  The US Fed has kept interest rates unchanged this year as policymakers continued to monitor the effect of President Trump's import tariffs on consumer prices, albeit a 25bps cut looks likely next week as a minimum. In Japan, Japan’s prime minister, Shigeru Ishiba, has said he is to step down following calls from his party to take responsibility for a defeat in July’s upper house election. In France, Francois Bayrou has indeed been forced out of the role he has only held since December, as expected, and Macron has named his 5^th PM in 2 years, Sebastien Lecornu.  In the UK economy we saw it ‘stuck’ at zero growth in July, following 0.4% growth in June. Following the Labour Party cabinet re-shuffle last Friday, with Angela Rayner resigning and some seat swapping, Peter Mandelson has had to go also, highlighting the woeful level of judgment on offer from the Government.

 In the investment trust sector, discounts narrowed by 50bps on average (with significant narrowing in the commodities and real estate sectors in particular) but remain wide historically.  One of the major UK retail platforms announced that they will begin offering its clients access to two Long Term Asset Funds (LTAFs) as early as next week (as reported by Investment Week).  This is extremely good news for experienced investors in the alternative sectors of listed funds as they will understand that the arbitrage that will become available between LTAFs and investment trusts will ultimately be plugged by capital.  In terms of newsflow in the sector, there were plenty of further announcements updating on the many M&A and wind down stories ongoing.  We also note the Oracle results this week sending shares up a staggering 39% on Wednesday, enough to now make Larry Ellison the world’s richest man.  Given the results are largely driven by growing demand for data centre infrastructure, the question is will infrastructure investors benefit via listed funds.  One would think so, albeit time will tell.  As an example of one option, Frostrow client Ecofin Global Utilities & Infrastructure updated the market on its performance this week.

 

Do not be short of investment trusts.

 

1. Frostrow Investor Events

  

Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £145.4m mkt capn, 46.2% 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:

AUGMENTUM FINTECH PLC - Annual results for the year ended 31 March 2025 on 1 July 2025 | Investor Meet Company

 

Aurora UK Alpha (ARR LN, UK All Companies, £276.1m mkt capn, 10.2% 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, £222.5m mkt cap, 9.5% 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, £287.0m mkt capn, 7.3% 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, £177.1m mkt capn, 3.2% premium 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, £366.0m mkt capn, 20.9% 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, £224.9m mkt capn, 9.6% 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, £1,175.0m mkt capn, 6.9% 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, £69.1m mkt capn, 4.3% discount to NAV): 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, £167.4m 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, £993.3m mkt capn, 0.3% premium 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, £1,589.2m mkt capn, 6.4% 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.

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

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

 Check out our August 2025 summary podcast here: Frostrow Talks Trusts August 2025 Summary | Updates | Investor Meet Company

 

Frostrow Capital, bringing you high quality, differentiated product in a UK listed closed-ended form

 

1. Further investment themes evident in the investment trust sector this week include:

 

Discount control

As an example, Thursday saw a total of 499 LSE market announcements across the spectrum of which 173 referred to a buyback, 35% of total.  5 announcements were in reference to issuing new shares.

 Lowland Investment Company (LWI LN, UK Equity Income, £324.5m mkt capn, 9.5% discount to NAV):  at the General Meeting this week, shareholders voted to increase authority for share buybacks, with authority to expire at the next AGM, expected in January 2026

 Picton Property Income (PCTN LN, £394.6m mkt capn) announced its intention to commence a further share buyback programme and has instructed its broker to repurchase shares up to a maximum aggregate consideration of £12.5m.

 EJF Investments Limited (EJFZ LN, Debt – Structured Finance, £75.2m mkt capn, 22.4% discount to NAV):  published a Liquidity Option Memorandum in respect of a tender offer for up to 5% of the Company's issued share capital at a 5% discount to NAV (adjusted for the costs of the Liquidity Option)

 Worldwide Healthcare Trust (WWH LN, Biotechnology & Healthcare, £1,399.0m mkt capn, 6.4% discount to NAV) has published a circular ahead of General Meeting seeking shareholder approval to renew its buyback authority in order to support “the continued operation of the company's buy-back policy" [to buy back shares if the share price discount to the NAV per Share exceeds 6% on an ongoing basis]. (Frostrow client)

 Bellevue Healthcare Trust (BBH LN, Biotechnology & Healthcare, £150.3m mkt capn, 1.9% discount to NAV):  the Board has published a circular giving notice of a general meeting to seek shareholder approval to authorise Company repurchases of its own shares to support the continued zero discount policy

 

Gearing / rating news

NewRiver REIT (NRR LN, £305.5m mkt capn):  Fitch has affirmed NRR's long-term issuer default rating at 'BBB' with a stable outlook, senior unsecured rating at 'BBB+' and Short-Term IDR at 'F2'.  The senior unsecured rating applies to NRR's £300m unsecured bond dated 2028

 Castelnau Group (CGL LN, Flexible Investment, £263.5m mkt capn, 21.8% discount to NAV):  secured a new £65m 3-year revolving loan facility with Shawbrook Bank Limited, which will initially be £60m drawn to repay the existing equivalent loan and will result in significant interest cost savings for the Company

 

M&A news

Warehouse REIT (WHR LN, Property – UK Logistics, £480.1m mkt capn, 12.6% discount to NAV) has declared Wapping Bidco’s cash offer unconditional, with Bidco receiving valid acceptances in respect of 69,718,870 shares (16.4% of ISC) and a subsidiary of Bidco owning 149,387,661 shares (35.2% of ISC). As at 6:00 p.m. (London time) on 5 September 2025, Bidco counted 219,106,531 Warehouse Shares (representing approximately 51.6 per cent. of Warehouse's existing issued ordinary share capital) towards satisfaction of the Acceptance Condition to its Offer. Bidco is therefore pleased to confirm that the Acceptance Condition has been satisfied, and the Offer is now unconditional.  The Company subsequently announced the current directors comprising Neil Kirton (Chairman), Aimee Pitman, Lynette Lackey, Dominic O'Rourke, Simon Hope and Stephen Barrow have all resigned now Wapping Bidco’s offer has gone unconditional and Peter Krause and Sumedha Goenka, representatives of Blackstone, have been appointed as NEDs. Company also subsequently announced it delisted

 The PRS REIT (PRSR LN, Property – UK Residential, £576.7m mkt capn, 24.7% discount to NAV):  the Board notes press speculation regarding its ongoing Strategic Review and Formal Sales Process.  KKR has not made an offer for the Company and there can be no certainty that an offer will be made, nor as to the terms of any offer if made.  The Company also confirms that Long Harbour has not withdrawn its possible offer for the Company as announced on 11 June.  This possible offer remains subject to financing and due diligence. Further announcements will be made in due course

 Empiric Student Property (ESP LN, £604.4m mkt capn) has published the scheme document in relation to its recommended cash and shares acquisition by Unite Group (UTG LN). ESP has also updated on its letting performance for AY 2025/26:  “Occupancy for the academic year 2025/26, as at 7 September 2025, was 84%, an increase of 7% since the 77%. occupancy reported in Empiric's interim results on 14 August 2025.” ESP “continues to target an occupancy rate of 97 per cent. for the academic year… [and] rental growth continues to track around 4% for the academic year.” Unite Group has also published a trading update: “94% of rooms have been sold for the 2025/26 academic year as at 7 September 2025… [and] sales to date support rental growth of 4-5% and [UTG] continue[s] to target occupancy of at least 97%.” UTG has “reiterated guidance for adjusted EPS of 47.5-48.25p in 2025.”

 Henderson European Trust (HET LN, Europe, £621.3m mkt capn, 3.5% discount to NAV):  In connection with the recommended proposals for the voluntary winding-up of the Company and combination with Fidelity European Trust PLC, the Board is pleased to announce that the Resolutions proposed at the First General Meeting have been approved by Shareholders. The Company subsequently announced that 71% of shareholders elected to roll into new Fidelity European Trust shares and 29% voted to received cash (with 33.3% being the maximum allowable cash option level). "In light of the above elections, any Shareholders electing for the Cash Option will have their Election satisfied in full"

 The European Smaller Companies Trust (ESCT LN, European Smaller Companies, £480.0m mkt capn, 7.6% discount to NAV):  published a prospectus in relation to the issue of New Shares pursuant to the Scheme (a proposed combination  with European Assets Trust) together with a circular to provide the Company's shareholders with further details of the Proposals and to convene a general meeting of the Company.  The scheme is expected to lead to a larger more liquid vehicle providing access to European small and mid cap companies with an improved share rating and strong discount controls, as well as a new dividend policy, reduced management fee and lower ongoing charges

 Fidelity Japan Trust HY results to 30 June 2025 (FJV LN, Japan, £236.5m mkt capn, 3.5% discount to NAV): NAV TR +3.3% vs TOPIX TR +3.2%. Share price TR +10.6%; Following a strategic review, the Board “concluded that a choice between electing for AVI Japan Opportunity Trust (AJOT LN) pursuant to a scheme of reconstruction or an election for cash should be put forward to the company’s shareholders to approve at a meeting which is likely to be held in October 2025.”

 

Capital allocation update

Molten Ventures (GROW LN, £666.2m mkt capn):  announced the acquisition of a stake in the Speedinvest Continuation Fund I (Eur18m, representing 58% in the Fund). It also announced that it has sold 15% of its holding in Revolut, generating proceeds of c£25m at a valuation consistent with the last reported NAV. "The Company continues to follow its capital allocation policy, balancing the pipeline of compelling investment opportunities with the ability to drive returns to shareholders through its ongoing share buyback programme, while maintaining sufficient reserves. Since July 2024, £40 million has been committed to buybacks, significantly exceeding the guidance of 10% of the £192 million of realisations since the policy’s introduction and representing c.5% of issued share capital to date."

 

Strategic review update

Murray Income Trust FY results to 30 June 2025 (MUT LN, UK Equity Income, £877.1m mkt capn, 6.3% discount to NAV):  NAV TR +2.7% vs FTSE All Share Index +11.2%, share price TR +4.3%; Company announced a strategic review in early July 2025 with an outcome expected by end of 2025. "As part of the review announced in July 2025, which remains ongoing, the Board is considering proposals regarding the Company's future and its management arrangements from a range of candidates, including third party investment managers, other investment companies, and the incumbent Manager. The Board is taking into account factors including historic record, portfolio construction, investment philosophy, investment management structure, income generation, risk controls and commitment to investment trusts. The objective of the strategic review is to evaluate all aspects of the Company in the pursuit of delivering improved performance and returns for its shareholders, while continuing to provide an attractive dividend yield from a portfolio predominantly focused on UK equities. The Board will update shareholders on the progress of the strategic review as appropriate and expects that the review will be concluded during the fourth quarter of 2025."

 

REIT / Listed fund status

Grainger plc (GRI LN, £1,400m mkt capn) has converted to REIT status, effective immediately.  The Company subsequently announced “50% lease-up performance of 132 BTR homes in less than a month at Seraphina Apartments, the latest phase in its Fortunes Dock cluster in Canning Town… well ahead of expectations.”

 Third Point Investors (TPOU LN, Hedge Funds, £352.2m mkt capn, 38.0% discount to NAV):  announced that the acquisition of 100% of the equity interests in Malibu Life Reinsurance SPC from Malibu Life Holdings LLC completed

 

Results / updates

Partners Group Private Equity (PEY LN, Private Equity, £739.9m mkt capn, 23.0% discount to NAV) NAV as at 31 July 2025: +1% over the month to €13.90, driven by FX. PEY received €11.2m in distributions during the month.

 Regional REIT HY results to 30 June 2025 (RGL LN, Property – UK Commercial, £200.1m mkt capn, 41.1% discount to NAV):  Total shareholder return +9.6% vs FTSE EPRA NAREIT UK Total Return Index +8.5%; The Regional REIT portfolio valuation declined 2.0% on a like-for-like basis, after adjusting for disposals and capital expenditure. The Board places high importance on the dividend, which is fully covered and is distributed in accordance with HMRC guidelines. Robust rent collections continue to support these uninterrupted dividend payments. The Board recognises the importance of delivering a fully covered dividend which remains an overriding focus for us. Net Loan-to-Value (LTV) rose to 43.2% (2024: 41.8%) following the valuation decline, while the weighted average cost of debt remained stable at 3.4%. "...the pace of recovery is uneven, and the disposal programme has faced headwinds due to subdued investment appetite. These headwinds may continue to impact performance into the second half of the year. In light of this, the Company remains focused on progressing accretive initiatives, enhancing asset quality, and maintaining disciplined capital deployment."

 Social Housing REIT HY results to 30 June 2025 (SOHO LN, Property – UK Residential, £276.7m mkt capn, 36.1% discount to NAV): adjusted EPS +21.9% to 3.34p vs DPS 2.18p; EPRA NTA -3.5% to 95.56pps [6.42% NIY vs 6.22% at end-December]; LTV 39% (36% 30/6/24). “Resident occupancy was stable at 86%, with rent collection of contracted income of 91.4% at 30 June 2025.” “SOHO is entering the second half of the year with improved earnings, enhanced tenant oversight and a more resilient platform. Atrato's focus remains on continuing to grow earnings, portfolio optimisation and maintaining cost discipline.” "Sentiment across the broader UK listed investment trust market remains mixed and the Company continues to trade at a discount to NTA, however the share price has responded well under the new management. We remain confident that, as confidence in the SSH sector and operational delivery improves, the discount should narrow further. The Board continues to focus on capital discipline and is keeping options for deploying excess funds under constant review."

 Gore Street Energy Storage Fund (GSF LN, Renewable Energy Infrastructure, £293.0mm mkt capn, 43.8% discount to NAV) NAV as at 30 June 2025: unchanged over Q2 2025 to 102.8pps with actual cash generation of £3.7m (0.7pps). “Gore Street Energy Trading has onboarded three additional assets in the ERCOT (Texas) market: Snyder, Sweetwater, and Westover to its optimisation platform.” “The ongoing [Board] refreshment will see the replacement of four Board members in total who have been in place since IPO with skilled, experienced and independent individuals of the highest calibre.”  Separately, RM Funds had published a statement ahead of GSF’s AGM to be held on 18 September, urging shareholders to vote against resolutions 5-9 (the reappointment of directors)  and 12-15 inclusive, “in order to strengthen governance.”

 Henderson High Income Trust HY results to 30 June 2025 (HHI LN, UK Equity & Bond Income, £305.3m mkt capn, 7.4% discount to NAV):  NAV TR +11.9% vs Benchmark (composite of 80% of the FTSE All-Share Index (total return) and 20% of the ICE BofA Sterling Non-Gilts Index (total return) rebalanced annually); share price TR +14.4%; "During the period the Company had approximately 90% of its assets invested in equities and 10% in bonds...Dividend payouts from UK companies have continued to be positive with overall levels of corporate profitability remaining healthy. In particular the UK banking sector has exhibited very solid dividend growth whilst the UK miners have seen payout levels more constrained."

 RTW Biotech Opportunities HY results to 30 June 2025 (RTW LN, Biotechnology & Healthcare, £494.7m mkt capn, 18.0% discount to NAV): NAV -6% vs Russell 2000 Biotech Index -11.4%. Five new private companies added in the period. The portfolio's NAV exposure by development stage is 64% in clinical programs, 32% in commercial products, and 4% in pre-clinical programs. 70% of NAV was invested in public companies1 (2024: 65%), 32% was invested in private holdings (2024: 30%) and 3% of NAV was royalty exposure (2024: 3%). The Company repurchased 5,650,000 shares in the first half of 2025, representing 15% of all shares traded during the period.

 Mid Wynd International IT FY results to 30 June 2025 (MWY LN, Global, £277.6m mkt capn, 2.2% discount to NAV):  NAV TR -5.1% vs MSCI AC World Index (£) +7.2%, share price TR -5.9%; "quality growth style has been out of favour with the market". OCR 0.64% (0.60% 2024). The Company's policy, within normal market conditions, is to issue and repurchase shares where necessary to maintain the share price within a 2% band relative to the NAV. "During the year to 30 June 2025, the Company bought back 9.47 million shares, representing 19% of the issued share capital at the start of the year (excluding treasury shares), at a total cost of £73.1 million (including costs) and an average discount of 2%. These share buybacks were accretive to net asset value for existing shareholders, enhancing the NAV total return by approximately £1.6 million, equivalent to 68% of the Company's annual operating expenses....The rate of buybacks continues to be such that in order to ensure the Company has sufficient capacity to maintain the discount control mechanism until the date of the 2025 AGM (when new allotment and buyback authorities will be sought), a further General Meeting was held on 28 August 2025 at which a resolution to replenish the Company's buyback authority to cover the period until the 2025 AGM, was approved by 96.1% of shares voted."

 Schroder Asian Total Return Investment Company HY results to 30 June 2025 (ATR LN, Asia Pacific, £480.7m mkt capn, 5.2% discount to NAV):  NAV TR -2.4% vs MSCI AC Asia Pacific ex Japan Index +4.3%, share price TR -1.6%; "Although the period under review has been challenging, the consistently strong long-term track record of the Company is notable. The NAV total return has outperformed the Reference Index over the three-, five- and ten-year periods to 30 June 2025." "...the Board continues to monitor the discount closely, in line with the Company's target of maintaining a discount of no more than 5% in normal market conditions." Gearing at 6.7% (30/6/24 8.5%)

 Schroder European Real Estate 30 June NAV update (SERE LN, Property – Europe, £87.3m mkt capn, 33.8% discount to NAV):  NAV TR +1.0%; EPRA earnings Eur1.5m (2024 30 June Qtr Eur2.0m); valuation "materially unchanged from the prior quarter"; third quarter interim dividend of 1.48cps declared, 90% covered by adjusted EPRA earnings (reflecting annualised dividend yield of c7.6% on current price); Net LTV 19% (28% gross of cash)

 Golden Prospect Precious Metals Limited HY results to 30 June 2025 (GPM LN, Commodities & Natural Resources, £72.0m mkt capn, 9.7% discount to NAV):  NAV TR +53.6%, share price TR +63.9%; "gold has overtaken the Euro to become central banks' second most widely held asset...Central bank activity contrasts sharply with the action in Exchange Traded Funds (ETFs). One would expect that after a big rally, the best-known gold mining ETF would see greater uptake. Instead, the shares outstanding in the VanEck Gold Miners ETF (or GDX index) have dwindled for the best part of 18 months. Meanwhile gold miners have become cash flow machines with many trading at cheap valuations yet remain overlooked by mainstream investors...This appears to be a classic stealth bull market where an upward trend in an unloved sector gains little attention. While so-called smart money has made an early move, professional investors are barely participating, as can be seen by the lack of ETF demand. This is good news for Golden Prospect Precious Metals Limited (the "Company") as it implies that there is some way to go in terms of potential upside." Annual subscription rights programme coming in November where shareholders will have the right to subscribe for 1 new share for every 5 held at a price of 48p.  Saba Capital entered a standstill agreement in effect until the Company's AGM in 2028

 

Dividend news

Dunedin Income Growth IT (DIG LN, UK Equity Income, £368.5m mkt capn, 7.1% discount to NAV):  Board announces that it will utilise capital and income reserves to significantly increase dividend distributions to shareholders and enhance investment flexibility.  The rationale for this includes "the significant change that has taken place in the distribution policy of the businesses in which the Company invests. This has seen companies increasingly favour share buy backs over dividend distributions. The net buy back yield alone on the FTSE All Share Index at the end of 2024 was almost 2%, having been close to zero in 2014. At the same time, the total Sterling amount of dividend payments expected to be made by UK companies in 2025 is only marginally higher than it was in 2014." "Accordingly, for the year ending 31 January 2026, it is the Board's intention that the Company's dividend will be increased to a minimum of 6.0% of the NAV as at 31 July 2025 (being the most recent financial quarter end), offering a highly attractive yield compared to cash, the FTSE All Share Index and peers in the UK Equity Income sector. This amounts to a total dividend for the year of at least 19.1p per share, an increase of 34.5% compared to the total dividend of 14.2p for the year ended 31 January 2025. Based on the share price of 293p as at 8 September 2025, this represents a notional dividend yield of 6.5%."

 

Management team amendments

Majedie Investments (MAJE LN, Flexible Investment, £129.3m mkt capn, 16.0% discount to NAV): Further to the announcement on 27th June, the Board of Majedie announced that its manager, Marylebone Partners, has now entered into a formal agreement to become part of Brown Advisory, subject only to regulatory approval.  Upon closing, Majedie will receive a cash payment in respect of its 7.5% stake in Marylebone, which will not be material to the NAV. Additionally on closing, as a demonstration of ongoing alignment between the manager and shareholders, fees will be reduced to 0.8% on market capitalisation up to £150m, 0.675% above £150m up to £250m and 0.6% thereafter (currently 0.9%, 0.75% and 0.65% respectively).

 

Wind down / asset realization news

Starwood European Real Estate Finance HY results to 30 June 2025 (SWEF LN, Property – Debt, £167.3m mkt capn, 11.2% discount to NAV):  £256m now returned to shareholders (61% of NAV); average remaining loan term is 0.5 years with the final loan due to repay in Q3 2026; has confirmed “it is in discussions with an investment vehicle advised by Starwood Capital Group in connection with the sale of the Office Portfolio, Ireland loan investment,” which was previously written down and represents approx. 4.1% of NAV. “If such transaction is consummated, it is expected that the value of the transfer will be significantly below the current carrying value of the investment announced on 1 August. Based on these non-binding discussions, the Board has now decided to write down the recoverable value of the loan investment to €4.8m by means of providing a further €2.2m/£1.9m impairment provision against it (which equates to a c1.3pps).” During August, “two other loan assets, Hotel, North Berwick and Life Science, UK, have repaid their combined outstanding £29.1m loans in full,” leaving SWEF with four remaining assets. NAV as at 31 July 2025: 97.92pps (cash and equivalents = £50.3m): this does not take into account the write-down above. The company has published its H1 results too.

 NB Distressed Debt Investment Fund (NBDD/X LN, Debt – Loans & Bonds, £7.7m / £23.2m mkt capn, 17.4% / 21.1% discount to NAV):  sold the Company's remaining Surface Transport asset for $5.3m.  The asset was held in the Ordinary and Extended share classes.  The sale led to a decline in reported NAV of 17.5% for NBDD and 14.7% for NBDX

 VH Global Energy Infrastructure HY results to 30 June 2025 (ENRG LN, Renewable Energy Infrastructure, £277.1m mkt capn, 30.5% discount to NAV): NAV -2.2% to 100.9pps, driven by FX. "The Board convened an Extraordinary General Meeting on 28 August 2025 at which shareholders voted in favour of an Asset Realisation Strategy, over a period of three years...Following the announcement of the Proposed Asset Realisation Strategy, the Board intends to continue paying a quarterly dividend to shareholders. As the Proposed Asset Realisation Strategy progresses, the size of the quarterly dividend will depend on the level of net income generated by the assets that remain in the portfolio (noting that some assets are more cash generative than others)."

 GCP Asset Backed Income HY results to 30 June 2025 (GABI LN, Debt – Direct Lending, £140.1m mkt capn, 18.3% discount to NAV): NAV TR +1.4%. “Strong progress has been made on the Company's managed wind-down. A total of 210.0 million shares have been redeemed since inception of the realisation programme, returning £188.2 million to shareholders and representing 67.4% of the Company's market capitalisation at 31 December 2023.” “It is the Board's intention to maintain the company's existing level of dividend of 6.325pps pa whilst GABI remains substantially invested, for as long as is practicable.”

 Riverstone Credit Investments (RCOI LN, Debt – Direct Lending, £35.9m mkt capn, 18.4% discount to NAV) has realised its loan to Max Energy Industrial Holdings, following which RCOI’s portfolio is comprised of five remaining positions and has $10.9m of unencumbered cash and equivalents.  "The Company remains focused on the realisation of RCOI's remaining assets and returning capital to shareholders. Since the Company's AGM on 22 May 2024 and adoption of the Wind-down Investment Policy, the Company has redeemed approximately 41 per cent of the Company's Ordinary Shares with 49,066,161 Ordinary Shares outstanding following the most recent redemption on 27 June 2025."

 

Portfolio transition update

MIGO Opportunities Trust August update (MIGO LN, Flexible Investment, £69.1m mkt capn, 4.3% discount to NAV):  NAV -1.1%; "Although painful in the short term, we welcome such downside volatility given the opportunities it provides to add to positions at more attractive prospective return levels." MIGO’s portfolio transition continues, with the portfolio now consisting of 36 holdings vs 41 at the end of Q1-25, and the top ten accounting for 51% of NAV vs 44%. (Frostrow client)

 

Valuation news

Chrysalis Investments (CHRY LN, Growth Capital, £654.3m mkt capn, 26.5% discount to NAV):  the Klarna IPO successfully completed on the NYSE on 9 September at a price of US$40 per share, above the indicated range of US$35-37, valuing Klarna at approximately US$15bn.  CHRY holds 4.2m shares in Klarna.  "The Company's assessed market valuation of Klarna as at 30 June 2025 was approximately USD16.6 billion, valuing the Company's position at £136.9 million, which represented 15.1% of NAV. The Company, as advised by the Investment Adviser, elected not to sell any shares at IPO. The Investment Adviser believes Klarna is well-positioned to benefit from attractive growth prospects over the medium-term. In line with other major Klarna shareholders, the Company's shareholding in Klarna is subject to a customary lock-up period of six months from IPO." "In May 2026, the Board stated it would seek shareholder views on capital allocation in advance of a vote on the current Capital Allocation Policy ("CAP") at the AGM in 2026; this consultation is currently underway. The intention is to consult with as many shareholders as possible to determine their views to enable the Board to propose any changes to a future CAP, if deemed appropriate. The Company will provide an update in due course." (I presume they meant May 2025).

 

Board independence

Oakley Capital Investments (OCI LN, Private Equity, £962.0mm mkt capn, 24.3% discount to NAV) has corrected the results of its AGM, following an error, at which 35% of votes cast opposed Peter Dubens’ re-election as a Director. "...the Board notes that although the resolution to re-elect Peter Dubens was passed with a majority, there were a material number of votes cast against. While the composition of our Board complies with the independence requirements of the UK Listing Rules and the AIC Code, we understand that some shareholders have a policy of voting against the re-election of any directors who are not independent or who they do not believe to be independent. The Board has engaged with these shareholders in the past to discuss their position and concerns and will continue to do so in the future."  The Company subsequently announced HY results to 30 June 2025 (OCI LN): NAV TR +7.1% to 742pps; LTM EBITDA +13%; average portfolio company valuation multiple  EV/EBITDA of 16.3x. NAV growth driven by sale of vLex “and increased earnings growth from Bright Stars (+6pps), TechInsights (+6pps), Phenna Group (+5pps), and North Sails (+5pps),” as well as FX and share buybacks.

 

Lease news

Life Science REIT (LABS LN, Property – UK Commercial, £142.8m mkt capn, 46.7% discount to NAV) tenant Thought Machine Group has signed a new seven-year lease at Hebrand Street at a headline rent of £75 per sq ft, in-line with the June 2025 ERV. “The new lease includes a 16.5 month rent free period and has been signed with agreement from the LABS’ lending banks who continue to be supportive.”

 

Acquisition / Disposal news

HgCapital Trust (HGT LN, Private Equity, £2,270.3m mkt capn, 8.4% discount to NAV):  announces a £17m investment in Payworks along with other institutional clients of Hg.  HGT has liquid resources of £366m (15 of NAV)

 LondonMetric Property (LMP LN, £4,220m mkt capn) has acquired £78.5m of acquisitions across five transactions and nine assets, at a 5.5% NIY, expected to increase to 6.3% over five years. “The nine assets add £4.6m pa of additional rent, have a WAULT of 23 years.” "Following the hotels acquisition, Whitbread is now LondonMetric's sixth largest occupier, accounting for £6.4 million pa of rent (1.5% of total rent), through their Premier Inn brand. These assets complement the Company's existing portfolio of 75 NNN budget hotels let to Travelodge, Premier Inn, QHotels and Leonardo."

 

1. Sector data this week (AIC data, as at Thursday’s close)
   

 

 Equity Capital Markets

n/a

 Ex Dividend

BRWM 5.50p, CMPI 1.90p, CTUK 2.95p, DORE 0.50p special, FEV 3.90p, HHI 2.775p, JEMI 2.60p, RMII 0.625p, SEIT 1.59p