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:
https://www.investormeetcompany.com/frostrow-capital/register-investor
Good morning investment trust investors,
Contents
- Overview for the week
- Frostrow Investor Events
- Investment Themes
- Sector data for the week
- Overview for the week
The Supreme Court in the US blocked Donald Trump's use of tariff's and imposed a 10% tariff immediately on all countries for 150 days, with 15% discussed also, creating another round of market uncertainty particularly as to whether tariff refunds are going to be possible. It did not really matter though, as equity markets were generally positive in the week, with the FTSE 100 nearing a new round number of 11,000 and the Nikkei 225 just a stone’s throw from 60,000. Trump’s State of the Union speech was largely an anti-climate change rant, with perhaps more relevance for oil prices which continued to inch higher as US / Iran nuclear talks continued. Nvidia results came along for another quarter and this time although earnings beat expectations again, the share price barely moved ultimately.
This week we are now four years into the Russia / Ukraine ‘formal’ conflict with peace talks continuing, at least in theory. In the UK, retail sales fell sharply with the figures being blamed on the wet weather (in case you did not notice). JPM boss Jamie Dimon has predicted that UK unemployment will rise ultimately above the level seen in the Covid pandemic period. In UK politics, the Green Party won the Gorton by-election beating the incumbent Labour Party by a very long way, as well as Reform.
The investment trust sector average discount remained steady at a still highly attractive level of 11.5%. It was a poor week for student accommodation and private equity and strong for commodities, real estate, infrastructure, emerging markets and Japan. Saba continued to waste board time and money, as well as just frankly irritating retail shareholders who are in it for long term investment opportunities by not electing for the tender offer at Impax Environmental Markets. The sector saw a lot of year end December results come through, as well as news highlighting that Tritax Big Box REIT is joining the FTSE 100 Index, the seventh investment trust to do so (and in so doing, highlighting that a company only needs a market cap of circa £4.2bn to make it in today – wow!). We also sadly say goodbye to Diverse Income Trust, offering a full cash exit and a route to an open-ended equivalent fund, as well as a take private proposal for Frostrow client, Augmentum Fintech at 111p, a 27% premium to the closing price pre-announcement, albeit a discount to the last published NAV. More than half of Smithson shareholders wanted their money back rather than the open-ended fund. We finally note that Pensions Minister, Torsten Bell, is under intense pressure to include investment trusts as a qualifying asset in the Pension Schemes Bill. Of course, there are zero reasons not to do this and the downside of excluding investment trusts vs other structures like LTAFs will lead to major problems for the Government in due course, as we all know.
Unlike Donald Trump, we do not charge a tariff to read this update. Thank you for doing so. Do not be short of investment trusts.
2. Frostrow Investor Events
Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £181.5m mkt capn, 32.0% 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 5 December 2025 is available here:
https://www.investormeetcompany.com/company/meetings/interim-results-535
Aurora UK Alpha (ARR LN, UK All Companies, £291.4m mkt capn, 11.0% 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
The latest update from the management team, from 26 January 2026, is available to view here:
https://www.youtube.com/watch?v=8BbZc9dgjB0
Biotech Growth Trust (BIOG LN, Biotechnology & Healthcare, £255.2m mkt cap, 8.4% 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, £340.9m mkt capn, 8.4% 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
CCJI QuotedData In the Hot Seat interview to view here:
https://www.youtube.com/live/eBmf8nisElM?si=O11Cr1IHSuQbv2A0
An Investor Meet Company webinar is planned for 12pm on 18 March 2026. Do subscribe here:
https://www.investormeetcompany.com/cc-japan-income-growth-trust-plc/register-investor
CQS Natural Resources Growth & Income (CYN LN, Commodities & Natural Resources, £162.3m mkt capn, 0.6% 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
The IMC webinar from 2 December 2025 is available here:
https://www.investormeetcompany.com/company/meetings/investor-update-87
Custodian Property Income REIT (CREI LN, Property UK Commercial, £405.4m mkt capn, 8.7% 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 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
An Investor Meet Company webinar took place on 13 February 2026. You can view it here:
https://www.investormeetcompany.com/meetings/investor-presentation-997
Ecofin Global Utilities & Infrastructure (EGL LN, Infrastructure Securities, £250.4m mkt capn, 4.9% discount to NAV) : Jean-Hugues de laMaze, lead manager of the Trust conducted an investor webinar with Frostrow on 5 November 2025, with link below for those who missed it:
https://www.youtube.com/watch?v=nZDYoUZjy18
An Investor Meet Company webinar took place on 25 February 2026, and for those who missed it, do access it here:
https://www.investormeetcompany.com/company/meetings/investor-presentation-981
Finsbury Growth & Income Trust (FGT LN, UK Equity Income, £876.3m mkt capn, 6.5% discount to NAV): Frostrow highlight Nick Train’s presentation following our London investor event (May 2025):
https://www.youtube.com/watch?v=HeiFCPd5zS8
The IMC webinar from 5 December 2025 is available here:
https://www.youtube.com/embed/7j91YsLT3sI?rel=0
The Company’s AGM of 15 January 2026, including Nick Train’s presentation is available to view here:
https://www.youtube.com/watch?v=2zZXsxaL9xQ
MIGO Opportunities Trust (MIGO LN, Flexible Investment, £68.3m mkt capn, 4.8% 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 held in August 2025:
https://www.investormeetcompany.com/company/meetings/investor-update-webinar-1
Please attend the next Investor Meet Company webinar to be held at 12pm on 24 March 2026:
https://www.investormeetcompany.com/migo-opportunities-trust-plc/register-investor
Mobius Investment Trust (MMIT LN, Global Emerging Markets, £97.2m mkt capn, 12.0% 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, £1,193.7m mkt capn, 0.9% premium to NAV):
Read the quarterly Temple Bar IT newsletter here if your Bar is set high and your portfolio is your Temple: https://www.templebarinvestments.co.uk/media/insights/investing-through-pessimism/
Co-portfolio manager, Nick Purves, recorded some comments at the Winterfloods Annual investor event in January 2026, available to view here:
Nick Purves, Temple Bar - Finding Value in UK Equities | Winterflood Conference 2026
The Frostrow webinar which took place on 29 January 2026 is available here to view:
https://www.youtube.com/watch?v=laU-UtHBp8Q
An Investor Meet Company webinar is planned for 11am on 11 March 2026. Do subscribe here:
https://www.investormeetcompany.com/companies/temple-bar-investment-trust-plc
Worldwide Healthcare Trust (WWH LN, Biotechnology & Healthcare, £1,341.4m mkt capn, 8.1% 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
Trevor Polischuk’s comments at the Winterflood’s Annual conference were recorded here (January 2026):
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 – despite Elon Musk’s views. 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 January 2026 summary podcast here: https://www.investormeetcompany.com/company/updates/frostrow-talks-trusts-january-2026-podcast
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3. Further investment themes evident in the investment trust sector this week include:
Discount / Premium control
A total of 418 corporate announcements from Thursday this week on the LSE, of which 144 were in reference to share buybacks (34.5% of total). 12 referred to equity issuance
Georgia Capital (CGEO LN, £1,130m mkt capn): announced a $50m share buyback programme to remain in place for a period of nine months. "The purpose of the buyback is to reduce the share capital."
Tender / Redemption update
BlackRock Frontiers Investment Trust (BRFI LN, Global Emerging Markets, £388.0m mkt capn, 1.3% premium to NAV): 25.9m shares (representing 13.7% of share capital) elected to tender their shares. "Winterflood, as the Company’s broker, will now seek to sell some or all of the Tender Shares to Incoming Investors at the Investment Price, in accordance with the terms set out in the Circular. The Investment Price will be a price equal to the Net Asset Value per Ordinary Share as at the Calculation Date. Incoming Investors will be responsible for paying any incidental costs, including stamp duty or stamp duty reserve tax and commission payable to Winterflood, arising in connection with the sale of On-Sale Shares."
The Diverse Income Trust (DIVI LN, UK Equity Income, £283.7m mkt capn, 5.2% discount to NAV): after considering options, the Board has decided to offer shareholders the option to roll their investment into shares in the Premier Miton UK Multi Cap Income Fund (an Oeic) as well as offering shareholders a cash exit option for up to 100% of their shareholding in DIVI. The rollover option into the Oeic is expected to be the default option for shareholders. The scheme is expected to take effect around the end of the second quarter of 2026, with a shareholder circular to follow
Saba news
Workspace Group (WKP LN, £830.7m mkt capn): Saba Capital holding increased from 13.2% to 14.3%
River UK Micro Cap (RMMC LN, UK Smaller Companies, £83.2m mkt capn, 10.9% discount to NAV): Saba Capital holding decreased from 15.8% to 14.9%
Gore Street Energy Storage Fund (GSF LN. Renewable Energy Infrastructure, £266.2m mkt capn, 42.0% discount to NAV): Saba Capital holding increased from 11.1% to 13.1%;
Impax Environmental Markets (IEM LN, Environmental, £839.7m mkt capn, 6.3% discount to NAV): the Company announced that the special resolution put forward at its general meeting to approve the Continuation Tender Offer was passed by shareholders. "However, the Board reiterates that the Continuation Tender Offer is conditional on the election by Saba to tender all or materially all of the ordinary shares in the Company to which it is beneficially entitled. The Board notes that at the time of publication of the circular, Saba had indicated that it may not support the Continuation Tender Offer. The Board notes that it has no reason to believe Saba has changed its position. A further update as to the Continuation Tender Offer will be made on or around 27 February 2026." Subsequently, no tender election was received from Saba and the continuation tender offer will therefore be terminated for failure to fulfil the Saba condition. The Board will now proceed with the Exit Tender Offer with a circular to be produced in due course. The Chair also shared an open letter he had written to Saba
Gearing news
Pantheon Infrastructure (PINT LN, Infrastructure, £543.6m mkt capn, 8.9% discount to NAV): announced that the Company has entered into an amendment agreement to reset the term of its £115m multicurrency revolving credit facility to 36 months. The Loan Facility will now mature in February 2029. In addition to the term extension, the Amendment also includes a reduction in the drawn margin payable on the Loan Facility from 2.85%, it has been reduced to 2.65%pa over the relevant currency benchmark rate or compounded reference rate, payable on drawn amounts.
Literacy Capital quarter end 31 December 2025 update (BOOK LN, Private Equity, £238.2m mkt capn, 21.8% discount to NAV): NAV -4.5%; cash inflows of £8m with BOOK remaining focused on actively managing and recycling capital from the portfolio to maximise returns. Cash inflows in the current quarter are expected to exceed all prior quarters, enabling repayment of a significant portion of the drawn RCF. BOOK does not currently expect to make a further return of capital until additional exits complete
Aberdeen Asian Income Fund Limited (AAIF LN, Asia Pacific Equity Income, £430.4m mkt capn, 5.7% discount to NAV): renewed its secured £50m multi-currency RCF with Bank of Novia Scotia (with option to increase the level of the commitment from £50m to £70m at any time); HKD73.5m has been drawn down for a three month period and £17.8m for a one month period; Total gearing remains 6.8% of NAV
M&A news
Smithson Investment Trust (SSON LN, Global Smaller Companies, £1,544.8m mkt capn, 8.1% discount to NAV): 41.4% of shareholders elected to roll into Smithson Equity Fund whilst 58.6% of shareholders elected for cash
Augmentum Fintech (AUGM LN, Financials & Financial Innovation, £181.5m mkt capn, 32.0% discount to NAV): Board recommended cash acquisition at 111p for the entire issued share capital of the Company, a premium of 27% to the closing price pre-announcement of 87.4p. The acquisition is being made by Verdane, a specialist growth buyout investment firm, who believe that under private ownership there will be greater flexibility to execute and accelerate the investment strategy with a supportive owner which can help unlock the potential of the portfolio. Irrevocable undertakings have been received in regard to 3.3m shares representing circa 2% of share capital as well as non-binding letters of intent from 12.1m shares representing 7.2% of share capital. The Scheme must be approved by at least 75% of AUGM shares voting and is expected to become effective during Q2 2026 (Frostrow client)
Strategic review
PPHE Hotel Group Limited FY results to 31 December 2025 (PPHE LN, £824.6m mkt capn): revenue growth 3.7%; EBITDA +2.1%; occupancy of 75.8% (74.5% 2024); total dividend 39pps (38pps 2024); strategic review remains ongoing with an update coming in due course
Continuation vote
Brown Advisory US Smaller Companies HY results to 31 December 2025 (BASC LN, North American Smaller Companies, £161.5m mkt capn, 8.1% discount to NAV): NAV TR +4.2% vs Russell 2000 TR Index £ +17.1%; share price TR +9.4%; "Most of the underperformance accrued in the third calendar quarter of 2025 as the market turned more speculative and our Portfolio Manager's rigorous approach of focusing on quality companies and avoiding those with weaker fundamentals was less aligned with market dynamics." The Board "continue to have confidence in our Portfolio Manager's philosophy and process to identify successful, quality companies and in their ability to deliver positive results over the long term, as they have done in the past. However, the Board is conscious of performance challenges and also has regard to the Company's three-yearly continuation vote which falls due at the AGM later this year. The Board will therefore be seeking shareholder views on these challenges." (November 2026)
Change of Manager
Investment Company (INV LN, UK Smaller Companies, £6.5m mkt capn, 10.8% discount to NAV): Chelverton Asset Management are stepping down and the Board is proposing that Dowgate Wealth Limited be appointed as portfolio manager. "Dowgate is a dynamic, owner-managed boutique wealth and fund manager with £2 billion of assets under management. It acts as investment manager to two funds - including one closed-ended vehicle, Onward Opportunities Limited - and has a track record for taking on and scaling mandates." The Company will introduce a "new investment objective and policy which will seek to protect and grow the real purchasing power of shareholders' capital over the long-term through investing in a diversified portfolio of assets that possess inherent scarcity, enduring economic relevance and resilience to monetary debasement." The Company also intends to raise capital as well as existing holders being offered a cash exit of up to 100% of their shares at a 5% discount to NAV
Results / updates
Herald Investment Trust FY results to 31 December 2025 (HRI LN, Global Smaller Companies, £1,215.6m mkt capn, 8.2% discount to NAV): NAV TR +8.5% vs Deutsche Numis Smaller Companies plus AIM (ex. investment companies) Index +11.8%; Saba Capital now own 31% of shares, buying some shares at a premium to NAV as they seek control to the detriment of all retail shareholders. "The consistent theme of Saba's actions is the threat to seek to replace the Company's board with their own nominees (requiring only a 50% approval of those voting), with the likely intention that the new board then appoint Saba in due course to run the Company. The board naturally deplores such an approach, as it oppresses the interests of the numerous small shareholders who collectively make up a majority of the register and it has therefore raised the matter with the Financial Conduct Authority. In the board's view, where a substantial shareholder nominates a director to the board of a company, and such substantial shareholder is then also proposed to be appointed as the investment manager of that company, that director should not be entitled to vote on the appointment of the investment manager who nominated them in the first place."
European Smaller Companies Trust HY results to 31 December 2025 (ESCT LN, European Smaller Companies, £780.8m mkt capn, 8.6% discount to NAV): NAV TR +7.7% vs MSCI Europe ex UK Small Cap Index +7.1%; share price TR +4.1%; combination with European Asset Trust in October 2025; now paying quarterly dividends of at least 5% of NAV for the preceding financial year (thus at least 2.81pps to be paid in May and August 2026); aim to maintain a mid-single digit discount in normal market conditions. "There is a plentiful supply of excellent companies trading at depressed prices which our fund managers have been finding for the portfolio."
Invesco Global Equity Income Trust HY results to 30 November 2025 (IGET LN, Global Equity Income, £305.4m mkt capn, 1.3% premium to NAV): NAV TR +8.6% vs MSCI World Index £ +16.5%; share price TR +9.3%; proposed merger with Franklin Global Trust taking place with no changes to investment strategy expected for the Company's shareholders; £35.2m treasury shares issued at a premium to NAV; dividend yield of 3.7%, but pays dividends quarterly, with the annual dividend target set at a minimum of 4% of the unaudited previous year-end NAV.
Foresight Environmental Infrastructure Limited 31 December 2025 update (FGEN LN, Renewable Energy Infrastructure, £436.3m mkt capn, 34.0% discount to NAV): NAV 104.6pps (104.7pps 30 September 2025); 1.99pps quarterly dividend in line with target dividend of 7.96pps for YE 31 March 2026 (+2.1% 2025); gearing 30.9% (30.6% 30 September 2025)
CQS New City High Yield Fund Limited HY results to 31 December 2025 (NCYF LN, Debt – Loans and Bonds, £346.1m mkt capn, 5.7% premium to NAV): NAV TR +4.8%; share price TR +4.6%; "Based on an annual dividend rate of 4.51p and a share price of 51.00p as at 25 February 2026, this represents an attractive dividend yield of 8.84%. The Board anticipates that revenue earnings per share for the whole year will cover the total dividend." Gearing of 8.4%, which is expected to be maintained during the next financial year. £22.5m new shares were issued in the period
Ashoka India Equity Investment Trust HY results to 31 December 2025 (AIE LN, India / Indian Subcontinent, £421.6m mkt capn, 2.8% discount to NAV): NAV TR -3.1% vs MSCI India TR £ -2.3%; share price TR -3.2%; tilted towards medium and smaller end of the market with the investment policy now amended to allow unquoted company investment of up to 15% of gross assets. Issued 1.125m new shares at a premium
JPMorgan Emerging Markets Growth & Income HY results to 31 December 2025 (JMGI LN, Global Emerging Markets, £1,466.9m mkt capn, 10.0% discount to NAV): NAV TR +20.5% vs MSCI Emerging Markets Index TR +18.1%; share price TR +21.1%; 4% enhanced dividend, with Q2 dividend of 1.261pps; repurchased 39.5m shares (3.9% of share capital) at average discount of 8.8%; OCR 0.8% (steady). Austin Forey (lead manager) comments: "At the moment there is more positive sentiment towards emerging markets than there has been for a long time, which is welcome. However, enthusiasm also requires caution, and the greater the enthusiasm the greater the caution needed"
Schroder Real Estate Investment Trust quarter end 31 December 2025 update (SREI LN, Property – UK Commercial, £275.4m mkt capn, 15.2% discount to NAV): NAV TR +1.1%; EPRA earnings of ?4.1m (0.8pps); interest cost of 3.4% on drawn debt with weighted average maturity of 7.7 years (net LTV 36.6% - steady over the quarter); portfolio allocated to higher growth sectors
Greencoat UK Wind FY results to 31 December 2025 (UKW LN, Renewable Energy Infrastructure, £2,039.0m mkt capn, 28.7% discount to NAV): electricity generation 8.5% below budget but still increased dividends for 12th year in a row with dividend cover of 1.3x; a total of £181m of divestments at the prevailing NAV and share buybacks of £109m at an average 23% discount to NAV and a reduction of debt principal of £168m took place (aiming to reduce gearing to below 40%)
Pantheon International HY results to 31 December 2025 (PIN LN, Private Equity, £1,535.5m mkt capn, 29.1% discount to NAV): NAV TR +4.9%, with valuation gains contributing 2.8% to NAV growth; £42.8m of share buybacks in the period adding 1% to NAV; seeking to improve performance and the discount to NAV by refocusing on c25 core private equity managers (rather than 90 today), a revised management fee from 1 June 2026, becoming a more active seller of assets in the secondary market to enhance shareholder returns, with a distribution pool created with an initial commitment of £60m
Mid Wynd International Investment Trust HY results to 31 December 2025 (MWY LN, Global, £227.3m mkt capn, 2.5% discount to NAV): NAV TR +3.8% vs MSCI AC World Index +13.3%; share price TR +5.2%; interim dividend 3.85pps (2024 3.85pps); bought back 7.5m shares representing 19% of share capital at an average 2% discount to NAV; The Company’s policy, within normal market conditions, is to issue and repurchase shares where necessary to maintain the share price within a 2% band relative to the NAV. "The rate of buybacks continues to be such that in order to ensure the Company has sufficient capacity to maintain the discount control mechanism until the date of the 2026 AGM (when new allotment and buyback authorities will be sought), a further General Meeting will be held on 27 February 2026 at which a resolution will propose to replenish the Company’s buyback authority to cover the period until the 2026 AGM."
The City of London Investment Trust HY results to 31 December 2025 (CTY LN, UK Equity Income, £2,947.9m mkt capn, 1.7% premium to NAV): NAV TR +11.9% vs FTSE All Share Index +13.7%; share price TR +10.6%; biggest detractor was being underweight mining, whilst "The biggest relative stock positive contributors arose from not holding London Stock Exchange and Experian, whose profits were considered to be vulnerable to artificial intelligence." EPS 8.85pps (+5.5% 2024); wo interim dividends so far of 5.4pps each with the third to be reviewed and declared in April 2026; 9.1m shares re-issued from treasury at a small premium; "UK equities performed well in 2025, with their relatively cheap values attracting global investors, including takeover bids from overseas companies and private equity firms. 2026 has started with takeover approaches for two FTSE 100 companies held in the portfolio"
The Renewables Infrastructure Group Limited FY results to 31 December 2025 (TRIG LN, Renewable Energy Infrastructure, £1,603.9m mkt capn, 35.1% discount to NAV): NAV 104pps (115.9p 2024), with the fall driven by lower power price forecasts, low wind resource and higher discount rates. Weighted average discount rate 9% (8.6% 2024); £200m private placement debt raised post year-end in February 2026 with 90% of debt fixed rate and fully amortising; long term gearing 41%; £80m of the £150m share buyback programme completed and accelerated pace post private placement programme; target dividend for 2026 of 7.55pps
Tritax Big Box REIT FY results to 31 December 2025 (BBOX LN, Property – UK Logistics, £4,224.6m mkt capn, 10.5% discount to NAV): another transformational year with a £1.04bn urban logistics purchase from Blackstone and a data centre pipeline giving structural growth; estimated rental value of £462m equating to net reversionary yield of 5.9%; "During the period, an amendment to the acquisition of the Manager by Aberdeen was implemented, resulting in Aberdeen now intending to increase its 60% stake in the Manager to 80% in April 2026 and 100% in 2029. Importantly for the Board, the agreed structure with Aberdeen allows the Manager to continue to retain autonomy over its investment decisions, and its team and day-to-day operations will remain unchanged, ensuring continuity for our Shareholders, clients and other broader stakeholders. The Investment Management Agreement also remains unchanged, including the reinvestment of part of the fee as shares, with members of the Manager and the Board now collectively a top-30 shareholder in Tritax Big Box. Beyond 2029, to preserve its culture, the Manager has agreed a financial arrangement with Aberdeen which continues its partnership framework and is designed to attract and retain the best talent." Chair Aubrey Adams stepping down soon
Globalworth Real Estate Investments Limited preliminary results to 31 December 2025 (GWI LN, £513.8m mkt capn): portfolio value increased +0.9%; started new office development in Bucharest; 85.4% average occupancy (-1.4% 2024); contracted rent +1.0%; Fitch reaffirmed GWI's investment grade rating and kept the outlook at stable in July 2025; Eur32.5m EPRA earnings (-Eur9m 2024); weighted average debt cost 4.81% (4.87% 2024), with 91.4% of debt fixed or hedged; Eur410.6m of cash held; LTV 37% (38.1% 2024)
Wind down / asset realization news
Home REIT FY results to 31 August 2025 (HOME LN, Property – UK Residential): portfolio value of £154.9m (£265.4m 2024), a 16% fall in NAV to 20.38pps (-11.6% 2024); "As shareholders are aware, the Company has faced the ongoing prospect of potential group litigation for some time. That prospect has not receded. Separately, but in addition, the recent announcement of the Serious Fraud Office also serve to illustrate the complex and uncertain environment in which the Board is required to make decisions. It remains the objective of the Board to ensure the Company can return available capital upon completion of the realisation strategy as soon as possible. However, we must remind shareholders that the ability to make distributions may be constrained by the circumstances facing the Company, including the uncertainties of potential litigation described above, which may result in returns of capital taking place over a longer period."
Riverstone Credit Opportunities FY results to 31 December 2025 (RCOI LN, Debt – Direct Lending, £36.1m mkt capn, 18.0% discount to NAV): good progress on the managed wind-down, with 46% of shares redeemed so far; "The Company will continue to focus on the realisation of the Company's remaining investments and the prompt return of capital to our shareholders. As evidence of further strong progress, post period-end the Company's remaining four positions has been reduced to three." The Company also announced that it intends to return a further $10.8m to shareholders, and so will have returned 52% of NAV
VH Global Energy Infrastructure (ENRG LN, Renewable Energy Infrastructure, £297.6m mkt capn, 27.1% discount to NAV): the Board is proposing a B share scheme to help with its asset realisation strategy. A circular has been published setting out this proposal
Ecofin US Renewables Infrastructure Trust (RNEW LN, Renewable Energy Infrastructure, £28.3m mkt capn, 49.5% discount to NAV): Company released a circular with details of a proposed mechanism to return capital to shareholders through the issue and immediate redemption of bonus shares
Starwood European Real Estate Finance (SWEF LN, Property – Debt, £21.2m mkt capn, 5.0% discount to NAV): the Company announced that its final loan has repaid equivalent to 100% of the last reported value, with the orderly realisation process started in January 2023 now complete.
Asset disposal news
International Public Partnerships (INPP LN, Infrastructure, £2,380.9m mkt capn, 10.9% discount to NAV): has reached financial close on the sale of the previously announced minority stake in the Moray East Offshore Transmission Owner to Daiwa realising £42m. INPP will retain a majority stake of 51% in Moray East OFTO including majority board representation. "The Company continues to optimise the current portfolio, focusing on targeted realisations. The Moray East OFTO divestment is made at a premium to the last published NAV"
Unite Group (UTG LN, £2,710m mkt capn): agreed the sale of St Pancras Way for £186m (£126m is Unite's share) representing a 1% discount to end December 2025; "Subject to existing USAF investors choosing to exercise their pre-emption rights, the USAF equity issue will increase Unite's ownership in USAF from 30% to a maximum of 32% and Unite expects to receive minimum net proceeds of £115m in cash. Unite intends to maintain its ownership in USAF at around 30% over the medium-term."
Castelnau Group Limited (CGL LN, Flexible Investment, £315.2m mkt capn, 15.6% discount to NAV): holding Hornby Limited has agreed the 100% sale of the Scalextric business to Scalextric Motorsports for £20m, with completion expected to occur in early March. "The sale represents an important milestone in Scalextric’s growth journey and crystallises value for Hornby. The proceeds of the sale will be used by Hornby to pay down debt and invest in its other individual brands. Scalextric’s operations will continue to be supported within Hornby’s existing infrastructure. Hornby will manage the Scalextric business as agent, ensuring operational continuity while enabling Scalextric Motorsports to focus on accelerating the brand’s next phase of growth."
4. Sector data this week (AIC data, as at Thursday’s close)
Equity Capital Markets / Investor demand
n/a
Ex Dividend
BVT 2pps, BMD 2.25pps, CLC 1.13pps, ALW 7.08pps, AEI 5.7pps, BUT 6.25pps, NAS 7pps, RGL 2.5pps, SAIN 4.595pps, CGI 31cps
Frostrow Investor Relations team – Messrs Grant Challis, Neil Winward, Matt Burrows, Nicholas Todd & Max Smith
Frostrow Capital LLP,
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London WC2A 1AL
020 3008 4912
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