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

 

“Optimism is the faith that leads to achievement; nothing can be done without hope or confidence” wrote Helen Keller 122 years ago.  That feels in short supply currently.

 There was an initial relief rally following the end to the longest US government shutdown in history (42 days). In the meantime, investors found it interesting that SoftBank sold its shares in Nvidia for $5.8bn given they continue to search for signs that the tech sector is peaking.  That interest has intensified and is certainly testing confidence a little.

 In the UK, GDP growth in the quarter to end September 2025 was just 0.1%, down from 0.3% in Q2.  We also note UK unemployment rose from 4.8% to 5% in the quarter to end September for the first time since 2021.  As we approach the UK Budget, the knives are out and Keir Starmer is feeling threatened by young bucks such as Wes Streeting, Health Secretary.  Speculation is certainly mounting that it will be an important turning point politically, which could of course have financial asset implications.  Despite the political and financial concerns in the UK, we have not lost the support of the bond markets at this time, but we note UK Gilts selling off a little, particularly at the longer end, and Sterling also.  A new auction of inflation-linked UK debt earlier in the week, maturing in 2038, did attract record demand from investors keen to buy bonds. Orders topped £69bn, a record, indicating significant demand, attractive no doubt due to the concerns about Labour’s stewardship of the economy and the rising cost of living. 

 In the investment trust sector, average discounts narrowed 30bps to 13.6%, still historically wide, and against a 14.2% average for 2025.  The ongoing private wealth sellers and chase for “liquidity” means that buybacks still represent 38% of all LSE market announcements.  Two investment trusts fell on their swords this week – Smithson Investment Trust, turning into an oeic (to get Saba out) and Franklin Global merging into Invesco Global to scale up and have a chance of attracting further capital through issuance.  We are one step closer again to all of us holding the same thing in our portfolios sadly without thought for index concentration caused by ETF flows.  We do note one chink of light in the market this week with a £2bn equity raise for SSE in a 24-hour period at a 3.8% premium to undisturbed price (having rallied 17% also).  It warms my heart to see the market can still function and attract capital for stories at least on occasion.  Interesting that SSE is one of the larger holdings of Frostrow client, Ecofin Global Infrastructure Income and Growth Trust, trading at a 10.6% discount to NAV.  Also at Frostrow Capital, Worldwide Healthcare Trust put out their strong half years results showing very clearly why they are the largest healthcare investor in the world, Custodian Property Income REIT continue to deliver on returns in their latest quarterly update and Pacific Assets announced they are consulting with shareholders ahead of a strategic review.

 Let’s finish with some “optimism”. Post the demise of Smithson IT in the coming weeks, there will be another £280m or so being reinvested into the sector by our friends at Saba Capital. The sector remains at close to a 14% discount to NAV.  You really do not want to be short of investment trusts. 

 

2. Frostrow Investor Events

 

Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £146.9m mkt capn, 45.6% 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, £289.9m mkt capn, 10.3% discount to NAV):  the Phoenix investment team are available for meetings with investors in 2025. The last webinar was recorded on 14 July 2025 and is available to watch here:

https://www.youtube.com/watch?v=0hl0yNZgRlM

 

Kartik Kumar gives his updated thoughts at the time of our London investor seminar in May 2025 here:

https://www.youtube.com/watch?v=ZZGGM5Aw5sw

 

And via UK Investor Magazine also (May 2025):

Aurora UK Alpha Investment Presentation May 2025 - UK Investor Magazine

 

Biotech Growth Trust (BIOG LN, Biotechnology & Healthcare, £253.6m mkt cap, 6.6% discount to NAV): Geoff Hsu, lead manager, gives his thoughts at the AGM on 17 July 2025:

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

 

The Edison webinar from early November 2025 is also available here: https://lnkd.in/gea-wUbH

 

CC Japan Income & Growth Trust (CCJI LN, Japan, £296.4m 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, £103.8m mkt capn, 1.1% 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, £368.9m mkt capn, 19.7% 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 provided a further investment update via Investor Meet Company on 30 October 2025, which you can access here:

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

 

Ecofin Global Utilities & Infrastructure (EGL LN, Infrastructure Securities, £221.7m mkt capn, 10.6% 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 conducted an investor webinar with Jean-Hugues on 5 November 2025, with link below for those who missed it:

https://www.youtube.com/watch?v=nZDYoUZjy18

 

Finsbury Growth & Income Trust (FGT LN, UK Equity Income, £1,031.8m mkt capn, 8.2% 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, £68.3m mkt capn, 1.8% 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, £160.4m mkt capn, 11.1% 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, £1,069.4m mkt capn, 1.1% 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, £1,466.8m 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

 

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/

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

 And now also in written format - Frostrow Talks Trusts October 2025 Summary | Updates | Investor Meet Company

 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, Wednesday saw a total of 477 LSE market announcements across the board, with 185 in reference to a buyback or tender, 38.8% of total.  4 referred to equity issuance

 Fidelity Emerging Markets (FEML LN, Global Emerging Markets, £467.6m mkt capn, 9.3% discount to NAV):  repurchased 16,441,177 shares from Strathclyde Pension Fund, at a 14% discount, which will be cancelled. “Following the repurchase, there will be an uplift to the NAV of approx. 4.5% which will be reflected in the NAV calculated as at close of business on 12 November 2025.”

 

Redemption opportunity

Literacy Capital (BOOK LN, Private Equity, £227.4m mkt capn, 26.8% discount to NAV):  announced a first capital distribution of approximately £6m to shareholders via B shares. Redemption date is 13 November

 

Potential options / Strategic review

PPHE Hotel Group (PPHE LN, £711.7m mkt capn): shareholders Eli Papouchado and Boris Ivesha, who collectively own c.44% of the voting rights, have noted “recent media speculation and confirm that they intend to hold a small handful of meetings with financial investors in relation to a range of potential options, from contributing growth capital to PPHE, to a potential partial monetisation of their stakes in PPHE.”

 Pacific Assets Trust (PAC LN, Asia Pacific, £428.6m mkt capn, 10.9% discount to NAV):  confirmed that with effect from close on 14 November 2025, the investment management responsibilities of Stewart Investors, the Company's portfolio manager, will transition to its affiliate investment team, FSSA Investment Managers.  "Both SI and FSSA are autonomous investment groups within First Sentier Group (which, prior to 2020, was known as First State Stewart). Prior to 2015, SI and FSSA operated collectively as one investment team under First State Stewart. In 2015, First State Stewart separated into SI and FSSA, and, since such date, the two entities have operated as separate investment teams. Following the recent departure from SI of David Gait, the Company's co-portfolio manager, and two of David's colleagues, as announced by the Company on 21 August 2025, First Sentier Group has made the decision to close the SI business and transition the investment management responsibilities of SI to FSSA. The Board has been informed that, as a result of this transition and with effect from close on 14 November 2025, Doug Ledingham and Jack Nelson will no longer be the Company's lead and deputy portfolio managers respectively. The Board has been notified that, with effect from close on 14 November 2025, the Company's portfolio will be managed by Rizi Mohanty (lead portfolio manager) and Martin Lau (co-portfolio manager) of FSSA." The Board intends to consult with its largest shareholders ahead of commencing a strategic review. (Frostrow client)

 

Saba Capital update

Edinburgh Worldwide Investment Trust (EWI LN, Global Smaller Companies, £702.4m mkt capn, 5.3% discount to NAV):  Saba Capital position increased from 29% to 30%

 Vietnam Enterprise Investments (VEIL LN, Country Specialist, £1,221.6m mkt capn, 13.7% discount to NAV):  Saba Capital hold 5% now

 Smithson Investment Trust (SSON LN, Global Smaller Companies, £1,729.6m mkt capn, 2.6% discount to NAV):  post a shareholder consultation, announced restructuring proposals to rollover the Company's assets into Smithson Equity Fund, an open-ended vehicle managed by Fundsmith. This allows for continuity of investment manager and strategy whilst offering shareholders who want it a full cash exit at NAV less costs not covered by the manager contribution. "The management fee of SSON is charged at 0.9% of market capitalisation. New Smithson [the Oeic] will also charge 0.9% but this will be based on NAV". Scheme expected to be completed by end of Q1 2026

 BlackRock Throgmorton Trust (THRG LN, UK Smaller Companies, £456.2m mkt capn, 8.1% discount to NAV):  Saba Capital holding increased from 14.0% to 15.1%

 

M&A news

Fidelity Japan Trust (FJV LN, Japan, £264.3m mkt capn, 4.6% discount to NAV):  shares suspended (in advance of the merger with AVI Japan Opportunities Trust). The Company subsequently announced that 68% of investors elect to rollover into AVI Japan Opportunities Trust whilst 32% elected for cash

 Franklin Global Trust (FRGT LN, Global, £182.5m mkt capn, 1.1% discount to NAV): announced that heads of terms have been agreed for a combination of the Company with Invesco Global Equity Income Trust (IGET LN) with Invesco Fund Managers Limited continuing to manage the enlarged portfolio in accordance with the IGET investment objective and policy. Shareholders should benefit from the Invesco track record as well as benefit from an immediate uplift in value (given IGET trades at a premium to NAV), larger scale, and enhanced dividend and a cost contribution from IGET. The default option (ie if you do nothing) will be to roll into IGET, or there is a cash option at NAV less 2%

 

Capital Allocation update

Greencoat UK Wind (UKW LN, Renewable Energy Infrastructure, £2,156.6m mkt capn, 28.4% discount to NAV): update on capital allocation given.  The fees for the investment manager are already fully aligned with shareholders by reference to market capitalisation, which continues to be unmatched by peers, and disciplined capital allocation remains a key priority.  10.35pps dividend target for 2025 reiterated; £222m of asset disposals completed at NAV in the last 12 months, with proceeds used to repay debt and fund share buybacks; £198m of share buybacks completed out of the £200m buyback programme, adding 1.7pps to NAV; "As the Company approaches completion of its £200m total buyback programme, it is working towards further asset disposals, with a range of potential buyers. Furthermore, underlying asset cashflows are expected to increase as we enter the seasonally higher winter cash generation period and UKW continues to benefit from structurally high forecast dividend cover. The Board and Investment Manager remain confident in their ability to allocate excess capital across further buybacks and de-gearing whilst maintaining strategic flexibility for the Company. This puts the Company in a position of strength from which to assess future capital allocation priorities."

 GCP Infrastructure Investments Limited 30 September 2025 update (GCP LN, Infrastructure, £592.7m mkt capn, 29.5% discount to NAV): NAV 101.4p as previously announced; £20m outstanding under the RCF representing net debt of £8m (down from £36.2m at end June). Bought back 8.9m shares in the quarter (with c23m since the announcement regarding a capital allocation policy). "The Company continues to progress transactions to dispose of assets in those sectors targeted in the capital allocation policy. If completed, such transactions would enable the Company to complete the capital allocation policy objectives of returning at least £50 million to shareholders and reducing the Company's outstanding debt to nil. Further announcements will be made in due course, including as part of the Company's annual report and financial statements, which are due to be published in December 2025."

 

Continuation vote

Schroder Income Growth FY results to 31 August 2025 (SCF LN, UK Equity Income, £227.4m mkt capn, 7.9% discount to NAV):  NAV TR +9.6% vs FTSE All Share Index +12.6%; share price TR +12.9%; 30 years of dividend increases (total income +6% in the year); 14.7pps dividend (+3.5% 2024); as announced in December 2024, the Board is now providing a smoother dividend distribution over the four dividend payments; "It is becoming more challenging for dividend income alone to bridge the gap between earnings per share and the dividend level sought by your Board, particularly when aiming to increase the annual dividend. Several factors contribute to this: companies are now more prudent, demonstrating higher dividend cover and lower payout ratios than previously; many are focusing on share buybacks rather than dividend increases; special dividends have reverted to more sustainable levels; and financing costs have risen as interest rates have normalised." Management fee reduced from 0.45% to 0.4% and company secretarial and administration fee was removed; 2% of share capital repurchased in the year; average gearing 12.1%; Continuation vote at the forthcoming AGM (next in 2030)

 

Valuation update

Castelnau Group Limited (CGL LN, Flexible Investment, £263.5m mkt capn, 21.8% discount to NAV):  notes that Dignity Finance PLC has announced the early redemption of its remaining £39m Class A notes.  Additionally, CGL notes that it anticipates that the valuation of Valderrama (holding company for Dignity) will increase by more than 10% at year-end compared to 30 September 2025, primarily driven by higher cash generation (including the debt reduction mentioned) and updating for operating trends in the business.  Valderrama represented 106.6% of CGL NAV as at 30 September 2025

 

Results / updates

Utilico Emerging Markets Trust October 2025 update (UWEM LN, Global Emerging Markets, £472.6m mkt capn, 11.5% discount to NAV):  NAV TR +2.6% vs MSCI Emerging Markets TR Index £ +6.8%; gains driven primarily by mega-cap tech stocks whilst the broader markets remained in the shadows. £5m drawn on debt facility (£21.9m). Discount widened from 10.5% to 12.1%; bought back 3.7% of share capital

 3i Infrastructure HY results to 30 September 2025 (3IN LN, Infrastructure, £3,348.1m mkt capn, 11.4% discount to NAV):  NAV TR +7.4% to 407.9pps as 3IN’s portfolio “has continued to deliver strong performance… Total income and non-income cash increased by 18% compared with the same period last year.” Interim dividend of 6.725pps declared, and 3IN remains “on track to deliver” FY2026 dividend target of 13.45pps. Weighted average discount rate of 11.5% (11.3% 31/3/25). OCR 1.51% (1.6% 30/9/24). £350m drawn on a £900m RCF

 Henderson Far East Income Limited FY results to 31 August 2025 (HFEL LN, Asia Pacific Equity Income, £458.8m mkt capn, 3.0% premium to NAV):  NAV TR +12.7% vs FTSE Wold Asia Pacific ex Japan Index +14.1%; share price TR +13.6%; adopting a new comparator index, the MSCI AC Asia Pacific ex Japan High Dividend Yield Index (+13.9%); issued 17.6m shares at a premium to NAV; 24.9p dividend per share (+1.2%), 18 year track record of increasing dividends

 Baker Steel Resources Trust (BSRT LN, Commodities & Natural Resources, £79.6m mkt capn, 32.8% discount to NAV): NAV +1.5%, "largely as a result of increases in the listed share prices of Tungsten West Plc and Blue Moon Metals Inc."

 The Scottish Oriental Smaller Companies Trust FY results to 31 August 2025 (SST LN, Asia Pacific Smaller Companies, £324.3m mkt capn, 13.5% discount to NAV):  NAV TR -1.6% vs MSCI AC Asia ex Japan Small Cap Index +8.2% and MSCI AC Asia ex Japan Index +16.6%; share price TR +3.5%; "Asian equity markets were positive overall but volatile, with performance led by a narrow group of larger technology stocks, particularly in China." Company bought back 2.8m shares representing 2.4% of share capital.  "The Board continues to use discretion to re-purchase shares in the market in order to help manage both the level and volatility of the discount." The Company markets through "publications such as FT, Yahoo Finance, Reddit, The Telegraph, The Times and Investors Chronicle."  5 for 1 share split approved in January 2025

 AVI Global Trust FY results to 30 September 2025 (AGT LN, Global, £1,051.6m mkt capn, 9.1% discount to NAV):  NAV TR +12.4% vs MSCI AC World Index £ TR +16.8%; share price TR +15.4%; "There continues to be no shortage of interesting situations in the portfolio, as set out in their report. In particular, having had success in Japan in recent years, AVI are now turning their attention to a growing opportunity in South Korea, which is already manifesting in some holdings in the portfolio." Total dividends of 4.5pps (+20% 2024), albeit the portfolio is managed primarily for capital growth. "The Board is pleased to note that we have continued to experience an increase in the number of shares owned by retail investment platforms, which account for four of our top five shareholders, the other being a large wealth manager." 5.9% of share capital was repurchased giving shareholders who remain an uplift of 0.6%

 Picton Property Income Limited HY results to 30 September 2025 (PCTN LN, £392.1m mkt capn):  EPRA NTA TR +3.4%; EPRA EPS 2p vs DPS 1.9p (DPS +2.7%; dividend cover 106%); £30m allocated to share buybacks since January 2025, with 13.6m shares repurchased during the period. LFL portfolio valuation increase of +0.8%; LFF increase in ERV of +3.7%; portfolio weighted towards industrial sector 68%, office 20% and retail and leisure 12%. LTV 22% (down from 24% at 31/3/25)

 Ruffer Investment Company October 2025 update (RICA LN, Flexible Investment, £872.4m mkt capn, 3.7% discount to NAV): continue to take profits in gold mining equities, nearly halving the allocation since June by October's market peak.  "We believe there is meaningful upside potential in many UK stocks, and we added to interest rate sensitive equities over the month." Added to "out-of-favour pharmaceutical stocks and to a basket of Japan equities...however, we are still deeply cautious of the US market." Ruffer Investment Company October 2025 update (RICA LN): continue to take profits in gold mining equities, nearly halving the allocation since June by October's market peak.  "We believe there is meaningful upside potential in many UK stocks, and we added to interest rate sensitive equities over the month." Added to "out-of-favour pharmaceutical stocks and to a basket of Japan equities...however, we are still deeply cautious of the US market."

 Regional REIT Limited Q3 2025 update (RGL LN, Property – UK Commercial, £170.2m mkt capn, 49.9% discount to NAV): £17.1m of asset disposals at 1% above 30 June valuation, expecting to achieve the "upper end" of an estimated £40m/£50m disposals for FY. Leasing activity negatively impacted by the uncertainty from the broader economic environment and UK Government. £54.3m rent roll (£56.7m 30 June 2025); EPRA occupancy 76.8% (78.6% 30 June 2025); net LTV 41.8% (unchgd from 2024); cash of £54.4m; 2.5pps dividend for the quarter. "The level of future payment of dividends will be determined by the Board having regard to, among other factors, the financial position and performance of the Group at the relevant time, UK REIT requirements, the interest of shareholders and the long-term future of the Company."

 3i Group HY results to 30 September 2025 (III LN, Private Equity, £33,375.9m mkt capn, 17.3% premium to NAV): NAV TR +13% to 2857pps, driven by Action (III acquired 2.2% of the company from GIC in exchange for III shares taking III’s equity ownership to 601.%) and FX.  Has a £1.2bn RCF to July 2030 and have cash of £439m.  Gearing 3%. "We remain cautious in the deployment of capital into new investment, but will continue to allocate selectively, including to lower-risk reinvestments in businesses we know and trust. We are mindful that both the transaction market and the wider environment are likely to remain challenging into the second half of our financial year."

 Custodian Property Income REIT Q2 trading update (CREI LN, Property – UK Commercial, £368.9m mkt capn, 19.7% discount to NAV): NAV TR +3.8% (AV increase primarily due to valuation increases across all key property sectors); 6pps dividend for YE 31 March 2026 target (7.3% dividend yield on 82p share price). 6 assets sold in the quarter; net gearing of 26.4% (down from 26.9%); £173.5m of drawn debt with weighted average cost of 4%. "The direct property market has been witnessing a recovery since September 2024, with valuations improving quarter-on-quarter, driven by rental growth across all sectors of the property market. Logic suggests that the strong performance of the underlying assets should flow through to listed property companies’ share prices, but a further shift in market sentiment is required along with a willingness to consider the longer-term opportunity that exists in real estate." Implemented a £5m share buyback programme due to the current share price materially under-valuing the portfolio. "To 11 November 2025, the Company has purchased a total of 3.7m shares under the Buyback Programme, which are held in treasury. Aggregate consideration for these buybacks was £3.0m at a weighted average cost per share of 78.3p, representing an average 18.0% discount to prevailing NAV. " (Frostrow client)

 Bluefield Solar Fund (BSIF LN, Renewable Energy Infrastructure, £438.1m mkt capn, 35.9% discount to NAV): NAV as at 30 September 2025: -2.2% over calendar Q3 2025 to 114pps, driven by generation that “was slightly below forecast during the quarter, primarily due to reduced availability caused principally by turbine outages on two of the company's wind assets,” as well as REGO update. Gearing now stands at 45.9% of GAV.

 

Wind down / asset realization news

Hydrogen Capital Growth HY results to 30 June 2025 (HGEN LN, Renewable Energy Infrastructure, £33.2m mkt capn, 37.8% discount to NAV): Shore Capital appointed as financial adviser and broker in May, and on 30 July 2025...terminated the existing arrangements with its previous Investment Adviser, HydrogenOne Capital LLP and appointed RWC Asset Management LLP also announcing its intention to propose a managed realisation to shareholders. "...the Group's cash position remains challenged at the time of writing, with cash of £1.1m as at 30 September, which gives working capital until early in 2026. However, we are pursuing options that could unlock funding for the Company, and the Board will update on this as and when appropriate." Circular published to propose moving to a realisation policy

 Home REIT (HOME LN, Property – UK Residential, suspended): confirmed it has entered into exclusivity with Patron Capital in respect of a sale of the majority of its assets (700 properties, out of 853), for an indicative price of £123m.

 

Management team news

Foresight Solar Fund Limited (FSFL LN, Renewable Energy Infrastructure, £384.1m mkt capn, 35.3% discount to NAV):  investment manager, Ross Driver, will leave Foresight Group at the end of 2025 to pursue other opportunities. "The existing fund management team at Foresight, consisting of Toby Virno, David Goodwin and Matheus Fierro, will remain in place, drawing on Foresight's extensive solar asset management expertise, led by portfolio director Julian Elsworth. The broader team will continue to be supported by the senior leadership of Foresight, who remain actively involved in the oversight of Foresight Solar. A process to recruit a senior member of the Foresight Solar fund management team is underway with the expectation of an update in the first quarter of 2026."

 Henderson Smaller Companies (HSL LN, UK Smaller Companies, £505.9m mkt capn, 11.1% discount to NAV): Cassie Herlihy appointed as Deputy Fund Manager effective from 30 November 2025, working with lead Fund Manager, Indriatti van Hien, who has managed the portfolio since 2016

 Majedie Investments (MAJE LN, Flexible Investment, £130.4m mkt capn, 16.9% discount to NAV):  the Board notes that its manager, Marylebone Partners LLP, has received regulatory approval to become part of Brown Advisory, with change of control expected to be effective from 21 November 2025.

 Crystal Amber (CRS LN, UK Smaller Companies, £94.5m mkt capn, 17.0% discount to NAV): 73.5% of NAV is comprised of its holding in Morphic Medal Inc.  currently awaiting FDA approval.  Crysal Amber Asset Management has informed the Board of its intention to resign as investment manager and the Board accept their decision.  "In light of these factors and following engagement with major shareholders, the Board has determined that the appointment of a new investment manager that can assist with the investment requirements and commercialisation of MMI and adopt a new strategy utilising the Fund's cash resources to make new investments represents the best course to enhance long-term shareholder value and liquidity." CRS has received a “a strategic proposal from Tarncourt Capital in relation to the investment management of the fund and the implementation of a refreshed investment strategy focused on high-conviction, deep value opportunities across the UK and Europe.” “Tarncourt has expressed its willingness to become a significant and highly aligned shareholder in” CRS and Saba (26.4% of ISC) and Merseyside Pension Fund (20.6% of ISC) have indicated their support for the transaction.

 

Gearing news

Partners Group Private Equity (PEY LN, Private Equity, £713.0m mkt capn, 24.5% discount to NAV): announced the increase of its RCF from Eur140m to Eur150m, providing additional working capital headroom and enabling greater flexibility in capital allocation decisions, all for a reduction in commitment fee and margin

 

Acquisition / Disposal news

Supermarket Income REIT (SUPR LN, £992.0m mkt capn):  announced that it has completed two acquisitions totalling £40.9m that are accretive to earnings and WAULT. One acquisition is for 10 Sainsbury's convenience stores, the Company's first investment in this sector. LTV of 36%, and WAULT at 11 years. SUPR subsequently announced that it has acquired 20 Carrefour supermarkets in France for €123m, representing a 6.6% NIY, via a sale and leaseback transaction. "The Portfolio operates under the Carrefour brand and is geographically diversified across France, adding new and complementary locations to SUPR's existing portfolio." Weighted average lease term of 12 years for the acquired portfolio. The c£200m Blue Owl JV funds are now fully deployed

 HgCapital Trust (HGT LN, Private Equity, £2,206.3m mkt capn, 10.7% discount to NAV):  announced an investment in Diamant Software of £19m. £360m of liquid resources remain (14% of end September NAV)

 ICG Enterprise Trust (ICGT LN, Private Equity, £935.4m mkt capn, 26.7% discount to NAV):  announced that it has realised its 1.4% position in David Lloyd.  The sale was executed in line with the last reported NAV and £20m of cash has been received.  At 31 July 2025, ICGT had Total Available Liquidity of £187 million and a gearing ratio of 5%

 

Renewables consultation

Foresight Environmental Infrastructure (FGEN LN, Renewable Energy Infrastructure, £393.9m mkt capn, 40.2% discount to NAV): UK Renewable Obligation Scheme and Feed in Tariff Consultation estimates option 1 under Government’s consultation on subsidy indexation changes would reduce NAV by 0.5pps (0.5%) and option 2 would result in a 6.6pps (6.3%) hit (assuming CPI at 2.25%)

 

Trying to attract retail investors

The Schiehallion Fund Limited (MNTN LN, Growth Capital, £1,173.5m mkt capn, 28.4% discount to NAV):  published a circular as "In order to make the Ordinary Shares eligible for Admission, while also seeking to maintain the Company's status as an Foreign Private Issuer, the Board is proposing to adopt new articles of association in place of the Existing Articles which will amend the voting structure under the Existing Articles by introducing a new special voting share of the Company and removing the voting cramdown mechanism...The Proposals are expected to benefit the Company by broadening the appeal of the Ordinary Shares to a wider range of investors. Admission is expected to improve the Company's ability to market the Ordinary Shares to retail investors (where appropriate) and improve the liquidity in the Ordinary Shares as a result of having access to a potentially larger pool of capital."

 

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

 

 

NB – we note 3i Group’s significant price fall / premium contraction this week has impacted on Private Equity figures.

 

Equity Capital Markets / Investor demand

n/a

 

Ex Dividend

PSH 16.46cps, TPV 2pps, FEML 26cps, ICGT 9pps, FAS 20.5pps, BGFD 10pps, INPP 2.14pps, SBSI 3.76pps, MAJE 2.2pps, UKW 2.59pps, GCP 1.75pps, NSI 1.85pps, ORIT 1.54pps, THRL 1.508pps,, MUT 9.5pps, BRAI 3.44pps, PRSR 1.1pps, AERS 0.65cps, AIRE 1.4pps, PEY 37.5cps, FAIR 2cps, FA17 2cps, NESF 2.11pps, TRIG 1.8875pps, SAIN 3.95pps