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
- Overview for the week
- Frostrow Investor Events
- Investment Themes
- Sector data for the week
- Overview for the week
We saw the Trump show in full flow this week at the UN where he delivered a wide-ranging freestyle speech, attacking UN members and Russia alike, suggesting that he would back NATO shooting down Russian aircraft if they infringed NATO airspace amongst other things. One would have called his comments an “escalation”, but perhaps that is the wrong word to use in this instance given the difficult entry to the building! Later in the week he announced a new wave of up to 100% tariffs on items such as heavy-duty trucks, kitchen cabinets and drug imports to start on 1 October unless a factory is being built in the US.
Rachel Reeves says that she wants to make it easier for the UK to attract talent, building on the significant technology deal announced in tandem with Trump's State visit. We do need that particularly given the ongoing uncertainty and speculation in the run up to the Autumn Budget (10 weeks to go). Andy Burnham has been in the news as a potential runner as a challenger to Keir Starmer, making the bond market take note (selling off slightly) given his stance on spending. The UK is now forecast by the OECD to have the highest rate of inflation amongst G7 economies this year, increasing its prediction to 3.5% for 2025, increased from 3.1%. To be fair, in 2026, UK inflation is expected to fall to 2.7% with the slowdown in inflation to be caused by likely either higher taxes or lower government spending. Further to this, we note a survey out from St James's Place suggesting Brits are dipping into saving, cutting back on saving or even increasing debt to survive and get by as inflation persists. Certainly, the rationale for investing for the future to protect purchasing power has never felt more compelling if one has the means to do so. Equities have largely been steady in the week with gold (and other metals) continuing to fly.
There was more positive news in the listed fund market with discounts contracting by circa 20bps to 13.7% over the week. We note a couple of very good disposals in the real estate sector from Target Healthcare and Picton Property, plus we note Petershill de-listing given the market not valuing the offering properly, sending shares up considerably on the way out. The news that Saba Capital are launching an ETF now to invest in UK listed funds won’t hurt the ratings also. At Frostrow, CQS Natural Resources Income & Growth continues to push higher, this week well through £3, following the gold price higher. Also, Augmentum Fintech noted the announcement by portfolio company Tide that it has secured investment of US$120m which will help with its international expansion, support rapid product development and advance its investment into agentic AI. Tide represents 24.1% of NAV and is the largest holding. Also, in the UK All Companies sector, Aurora UK Alpha reported HY results to 30 June 2025 highlighting NAV TR +11.5% vs FTSE All Share Index TR +9.1%, with the Investment Manager's approach remaining consistent in buying exceptional companies when they are out of favour, and patiently waiting for the value to be realised. Do come to the forthcoming investor event in London on 15 October (contact Frostrow to do so), and whatever you do, do not be short of investment trusts.
- Frostrow Investor Events
Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £149.9m mkt capn, 44.5% 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, £275.2m mkt capn, 10.4% 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, £224.9m mkt cap, 8.9% 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, £282.9m mkt capn, 9.8% 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, £196.3m mkt capn, 4.8% 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, £368.3m mkt capn, 20.6% 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, £227.8m mkt capn, 10.1% discount to NAV) : Jean-Hugues de laMaze, lead manager of the Trust presented at a webinar with Frostrow on Wednesday 23 April 2025. The link to the recording is available on the link below:
https://www.youtube.com/watch?v=lVkYbR67ecE
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, £1,130.4m 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, £68.4m mkt capn, 3.9% 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, £169.1m mkt capn, 4.1% 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, £997.5m mkt capn, 0.5% 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 24 September 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, £1,325.6m mkt capn, 6.7% 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]”. The ETF to be managed by Saba is launching now. 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. Record ETF issuance continues, with now more active ETFs than passive and record open ended funds converting into ETFs also. 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
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
- Further investment themes evident in the investment trust sector this week include:
Discount control
As an example, Tuesday saw a total of 521 LSE market announcements across the spectrum of which 187 referred to a buyback, 35.9% of total. 5 referred to equity issuance
BlackRock Greater Europe Investment Trust (BRGE LN, Europe, £552.7m mkt capn, 4.6% discount to NAV): the Company has decided not to implement a semi-annual tender offer in November 2025. "Over the six months to 31 August 2025, the average discount to net asset value (cum income) (NAV) was 5.3% compared to a peer group average of 6.2%. As the discount to NAV on a cum income basis (diluted for treasury shares) as at close of business on 19 September 2025 was 5.0% and the Company’s one-year average discount to NAV on a cum income basis (diluted for treasury shares) was second narrowest within its peer group, the Board concluded that it is not in the interests of shareholders as a whole to implement a semi-annual tender offer in November 2025."
Pacific Horizon IT FY results to 30 June 2025 (PHI LN, Asia Pacific, £622.2m mkt capn, 10.3% discount to NAV): NAV TR +8.3% vs MSCI AC Asia ex Japan Index +17.1%; share price TR +6.4%; the Company announced its intention to introduce a five-year performance-related conditional tender for up to 25% of the Company's issued share capital (excluding treasury shares). The Tender Offer will be conditional on the Company's NAV total return underperforming against its reference index, currently the MSCI All Country Asia Ex Japan Index total return in sterling, over the five-year period from close of business on 31 March 2025 to close of business on 31 March 2030. Average discount over the year was 11.9% and as such the quantum of buybacks increased. On 16 April it was announced that it is the current Board's ambition that the Company's discount be maintained in single digits, in normal market conditions, on a sustained basis. Since the announcement, the discount has averaged 9.7%.
Baillie Gifford China Growth Trust HY results to 31 July 2025 (BGCG LN, China, Greater China, £180.7m mkt capn, 9.3% discount to NAV): NAV TR +14.6% vs MSCI China All Shares Index (£) +10.3%; share price TR +15.5%; OCR 1.1%; "In November 2024, the Company announced a performance related Conditional Tender Offer based on performance in the four-year period to 30 November 2028...In the eight-month period 1 December to 31 July 2025 the NAV TR has outperformed the benchmark by 4.7%." "Recently, conditions for growth investing in China have been supported by an outline China-US trade deal, China government stimulus to stabilise the economy and ongoing state support for the private sector. More notable for Baillie Gifford's concentrated portfolio of growth stocks is mounting evidence of Chinese companies' leadership in EVs, e-commerce and AI."
Saba Capital update
Baillie Gifford European Growth Trust (BGEU LN, Europe, £338.1m mkt capn, 7.5% discount to NAV): Saba Capital position falls from 5.3% to 4.9%
Gearing reduction news
Octopus Renewables Infrastructure Trust HY results to 30 June 2025 (ORIT LN, Renewable Energy Infrastructure, £339.2m mkt capn, 36.1% discount to NAV): NAV TR -0.2%; 3.08pps Ordinary share dividend declared (in line with FY 2025 target of 6.17pps); 85% of revenue fixed over the next two years and 47% inflation linked over next 10 years; 12.3m shares repurchased for £8.5m and £6.2m post period end; on track to realise £80m by year end RCF term extended to June 2028 and reduced in size from £270.8m to £150m; average cost of debt reduced from 4% to 3.5%; on track to reduce debt below 40% of GAV by year end; a reduced management fee was previously announced in August; separately the Company announces a "strategic roadmap for growth" indicating a plan to invest in higher-return construction assets, target £1bn NAV by 2030, target medium to long term returns of 9-11% (capital and income)
Phoenix Spree Deutschland HY results to 30 June 2025 (PSDL LN, Property – Europe, £150.1m mkt capn, 34.5% discount to NAV): EPRA NTA TR -1.7% to €3.49. “Portfolio realisation plan on track, prioritising the sale of individual condominiums at a significant per sqm valuation premium to equivalent PRS properties.” “Indicative heads of terms agreed for the refinancing of all borrowings ahead of September 2026 maturity.” “Second consecutive LFL valuation increase: The overall portfolio value rose by 0.6% on a LFL per sqm basis during the first half of 2025, reflecting stabilisation in the Berlin residential market.” “Subject to successful refinancing, the company expects to announce its first shareholder distribution with its Annual Results in April 2026.” "Our strategic focus on accelerating condominium sales, reducing leverage, and optimising our Portfolio continues to deliver tangible results."
M&A news
Downing Renewables & Infrastructure HY results to 30 June 2025 (DORE LN, Renewable Energy Infrastructure, £173.5m mkt capn, 8.9% discount to NAV): on 20 June 2025, Board reached agreement with a subsidiary of Bagnall Energy Limited on the terms of a recommended cash acquisition (price of 102.6016pps). Shareholders voted in favour of the scheme on 1 August 2025. NAV at 30 June of 111.0p (-5.6pps 31/12/24);
Hansa Investment Company (HANA LN, Flexible Investment, £204.0m mkt capn, 37.0% discount to NAV): Ocean Wilsons today announced that the Court Sanction Hearing commenced yesterday has been adjourned for the purpose of affording Arnhold additional time to present its objection to the sanctioning of the Scheme by the Court. The Court has consequently ordered that the Court Sanction Hearing will take place on 30 and 31 October 2025, following exchange of evidence by Ocean Wilsons and Arnhold. Hansa notes that the Ocean Wilsons Independent Committee has stated it does not see any merit in the objections to the Scheme raised by Arnhold to date, that it remains confident in the prospects of the Scheme being sanctioned by the Court and that it will continue to work towards Completion of the Combination as expeditiously as possible for the benefit of Ocean Wilsons Shareholders. Hansa supports the position of the Ocean Wilsons Independent Committee.
Warehouse REIT (WHR LN, Property – UK Logistics, £480.1m mkt capn, 12.7% discount to NAV): confirms Wapping Bidco has received valid acceptances in respect of 388,524,580 shares (91.4% of ISC) and Bidco will shortly “dispatch formal compulsory acquisition notices to those WHR shareholders who have not yet accepted the Offer.”
Henderson European Trust (HET LN, Europe, £621.3m mkt capn, 4.0% discount to NAV): the Board confirms that the Company's shares have been reclassified with 71% of issued shares with A rights, being the right to receive new Fidelity European shares and 29% of issued shares reclassified with B rights, being the right to receive cash
Capital allocation update
Gresham House Energy Storage Fund HY results to 30 June 2025 (GRID LN, Renewable Energy Infrastructure, £398.3m mkt capn, 35.8% discount to NAV): NAV TR -1.5% (already announced); "While the mid-year 2025 NAV per share reflects a further decline in third-party revenue forecasts, GRID's portfolio generated strong actual revenue growth and outperformance against revenue forecasts so far in 2025." The Company also provided a capital allocation update. The Board is expecting substantial growth to come in the next three years which will require a significant portion of anticipated free cash flow to be reinvested into operational project augmentations and new pipeline construction. As such, free cash flow otherwise available for distributions to shareholders will be directed primarily towards growth in 2025 and 2026. Therefore, the Board is "prioritising reinvestment over near-term cash returns to shareholders". "For the next two financial years dividends are expected to be set at a very low level in order to prioritise growth opportunities as outlined above, with any meaningful increases likely only taking place from 2027 onwards following completion of the augmentations and the first of the new projects." Specifically, a dividend of 0.11pps in November 2025 and 0.25pps in 2026
Continuation vote
Vietnam Enterprise Investments HY results to 30 June 2025 (VEIL LN, Country Specialist, £1,231.7m mkt capn, 18.9% discount to NAV): NAV +0.9% vs VNI +6.9%; share price TR +9.0% (all in US$ terms) - since period-end, NAV TR +25.5% (outperforming VNI by 4%). VEIL repurchased 9.27m shares during the half, representing 5% of ISC. Shareholders recently voted in favour of continuation for a further five years
De-listing
Petershill Partners HY results to 30 June 2025 (PHLL LN, £3,350m mkt capn): and will delist its shares and return $4.15 to shareholders, as well as an interim dividend ($921m return of capital). “The company's share price and valuation has, in the view of the Board, not appropriately reflected the quality and underlying value of the company's assets, its strong financial performance and attractive growth prospects. Therefore, having evaluated strategic options, the Board has concluded that PHLL should proceed with a Delisting.”
Non-material amendment to investment policy
abrdn New India IT (ANII LN, India / Indian Subcontinent, £355.8m mkt capn, 10.0% discount to NAV): introducing a non-material change to the Company's investment policy with amendment allowing for increased exposure to individual issuers relative to their weighting in the MSCI India Index, measured at the time of investment. The previous restriction was the higher of 10% of the company's net assets or the issuer's weight in the MSCI India Index plus 2%, with a maximum of 20% of net assets. The board has agreed to increase the percentage to the MSCI India Index plus 3.5%. The overarching single issuer limit of 20% of net assets remains unchanged.
Results / updates
HarbourVest Global Private Equity (HVPE LN, Private Equity, £2,083.1m mkt capn, 33.2% discount to NAV): NAV as at 31 August 2025: +2.5% over the month to $57.85 (4286pps), “driven mainly by Q2 2025 valuation gains in the Fund of Funds portfolio.” 93% of portfolio is now based on actual 30 June 2025 valuations.“ August saw negative net cash flow of $13m with distributions of $27m and $40m of capital calls.”
Aurora UK Alpha HY results to 30 June 2025 (ARR LN, UK All Companies, £275.2m mkt capn, 10.4% discount to NAV): NAV TR +11.5% vs FTSE All Share Index TR +9.1%; discount to NAV narrowed from 11.4% to 10% with 3.14m shares repurchased to "provide market liquidity when it is lacking, which should help to stabilise the discount and be accretive to remaining shareholders". "Performance in the first half of 2025 was encouraging, with the portfolio outperforming the wider market. While markets remain unsettled, history shows that periods of uncertainty are often when the most attractive long-term opportunities are created. The Investment Manager's approach remains consistent in buying exceptional companies when they are out of favour, and patiently waiting for the value to be realised." (Frostrow client)
Pantheon Infrastructure HY results to 30 June 2025 (PINT LN, Infrastructure, £510.8m mkt capn, 11.9% discount to NAV): NAV TR +5.6%, share price TR +15.1%; interim dividend 2.173p (3.5%); discount narrowed from 24.5% to 18.1% and the Board "remain of the view that the quality of PINT's portfolio and its performance do not merit a discount, and we continue to be focused on further narrowing the gap through transparent communication and a considered approach to capital allocation." The Company was recently included in the FTSE 250 Index (June 2025). Recently announced its first new investment in two years given the investment opportunity, narrower discount and shareholder wishes for greater diversification. "The Company will continue to exercise discipline and consider optimal capital allocation on a case-by-case basis, depending on the attractiveness of new investment opportunities, the Company's share price discount to NAV, and the associated hurdle rate for re-investment."
Dividend news
BioPharma Credit HY results to 30 June 2025 (BPCR LN, Debt – Direct Lending, £1,023.1m mkt capn, 8.0% discount to NAV): net income of $0.0633, substantially covering the FY dividend target: $0.015 special dividend declared post-period. BPCR intends to pay “a further special dividend in Q4 that [will] satisfy the company's requirement to distribute all income generated.” “$144.2m deployed in new investments [during the half] and $87.5m deployed post period end.” Bought back 56.7m shares at a cost of $50m
JPMorgan Indian IT (JII LN, India / Indian Subcontinent, £465.3m mkt capn, 9.6% discount to NAV): the Company has introduced an Enhanced Dividend Distribution Policy. Under this new Policy, the Company will pay dividends each financial year totalling at least 4 per cent. of the NAV as at 30th September each year, being the end of the preceding financial year of the Company. The dividends will be paid by way of four equal interim dividends, in December, March, June, and September.
Dunedin Income Growth IT HY results to 31 July 2025 (DIG LN, UK Equity Income, £354.6m mkt capn, 8.5% discount to NAV): NAV TR +3.1% vs FTSE All Share Index +7.5%; share price TR +7.1%; revenue EPS 7.82p (-12.3% 2024); as announced in recent weeks, "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 an 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 19.10p per share, an increase of 34.5% compared to the total dividend of 14.20p for the year ended 31 January 2025. Based on the share price of 288p as at 24 September 2025, this represents a notional dividend yield of 6.6%. Furthermore, it is the Board's intention to continue with a progressive dividend policy with growth in absolute terms in future years from the increased level, and building on the successful long-term track record of dividend increases. The Company will fund the dividend cost from a combination of revenue and capital generation thus utilising one of the key benefits of the investment company structure." Net gearing 7.1% (10.9% 2024)
Wind down / asset realization news
Riverstone Energy (RSE LN, Commodities & Natural Resources, £223.3m mkt capn, 17.5% discount to NAV) has sold all of its shares in Solid Power (SLDP US) generating gross proceeds of $25.9m, following which RSE will hold net cash of $276m. "The Company expects to return a substantial proportion of this amount to shareholders, net of reasonable provisions for running costs in the expected managed wind-down period, by way of a pro rata compulsory redemption of ordinary shares, details of which are expected to be announced in early October."
Weiss Korea Opportunity Fund HY results to 30 June 2025 (WKOF LN, Country Specialist, £40.3m mkt capn, 5.1% discount to NAV): been in managed wind down since 15 April 2025; NAV TR -1.0% vs MSCI South Korea 25/50 Net TR Index +0.2%; returned £70m to shareholders in July 2025; the Company "intends to return £35m to Shareholders by way of a second compulsory redemption of shares. The second redemption is expected to be executed following the close of business on 7 October 2025 with proceeds paid on or around 21 October 2025. Further details of this redemption are set out in the separate announcement."
Life Science REIT HY results to 30 June 2025 (LABS LN, Property – UK Commercial, £127.7m mkt capn, 45.6% discount to NAV): as recently announced, the Company completed its Strategic Review completed with the Board concluding that a Managed Wind-Down would be in the best interests of shareholders and a process to implement this is now underway; it is anticipated that the realisation of the portfolio will be concluded over a 12-18 month period, depending on, amongst other things, the prevailing market environment; portfolio value £24.6m lower on an absolute basis driven by outward net equivalent yield shift of 49bps. Debt fully hedged at 5.5% rate to September 2025 and 4.5% to December 2025; occupancy stable at 84.0% (84.4% as at 31/12/24); LTV 33.8% (30.4% 31/12/24)
Starwood European Real Estate Finance (SWEF LN, Property – Debt, £168.7m mkt capn, 9.5% discount to NAV): in regard to the capital distribution announced on 18 September, the Company has compulsorily redeemed on a pro rata basis 67,885,117 shares at a price of 95.75pps. Following the redemption, the Company has 80,154,686 shares in issue
Aquila Energy Efficiency Trust HY results to 30 June 2025 (AEET LN, Renewable Energy Infrastructure, £27.5m mkt capn, 32.6% discount to NAV): the fund is in managed run-off; adjusted for the dividend, the NAV TR +1.7%; the focus is on negotiating individual exits to achieve acceptable realisations. "The Board continues to very actively seek and assess opportunities to realise capital through the sale of assets. As we have made clear in previous reports, this remains challenging as the portfolio consists of assets that are geographically diverse, small in size, contractually complex and many have lengthy maturities of between ten to eighteen years. In addition, due to the Managed Run-Off status of the Company, further complexities have arisen around the realisation of and protection of value in the Company's assets. The Board continues to remain actively involved in negotiating terms to protect the value in the portfolio and continues to work on achieving realisations and returning capital to shareholders."
Management team news
The Monks Investment Trust (MNKS LN, Global, £2,534.2m mkt capn, 5.9% discount to NAV): Spencer Adair will retire from Baillie Gifford on 31 March 2026. The portfolio will continue to be managed by the Global Alpha team at Baillie Gifford. This will comprise current managers Malcolm MacColl and Helen Xiong, who will be joined as co-managers by Michael Taylor from 1 April 2026. Spencer will remain in his current role until his retirement, continuing to work closely with Malcolm, Helen and Michael to ensure a smooth transition and handover of responsibilities.
Asset / Lease news
Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £149.9m mkt capn, 44.5% discount to NAV): notes the announcement by portfolio company Tide that it has secured investment of US$120m from TPG and existing investor Apax. Tide now serves 1.6m SME customers worldwide including in the UK, India, Germany and now France. The new funding will accelerate Tide's international expansion, support rapid product development and advance its investment into agentic AI. Tide represents 24.1% of NAV and is the largest holding. (Frostrow client)
Acquisition / Disposal news
Pantheon Infrastructure (PINT LN, Infrastructure, £510.8m mkt capn, 11.9% discount to NAV): the Company has committed to invest approximately £30m in Intersect Power to be funded through a combination of existing cash reserves and utilisation of the RCF; "Intersect is well-positioned to navigate the evolving trade and regulatory environment in the US, leveraging its scale, domestic-focused procurement and secured financing. As the largest customer of the top manufacturers of solar panels and batteries in the US, the company is well positioned to withstand supply chain issues arising as a result of recent reciprocal tariffs. These strengths align with the emphasis on US supply chains and local investment contained within the recent One Big Beautiful Bill Act."
Target Healthcare REIT (THRL LN, Property – UK Healthcare, £585.5m mkt capn, 21.4% discount to NAV): announces the disposal of nine UK care homes above carrying value to an institutional purchaser, the completion of its debt refinancing, details on its attractive acquisition pipeline and the appointment of a CFO by the Investment Manager. Sold 9 assets for £85.9m (largest disposal since IPO) at a 11.6% premium to NAV as at 30 June 2025. The disposal creates a more balanced tenant diversification across the portfolio. The existing bank facilities have been refinanced at improved terms and the ability to increase to £200m, subject to lender consent, to pursue investment opportunities. Cost of debt increases from 3.9% to 4.3%; Alastair Murray appointed as CFO
Picton Property Income (PCTN LN, £401.5m mkt capn): sold largest office asset by value for £34.5m (1% discount to June 2025 NAV), reducing office exposure to 20% by value (from 24% in June 2025), with industrial, warehouse and logistics exposure increasing to 68% (from 64% in June 2025) and leisure remaining at 12%; £12.5m being used for share buybacks
Stock split
The Lindsell Train Investment Trust (LTIT LN, Global, £143.9m mkt capn, 25.1% discount to NAV): as a result of the 100 for 1 share split, the issued share capital has risen to 20m shares
- Sector data this week (AIC data, as at Thursday’s close)
Equity Capital Markets / Investor demand
CQS New City High Yield Fund Limited (NCYF LN, Debt – Loans & Bonds, £330.8m mkt capn, 6.4% premium to NAV): application for the block listing of 34m shares to satisfy investor demand and to ensure an efficient market in the shares
CVC Income & Growth Limited (CVCE LN, Debt – Loans & Bonds, Eur90.8m mkt capn, 1.0% premium to NAV): Company published a circular to convene an EGM to allow shareholders to consider and approve the issue of shares up to 20% of issued share capital; there has been sustained demand for shares from a wide range of investors, including an increasing number of retail investors
Ex Dividend
BERI 1.25p, BPCR $0.0175 & $0.015 special, DIVI 1.35p, DUKE 0.7p, HGT 2p, HWG 0.538p, LWI 1.65p, MCT 1.375p, MRC 1.55p, POLN 27p, RECI 3p, SDV 2.5p
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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