Also, HgCapital reports flat first half with its valuation hit by volatile markets, Octopus Renewables’s net asset value dented by a writedown of its stake in a developer, Oakley Capital Investments announces £22m new investment, VH Global Energy Infrastructure switches on new asset in New South Wales and BlackRock Throgmorton and BlackRock Energy Resources Income publish interim results.
RM Funds blasts Gore Street board
RM Funds, a 10% shareholder in Gore Street Energy Storage (GSF) is pushing ahead with a shake-up of the battery fund’s board, urging shareholders to vote for Brett Miller and Ian Dixon, the two experienced and independent directors it has nominated for the general meeting on 20 August to replace chair Pat Cox and Caroline Bankszky. Responding to the circular published by GSF, RM said last week’s strategic review outcome and plan for GSF to sell 8% of construction assets was insufficient to address its concerns. It says the board has overseen a 50% share price collapse, introduced a “poison pill” that could have earned Gore Street Capital up to £20m in a takeover and approved £20m of fees to the fund manager despite the negative shareholder returns and lack of cover for the now cut dividend. “And now – with no credible track record regarding investment objectives, dividends, strategy or governance – the board asks shareholders to let them lead the turnaround. We believe shareholders deserve better,” said RM which is holding a webinar at 9am on Wednesday for investors wanting more information on its campaign. Broker Deutsche Numis expected the “war of words to continue” ahead of the meeting. Stifel sympathised with RM’s argument that the board lacked independence, believing the vote could be close, although wary of the push to sell non-UK assets against a backdrop of weak revenues and changing regulations.
Invesco Global’s strong first year
Invesco Global Equity Income (IGET) smashed its benchmark in its first year since emerging from the umbrella trust structure that was Invesco Select. A total investment return of 11.9% in the 12 months to 31 May was significantly ahead of the MSCI World index’s 7.4% with stock picks Broadcom, Rolls Royce and 3i Group doing best with the £248m trust also helped by bargain hunting by fund managers Stephen Anness and Joe Dowling during the sell-off caused by US tariffs. “It isn’t often in your career that almost every business in the market goes on sale, as it did in April following ‘Liberation Day’. There were many businesses on our shopping list that we had been waiting to buy, and many of those went on sale. This is potentially a very exciting time for future returns,” said chair Sue Inglis. Shareholder returns were even better at 24.6% with the shares moving from a 9% discount to their current 3.7% premium. Based on the increase in net asset value, under its 4% dividend policy IGET will pay 13.5p per share in the current 2026 financial year, an increase of 7.8%.
RMMC offers 2028 exit
River UK Micro Cap (RMMC) will offer shareholders a 100% exit opportunity in three years’ time if a minimum of £10m has not been returned via its annual compulsory redemption, whose purpose is to prevent the investment company growing beyond £100m. RMMC’s market value has shrunk to £66m in the bear market for UK small-cap stocks and has not returned capital through the annual mechanism since 2021. The decline has been exacerbated by share buybacks to combat the current 18% share price discount with the board announding another £2m programme. Chair John Blowers said. “We can already see strong signals that micro caps are beginning to power up and we feel the company is really well positioned to grow rapidly on two fronts: as UK companies positively re-rate after a period of low valuations and more certainty in the economy boosts small company growth prospects. Should these persistent discounts and muted performance be structural – rather than cyclical – then we have implemented a safety net for investors to get out at close to net asset value. However, the Board believes strongly that the long-term future success of the Company will be cemented by delivering attractive growth and more redemptions to shareholders over the next three years.” Activist Saba Capital is among RMMC’s shareholders.
James Carthew, head of investment company research at QuotedData, said: “This seems like a sensible compromise for River UK Micro Cap. I’ve said before that this type of exit opportunity – like the one provided by Polar Capital Global Financials (PCFT) – encourages investors to think long term. UK small caps, and micro caps in particular, remain very out of favour. It seems reasonable to hope that sentiment will change for the better at some point over the next few years.”
HGT knocked by volatile markets in first half
HgCapital (HGT), the £2.3bn investment trust investing in the private equity funds of Hg, had a flat first half with net asset value (NAV) slipping 0.3% to 540.2p in the six months to 30 June. Stock market volatility was the main factor with a reduction in valuation multiples on comparable listed technology companies knocking 4% off the portfolio valuation with adverse currency movements (principally the fall in the dollar) and an increase in net debt both deducting 1% from NAV. The trading update says these were mostly offset by a 7% increase in asset value from strong trading from the underlying portfolio of business service and accountancy software providers. At 511p the shares stand 5.4% below the new NAV which compares favourably with the much wider discounts in the listed private equity fund sector.
Oakley Capital buys Brevo stake
Oakley Capital Investments (OCI) says one of its private equity funds, Oakley Capital VI, is buying a co-controlling stake alongside General Atlantic in Brevo, a leading global customer engagement software platform based in France. OCI’s indirect investment is anticipated to be around £22m. It fits in with Oakley’s focus on founder-led businesses with founder and chief executive Armand Thiberge also making a significant reinvestment. The shares stand on a 27% discount and could be eligible for inclusion in the FTSE 250 following its switch to a main listing on the London Stock Exchange last week.
Blue Group write-down hits ORIT
Octopus Renewables Infrastructure Trust (ORIT) has written down the value of its investment in Simply Blue Group, an offshore wind and sustainable fuels developer, by £5.7m, bringing the carrying value to £15.1. The £377m company said this reflects a combination of sector-wide headwinds currently and the anticipated outcome of talks with potential long-term funding partners for Simply Blue’s offshore wind portfolio. As a result net asset value (NAV) fell in the second quarter to £540.4m at 30 June from £560.5m at 31 March with NAV per share declining to 99.46p from 101.62p. Other negative factors were falling power price forecasts, which have already hurt Greencoat UK Wind (UKW) and Renewables Infrastructure Group (TRIG), a decline in the value of green certificates and the quarterly dividend, although positive changes in macroeconomic assumptions and share buybacks offset some of the downward pressure. The company declared a second quarter dividend of 1.54p per share that will be paid on 29 August to shareholders on the register at 15 August. The ex-dividend date will be 14 August. This is in line with the 2025 dividend target of 6.17p. At 69.7p, the shares stand on a 30% discount to the new NAV and yield 8.8%.
ENRG switches on New South Wales asset
VH Global Energy Infrastructure (ENRG) has successfully energised an additional solar and energy storage hybrid system in Australia on time and on budget. The asset in New South Wales, which comprises of a solar PV site with DC-coupled two-hour 4.95MW battery energy storage system, is ramping up for operation. Another hybrid asset is expected to be energised in the third quarter bringing the total capacity of the company’s seven assets Australian assets in New South Wales, Queensland and South Australia to 37MW/60MWh. Shares in the £250m investment company stand on a 33% discount and yield 8.8%.
Phoenix’s Berlin property portfolio rises
Phoenix Spree Deutschland (PSDL), the £149m Berlin residential property fund trailing on a 45% share price discount, says its private rented sector portfolio achieved its first valuation increase in three years with a like-for-like square metre rise of 0.8%. The condominium sales portoflio also recorded a 0.8% rise. The trading update for the half year to 30 June said 57 condominiums worth €16.3m had been notarised for sale, a 210% increase on last year. Interim results will be published on 26 September.
Throgmorton misses out on bids
BlackRock Throgmorton (THRG), the £452m UK smaller companies trust managed by Dan Whitestone at BlackRock, underperformed by 5.6% in the six months to 31 May with a 2.2% total fall in net assets compared to the 3.4% rise in the Numis Smaller Companies index as the portfolio missed out on the bids for UK small-caps during the half-year period. Including the interim dividend the total share price return was flat. Whitestone remained cautious: “We fear the current backdrop is not conducive to encouraging consumers to spend, and we have reduced our UK mid cap domestic exposure. We have exited or reduced several positions across travel & leisure, retail, as well as other consumption related exposures (like housebuilders, RMI and related supply chains). Contemporaneously, we have increased our shorts in this area too. We have entered sectors and shares hitherto we have avoided, where earnings momentum is positive and market structures have evolved so historical competitive issues are perhaps far less prevalent today. Examples of this are Georgian Banks (TDC Bank), food producers (Hilton Food Group), and outsourcing partners (Mitie, Serco).” The shares stand on a 10% discount.
BERI’s challenging first half
BlackRock Energy Resources Income (BERI), a £137m commodities fund offering shareholders a continuation note next year, has changed its annual dividend policy. From December the company will pay out 4% of year-end net assets or the previous year’s total dividend, whichever is higher. A challenging first half saw net asset value fall 10% in the six months to 31 May with the shares – currently on an 8% discount to NAV – falling 6.5%.
Other news
Triple Point Venture VCT (TPV) will launch a share subscription offer for 2025/2026 and 2026/2027 tax years. It will publish a prospectus next month.
PRS REIT (PRSR), the family home rental provider negotiating a bid offer from Long Harbour, says senior independent director Karima Fahmy will step down on 1 September to take up a senior executive position with an Abu Dhabi-listed company. Non-executive director Steffan Francis will take the role of SID and chair the nomination & remuneration committee. The company has also declared a fourth quarter dividend of 1.1p per share to take the total for the year to 4.3p, up from 4p last year.
