MENHADEN RESOURCE EFFICIENCY PLC

Fund Information / Factsheet • Nov 11, 2024

Menhaden Resource Efficiency PLC Information as at 31 October 2024

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 October 2024 (% of gross assets)

Name	Investment Theme	Total
Alphabet	Digitalisation	12.3
Safran	Industrial Emissions Reduction	11.2
Avantus	Clean Energy	10.2
Airbus	Sustainable Infrastructure & Transportation	10.1
Microsoft	Digitalisation	9.0
VINCI	Sustainable Infrastructure & Transportation	7.6
TCI Real Estate Partners IV	Sustainable Infrastructure & Transportation	6.7
Canadian Pacific Kansas City	Sustainable Infrastructure & Transportation	6.3
Canadian National Railway	Sustainable Infrastructure & Transportation	5.1
Amazon	Digitalisation	4.7
Total		83.2

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 October, the Company's net asset value ('NAV') per share was up 1.4%, the share price was down 0.5%, while the RPI+3% was down 0.1%.

Our public equities portfolio increased 1.1% over the month, increasing our NAV by 0.9%. Alphabet increased 3% in USD, increasing our NAV by 0.9%. The company reported good quarterly results. The cloud business delivered accelerating revenue growth, with high incremental margins. New Chief Financial Officer, Anat Ashkenazi, said that efficiency would be a top priority, with operating cost savings to help offset increased capital spend. Airbus increased 7% in EUR, increasing our NAV by 0.8%. The latest quarterly results were in line with expectations. Guidance for the current year was confirmed, although this will require a step up in deliveries in the final quarter. Canadian Pacific decreased 10% in USD, reducing our NAV by 0.4%. The company's third quarterly results were negatively affected by a derailment and strike action. Guidance for volumes was increased but remained unchanged for earnings per share.

Within our private portfolio, we marked up our position in TCI Real Estate Partners Fund IV according to the manager's latest valuation, increasing our NAV by 0.5%. We received a US\$2.2m distribution as an equalisation payment upon the Fund's sixth close, which was partly offset by a US\$1.4m capital call. This position represented 6.7% of NAV at the month end.

The US dollar strengthened against Sterling by 4.3% over the month, increasing our NAV by 2.4% on a standalone basis.

The Company published its Half Year Report to 30 June 2024 on 17 September 2024, within which the Board announced that it proposes to carry out, together with its advisers, a formal review of the options available to it in order to address the issues facing the Company prior to its continuation vote in 2025. Further details are provided in the Chairman's Statement of the Half Year Report which can be found on the Company's website at www.frostrow.com.

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*	1.7%
Continuation Vote	At AGM in 2025; every 5 years
Year / Half Year	31 December / 30 June
Capital Structure	78,825,001 Ordinary Shares of 1p

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

Trust Characteristics

Number of Holdings	18
Total Net Assets (£m)		£132.5m
Market Capitalisation (£m)		£86.3m
Gearing *		0%
Leverage*:	Gross	94.4%
	Commitment	100.6%
Share Price (p)		109.50
NAV (p)		168.04
(Discount) / Premium		(34.8%)

* 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 October 2024

Asset Allocation Breakdown as at 31 October 2024 (% of portfolio)
Asset	Total
Public equities	72.3
Private investments	21.6
Liquidity	6.1
Total	100.0
Source: All portfolio information sourced from Frostrow Capital LLP

Geographical Breakdown as at 31 October 2024 (% of portfolio)

Asset	Total
US	45.8
Europe	29.3
Canada	11.4
Emerging Markets	3.7
UK	3.7
Liquidity	6.1
Total	100.0
based on location of primary economic activity.	Source: All portfolio information sourced from Frostrow Capital LLP. Geographic classification

Portfolio split by investment theme as at 31 October 2024 (%)

Sustainable Infrastructure and Transportation	44.8
Digitalisation	26.9
Industrial Emissions Reduction	11.2
Clean Energy	10.2
Water & Waste Management	0.8
Liquidity	6.1
Total	100.0
Full description of each investment theme can be found on page 14 of the Company's Annual Report for the year ended 31 December 2023.

Standardised Discrete Performance as at 31 October 2024 (%)

Percentage Growth	1 month	YTD	1 Year	3 Years	5 Years	Since Inception
NAV	1.4%	5.4%	12.7%	6.8%	51.3%	75.5%
Share Price	-0.5%	9.6%	16.3%	-2.5%	23.4%	9.9%
Index^	-0.1%	4.9%	5.8%	37.7%	55.0%	96.2%

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.

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 October 2024

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.

Target Market

The Company is suitable for investors seeking an investment that aims to deliver total returns over the longer term (at least five years), is compatible with the needs for retail clients, professional clients and eligible counterparties, and is eligible for all distribution channels.

The Company may not be suitable for investors who are concerned about short-term volatility and performance, have low or no risk tolerance or are looking for capital protection, who are seeking a guaranteed or regular income, or a predictable return profile. The Company does not offer capital protection.

Value Assessment

Frostrow Capital LLP has conducted an annual Value Assessment on the Company in line with Financial Conduct Authority (FCA) rules set out in the Consumer Duty regulation. The Assessment focuses on the nature of the product, including benefits received and its quality, limitations that are part of the product, expected total costs to clients and target market considerations.

Within this, the assessment considers quality of services, performance of the Company (against both benchmark and peers), total fees (including management fees and entry and exit fees as applicable to the Company), and also considers whether vulnerable consumers are able to receive fair value from the product.

Frostrow Capital LLP concluded that the Company is providing value based on the above assessment.

Important Information

Menhaden Resource Efficiency PLC (the Company) is a public limited company whose shares are 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.

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

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