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
In the context of a US Government shutdown and the UK political party season in full tilt, I can’t help but recall the classic film “Brewster’s Millions”. Monty Brewster would be shouting out “Vote for none of the above” for sure. The US Government did indeed shut down for the first time in almost seven years given disagreement on funding between the Republicans and Democrats. Last time the shutdown lasted 35 days, albeit the S&P 500 was 10% higher by the end of it, so this could well be a non-event as well. We will see. It may though delay some key market statistics which we all rely on for guidance. None of it has stopped the equity market this week though with all indices up (unless you are in Russia), and the bond market was quiet also.
In the UK, the UK economy grew at 0.3% in Q2 2025, much smaller growth than the 0.7% growth seen in Q1. The Labour Party conference took place with a rally cry from Keir Starmer in front of an audience who seemed to have been told to cheer after every sentence. We weren’t cheering in the City given the news that the LSE is now ranked 23rd in the list of global exchanges for IPOs and being referred in the press by US bankers as akin to a “car boot sale.” Not ideal one would say and not something any of us should be happy about. At the same time, AstraZeneca is to upgrade its existing ADRs on Nasdaq with a direct listing, whilst continuing its UK listing. However, fintech Revolut is considering a dual listing in New York and London (which would go straight into the FTSE 100 Index) and there are some press reports on other UK IPOs in the waiting room. Maybe it is time to get down to the ‘car boot sale’ and see what is on offer. Rachel Reeves has said that harsh choices are coming at the Autumn Budget, albeit it is pleasing to note a stamp duty holiday at least starting to be considered for new shares on the LSE.
In the investment trust sector, we have had another plethora of announcements – year end and half year end results a plenty, managed wind down updates and strategic initiatives coming from Pacific Assets and Gore Street Energy Storage as well as a continuation vote for Baring Emerging Opportunities. Frostrow client, CQS Natural Resources Growth & Income, saw the announced price for its tender and confirmation that Saba Capital exited. Well done to all long-term shareholders who stayed in, you are doing well. Another Frostrow client, Mobius Investment Trust, announced the latest of its triennial redemption opportunities this week also.
There is a lesson for all investors from CQS Natural Resources this week demonstrating very starkly that placing liquidity above market exposure - if you can invest for the longer term – sometimes makes no sense.
Do not be short of investment trusts.
2. Frostrow Professional Events
Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £144.5m mkt capn, 46.5% 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, £281.8m mkt capn, 11.1% 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, £234.3m mkt cap, 9.8% 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, £281.6m mkt capn, 9.6% 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, £197.3m mkt capn, 1.5% 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, £367.9m mkt capn, 20.8% discount to NAV): Richard Shepherd-Cross, lead manager, available for meetings in 2025 (physical throughout UK, or zoom, as per preference). Richard also gives his most updated thoughts at the time of the Frostrow London investor event in May 2025 here:
https://www.youtube.com/watch?v=XOQA7R2yBKk
Ecofin Global Utilities & Infrastructure (EGL LN, Infrastructure Securities, £231.9m 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, £1,134.4m 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, £67.7m mkt capn, 5.1% 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, 3.7% 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, £1,018.9m mkt capn, 0.6% 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
The webinar held on 24 September 2025 can be found here, with Ian Lance presenting: https://www.youtube.com/watch?v=04U0gX4KpOU
Worldwide Healthcare Trust (WWH LN, Biotechnology & Healthcare, £1,375.4m mkt capn, 7.6% 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. 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 September 2025 summary podcast here: https://www.investormeetcompany.com/updates/a00262f0-f9aa-4a08-ac2e-cd65f43498f1
Frostrow Capital, bringing you high quality, differentiated product in a UK listed closed-ended form
3. Further investment themes evident in the investment trust sector this week include:
Discount control
As an example, Thursday saw a total of 141 LSE market announcements just for the investment trust sector alone of which 63 referred to a buyback, 44% of total. 6 referred to equity issuance (nudging up a little)
Fidelity Emerging Markets (FEML LN, Global Emerging Markets, £619.9m mkt capn, 6.0% discount to NAV): published a circular setting out details of the proposed repurchase of participating preference shares from Strathclyde Pension Fund. The proposed repurchase is subject to shareholder approval with the EGM to take place at 9am on 24 October. "The repurchase is expected to generate a significant uplift to the NAV per share and support the Board's continued efforts to keep the discount to NAV in single digits"
JPMorgan Emerging Markets IT FY results to 30 June 2025 (JMG LN, Global Emerging Markets, £1,274.6m mkt capn, 9.0% discount to NAV): NAV TR +4.9% vs MSCI Emerging Markets Index +6.3%; share price TR +9.8%; FY dividends total 2.10pps (+10.5% 2024); During the year, JMG repurchased 97,671,880 shares (8.8% of shares in issue at the start of the year) at an average discount of 12.2%, increasing NAV per share by 1.4p (1.1%). OCR 0.79%; From 7 November (subject to shareholder approval), and "to enhance JMG's position as an attractive investment to both new and existing shareholders, the Board has proposed adopting a new dividend policy. The new policy aims to pay annual dividends equal to 4% of the Company's NAV at the end of the preceding financial year, distributed in four equal quarterly instalments".
Value & Indexed Property Income Trust (VIP LN, Property – UK Commercial, £84.1m mkt capn): 1,666,142 shares were tendered and 170,811 shares were applied for under the Mix and Match facility
Ashoka India Equity IT (AIE LN, India / Indian Subcontinent, £446.7m mkt capn, 3.0% discount to NAV): announced the redemption price of 267.19pps for those that redeemed at the 30 September redemption point
Vietnam Enterprise Investments Limited (VEIL LN, Country Specialist, £1,229.4m mkt capn, 15.6% discount to NAV): 2,527,425 shares (1.4% of share capital) repurchased in September at an average discount to NAV of 16.8%
Redemption opportunity
Mobius Investment Trust (MCP LN, Global Emerging Markets, £167.3m mkt capn, 3.7% discount to NAV): as per the Company's Articles of Association, there will be a voluntary redemption facility on 1 December and every three years such that shareholders may request the redemption of all or part of their holding for cash. None of the Directors or management team (representing 1.2% of share capital) will be redeeming. "A distinguishing feature of MMIT's strategy is its focus on under-covered, lesser-known businesses that usually require extensive proprietary research. These companies, often overlooked by mainstream emerging market funds, should provide differentiated access to structural growth opportunities beyond the usual Emerging Market mega-caps. The portfolio is typically concentrated in asset-light, low debt, innovative companies with good governance and competitive advantages aligned to fast-growing trends." "While this financial year has been challenging, with performance diverging from the broader market, such periods are a natural feature of a strategy with an 98% active share." (Frostrow client)
Saba Capital update
CQS Natural Resources Growth & Income (CYN LN, Commodities & Natural Resources, £197.4m mkt capn, 1.4% premium to NAV): the assets within the tender pool have been fully realised for cash with a tender price of 208.33p per Tender Exit Share. Tender payments in CREST coming on 7 October. Following the repurchase of the Tender Exit Shares, the Company's issued ordinary share capital will comprise 46,354,450 ordinary shares of 25p each, of which 11,405,671 (equivalent to 24.61%) are held in Treasury. Saba Capital subsequently announced a nil holding (Frostrow client)
River UK Microcap (RMMC LN, UK Smaller Companies, £68.1m mkt capn, 18.5% discount to NAV): Saba increase position from 15.1% to 16.2%
Baillie Gifford US Growth Trust (USA LN, North America, £753.0m mkt capn, 9.5% discount to NAV): held its AGM in the week with all ordinary resolutions passed. A significant number of votes against a number of resolutions "almost entirely attributable to a single shareholder." "Saba Capital, the Company's largest shareholder, rejected our offer of a meeting following the annual results. Whilst we recognise their right to exercise their democratic vote, it is disappointing that Saba, without prior notice of their intention, should use their substantial holding to attempt to vote off the whole Board of Directors. Had they succeeded, without Directors the Company would have been in breach of the Companies Act, the UK Listing Rules and its own Articles, which would have had significant consequences for all shareholders. We will again seek to engage with Saba to understand their position. The Board remains committed to acting in the interests of shareholders as a whole"
Gearing reduction news
SDCL Efficiency Income Trust operational update for HY to 30 September 2025 (SEIT LN, Renewable Energy Infrastructure, £617.6m mkt capn, 37.3% discount to NAV): operational performance is broadly in line with expectations….actively progressing disposals as a priority with one announced in the period (as asset at $7.6m at a 18.75% premium to NAV). Disposal proceeds will be used to reduce SEIT's RCF and in due course to return capital to shareholders via buybacks or a tender.
M&A news
UIL Limited (UTLH LN, Flexible Investment, £129.3m mkt capn, 35.1% discount to NAV): NAV TR +14.7%, share price TR +22.5%; in YE 2024 announced aiming to be taken private post the redemption of the 2026 and 2028 zeros; in the meantime, the Company repurchases Ordinary shares at a 20% discount to NAV; "Although the investment company sector in the UK is currently trading at historically high discounts, the Board is still disappointed to see UIL's ordinary share discount to NAV of 34.2% as at 30 June 2025. The Board believes that the steps put in place to privatise UIL, following the redemption of the 2028 ZDP shares will lead to the discount narrowing over time. Although a step up in buybacks has not seen a real change in discounts, the consolation to existing shareholders is that any buybacks at these large discounts to NAV are NAV accretive."
Strategic initiatives
Pacific Assets Trust (PAC LN, Asia Pacific, £413.8m mkt capn, 12.0% discount to NAV): announced strategic initiatives including a reduction in management fees (from 0.85% of NAV to a tiered structure of 0.75% on the first £500m and 0.65% above that, on market capitalisation), the introduction of a three-year performance-related tender offer for up to 25% of share capital and a reinforced commitment to buy back shares to help reduce the discount and discount volatility. "Under the terms of the Conditional Tender Offer, in the event that the NAV total return performance of the Company (on a cumulative basis) does not exceed the total return of the MSCI AC Asia ex Japan Index £ (on a cumulative basis), plus 0.5% per annum, over the seven year period ending 31 October 2028 (a period with just over three years remaining), the Board intends to offer shareholders the opportunity to tender up to 25% of their shares at a price equal to a 2% discount to the Company’s prevailing NAV per share less costs. To minimise the “spot risk” inherent in measuring performance between discrete calculation dates, performance over the Assessment Period will be measured using the Company’s average seven year NAV total return over each of the trading days in the final month of the Assessment Period, being October 2028, against the average total return of the Index, plus the Hurdle, over the same period. The Board believes the Assessment Period provides an appropriate timeframe for the Company and its Portfolio Manager, which has a long-term investment approach, to deliver outperformance of the Index. Of the proposed Assessment Period, just under four years have elapsed. From the start of the Assessment Period (1 November 2021) to 30 September 2025, the NAV total return was 9.3%, against 19.9% for the Index. By incorporating the earlier underperformance into the Assessment Period, the Conditional Tender Offer will be triggered unless the Portfolio Manager is able to make up the historical underperformance and exceed the Index, plus the Hurdle, over the remaining three years. Also announced HY results to 31 July 2025
Gore Street Energy Storage Fund (GSF LN, Renewable Energy Infrastructure, £274.3m mkt capn, 47.6% discount to NAV): announced a special dividend of 1.5pps following receipt of ITC proceeds for Big Rock and has also reiterated strategic initiatives previously announced (try to sell the 22 MW / 29 MWh German asset "Cremzow” and augment some assets to two-hour duration). “The Board is close to appointing a new non-executive director, and an announcement will be made in the coming weeks once confirmed. In addition, the Board will announce accelerated succession arrangements for the Chair, Patrick Cox, and the Chair of the Audit Committee, Caroline Banszky and confirm anticipated retirement dates for them, as well as for Max King and Tom Murley.”
Continuation vote
Brown Advisory US Smaller Companies FY results to 30 June 2025 (BASC LN, North American Smaller Companies, £151.1m mkt capn, 9.6% discount to NAV): NAV £TR -3.7% vs Russell 2000 TR £ Index -0.7%; share price TR -1.0%; "Most of the underperformance arose in the first half of the year when the Company suffered from its lack of exposure to the more speculative situations that did well then." "...should the NAV performance of the Company not outperform the Company's benchmark (Sterling-adjusted Russell 2000 Total Return Index) for the period 1 July 2023 to 30 June 2028 (i.e. a total period of five years with three and a half remaining), the Board intends to offer shareholders a one-off opportunity to tender some or all their shares at close to the prevailing NAV, less costs." Continuation vote also coming at the AGM in November 2026. Management fee reduced marginally from 1 January 2025
Baring Emerging EMEA Opportunities (BEMO LN, Global Emerging Markets, £92.3m mkt capn, 11.5% discount to NAV): the Board is offering investors the opportunity to vote on the continuation of the Company. "Since the beginning of the Calculation Period on 1 October 2020, the Company has performed well. The Company has outperformed its benchmark, the MSCI Emerging Markets EMEA Index, by 1.4% annualised (unaudited)". "...whilst the Company's performance has been strong and has exceeded the target set by the Performance Trigger, the average discount has exceeded the 12% target and so the Discount Trigger has been met." "The Board is of the opinion that a tender offer of up to 25 per cent. at this time would not be in the best interests of the Company or Shareholders....[Having consulted shareholders] "the Board is...offering Shareholders the opportunity to vote on the continuation of the Company as it is presently constituted." If the continuation vote is passed a conditional tender is being offered if relative performance is weak over a three-year period to 30 September 2028, plus considering a new progressive dividend policy
De-listing / Change of structure
Middlefield Canadian Income (MCT LN, North America, £146.4m mkt capn, 3.5% discount to NAV): published a circular providing further details and to convene a class meeting and EGM to seek approval for the implementation of the proposals to reconstruct and wind up the Company and fund and provide the option for shareholders to receive shares in a newly established active ETF
Assura trading update (AGR LN, £1,560m mkt capn): “strong trading performance… [with] strong rental growth, which has flowed into the positive property valuation uplift.” Company's de-listing (post the offer from Primary Health Properties) to take effect no earlier than 6 October
Results / updates
Merchants Trust HY results to 31 July 2025 (MRCH LN, UK Equity Income, £826.7m mkt capn, 7.8% discount to NAV): NAV TR +5.4% vs FTSE All Share Index +7.5%; share price TR +1.5% (widening discount). Portfolio activity reflected evolving opportunities, with an unusually high number of new investments compared with a typical half-year. Earnings per share rose by 3.5% to 17.7p (2024: 17.1p). Total dividend for 1H 2025 of 14.6pps (2024: 14.5pps). "At present, the UK market is not only cheap compared to its history and other markets, but it is also highly polarised. Outflows of money from actively managed funds and the momentum driven market we described earlier, have created a fertile opportunity set for investors with a longer-term mindset to exploit."
Marwyn Value Investors HY results to 30 June 2025 (MVI LN, UK Smaller Companies, £73.8m mkt capn, 47.8% discount to NAV): NAV TR +13.4%, Share price TR +29.7%; "...each of these businesses is led by exceptional management teams who have demonstrated their ability to execute complex strategies while adapting to changing market conditions. This combination of strategic clarity, operational capability, and financial flexibility gives me great confidence that we will continue to deliver strong returns for our shareholders. The portfolio we have assembled today represents, in my view, the most compelling set of opportunities in our history."
EJF Investments HY results to 30 June 2025 (EJFI LN, Debt – Structured Finance, £75.5m mkt capn, 21.8% discount to NAV): total loss of 2.44% in the period; discount to NAV of 23.9%; annualised dividend yield 9.1%; "There are very favourable tailwinds in the regulation of financial services generally, and smaller banks particularly. With the easing of regulatory constraints on bank mergers and acquisitions in the new US administration, the prospect of meaningful consolidation provides an opportunity for substantial returns."
3i Infrastructure pre-close update (3IN LN, Infrastructure, £3,329.7m mkt capn, 6.5% discount to NAV): On track to exceed our return target for the half year; The Investment Manager's team is developing an attractive pipeline of new investment opportunities but remains disciplined on pricing. Our intention remains to repay the RCF with sales proceeds from the next realisation; total income and non-income cash of £122 million including some additional portfolio distributions, is up 18% from the same period last year; The Company is on track to deliver the FY26 dividend target of 13.45 pence per share, up 6.3% from FY25, which is expected to be covered by net income
North Atlantic Smaller Companies IT HY results to 31 July 2025 (NAS LN, Global Smaller Companies, £493.6m mkt capn, 36.3% discount to NAV): NAV TR +4.8% vs S&P 500 Index -8.9%; share price TR +4.8%; "...it is anticipated that the dividend in respect of the current year will approximate the dividend paid in respect of the 2025 fiscal year, adjusted for the stock split following the Annual General Meeting." "Stocks held directly were mixed but overall performance was assisted by the decision to increase exposure to UK equities in April when valuations were depressed as a result of Trump's 'Liberation Day'."
Vietnam Holding Limited FY results to 30 June 2025 (VNH LN, Country Specialist, £91.6m mkt capn, 10.3% discount to NAV): NAV TR -2.5% vs Vietnam All Share Total Return Index +9.8%; share price TR -7.0%; September 2024 saw the successful implementation of the Company's first annual redemption feature, which allowed qualifying shareholders to redeem their shares for cash at NAV. About 12% of the Company's shares were redeemed.
JPMorgan Global Growth & Income FY results 30 June 2025 (JGGI LN, Global Equity Income, £3,308.7m mkt capn, 3.0% discount to NAV): NAV TR +1.0% vs MSCI All Countries World Index £ +7.2%; share price TR -1.6%; merger with Henderson International Income Trust completed in May 2025; intends to pay 23.0pps total dividends across four equal quarterly dividends of 5.75p (+0.9% 2025); the shares have traded at a premium and a discount in the period. "The Company's long-term policy of repurchasing its ordinary shares with the aim of maintaining an average discount of around 5% or less, calculated with debt at fair value, remains unchanged." Net cash position of 1%. "The Company continues its passive currency hedging strategy (implemented in late 2009) that aims to make stock selection the predominant driver of overall portfolio performance relative to the Benchmark."
Rockwood Strategic trading update for HY to 30 September 2025 (RKW LN, UK Smaller Companies, £136.7m mkt capn, 1.16% premium to NAV): NAV TR +12.5% vs FTSE Small Cap (ex IT's) +12.1% and FTSE AIM All-Share +14.8%; share price TR +11.5%; issued 9.34m shares into demand (+24%);
Enhanced dividend
JPMorgan Emerging Markets IT FY results to 30 June 2025 (JMG LN, Global Emerging Markets, £1,274.6m mkt capn, 9.0% discount to NAV): NAV TR +4.9% vs MSCI Emerging Markets Index +6.3%; share price TR +9.8%; FY dividends total 2.10pps (+10.5% 2024); During the year, JMG repurchased 97,671,880 shares (8.8% of shares in issue at the start of the year) at an average discount of 12.2%, increasing NAV per share by 1.4p (1.1%). OCR 0.79%; From 7 November (subject to shareholder approval), and "to enhance JMG's position as an attractive investment to both new and existing shareholders, the Board has proposed adopting a new dividend policy. The new policy aims to pay annual dividends equal to 4% of the Company's NAV at the end of the preceding financial year, distributed in four equal quarterly instalments".
Wind down / asset realization news
Abrdn European Logistics Income HY results to 30 June 2025 (ASLI LN, Property – Europe, £137.0m mkt capn, 25.3% discount to NAV): NAV TR -3.4%; share price TR +16.2%; the managed wind down continues…..much of the first half of the year was devoted to preparing further assets for sale…..by the first week of August, the Company had sold 17 of the original 27 assets, over 60% by number. "Of the 10 remaining assets, seven disposals are still anticipated to complete in Q4. The final three assets remain at various stages of the sales process, with further completions targeted from Q4 2025 onwards." "The returns announced to date under the B Share scheme equate to 29p per Ordinary share with a remaining NAV less estimated costs of 42.4p, after payment of announced B Share distributions and with the potential to incur up to a further 2 pence in terms of latent capital gains tax." LTV of 36.6% and "whilst in wind-down, the actual level of gearing will fluctuate as assets are sold and debt repaid in the most efficient manner possible. The maximum LTV permitted under the Company's prospectus is 50%".
ICG-Longbow Senior Secured UK Property Debt Investments HY results to 31 July 2025 (LBOW LN, Property – Debt, £18.9m mkt capn, 22.9% discount to NAV): NAV 19.19pps (27.15pps 31/1/25); Two loans left to realise; "The Company is seeking to realise the remaining investments, through either enforcement processes or open market sales. The Investment Manager continues to seek opportunities to enhance value and so maximise recoveries...While the Company is not a natural holder of these assets and wishes to exit as soon as practicable, we remain mindful of the need to avoid being a forced seller."
Ecofin US Renewables Infrastructure Trust HY results to 30 June 2025 (RNEW LN, Renewable Energy Infrastructure, £33.1m mkt capn, 40.9% discount to NAV): in orderly realisation since 14 January 2025. NAV 24.6cps (52.0cps 30/6/24); Realisation being managed by Sustainability Partners Services and the Company has three remaining assets. "The Board is mindful of the overall objective, to wind down the Company, which will require the sale of the remaining assets. However, while the Company is not a forced seller at any price in the short term, the Board remains open to offers that will result in a fair price for shareholders."
Aquila European Renewables HY results to 30 June 2025 (AERS LN, Renewable Energy Infrastructure, £178.1m mkt capn, 36.8% discount to NAV): NAV (pre-announced) TR -10.9% to €0.739, driven by a reduction in expected European power price curves and an increase in the discount rate to 8.8%. Continues in managed wind down. "...the Board's priority is to complete the asset sale programme efficiently, while safeguarding value and returning capital to shareholders in a timely and cost-effective manner." "The Company is approaching the final stages of a potential sale of a portion of the portfolio and intends to update shareholders imminently."
abrdn Property Income Trust HY results to 30 June 2025 (API LN, Property – UK Commercial, £21.7m mkt capn, 37.8% discount to NAV): the Company is "progressing a liquidation of the Company as swiftly as possible. The two primary activities in this are the conclusion of matters relating to the disposal of the Company’s subsidiaries to GoldenTree Asset Management LLP (GoldenTree), and the disposal of the Company’s one remaining property asset, Far Ralia." "The Board are cognisant of ensuring that the final distribution is as close as possible to the previously anticipated 64p per share as communicated following the shareholder vote on implementing the Managed Wind-Down. To date, a total of 56p per share has been distributed to shareholders (through a combination of Income Distributions and the redemption of bonus shares). The Board believe that the current NAV of 7.5p is still reflective of the initial projections (which excluded future operating costs) except for the fall in valuation of Far Ralia over the first 6 months of 2025...At this stage, the Board anticipate making a further Capital Distribution alongside the final PID referenced above in early November. It is the Board’s intention to distribute not less than 3.85p per share with the Capital portion being administered via the issue of further Bonus Shares. Further details of the exact split between Capital and PID will be provided closer to the time." The Company is considering a de-listing now also
abrdn Diversified Income & Growth (ADIG LN, Flexible Investment, £137.4m mkt capn, 33.4% discount to NAV): the Company has now either received binding offers for, or is in advanced discussions regarding, the entirety of its private markets portfolio. "...the Company has now fully redeemed its £17 million interest in the Aberdeen Global Private Markets Fund at its prevailing net asset value ("NAV") and is well progressed in selling the remainder of its portfolio having undertaken a comprehensive marketing exercise...the Company has now signed the first conditional sale agreements of its secondary sales process in respect of a substantial sub-portfolio of private market investments" (representing 33% of NAV). The Board expects that the balance of the portfolio should be sold or under offer by the end of the calendar year. Based on initial offers received by the Company, the Board expects the assets that have been marketed could be sold at a blended discount of between 30%. and 35%. to valuation (before costs). The Company has £55m of cash and undrawn commitments of £26m. A B share return of capital is expected in November 2025 with timing and quantum to be confirmed
NB Distressed Debt Investment Fund (NBDX/G LN, Debt – Loans & Bonds, $20.9m / £8.1m mkt capn, 13.6% / 28.1% discount to NAV): the Board have been notified of the sale of the Company's remaining Commercial Mortgage asset held in the Extended and Global share classes, resulting in proceeds of Eur7.83m, leading to a decline in NAV of3.8% for NBDX and 7.5% for NBDG
Management fee amendment, confirmation and team update
BlackRock Greater Europe Investment Trust (BRGE LN, Europe, £570.2m mkt capn, 4.8% discount to NAV): the management fee payable by the Company will be reduced to 0.65% of net assets up to and including £400 million; 0.60% of net assets in excess of £400 million up to and including £1 billion; and 0.525% of net assets in excess of £1 billion (representing a significant decrease from the current fee of 0.85% on net assets up to £350 million and 0.75% on assets above this level). This revised fee will result in a blended annual management fee rate for the Company of 0.634% based on the Company’s average net assets for the year to 31 August 2025 of £593.3 million. The new arrangements will be implemented retrospectively, with effect from 1 September 2025. It is estimated that the Company’s OCR will reduce significantly, allowing it to achieve an illustrative OCR of 0.775% (based on average net assets for the year ended 31 August 2025), representing a material improvement to the Company’s OCR of 0.95% for the year to 31 August 2025.
Gore Street Energy Storage Fund (GSF LN, Renewable Energy Infrastructure, £274.3m mkt capn, 47.6% discount to NAV): the Company would like to correct inaccurate and misleading claims regarding the Company's investment and commercial management payments to Gore Street Capital Group and provided a summary covering both fees paid by the Company to GSC for investment management services and amounts paid by the Company and the Company's subsidiaries (SPVs) to GSC for commercial management services.
Alliance Witan (ALW LN, Global, £4,956.2m mkt capn, 4.9% discount to NAV): Willis Towers Watson have appointed two new fund managers to pick stocks for its global equity portfolio. "Brown Advisory Limited and Artisan Partners Limited Partnership have replaced Sustainable Growth Advisors LP and ARGA Investment Management LP. The total number of stock pickers in the multi-manager line-up remains unchanged at eleven." "One of the benefits of the multi manager approach is its flexibility. We can adapt the line-up of best-in-class managers in response to changing circumstances without disrupting the whole portfolio. We believe the new manager line up offers the best combined portfolio for the current environment. Brown Advisory brings more high-quality companies to the portfolio, while Artisan's bias to US stocks adds greater diversification in a concentrated market dominated by very large growth stocks."
Impax Environmental Markets (IEM LN, Environmental, £797.0m mkt capn, 10.3% discount to NAV): announced changes to its portfolio management team, with Sanjeev Lakhani joining the team as a new co-portfolio manager alongside Fotis Chatzmichalakis; "Jon Forster will take on the responsibility of a senior Industrials analyst focused on environmental solutions companies. In this new role, he will continue to contribute to IEM's idea generation and broader investment process. Jon will work closely with the managers to ensure a smooth transfer of his portfolio management responsibilities, before handing over fully on 31 December 2025." Also the Company adopted a new benchmark, the Solactive Global Environmental Markets Specialists Index, replacing the FTSE ET100 Index, which has become unrepresentative of IEM's opportunity set
Acquisition / Disposal news
Partners Group Private Equity Limited (PEY LN, Private Equity, £729.5m mkt capn, 24.1% discount to NAV): NAV fell to Eur13.80 largely due to unfavourable currency movements (US$ weakening vs the Euro). A further sale of shares in Galderma bringing in Eur4.5m as well as an investment of Eur1.6m in restor3d. Separately, Partners Group has sold a “significant minority stake” of 20% in International Schools Partnership (ISP) to CVC, valuing PEY’s stake in-line with latest NAV at approx. €45m. As part of the transaction PEY will sell approx. 20% of its exposure to ISP, amounting to around €9m. The transaction is expected to close by Q1 2026.
Change of name / ticker
JPMorgan India Growth & Income IT (JIGI LN, India / Indian Subcontinent, £458.7m mkt capn, 9.6% discount to NAV): in line with the new enhanced dividend distribution policy changing name to JPMorgan India Growth Income. Ticker also changing from JII to JIGI
4. Sector data this week (AIC data, as at Thursday’s close)
Equity Capital Markets / Investor demand
CVC Income & Growth Limited (CVCE LN): announced a placing and retail offer of both Euro and £ shares "in light of the ongoing demand" at a premium of 0.65% to cum income NAV (price to be announced on 17 October). The net proceeds will be invested in accordance with the Company's investment policy
Twentyfour Income Fund (TFIF LN): launch a placing, offer for subscription and open offer, including a retail offer. Minimum subscription of £1,000.
Ex Dividend
DIG 1.50p, AEET 4p, BOOT 3.24p, CHI 1.37p, CHIB 1.37p capital return, CTPE 7.01p, EOT 2p, FCIT 3.80p, LWDB 8.375p, MNL 7p & 7p special, MYI 2.60p, NAIT 2.80p, PHLL $0.052, PINT 2.173p, RCP 21.50p, SCF 4.95p, SERE €0.0148, SHRS 3.40p, SJG 2.85p, STS 2.10p, UIL 2p, VIP 3.60p, VTA €0.155
Frostrow Investor Relations team – Grant Challis, Neil Winward, Matt Burrows, Matt Norfolk-Clarke, Nicholas Todd
Frostrow Capital LLP
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