MENHADEN RESOURCE EFFICIENCY PLC

Fund Information / Factsheet • Sep 11, 2023

Menhaden Resource Efficiency Plc Information as at 31 August 2023

Investment Objective

Menhaden Resource Efficiency Plc (the "Company") seeks to generate long-term shareholder returns, predominantly in the form of capital growth, by investing in businesses and opportunities that are demonstrably delivering or benefiting significantly, from the efficient use of energy and resources, irrespective of their size, location or stage of development. To reflect its non-benchmarked total return investment strategy, the Company uses RPI+3% as its primary long term financial performance comparator. In addition to this absolute return performance measure, the Company also uses a range of specialist, sectoral and peer group benchmarks to assess its relative performance.

Ten Largest Holdings as at 31 August 2023 (%)

Name	Theme	Total
Airbus	Sustainable Infrastructure and Transportation	12.8
Alphabet	Digitisation	12.4
X-ELIO *	Clean Energy	11.2
Microsoft	Digitisation	10.4
Safran	Industrial Emissions Reduction	9.0
Canadian Pacific Railway	Sustainable Infrastructure and Transportation	8.4
VINCI	Sustainable Infrastructure and Transportation	8.2
Canadian National Railway	Sustainable Infrastructure and Transportation	7.1
Amazon	Digitisation	5.1
John Laing Group **	Sustainable Infrastructure and Transportation	3.6
Total		88.2
*investment made through Helios Co-Invest LP
**investment made through Aqueduct Co-Invest LP

Menhaden Resource Efficiency Plc conducts its affairs so that its shares can be recommended by independent financial advisers ("IFAs") to retail private investors. The shares are excluded from the Financial Conduct Authority's ("FCA's") restrictions which apply to non-mainstream investment products because they are shares in a UK-listed investment trust.

Commentary

During August, the Company's net asset value ('NAV') per share was down 0.7%, the share price was down 0.8%, while the RPI+3% was down 0.3%.

Our public equities portfolio decreased 0.6% over the month, detracting 0.5% from our NAV.

Alphabet performed well, contributing 0.5% to our NAV. Fears of disruption by Microsoft/Open AI's ChatGPT appear to be receding. Management is very focused on integrating Generative AI into core Google services/products for both advertisers and users. The core Search business' year-over-year growth rate accelerated for the second quarter in a row. We remain optimistic on forward returns, with the shares trading on an undemanding multiple of core earnings.

Shares of Canadian railroad duo, Canadian National and Canadian Pacific, decreased over the month, detracting 0.4% and 0.2% respectively. Both companies face a softer demand environment and have had to contend with wildfires and port strikes in Vancouver. Canadian National downgraded earnings guidance at its last quarterly results.

Vinci also performed negatively, detracting 0.3% from our NAV. The shares have suffered following previous reports that the French government may seek to raise taxes on autoroute operators and air travel. The company's management team stated that the former was based on the incorrect belief that the concessions were more profitable than expected.

Our US dollar denominated holdings were positively affected by the appreciation of sterling. The impact was partly offset by the mark-to-market on our forward currency hedges, which detracted 0.4% from our NAV on a standalone basis. We continue to hedge approximately half of our current Euro and US dollar exposures.

Fast Facts

AIC Sector	Environmental
Launch Date	31 July 2015
Annual Management Fee (payable by the Company): Portfolio Management Fee 1.25% p/a on first £100m of AUM, 1.0% thereafter; AIFM Fee 0.225% p/a up to £100m, 0.20% p/a thereafter up to £500m, 0.175% in excess of £500m
Performance fee	See Annual Report for details
Ongoing charges*	1.8%
Continuation Vote	At AGM in 2025; every 5 years
Year / Half Year	31 December / 30 June
Capital Structure	79,025,001 Ordinary Shares of 1p

*Calculated at the financial year-end, includes management fees and all other operating expenses.

Trust Characteristics
Number of Holdings	17
Total Net Assets (£m)	£120.8m
Market Capitalisation (£m)	£75.9m
Gearing (AIC basis) *	0%
Leverage**: Gross	139.5%
Commitment	72.0%
Share Price (p)	96.00
NAV (p)	152.83
(Discount) / Premium	(37.2%)

* Calculated as borrowings / by Net Assets ** Calculated as exposures (as defined in the AIFMD) / Net Assets. The Gross method takes the absolute exposure of all instruments, including hedging arrangements, whilst the commitment method takes the net exposure. The Board has set a maximum leverage level of 200% under the gross method and the commitment method.

Menhaden Resource Efficiency Plc Information as at 31 August 2023

Asset Allocation Breakdown as at 31 August 2023 (%)

Asset	Total
Public equities	78.9
Private investments	16.3
Liquidity	4.8
Total	100.0

Source: All portfolio information sourced from Frostrow Capital LLP

Geographical Breakdown as at 31 August 2023 (%)

Asset	Total
Europe	41.7
US	31.5
Canada	15.5
UK	3.6
Emerging Markets	2.9
Liquidity	4.8
Total	100.0
Source: All portfolio information sourced from Frostrow Capital LLP. Geographic classification based on location of primary economic activity

Portfolio split by investment theme as at 31 August 2023 (%)

Sustainable Infrastructure and Transportation	45.2%
Digitisation	29.2%
Clean Energy	11.2%
Industrial Emissions Reduction	9.0%
Water & Waste Management	0.6%
Liquidity	4.8%
Total	100.0%

Full description of each investment theme can be found on page 4 of the Company's Annual Report for the year ended 31 December 2022.

Codes
Sedol	BZ0XWD0
ISIN	GB00BZ0XWD04
Legal Entity Identifier
	2138004NTCUZTHFWXS17
Bloomberg	MHN LN
Epic	MHN

Investment Policy

The Company's investment objective is pursued through constructing a convictiondriven portfolio consisting primarily of direct listed and unlisted holdings across different asset classes and geographies. The Company invests, either directly or through external funds, in a portfolio that is comprised predominantly of a combination of listed equities and private equity investments. The flexibility to invest across asset classes affords the Company two main benefits: 1) It enables construction of a portfolio based on an assessment of market cycles; and 2) It enables investment in all opportunities which benefit from the investment theme. It is expected the portfolio will comprise approximately 15 to 30 positions.

The portfolio will be predominantly focused on investments in developed markets, though if opportunities that present an attractive risk and reward profile are available in emerging markets then these may also be pursued. While many of the companies forming the portfolio are headquartered in the UK, USA or Europe, it should be noted that many of those companies are global in nature so their reporting currency may not reflect their actual geographic or currency exposures. Subject to any applicable investment restrictions contained in the Listing Rules from time to time, the Company will not make an investment if it would cause a breach of any of the following limits at the point of investment: 1) no more than 20% of the Company's gross assets may be invested, directly or indirectly through external funds, in the securities of any single entity; and, 2) no more than 20% of the Company's gross assets may be invested in a single external fund.

Menhaden Resource Efficiency Plc Information as at 31 August 2023

Standardised Discrete Performance (%)

Percentage Growth	1 month	YTD	1 Year	3 Years	5 Years	Since Inception
NAV	-0.7%	18.1%	9.4%	26.7%	61.2%	58.8%
Share Price	-0.8%	8.3%	-9.9%	13.6%	37.4%	-4.5%
Index^	-0.3%	6.5%	12.3%	39.1%	54.2%	82.4%

Past performance is not a guide to future performance. The value of investments and the income from them may fall as well as rise and is not guaranteed. An investor may receive back less than the original amount invested.

Source: Morningstar/Frostrow.

^ RPI +3%, and the data is quoted on a month lag.

Risk Warnings

This document is for information purposes only and does not constitute an offer or invitation to purchase shares in the Company and has not been prepared in connection with any such offer or invitation. Before investing in the Company, or any other investment product, you should satisfy yourself as to its suitability and the risks involved, and you may wish to consult a financial adviser.

Any return you receive depends on future market performance and is uncertain. The Company does not seek any protection from future market performance so you could lose some or all of your investment. Shares of the Company are bought and sold on the London Stock Exchange. The price you pay or receive, like other listed shares, is determined by supply and demand and may be at a discount or premium to the underlying net asset value of the Company. Usually, at any given time, the price you pay for a share will be higher than the price you could sell it. For further information on the principal risks the Company is exposed to please refer to the Company's Annual Report or Investor Disclosure Document available at www.menhaden.com.

The Company currently deploys leverage using currency forwards. These are designed to partially protect/hedge the NAV from unfavourable movements in foreign exchange rates by reducing the Company's exposure to foreign currencies. The Company can borrow but does not currently.

Important Information

Menhaden Resource Efficiency Plc (the Company) is a public limited company whose shares are premium listed on the London Stock Exchange (LSE) and is registered with HMRC as an investment trust.

The Company has an indeterminate life although shareholders consider and vote on the continuation of the Company every five years (the next such vote will be held in 2025).

The Company may, but does not currently, borrow to purchase investments. Borrowing could potentially magnify any gains or losses made by the Company.

How to Contact Us

Frostrow Capital LLP 25 Southampton Buildings, London, WC2A 1AL

Tel.: 0203 0084910 Fax: 0203 0438889

Website: www.frostrow.com Email: info@frostrow.com

This financial promotion is issued by Frostrow Capital LLP which is authorised and regulated by the Financial Conduct Authority ("FCA").