https://www.investormeetcompany.com/frostrow-capital/register-investor

  

 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

 It took 7 minutes to put a ladder against the wall of the Louvre and run off with about $100m of jewels.  We were equally surprised with the speed with which investors took profits in metals earlier this week, albeit taking a few hours on Tuesday, but the significance of the profit taking was noticeable.  The gold price fell over 5% that day, for example, the biggest fall since 2013.    Notwithstanding this, the equity market was largely firmer, the FTSE 100 Index up 2.3% and bond yields contracted, with Gilt and US Treasury yields generally lower again across the curve as the prospect of a rate cut continued to be priced in (the US had late inflation data released for September at 3%, just marginally less than expected). AI or not, greed and fear are still very much driving the markets.

 The US Government is still shut down, now the second longest on record.  Trump has sanctioned two significant Russian oil groups resulting in the oil price jump (heading for biggest weekly gain since June).  China’s elite met in Beijing to pull together the next five-year plan to see them to the end of the decade. We also saw that China’s annual growth rate slowed from 5.2% to 4.8% in the quarter to end September.  In the UK, Government borrowing hit £20.2bn in September, as expected but still the highest level for the last five years, largely due to higher interest rates and welfare payment costs.  In the six months to end September, the borrowing level is £7.2bn more than the OBR predicted at £99.8bn.  We also note UK CPI Inflation remained at 3.8% in September, slightly lower than expected, with food and drink inflation falling from 5.1% to 4.5% and the upward drivers coming from petrol and airfares.  ONS figures have shown retail sales were 0.9% higher in the quarter to end September. The UK Budget is now one week closer and this week the lawyers and accountants have been in the firing line as well as talk now of breaking the Labour party pledge and going for income tax rises.  Tony Blair, former UK PM, has though stated that he believes the top rate of income tax should be cut to below 40% putting him at odds with Keir Starmer and Rachel Reeves.

 In the investment trust sector, discounts widened very marginally on average (less than 10bps).  Not a great week for commodities funds, albeit the direction of travel seems to still be upwards thus providing an opportunity for buyers.  Real estate funds had a very decent week largely.  The data suggests further below suggests widening discounts in the “North America” sector but that is just a reflection of the disappearance of Middlefield Canadian Income.  In the Global sector, the removal of Manchester & London has led to skewing also (MNL now in Technology).  In terms of news, we note the suggested change in liquidity provisions from both Polar Capital Global Healthcare and Mobius Investment Trust (Frostrow client) below. Arguably two sectors providing interesting diversification options for investors at this time.

 

1. Frostrow Investor Events

 

Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £142.2m mkt capn, 47.4% discount to NAV): Please contact Frostrow for interest in seeing Tim Levene in London and the regions in 2025.  The AUGM Capital Markets Day took place on Wednesday 2 July 2025 at Searcy’s at The Gherkin, between approx. 8:30am and 1:30pm.  The latest Frostrow webinar from our London seminar in May 2025 is available to see on You Tube here.

https://www.youtube.com/watch?v=HsulTfN_o1A

 The IMC webinar from 1 July 2025 is available here:

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, £284.7m mkt capn, 10.7% 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, £244.1m mkt cap, 7.2% 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

 The update webinar which took place with Frostrow on 7 October 2025 is available here:

https://www.youtube.com/watch?v=5L0wbJrxbwk

 

CC Japan Income & Growth Trust (CCJI LN, Japan, £289.7m mkt capn, 8.6% 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, £94.4m mkt capn, 4.0% discount to NAV): please contact Frostrow to arrange a one-on-one meeting with management in 2025.  The managers presented on the investment opportunity on 10 June 2025, so please have a look if you were not able to make it:

https://www.youtube.com/watch?v=wJtWKAesmOI

 

Custodian Property Income REIT (CREI LN, Property UK Commercial, £368.4m 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

 The Company is providing a further investment update via Investor Meet Company on 30 October 2025 at 11am. View and attend webinar at:

https://presentations.investormeetcompany.com/investor-meet-company/custodian-property-income-reit-plc-investor-presentation-aa0cea0317c2?bmid=4867e0359a37

 

Ecofin Global Utilities & Infrastructure (EGL LN, Infrastructure Securities, £222.9m mkt capn, 8.6% 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

 Frostrow will be conducting an investor webinar at 11:15am on 5 November 2025, see link below to participate:

 

 

Finsbury Growth & Income Trust (FGT LN, UK Equity Income, £1,113.4m mkt capn, 8.6% discount to NAV):  Nick Train’s AGM presentation (January 2025) was recorded and is available to view on the Frostrow You Tube page.  Click the link here to see it, it is worth a view:

https://www.youtube.com/watch?v=yE9HV__Iwlc

 We also highlight our most recent recording of Nick’s presentation following our London investor event (May 2025):

https://www.youtube.com/watch?v=HeiFCPd5zS8

 

MIGO Opportunities Trust (MIGO LN, Flexible Investment, £68.8m mkt capn, 4.4% 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, 4.1% 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

 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

 The Investor Meet Company webinar recorded on 17 October 2025 is available on the following link:

https://www.youtube.com/embed/Fd7sgkz2T-w?rel=0

 

Temple Bar Investment Trust (TMPL LN, UK Equity Income, £1,047.8m mkt capn, 1.3% 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 if your Bar is set high and your portfolio is your Temple: Lessons learnt from the first five years - Temple Bar

 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, £1,404.9m mkt capn, 7.3% discount to NAV): Sven Borho presented at this year’s AGM in July 2025, see below for the link to watch: 

https://www.youtube.com/watch?v=x0K6RxlI40c

 An investor webinar for Worldwide Healthcare Trust was held on Tuesday 21 October, which if you missed is available here to view here:

https://www.youtube.com/watch?v=tcdiOnFPHjI

 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, Nicholas Todd, Max Smith

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

 

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

 

Discount control

As an example, Monday saw a total of 515 LSE market announcements across the board, with 197 in reference to a buyback or tender, 38.2% of total.  2 referred to equity issuance.

 Montanaro European Smaller Companies Trust (MTE LN, European Smaller Companies, £249.8m mkt capn, 10.9% discount to NAV):  published a circular in respect of the first biannual tender offer for up to 5% of share capital.  The tender price has been set at a 5% discount to NAV. "This reflects the wider spreads amongst smaller companies and the cost associated with the exercise, allowing Shareholders who wish to realise a portion of their holding to do so at a price close to NAV whilst potentially providing for a modest uplift to Net Asset Value per Share for continuing Shareholders."

 Crystal Amber Fund Limited (CRS LN, UK Smaller Companies, £95.0m mkt capn, 19.9% discount to NAV):  announced that it intends to continue to conduct share buybacks under a share buyback programme until 30 November 2025 for up to 1.8m shares.

 

Amendment to liquidity provisions

Mobius Investment Trust (MMIT LN, Global Emerging Markets, £167.4m mkt capn, 4.1% discount to NAV):  the Company announced that the triennial voluntary redemption facility shall move to a biennial cycle.  There will be a shareholder vote on this at the next AGM in May 2026.  Assuming the change takes effect, the next voluntary redemption facility will occur in 2027 and every two years thereafter. There is no change to the Company's upcoming redemption facility this year (Frostrow client)

 

Dividend news

Manchester & London IT (MNL LN, Technology & Technology Innovation, £311.8m mkt capn, 25.9% discount to NAV):  announced that it intends to pay at least 40p per share per annum ordinary dividend for the next five years (representing an Annual Yield of 5.01 per cent based on the closing share price of 798p on 22 October 2025) even if a mechanism is found and executed that allowed share buybacks to continue (having previously announced that it would be pausing on share buybacks as the public ownership is close to the minimum threshold of 35%)

 

Potential change to business model

Bluefield Solar Income Fund FY results to 30 June 2025 (BSIF LN, Renewable Energy Infrastructure, £471.3m mkt capn, 32.1% discount to NAV):  NAV -10% to 116.56pps (already announced); “irradiation was 6.8% above expectation and solar generation was 1.9% above forecast even after significant plant downtime due to material DNO outages and planned inverter replacements.” "“The Board is...considering other paths for the future of BSIF, including options that could see it move towards a more integrated business model which is better placed to capture the growth opportunity… On the basis of initial discussions with the owners of the Bluefield Group, it would appear to be a model which is attractive to both BSIF and its Investment Adviser. Integrating the Bluefield Group's 140-person platform, covering development activities through to operations, would create a UK-focused green IPP.” Further shareholder consultation will take place. BSIF has agreed a fee change with the IA and has appointed Michael Gibbons as Chair, succeeding John Scott. No further plans for share buybacks

 

Saba Capital update

Fidelity Emerging Markets Limited (FEML LN, Global Emerging Markets, £607.8m mkt capn, 6.4% discount to NAV):  Saba Capital reduced from 5.7% to 4.9%. The Company subsequently announced that shareholders have granted the Company the authority to repurchase 16,441,177 shares from Strathclyde Pension Fund

 Baillie Gifford US Growth Trust (USA LN, North America, £756.1m mkt capn, 9.5% discount to NAV):  Saba Capital holding falls from 30% to 29.6%

 

M&A news

Middlefield Canadian Income (MCT LN, North America, £150.6m mkt capn, 0.3% premium to NAV):  50,317,886 shares elected for cash (47.3%) and 56,129,364 shares will roll into the ETF

 Tritax Big Box REIT (BBOX LN, Property – UK Logistics, £3,827.7m mkt capn, 19.8% discount to NAV):  announced that all "conditions relating to the acquisition of the £1.04 billion logistics portfolio from real estate funds advised by affiliates of Blackstone have now been satisfied" for £632m in cash (funded by a new £650m bank facility) and the admission of 221.4m BBOX shares

 Downing Renewables & Infrastructure Trust (DORE LN, Renewable Energy Infrastructure, £171.0m mkt capn, 10.7% discount to NAV): has confirmed Bidco and it have received regulatory clearance from OFGEM in relation to the proposed acquisition and the last day of trading in DORE shares is expected to be 3 November 2025.

 

Continuation vote

Barings Emerging EMEA Opportunities (BEMO LN, Global Emerging Markets, £93.8m mkt capn, 9.6% discount to NAV):  33.2% of shareholders voted against the continuation of the Company as a closed ended investment trust. "While the resolution passed, it received a significant number of votes against, the majority of which were attributable to a single shareholder. The Board is committed to taking the views of all shareholders into account and will give careful consideration to all views received."

 

Gearing news

Pershing Square Holdings (PSH/D LN, North America, £8,341.0m mkt capn, 28.4% discount to NAV): has priced its issue of $500m of 2032 USD notes at a coupon of 5.5%. The proceeds of the issue are expected to be used for general corporate purposes.

 Taylor Maritime calendar Q3 2025 update (TMI LN, 273.2m mkt capn): fleet NBV $202.3m; cash and equivalents $139.2m; charter revenue $31.1m; additional “opportunistic” Handysize vessel sale agreed at a 2.6% premium to FMV. $0.02 dividend declared in respect of the period. "Company has executed 50 disposals since the beginning of 2023, including 23 in the 2025 calendar year, as part of a vessel sales programme at an average of 3.0% discount to Fair Market Value. These sales will have generated total gross proceeds of $822.2 million once agreed sales complete." All outstanding debt was repaid in July 2025 such that "the Company's outstanding debt was $41.5 million as at 30 September 2025 (versus $98.4 million as at 30 June 2025) and comprised entirely of financial liabilities under sale-leaseback agreements including a $22.4 million purchase option which will fall away upon expiry". Debt to gross assets ratio of 10.6%

 Real Estate Credit Investments NAV as at 30 September 2025 (RECI LN, Property – Debt, £277.1m mkt capn, 12.6% discount to NAV): -1.9% over the month to 141.7pps, driven by dividend. £41.4m of cash, net leverage of 24.3%

 

Results / updates

Ashoka Whiteoak Emerging Markets Trust Quarter end September 2025 (AWEM LN, Global Emerging Markets, £56.2m mkt capn, 0.6% discount to NAV):  NAV TR 13.0% vs MSCI EM Index +12.6%; "For the quarter, Materials and Communication Services outperformed, while Energy and Financials underperformed. Large caps outperformed Small and Mid-caps this quarter. Among major EM markets, South Africa and Taiwan outperformed, while India and Indonesia underperformed."

 The Mercantile Investment Trust HY results to 31 July 2025 (MRC LN, UK All Companies, £1,790.5m mkt capn, 10.0% discount to NAV):  NAV TR +6.0% (debt at fair value) vs FTSE All Share Index (ex FTSE 100 and IC's) +7.2%; share price TR +6.0%; "Over the ten years to 31st January 2025, the Company's dividend grew at a rate of 6.8% per annum, well ahead of CPI inflation of 3.1% per annum over the same period." Two dividends for the year so far total 3.1pps (3.0pps 2024); "During the period, to help manage the discount and its volatility, the Board purchased 26,785,148 shares. These shares are held in Treasury and were purchased at an average discount to NAV of 9.7%, producing a modest accretion to the NAV for continuing shareholders. Since the end of the review period, the Company has purchased a further 14,482,533 shares. The discount currently stands at 9.7%." Gearing 14.5% (14.1% 31/01/25)

 Seraphim Space Investment Trust FY results to 30 June 2025 (SSIT LN, Growth Capital, £195.0m mkt capn, 30.6% discount to NAV):  NAV TR +23.2%; private portfolio represents 89.1% of NAV; cash balance of £21.5m. "The past year has marked a profound inflection point for the portfolio, shaped by the tectonic shifts in global geopolitics and the accelerating rearmament of Europe in the wake of the waning 'Pax Americana'".

 SEGRO plc trading update for period from 1 January to 30 September 2025 (SGRO LN, £9,780m mkt capn): “strong third quarter, with improving occupier sentiment reflected in £22m of new headline rent signed during the period, bringing the total signed year-to-date to £53m.”

 European Smaller Companies Trust FY results to 30 June 2025 (ESCT LN, European Smaller Companies, £754.2m mkt capn, 9.5% discount to NAV):  NAV TR +14.5% vs MSCI Europe ex UK Small Cap Index +14.0%; share price TR +21.9%; announced combination with European Assets Trust in June; is now the largest constituent of the AIC European Smaller Companies sector.  CT Savings Plan participants have until 14 January 2026 to transfer their new ESCT shares to their own platform otherwise the shares will automatically be sold by the scheme administrator. "The Company maintains a mid-single digit discount target and the discount at the year-end was 5.8%." "Following completion of the combination with EAT, we introduced our new dividend policy of paying quarterly dividends in respect of each financial year, targeting a total of at least 5.0% of the net asset value per share at the end of the preceding financial year. " Saba hold an "insignificant level" of shares. Continuation vote at the AGM (and every third year). Fourth interim dividend of 2.3pps declared, FY 2026 target of not less than 9pps

 Baillie Gifford Japan Trust FY results to 31 August 2025 (BGJT LN, Japan, £717.9m mkt capn, 9.3% discount to NAV):  NAV TR +20.5% vs TOPIX Index (£) +12.1%; share price TR +20.9%; final dividend of 10pps (2024 10p); net gearing 12.8% (18.1% 2024); 11.5% of share capital repurchased in the year, increasing NAV by 1.5%; "The Board believes that if the Company's shares trade at a double-digit discount, this presents an attractive opportunity to add value for shareholders through buybacks."

 Aberdeen Asia Focus FY results to 31 July 2025 (AAS LN, Asia Pacific Smaller Companies, £517.8m mkt capn, 11.8% discount to NAV):  NAV TR +20.3% vs MSCI AC Asia ex Japan Small Cap Index +7.6%; share price TR +26.6%; FY dividend (quarterly) 6.43pps (6.42pps 2024); Company joined the FTSE 250 Index in June 2025; net gearing 10.2% (10.4% 2024); bought back 11.6% of share capital (1.6% NAV uplift); next five year conditional tender 2026; OCR 0.91% (0.89% 2024)

 HarbourVest Global Private Equity Limited HY results to 31 July 2025 (HVPE LN, Private Equity, £2,178.3m mkt capn, 30.0% discount to NAV):  NAV TR +6.2%; share price TR -1.8%; $44m of shares repurchased; new SMA structure announced in early 2025 providing cost-efficient access to HarbourVest's global platform; $115m cash and $629m credit available; total unfunded commitments $2.3bn; early signs of a recovery in private market exit activity; continuation vote scheduled for July 2026

 AEW UK REIT NAV to 30 September 2025 (AEW LN, Property – UK Commercial, £176.0m mkt capn, 3.0% premium to NAV):  NAV 109.09pps (30/06/25 108.87pps); NAV TR 2.0%; 2pps quarterly dividend; dividend yield 7.3%; LTV 25.17% (30 June 2025 25.21%; 2.959% cost of debt to May 2027; re-issued 150k shares from treasury in the quarter; industrials is the largest exposure with 37% of the portfolio

 VinaCapital Vietnam Opportunity FY results to 30 June 2025 (VOF LN, Country Specialist, £615.7m mkt capn, 24.0% discount to NAV): NAV TR -2.2% (-9.7% in £ terms), share price TR -5.3%. Recognising that many shareholders value a regular income, our policy is to pay out dividends of approximately 1% of NAV per share, twice each year and normally declared in March and October. Increased RCF to $60m in April 2025. Bought back 11.05% of share capital in the period. "The recent recognition of Vietnam as an Emerging Market by FTSE Russell will also remind international investors of the increasing importance of this market."

 

Wind down / asset realization news

Riverstone Energy Limited (RSE LN, Commodities & Natural Resources, £178.3m mkt capn, 34.2% discount to NAV):  announced the proposed sale of 100% of its interest in Onyx Power.  Net proceeds expected of approximately $49m, payable in cash at completion and is anticipated to take place in Q1 2026.  Shortly following completion, the Company expects to announce a further compulsory redemption of ordinary shares.  The Company subsequently announced that it " has now redeemed 17,256,964 Shares (representing approximately 70% of the Company's issued share capital) for cancellation at a Redemption Price of £11.01 per Share." Payment by 5 November. "Following the redemption, the Company has 7,334,416 Shares in issue and does not hold any Shares in Treasury."

 Starwood European Real Estate Finance quarterly update to 30 September 2025 (SWEF LN, Property – Debt, £41.3m mkt capn, 6.8% discount to NAV):  two loans totalling £29.1m repaid in full plus one of £25m post quarter end; £65m returned to shareholders; another £25m is due back by end of October (as previously announced); four loans left, three (72% of value) classified in the lowest risk profile; £13m of cash; weighted average remaining contractual loan term of 0.3 years; weighted average LTV 75.1%

 Aquila European Renewables (AERS LN, Renewable Energy Infrastructure, £170.2m mkt capn, 39.6% discount to NAV):  the Company has "entered into share purchase agreements with funds advised by Aquila Capital for the sale of its Danish and Greek wind assets for a total consideration of approximately EUR 61.9m, representing a discount to prevailing fair valuation in the latest reported NAV as at 30 June 2025 of approximately 17%. Together with the sale of Sagres, which completed in June 2025, this represents a total cash consideration of EUR 78.3m from sales to funds managed and/or advised by Aquila Capital, at a weighted average discount to the prevailing respective fair valuation in the latest reported NAV of approximately 14%. This represents a material uplift to the effective look through equity value implied by the Company's current share price, which currently trades at a discount to the latest reported NAV as at 30 June 2025 of approximately 37%]. The Danish and Greek Disposals are subject to regulatory and other customary approvals, with completion of both disposals expected to occur by December 2025. In parallel, due diligence and negotiations with multiple potential investors in relation to the remaining assets in the portfolio are progressing and the Board expects to have further updates on these discussions later this quarter." An initial distribution is expected to be no less than Eur63m with further details in due course

 

Acquisition / Disposal news

Sirius Real Estate Limited (SRE LN, £1,540m mkt capn):  "notarised the acquisition of a business park in Feldkirchen, Germany, for €43.7 million (including acquisition costs)...Feldkirchen business park currently generates €3.4 million of annualised rent roll per annum and is 94% occupied with a 7.8 year weighted average unexpired lease term...The asset is anchored by Excelitas, a leading designer and manufacturer of high-performance optical and photonic solutions for defence, aerospace, medical and industrial applications, which occupies 72% of the park on a lease with 10.2 years to expiry."

 Partners Group Private Equity Limited (PEY LN, Private Equity, £736.5m mkt capn, 22.8% discount to NAV):  has agreed to exit its minority stake in Apex Logistics, valued at Eur16.7m

 ICG Enterprise Trust (ICGT LN, Private Equity, £987.8m mkt capn, 22.9% discount to NAV): has realised its investment in Froneri, which represented 2.7% of ICGT’s portfolio as at 31 July 2025 (its largest position), generating cash proceeds of €41m. "Pro forma for this announcement, ICGT would have Total Available Liquidity of £223 million and a gearing ratio of 3%."

 

Portfolio news

Biopharma Credit (BPCR LN, Debt – Direct Lending, £1,036.6m mkt capn, 7.2% discount to NAV): has received $2.6m in accrued interest and prepayment fees from BioCryst Pharmaceuticals. BPCR has funded “its investment of $30m to Valneva Austria GmbH, a subsidiary of Valneva S" as previously announced

 Custodian Property Income REIT (CREI LN, Property – UK Commercial, £368.4m mkt capn, 20.8% discount to NAV):  provided an update on the purchase of Merlin Properties Limited for £22.1m as announced on 2 June 2025.  "Since completion of the Transaction, the Merlin properties have integrated well into the Company’s portfolio, with Merlin occupancy remaining strong at almost 100% and a number of opportunities identified to drive value from increased rental income from upcoming lease events. The Transaction has also generated immediate capital upside with the disposal of two non-core Merlin properties for £0.6m, in aggregate 16% ahead of purchase price. A further five non-core assets recently sold at auction 46% ahead of purchase price, with the sales expected to generate proceeds of £2.2m in aggregate when they complete later this month. The proceeds of these sales will be recycled into value enhancing opportunities within the wider portfolio." (Frostrow client)

 Gore Street Energy Storage (GSF LN, Renewable Energy Infrastructure, £312.1m mkt capn, 39.8% discount to NAV): has appointed Angus Gordon Lennox and Norman Crighton as NEDs with immediate effect. “Thomas Murley and Malcolm King will retire from the Board on 16 December 2025… [and] current Chairman, Patrick Cox, and NED Caroline Banszky will not seek re-election at next year's AGM.” "Alexa Capital Limited has been engaged to advise on the sale process for selected pre-construction assets and the German asset, "Cremzow", which the Company has previously announced its intention to sell."

 Pantheon International NAV as at 30 September 2025 (PIN LN, Private Equity, £1,568.1m mkt capn, 29.7% discount to NAV): unchanged over the month to 510.7pps, as valuation losses were offset by FX and buyback accretion. £9.4m of share buybacks in the month (average 34.3% discount). Portfolio generated net cash of £27.6m in the month. 6% of portfolio valued at 30 September, 89% at 30 June and 4% at 31 March

 

Shareholder alignment

Marwyn Value Investors (MVI LN, UK Smaller Companies, £74.4m mkt capn, 46.2% discount to NAV):  James Corsellis, CIO of Marwyn Investment Management, bought 54k Ordinary shares at 134.3459pps and Marwyn Capital Management Limited bought 551,953 shares at the same price. James and MCML now hold 6.97m shares representing approximately 12.3% of voting rights. "It is expected that 37,761 of the Ordinary Shares acquired by MCML will subsequently be acquired by Marwyn employees, following which, the aggregate holding of Ordinary Shares by James and MCML will be 6,933,872 shares, representing approximately 12.26% of the Company's voting rights."

 Sequoia Economic Infrastructure Income Fund (SEQI LN, Infrastructure, £1,186.0m mkt capn, 16.5% discount to NAV):  the Investment Adviser has acquired 305,000 ordinary shares in the capital of the Company at an average price of 79.05 pps, in relation to fees payable for the three-month period ended 30 September 2025. The Ordinary Shares have been purchased pursuant to the Investment Advisory Agreement...Following the purchase, the Investment Adviser has an interest in 4,675,812 Ordinary Shares, representing 0.30% of the Company's issued Ordinary Shares (excluding Treasury Shares).

 

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

 

 

We note that the Global Equity data is this week skewed by the removal of Manchester & London IT (to the Technology sector).

The same applies in the North America sector with the reclassification of Middlefield Canadian Income now as an ETF

 

Equity Capital Markets / Investor demand

TwentyFour Income Fund (TFIF LN, Debt – Structured Finance, £863.5m mkt capn, 0.8% premium to NAV):  13,408,436 Ordinary shares elected for realisation at a 2% discount to NAV. Investor demand will be matched with any supply of Ordinary shares provided by the Realisation Opportunity at the Realisation Price.  The Company will buy back any Elected Shares not placed into the market but it is anticipated that all Elected Shares will be placed. Placing closed 12pm 23 October. Company subsequently announced that it has raised gross proceeds of £42.4m through the issue of new shares at 110.5pps. No scale back applied

 CVC Income & Growth Limited (CVC/E LN, Debt – Loans & Bonds, £193.1m / £89.3m mkt capn, 1.2% / 0.6% premium to NAV):  the Placing and WRAP retail offer raised £10.3m and Eur268,400. The Company issues redeemable ordinary shares at a 0.65% premium to NAV

 

Ex Dividend

AAIF 4.29p, API 0.921275p, BNKR 0.686p, CTY 5.4p, DNA3 2.0625p, NCYF 1p, PHI 1.5p, SEC 4.25p, SEQI 1.71875p, SHIP $0.025, SUPR 1.545p

Frostrow Investor Relations team – Grant Challis, Neil Winward, Matt Burrows, Nicholas Todd, Max Smith