Annual Financial Report

To: RNS

Date: 2 September 2026

From: CT Global Managed Portfolio Trust PLC (the 'Company')

LEI: 213800ZA6TW45NM9YY31

Information disclosed in accordance with Disclosure Guidance and Transparency Rule 4.1.3

Statement of Audited Results for the year ended 31 May 2026

Growth Shares - 2026 Highlights

- Share price total return(1) per Growth share of +25.6% for the financial year (2025: +1.6%).

- Share price total return per Growth share of +117.4% in the 10 years to 31 May 2026, the equivalent of 8.1% compound per year(1).

Income Shares - 2026 Highlights

- Annual dividend of 7.85p per Income share (2025: 7.60p), an increase of 3.3%.

- Over the last three financial years the total annual dividend has increased by 9.0%, as compared to CPI of 8.4%.

- Dividend yield(1) of 6.0% at 31 May 2026 (2025: 6.6%), based on total dividends for the financial year of 7.85p (2025: 7.60p) per Income share. Dividends are paid quarterly.

- Share price total return(1) per Income share of +21.2% for the financial year (2025: +3.8%).

Notes:

(1) See Alternative Performance Measures on pages 95 to 97 in the Annual Report and Financial Statements.

Forward looking statements

This document may contain forward looking statements with respect to the financial condition, results of operations and business of the Company. Such statements involve risk and uncertainty because they relate to future events and circumstances that could cause actual results to differ materially from those expressed or implied by forward looking statements. The forward looking statements are based on the Directors' current views and on information known to them at the date of this document. Nothing should be construed as a profit forecast.

Chairman's Statement

"We have listened carefully to what matters most to shareholders and, as a result, have undertaken a number of initiatives. Whether through clearer performance reporting, protecting income against inflation, providing a more convenient dividend payment schedule or making fuller use of existing features of the Company's investment policy, each initiative is designed to improve the experience and outcomes for our shareholders."

Dear Shareholder

Thank you for your ongoing investment in CT Global Managed Portfolio. Together with our Manager, Columbia Threadneedle Investment Business Limited, we continually focus on outcomes for shareholders and seek to make improvements when appropriate.

As part of this commitment, we have undertaken a number of important initiatives:

• To make performance easier for shareholders to understand, we are replacing our single benchmark with three complementary comparators providing a more relevant view of investment performance.

• To help protect Income shareholders' purchasing power, we will aim to increase dividends by at least the rate of inflation as measured by the UK Consumer Price Index ('CPI') over rolling three-year periods (based on financial years).

• To better align with Income shareholders' day-to-day finances, we intend to pay dividends monthly rather than quarterly, starting from the next financial year.

• To enhance shareholders' total return potential, the Investment Managers intend to make fuller use of the existing features of the Company's investment policy, including using the borrowing facility in both Portfolios.

We believe these developments will benefit shareholders and support CT Global Managed Portfolio's long-term success. You can find more information on each of these initiatives, along with other updates, within this Chairman's Statement.

Performance Reporting

Since launch in 2008, the Company has used the FTSE All-Share Index as the benchmark for the outcomes of both share classes. We have reviewed whether this remains the most useful way for shareholders to assess performance. Because most companies in the FTSE All-Share Index are not investment companies, the Index does not closely reflect what the Company is allowed to invest in. For that reason, for financial years beginning on or after 1 June 2026, the Board believes it will be more helpful to show performance for both share classes against three comparators instead:

• the FTSE All-Share Closed End Investments Index - this is more closely aligned with the Company's investment policy because it is made up only of UK-listed investment companies;

• the FTSE All-Share Index - many UK retail investors may see this as a broad alternative for their money; and

• CPI - this will help shareholders see whether their investment is keeping ahead of the rising cost of living.

Whilst the Company's benchmark for the year under review was the FTSE All-Share Index, we have also included, in this Annual Report and Financial Statements, the corresponding returns from the other two comparators for information purposes.

Performance

For the Company's financial year ended 31 May 2026, the net asset value ('NAV') total return(1) (capital performance plus the reinvestment of any dividends paid) was +25.1% for the Growth shares and +23.3% for the Income shares, both of which outperformed the +21.6% total return for the FTSE All-Share Index. For the same period, the FTSE All-Share Closed End Investments Index delivered a total return of +27.6% and CPI rose by +2.8%.

Both the Growth and Income Portfolios' performance proved resilient during a period of further volatility in financial markets, resulting from heightened geopolitical uncertainty that culminated in the US-Iran conflict. That conflict, and the ensuing closure of the Strait of Hormuz, resulted in a sharp increase in commodity prices, and a brief selloff in equity markets, from which the recovery was swift, albeit to an extent concentrated in the US and Asia and focused on companies related to the Artificial Intelligence theme.

Investment company sector performance, on the whole, was improved versus recent years, as underlying NAV performance was strong and discounts tightened. Market leadership amongst the World's stock markets broadened beyond US-listed mega capitalisation technology companies, into areas such as Asia and Emerging Markets. Alternative asset returns remained under pressure from a higher interest rate environment and Private Equity continued to suffer from a weak 'exit' environment.

From 1 June 2025, the beginning of the Company's 2026 financial year, the investment Portfolios have been managed by Adam Norris and Paul Green, supported by the Manager's broader EMEA Multi-Asset Solutions team (of which they are members). In their first year, the Investment Managers repositioned the Portfolios between regions and sectors and it is pleasing to see the strong NAV total return of both Portfolios. The Investment Managers' Review, which includes an overview of their investment activity, is set out on pages 13 to 16 in the Annual Report and Financial Statements.

The Company's compound annual NAV total returns(2) over the 10 years to 31 May 2026 were +8.5% for the Growth shares and +7.0% for the Income shares, as compared to the compound annual total returns of +8.9% for the FTSE All-Share Index, +10.2% for the FTSE All-Share Closed End Investments Index and a compound annual increase in CPI of +3.6% over the same period. This year's strong returns have helped reduce the negative impact of the relatively difficult four financial years from 2022 to 2025. As explained in their Review, the Investment Managers are positive on equity markets and selective alternative assets. Discounts have begun to narrow within alternatives, and the Investment Managers see strong NAV growth potential from specific alternative assets, which may help to close discounts further.

Revenue and Dividends to Income Shareholders

For the financial year ended 31 May 2026, four interim dividends have now been paid totalling 7.85p per Income share, which represents an increase of 3.3% from the prior financial year (2025: 7.60p per Income share). This increase compares to the change in CPI over the year of 2.8%. The fourth interim dividend was paid after the year end on 10 July 2026.

This is the 15th consecutive year of dividend increase and the yield on the Income shares was 6.0% on the year end Income share price, compared with 3.1% for the FTSE All-Share Index and 2.6% for the FTSE All-Share Closed End Investments Index.

In the absence of unforeseen circumstances, it is the Board's intention, in accordance with the Company's stated dividend policy, to pay four quarterly interim dividends, each of at least 2.00p per Income share, so that the aggregate dividends for the financial year ending 31 May 2027 will be at least 8.00p per Income share.

After allowing for the payment of the fourth interim dividend, the Company has a revenue reserve of £2.9 million, equivalent to approximately 59% of the current annual dividend cost (at 8.00p per Income share). In addition, the £29.6 million distributable reserve (the 2022 special reserve, which was created following the cancellation of the share premium account) is attributable to the Income shares. These reserves can be drawn on to support the payment of dividends to Income shareholders. The Board believes this use of reserves affords the Investment Managers more flexibility with portfolio construction, ensuring that total returns for Income shareholders are not detrimentally impacted by the dividend target.

Changes to Dividend Aim and Payment Frequency

The Board is well aware that increases in dividends are important to Income shareholders and in particular how increases compare with inflation. It has become the Board's aim to seek to increase dividends by at least as much as inflation (as measured by CPI) over rolling three-year periods (based on financial years). This will likely mean that, in years when inflation is low, dividend increases may exceed it, but, when inflation is high, dividend increases may lag, effectively providing Income shareholders with a smoother income profile over the rolling three-year periods. The Board first adopted this dividend aim for the three years which ended 31 May 2026. Over that period, dividends increased by 9.0% and CPI by 8.4% equivalent to compound annual increases of 2.9% and 2.7% respectively.

The Board also intends to change the frequency of Income shareholders' dividends from quarterly to monthly, with effect from the next financial year which commences on 1 June 2027. Changing within the financial year could cause confusion and so this is best implemented from the beginning of a new financial year. The Board believes many Income shareholders

will receive other forms of income, like salary and/or pensions, on a monthly basis and indeed their budgeting is likely to be on a monthly basis too. We therefore believe moving from quarterly to monthly payments will prove helpful and popular with our existing Income shareholders and has the potential to attract new investors.

In practical terms, this change to the payment profile will not mean the full year's dividends will be any different from what they would have been. Income shareholders will receive on a monthly basis roughly one-third of what they would have received in their quarterly dividends in each of the three-month periods, and their overall cash flow should be accelerated. For example, the dividend usually paid in respect of the first financial quarter is typically paid in October, whereas the monthly dividends in respect of this first quarter are expected to be paid in August, September and October, and so on for the subsequent dividends. More information about this change will be shared nearer the intended start date.

Investment Policy

We, alongside the Investment Managers, have reviewed the features of the Company's investment policy and, while we do not see any that need changing at the moment, there are two existing features that are worth mentioning that may be used going forward.

The Company's investment policy requires it to invest 'principally' in listed closed-end investment companies. By including the word 'principally' it has always been the case that other types of investment funds could be used in a relatively small way while still adhering to the policy. This latitude has not been used to date but, as the listed closed-end investment companies universe has reduced in number, it is more likely that the Investment Managers may wish to use other types of funds where they can provide attractive exposure that is not otherwise available to the Company from listed closed-end investment companies.

The Company's investment policy also permits the use of derivatives within parameters set by the Financial Conduct Authority and prescribed as efficient portfolio management. Again, whilst this has always been available to the Company, derivatives have not been used to date. Going forward it is more likely that 'index futures' may be used to gain or reduce exposures more quickly and more cheaply than by buying or selling investments. Typically these would be short-term expedients and modest in scale.

The Board will of course be monitoring closely any use of these features and discussing any use with the Investment Managers.

Borrowing

The Company has an unsecured revolving credit facility ('RCF') with The Royal Bank of Scotland International Limited ('RBSI') for £10 million, which can be used in either Portfolio. At the year-end, £7 million of the RCF had been drawn down in the Income Portfolio (2025: £7 million in the Income Portfolio), which represented 8.0% of its gross assets (2025: 10.3%). No borrowings were drawn down in the Growth Portfolio (2025: nil), although we expect that, going forward, the Growth Portfolio may also make use of the borrowing facility. With that in mind, the Board has requested RBSI consider an increase in the size of the RCF with RBSI.

The Board is responsible for the Company's gearing strategy and sets parameters within which the Investment Managers operate. Borrowings are not normally expected to exceed 20% of the total assets of the relevant Portfolio; in practice they have been more modest and used to seek to enhance total return, including the net income in the Income Portfolio.

Management of Share Price Premium and Discount to NAV

We are active in issuing shares to meet demand and buying back shares when this is appropriate. In normal circumstances we aim to ensure the discount to NAV at which the shares trade is no more than 5% and, during the financial year ended 31 May 2026, the Growth shares and Income shares traded at an average discount of -1.8% and an average premium of +0.6% respectively.

During the financial year, 1,265,000 Growth shares were resold out of treasury at an average premium to NAV of 1.5%, raising gross proceeds of £3.9 million. In addition, and primarily in the first half of the financial year, 1,678,000 Growth shares were bought back into treasury at an average price of 275.51p per Growth share, with a total cost of £4.6 million, and at an average discount to NAV of -3.8%.

Also during the financial year, 7,125,000 new Income shares were issued from the Company's block listing facility and 200,000 Income shares were sold from treasury at an average premium to NAV of 1.6%. In total these transactions raised gross proceeds of £9.1 million in the Income Portfolio. 200,000 Income shares were bought back into treasury at an average price of 118.375p per Income share, at a total cost of £0.2 million and at an average discount to NAV of -3.6%.

The Board is seeking shareholders' approval to renew the powers to allot shares, buy back shares and sell shares from treasury at the forthcoming Annual General Meeting ('AGM'). Specifically, the Board is once again seeking approval to allow the Company to issue (or sell from treasury) up to 20% of each share class without rights of pre-emption and, in this respect, there are two resolutions proposed. Each resolution is for up to 10% and, therefore, for an aggregate of up to 20% of each of the Growth shares and Income shares. This approach allows any shareholder who may not wish to give approval to an aggregate limit higher than that recommended by corporate governance guidelines the ability to approve the first resolution for up to 10% and to also consider the second resolution separately for a further 10%.

The Board believes the ability to issue and buy back shares helps to reduce the volatility in the premium or discount of the share prices to the underlying NAVs and the 20% overall share allotment authority and the 14.99% buy-back authority with respect to both the Growth shares and Income shares are therefore in the best interests of all shareholders.

Share Conversion Facility

Shareholders have the opportunity to convert their Growth shares into Income shares or their Income shares into Growth shares annually subject to minimum and maximum conversion quantum thresholds which may be reduced or increased at the discretion of the Board.

The ability to convert without incurring UK capital gains tax or paying stamp duty should be an attractive facility for shareholders who wish to do so, and the next conversion date will be on 12 November 2026. Information is provided on pages 91 and 92 in the Annual Report and Financial Statements, and full details will be provided on the Company's website (ctglobalmanagedportfolio.co.uk) from 3 September 2026.

Investment Management Fee

During the financial year, the Board and Manager agreed a reduction in the investment management fee (the 'Fee') with effect from 1 September 2025. The Fee has been reduced to 0.60% per annum of the net asset value of each Portfolio (rather than 0.65% per annum of the total assets of each Portfolio) and there is no longer any charge on any assets which are invested in other investment vehicles managed by the Manager.

Board Changes

During the year, Simon Longfellow took up a full-time senior marketing role and, as a result, was not able to continue his role with the Company and stepped down as a non-executive Director with effect from 31 December 2025. The Board was very sorry to lose Simon who had been an excellent colleague with great insights contributing particularly into our marketing efforts and we wish him all the best for the future.

As a consequence, the Board undertook a recruitment process to replace him and was pleased to appoint Roland Spencer as a non-executive Director with effect from 19 February 2026. We believe that Roland's experience of marketing, the direct-to-consumer market and retail investor engagement will add considerable value to the Board. He chairs the Marketing Committee already to great effect. Roland's biographical details are set out on page 30 in the Annual Report and Financial Statements, and his election will be proposed to shareholders for approval at the forthcoming AGM on 23 October 2026.

AGM

The Annual General Meeting will be held on 23 October 2026 at Columbia Threadneedle Investments, Cannon Place, 78 Cannon Street, London, EC4N 6AG at 11.30am. Adam Norris and Paul Green will give a presentation and provide an overview of their investment strategy together with their views on the outlook.

Voting on all resolutions at the AGM will be held on a poll, the results of which will be announced and posted on the Company's website (ctglobalmanagedportfolio.co.uk) following the meeting. All shareholders are therefore encouraged to make use of the proxy form or form of direction provided, in order that they can lodge their votes.

Should shareholders have any questions or comments in advance, these can be raised with the Company Secretary ([email protected]). Following the AGM, the Investment Managers' presentation will be available on the Company's website.

Outlook

"Prediction is very difficult, especially if it's about the future!" - I have always appreciated this quote and, while it has always been true, it feels particularly so now when a political leader somewhere can make any prediction about the future look foolish very quickly. This is not to absolve myself from some attempt to talk about the prospects for your Company, though, on investment matters, I could not do better than the Investment Managers have in their Review in their last section entitled "The Future Belongs to the Optimists". I commend that to you as well as the rest of the Review of their maiden year.

Your Company's Portfolios are not positioned to protect from Black Swan events (i.e. unpredictable events with severely negative impacts) but rather to provide truly diversified equity orientated exposures to geographies, sectors, investment styles and investment managers. By diversified we mean that investments should not all move in the same direction under the influence of the same events and environments (i.e. the Investment Managers try to avoid too much correlation amongst the investments). Over time this should help achieve the aims of both Portfolios.

As described in this Statement and elsewhere in this Annual Report and Financial Statements, your Board and Manager have undertaken several initiatives which we believe will improve the experience and outcomes for our shareholders. These, and an encouraging first year by our Investment Managers, give us cause to be optimistic for CT Global Managed Portfolio's future. The future belongs to the optimists!

David Warnock

Chairman

1 September 2026

(1) Total return - see Alternative Performance Measures on pages 95 to 97 of the Annual Report and Financial Statements

(2) Compound annual NAV total return - see Alternative Performance Measures on pages 95 to 97 of the Annual Report and Financial Statements

Investment Managers' Review

"We are pleased to report our first annual results for CT Global Managed Portfolio, as the new Investment Managers since 1 June 2025. Overall, equity markets delivered strong positive returns in the financial year ended 31 May 2026. To this end, the share price total returns for the Growth shares was +25.6% and the Income shares was +21.2%. The NAV total returns of the Growth shares was +25.1% and the Income shares was +23.3%."

As comparators, the total return for the FTSE All-Share Index was +21.6%, the FTSE All-Share Closed End Investments Index

+27.6% and the UK Consumer Price Index +2.8%.

We report on a busy year for the Company, with meaningful levels of turnover as we adjusted the Portfolios to further represent the 'global' remit of the Company, whilst allocating to areas of the market which represent strong opportunities for future returns.

A Year of Repositioning

Turnover was heightened for the Company, with the composition of the Growth Portfolio changing by 51% by value, and the Income Portfolio by 46%. Whilst the process of refining the Portfolios is an ongoing and constant feature of active fund management, we have made significant changes to the composition of the Portfolios since we became the new Investment Managers at the beginning of the Company's financial year. The significant repositioning was completed by the year end and, going forward, we will continue to refine the Portfolios to represent our selected best-in-class investment company managers and market opportunities.

We have repositioned the Portfolios to reflect our favoured investment markets for total returns. The biggest beneficiaries of this were investment companies focused on Asia and Emerging Markets equities. Within the Growth Portfolio, the allocation increased to 18.1%, up from 3.4%, and within the Income Portfolio to 17.7%, from 7.3%. We outline our rationale in 'Emerging Value'.

In addition, we added to investment companies with a global investment remit. Within the Growth Portfolio this increased to 19.8%, from 12.1%, and within the Income Portfolio to 20.6%, from 15.3%.

To fund this increased global exposure, we have reduced the allocation to UK-focused investment companies. Within the Growth Portfolio this reduced to 14.2%, down from 29.4%, and within the Income Portfolio it reduced to 19.5%, from 40.2%. We outline our rationale in 'The UK Needs a Korea Break'.

Within alternatives, we are enthusiastic about the specific opportunities for capital and income growth. Whilst optically our allocation in the Growth Portfolio fell from 9.3% to 2.9%, this captures the sale of defensive multi-asset trusts, reflecting our constructive view on equities. Within the Income Portfolio, the allocation rose from 10.5% to 16.5%, an area we covered within our review in the Half-Year Report.

Further to these changes in allocations, we have reduced the number of underlying investment companies held in each Portfolio. As a result, the top ten holdings reflect a higher degree of conviction. In the Growth Portfolio, the number of holdings was reduced to 30 from 39 and the top ten holdings represented 58% of the portfolio at the year end, up from 36%. In the Income Portfolio, the number of holdings was reduced from 36 to 31, and the top ten holdings represented 48% of the Portfolio at 31 May 2026, up from 37%. We would expect the Income Portfolio to remain more diversified than the Growth Portfolio, supporting predictable dividend streams to investors.

Lastly, the level of overlap between the Growth and Income Portfolios has increased. This reflects our decision to invest in our view of best-in-class investment company managers, particularly those who utilise a total return approach to investing. An example of this is our introduction of Invesco Global Equity Income Trust, which is now the largest holding in the Growth Portfolio and a top five holding in the Income Portfolio. The company's managers', Stephen Anness and Joe Dowling, focus on company cash flow to drive not just dividends but capital growth for investors. Although the portfolio holdings produce a small yield premium to the wider market, the managers' opportunity set is not confined to high yielding stocks, as the investment company structure affords the flexibility to use reserves to top up dividends available to investors - a strategy we believe is suitable for both Portfolios.

We set out below, the performance drivers through the 2026 financial year and the investment themes which are expected to influence Portfolio performance going forward.

The Great Equity Transfer

Investors heavily invested in software, data and asset light businesses faced a challenging year. Fears of agentic artificial intelligence ('AI') eating into software and data-related company profitability triggered a bruising de-rating (paying lower price multiples for company profit streams) amongst industry leaders, erasing trillions of pounds in market capitalisation.

However, it is private capital markets that are willing to write bigger cheques to fund certain capital-hungry growth businesses, allowing them to remain private for much longer. The Growth Portfolio benefitted from this through its holdings in The Schiehallion Fund and Scottish Mortgage Investment Trust - both managed by Baillie Gifford, both providing meaningful exposure to these enormous yet-still-private companies. Two of the trusts' largest holdings (SpaceX and Anthropic) added over $2 trillion to their aggregate valuations, whilst still operating as private companies, over the past two years alone, a phenomenon which is having a transformative effect on both public and private markets.

Post period-end, SpaceX offered shares to the public for the first time via an IPO (initial public offering) at a market capitalisation on a par with the top ten S&P 500 companies (albeit not included in the main reference index for a further twelve months), or for context, larger than the top ten FTSE 100 companies combined. Anthropic's pathway to IPO is underway and is expected to command a market capitalisation north of $1 trillion.

Emerging Value

Not only has a shift occurred between public to private markets, but, perhaps for the first time in a decade, many of the public market winners are also found away from the US market.

Many 'hardware' companies related to AI supply chains, such as companies manufacturing semiconductor and memory chips, have seen their profits explode higher, with a number being domiciled in Emerging Markets.

As a result, despite the MSCI Emerging Markets Index returning +55% over one year to 31 May 2026, the index trades on a cheaper price-to-earnings multiple today. Said differently, the performance of Emerging Markets has been entirely driven by increasing corporate profitability.

When we reflect upon previous periods of such strong investment returns, this is often attributed to investors re-rating stocks (paying higher price multiples for company profit streams) - not yet the case in Emerging Markets.

We have therefore continued to add to our Asian and Emerging Market investment company holdings, as covered in 'A Year of Repositioning'. New holdings within the Growth Portfolio include Fidelity Emerging Markets and Invesco Asia Dragon Trust; Invesco Asia Dragon Trust was also added to the Income Portfolio.

The UK Needs a Korea Break

One of the more eye-catching statistics we've read in recent months was how the UK's aggregate stock market capitalisation had fallen below that of South Korea's, and then quickly followed by falling below that of Taiwan. As discussed in 'Emerging Value', many mission critical companies in the AI supply chains can be found in the Far East. In fact, the Technology sector weighting within the MSCI Emerging Markets Index is now larger than within the S&P 500.

No such critical component businesses are domiciled in the UK market, which still comprised 30% in Financials (banks and insurers) versus just 2.4% in Technology at the financial year end. In fact, when we adjust for the sector composition, we do not see the UK market as being particularly cheap and much more in-line with other major markets, such as Europe and Japan.

Throughout the year we reduced our holdings in UK-focused investment companies. Whilst no full sales were made from the Growth Portfolio in the second half of the year (six full sales were made in the first half-year), within the Income Portfolio, we exited Montanaro UK Smaller Companies Investment Trust, The Mercantile Investment Trust, The City of London Investment Trust and The Merchants Trust (in addition to three full sales detailed in the Half-Year Report).

Within the Income Portfolio, we added to our position in Murray Income Trust, after the change of manager to the established Artemis UK Income team, which enjoys one of the best and longest track records in the open-ended IA Equity Income Sector and commend the board on its selection.

Within our remaining UK equity exposure, we have repositioned the holdings to be increasingly focused on small and mid-sized companies, an area which we believe stands to benefit the most if investor flows return to the UK market. Indeed, absent returning flows, our preference is for investment company managers who utilise a highly engaged approach to unlock value. That is, working with (or even replacing) management teams and boards of directors to drive value through either M&A or business model adaption. We include Odyssean Investment Trust, Strategic Equity Capital and Aberforth Smaller Companies in this cohort.

Double Up

Rarely outside of post-recession recoveries do we look back over twelve months and see funds or trusts which have doubled in value. To that end, we give special mentions to Polar Capital Technology Trust, The Schiehallion Fund and Fidelity Emerging Markets (not owned for the full financial year), all of which provided triple-digit returns.

These returns are in no small part due to the flexibility the investment company structure provides portfolio managers. The Schiehallion Fund (covered in 'The Great Equity Transfer') invests mostly in private companies which are unsuitable for an open-ended fund.

Fidelity Emerging Markets, with its +103% share price total return, almost doubled its MSCI Emerging Markets benchmark return. When we decompose those returns, we find that more than half of its outperformance can be attributed to gearing, investing in smaller but less liquid companies and shorting specific companies or markets - impressive use of the investment company structure and we applaud the managers, Chris Tennant and Nick Price, for exceptional outperformance.

Paying Down for Quality

Investors have been told for the past fifteen years that 'paying up' for quality is a successful investment strategy. Why buy value/turnaround businesses when quality businesses can continue to compound without issues?

This seems to have changed in the current interest rate environment.

We suspect the ten years to 2022 may well be seen as the exception rather than rule for sustained quality outperformance. Indeed, some of the weakest performing investment companies across the sector over the past year were found to have a quality-focused investment approach. However, we still believe high quality and predictable companies should provide a role in investor portfolios, particularly in periods of market stress, when investors flock to companies considered durable and defensive.

Over the year, we acquired a new position for the Growth Portfolio in JPMorgan Global Growth & Income (as well as significantly adding to the Income Portfolio holding) and within the Income Portfolio we began a new position in STS Global Income & Growth Trust. Our preference is for a global, rather than regional, approach to quality companies, giving wider investment remits to identify truly durable businesses.

Within the Growth Portfolio, we sold Finsbury Growth & Income Trust, European Opportunities Trust and The Monks Investment Trust and, within the Income Portfolio, we sold Scottish American Investment Company, as well as the aforementioned The City of London Investment Trust and Montanaro UK Smaller Companies Investment Trust.

A Kick to the Privates

Enormous value creation is occurring in particular private equity companies (see 'The Great Equity Transfer'), a phenomenon supported by ever deeper private capital pockets. However private equity success is now increasingly bifurcated between those accessing these companies, and those who do not, or cannot.

Within private equity 'buyout' (where businesses are owned and operated predominantly by one private equity sponsor), companies will be managed over a number of years, typically five, and be readied for a sale. It is this 'exit' where the greatest uplift to valuations often occurs. With exits taking longer to achieve, this has had a dampening effect on private equity returns.

Compounding the woes, private equity dealmakers have long had a significant preference for 'asset light' companies - businesses which can scale quickly without significant injections of capital. Think software, data and service-based companies. With the onset of AI, these business models have faced a threat like never before. Why pay a software provider when AI can build, code and customise it for you?

Within the Growth Portfolio, HgCapital Trust (ticker: HGT) was in the eye-of-the private equity and software storm through the financial year. We had modestly increased the position into relative underperformance during the first half of the financial year, but meaningfully reduced the holding in December and January, as we witnessed the software-related issues in public markets, with HGT mostly unscathed at that point. Whilst the trust's share price bounced towards the end of the period, the trust returned -26.3% for the financial year.

Additionally, Literacy Capital (ticker: BOOK), a UK micro-cap buyout investment company managed by father-son combination Paul and Richard Pinder, returned -28.4% for the year. After an excellent few years of performance, the trust's NAV fell 5.9% as some of the larger holdings gave back some of their previous gains. However, BOOK's share price discount to NAV widened from a 15% to a 34% discount, exacerbating the negative returns to shareholders. Whilst such performance is unwelcome, Paul and Richard Pinder own a combined 39% of BOOK shares in issue and are thus heavily aligned with investor outcomes.

Within the Income Portfolio, we topped up our holding in NB Private Equity Partners in the first half of the financial year, as, in our view, the portfolio is ripe with mature businesses readied for exit. With exits taking longer to materialise, returns for the year were a positive, but pedestrian +6.1%.

What Didn't Work

Whilst we are pleased with investor outcomes in the first year of managing your Company's Portfolios, and indeed have strong conviction in their repositioned states, it would be remiss not to further reflect upon positioning which didn't work for shareholder returns.

In our meetings with investment company managers, we endeavour to get under the bonnet of their investment process and decision-making.

Within Private Equity, we believe this approach is more powerful and revealing for companies which are investing in their own funds or direct holdings, otherwise known as 'Direct Private Equity'.

It leads us away from more 'Diversified Private Equity' companies, such as Pantheon International (a full sale during the financial year) and HarbourVest Global Private Equity (not owned). These two, despite their diversified approach in a sideways market, returned +37.5% and +42.6% respectively, as their discounts to NAV closed significantly. An opportunity cost and an opportunity missed.

Moreover, sometimes investment companies can represent very little of the market we are targeting. Over the financial year, Aurora UK Alpha Trust (ticker: ARR) fell -1.4% versus a FTSE All-Share total return +21.6%. Whilst such underperformance is undoubtedly disappointing, ARR bears little resemblance to the wider UK market with an active share of close to 95% (that is, the trust owns a portfolio which is 95% different from the FTSE All-Share composition).

The uniqueness of ARR does not end there. The manager, Phoenix Asset Management, led by Gary Channon, is not paid an ongoing management fee from the trust, with the manager solely earning a performance fee, only paid if the trust outperforms the index. And even then, the performance fee is paid in ARR shares, strengthening the alignment of interest with shareholders, encouraging long termism rather than chasing short-term performance. We remain patient.

The Future Belongs to the Optimists

Our positive outlook at the start of the financial year, based on a strengthening economic backdrop and improving corporate earnings, has, at times, been tested by heightened geopolitical risks. However, the strength of corporate earnings has driven many equity market indices to new record highs, much in relation to AI and data centre supply chains.

We remain alive to any further conflict escalations in the Middle East, recognising the importance that energy pricing and energy security has on the ability for AI related profitability to continue to flourish.

Economic growth continues to remain robust in the face of, once again, heightened inflation expectations. This may have consequences for the path of interest rates as central banks decide how aggressively they need to respond to another wave of inflation.

Overall, our views remain constructive. We expect economic growth to stay positive, while earnings momentum appears strong and increasingly broad-based across sectors and regions. Narrow market leadership remains a risk, particularly given the extent to which the AI theme has driven gains in a relatively small group of companies, but the underlying profit picture is healthier than this suggests.

Against that backdrop, we continue to see the most compelling return opportunities in equities, both public and private, with selective allocations to alternatives, bonds and direct lending investment companies. From a regional perspective, we continue to favour Asia and Emerging Markets, having reallocated away from the UK throughout the financial year.

In summary, while geopolitical uncertainty may bring further market volatility, resilient growth and solid corporate fundamentals should remain the dominant forces shaping markets going forward.

We remain excited for the prospects for both the Growth and Income Portfolios, which we believe are invested in best-in-class managers, who utilise the structural advantages of investment companies and continue to drive strong shareholder returns over the longer term.

We look forward to further updating investors at the AGM in October and over the current financial year.

Adam Norris and Paul Green

Investment Managers

Columbia Threadneedle Investment Business Limited

1 September 2026

 Income Statement

For the Year ended 31 May 2026

The total column of this statement is the Profit and Loss Account of the Company. The supplementary revenue and capital columns are prepared under guidance published by The Association of Investment Companies.

Segmental analysis, illustrating the two separate portfolios of assets, the Income Portfolio and the Growth Portfolio, is shown in note 2 to the financial statements.

All revenue and capital items in the Income Statement derive from continuing operations.

Return attributable to shareholders represents the profit for the year and also total comprehensive income.

Income Statement

For the Year ended 31 May 2025

The total column of this statement is the Profit and Loss Account of the Company. The supplementary revenue and capital columns are prepared under guidance published by The Association of Investment Companies.

Segmental analysis, illustrating the two separate portfolios of assets, the Income Portfolio and the Growth Portfolio, is shown in note 2 to the financial statements.

All revenue and capital items in the Income Statement derive from continuing activities.

Return attributable to shareholders represents the profit for the year and also total comprehensive income.

Balance Sheet

As at 31 May 2026

Balance Sheet

As at 31 May 2025

Cash Flow Statement

Year ended 31 May 2026

Cash Flow Statement

Year ended 31 May 2025

Statement of Changes in Equity

For the Year ended 31 May 2026

Statement of Changes in Equity

For the Year ended 31 May 2025

Principal Risks and Uncertainties

As an investment company investing primarily in listed securities, most of the Company's principal risks and uncertainties that could threaten the achievement of its objectives and strategy, and its future performance, liquidity and solvency, are market-related.

A summary of the Company's risk management and internal control arrangements is included within the Report of the Audit Committee in the Annual Report and Financial Statements. By means of the procedures set out in that summary, the Board has established an ongoing process for identifying, evaluating and managing the significant risks faced by the Company. The Board also considers emerging risks which might affect the Company and related updates from the Manager on such risks are also considered. During the year, significant risks included the outlook for inflation, ongoing macroeconomic and geopolitical concerns and the impact on financial markets of US trade tariffs and the US/Iran conflict. Any emerging risks that are identified and considered to be of significance are included on the Company's risk register with any mitigations. These significant risks, emerging risks and other risks are regularly reviewed throughout the year by the Audit Committee and the Board. The Audit Committee and the Board have also regularly reviewed the effectiveness of the Company's risk management and internal control systems for the period.

The principal risks and uncertainties faced by the Company, and the Board's mitigation approach, are described below.

Market risk

The Company's assets consist mainly of listed closed-end investment companies and its principal risks are therefore market-related and include market risk (comprising currency risk, interest rate risk and other price risk), liquidity risk and credit risk.

Climate change may also have an impact on investee companies in the coming years.

Uncertainty in markets, with events such as the US/Iran conflict and the impact on financial markets of US trade tariffs, together with macroeconomic and geopolitical concerns, have led to volatility in the Company's NAV.

No change in overall risk during the year, but, given macroeconomic and geopolitical concerns, this risk remains heightened.

Mitigation

The Board regularly considers the composition and diversification of each Portfolio and considers individual stock performance together with purchases and sales of investments. Investments and markets are discussed with the Manager on a regular basis.

Engagement on financially material environmental, social and governance matters is undertaken by the Manager and its approach is explained on pages 19 to 20 of the Annual Report and Financial Statements.

The Board has, in particular, considered the impact of market volatility, macroeconomic and geopolitical concerns and inflation and they are discussed in the Chairman's Statement and Investment Managers' Review. As a closed-end investment company, the Company is not constrained by asset sales to meet redemptions so can remain invested through volatile market conditions and is well suited to investors seeking longer-term returns.

An explanation of market risk and the way in which it is managed is contained in notes 18 to 23 to the financial statements in the Annual Report and Financial Statements.

Investment performance risk

Incorrect strategy, asset allocation, stock selection (in the context of the market, economic or geopolitical backdrop) and the use of gearing could all lead to poor returns for shareholders.

No change in overall risk during the year, but, given macroeconomic and geopolitical concerns, this risk remains heightened.

Mitigation

The investment strategy and performance against peers and relevant indices are considered by the Board at each meeting and reviewed with the Manager. The Board is responsible for setting the gearing range within which the Manager may operate and gearing is discussed at every meeting and related covenant limits are closely monitored. The Manager's Investment Risk team provide oversight on investment risk management.

The Portfolios are diversified and principally comprise listed closed-end investment companies and their compositions are reviewed regularly by the Board.

Underlying dividends from investee companies are also closely monitored and the revenue reserve and the 2022 special reserve attributable to the Income Portfolio can be drawn on to support the payment of dividends to Income shareholders.

If required, the Board can hold additional meetings at short notice to discuss any significant matters.

Third party service delivery and cyber risk

Failure of the Manager as the Company's main service provider or disruption to its business, or that of any other outsourced or third party service provider, could lead to an inability to provide accurate reporting and monitoring or a misappropriation of assets, leading to a potential breach of the Company's investment mandate or loss of shareholders' confidence.

The risk includes failure or disruption as a consequence of external events such as the COVID-19 pandemic.

External cyber attacks could cause such failure or could lead to the loss or sabotage of data.

No change in overall risk during the year.

Mitigation:

The Board meets regularly with the management of the Manager and its Operational Risk team to review internal control and risk reports, which includes oversight of the Manager's own third party service providers. During the year, the Audit Committee also met with a representative of the Manager's internal audit function to discuss the outcome of its recent projects and planned activities. The Manager's appointment is reviewed annually and the contract can be terminated with six months' notice. The Manager has a business continuity plan in place to ensure that it is able to respond quickly and effectively to an unplanned event that could affect the continuity of its business.

The Manager has outsourced certain administrative functions (such as fund accounting services) to State Street Bank and Trust Company ('State Street') and supervision of such third party service providers, including the administrator of the Manager's savings plans, has been maintained by the Manager. This includes the review of IT security and heightened cyber threats.

The Manager also closely monitors the performance of its technology platform to ensure it is functioning within acceptable service levels. Periodically, the Audit Committee receives a presentation from the Manager's Information Security team on its information and cyber security programme.

The Board receives quarterly reports from the Depositary confirming safe custody of the Company's assets and cash and holdings are reconciled to the Custodian's records. The Custodian's internal controls reports are also reviewed by the Manager and key points reported to the Audit Committee. The Board also receives periodic updates from the Custodian on its own cyber security controls.

The Depositary is specifically liable for loss of any of the Company's assets that constitute financial instruments under the AIFM Directive.

Viability Assessment and Statement

In accordance with the UK Corporate Governance Code, the Board is required to assess the future prospects for the Company and considered that a number of characteristics of the Company's business model and strategy were relevant to this assessment:

· The Company's investment objective and policy, which are subject to regular Board monitoring, means that the Company is invested in two actively managed, diversified Portfolios comprising principally holdings in listed closed-end investment companies and the level of borrowing is restricted.

· The Company's investments are principally in listed securities which are traded in the UK on the London Stock Exchange's Main Market or other regulated exchanges and which are expected to be readily realisable.

· The Company is a listed closed-end investment company whose shares are not subject to redemptions by shareholders.

· Subject to shareholder continuation votes, the next of which will be at the AGM in 2028 and five yearly thereafter, the Company's business model and strategy is not time-limited.

Also relevant were a number of aspects of the Company's operational arrangements:

· The Company retains title to all assets held by the Custodian under the terms of a formal agreement with the Custodian and Depositary.

· The borrowing facility, which remains available until February 2027, is subject to a formal agreement, including financial covenants with which the Company complied in full during the year.

· Revenue and expenditure forecasts are reviewed by the Directors at each Board meeting.

· The operational robustness of key service providers and the effectiveness of alternative working arrangements.

· Alternative service providers can be engaged at relatively short notice if necessary.

The Directors also considered:

· The level of ongoing charges incurred by the Company which are modest and predictable and, excluding the ongoing charges of underlying funds, total 1.03% and 1.07% of average net assets (at 31 May 2026) for the Growth shares and Income shares respectively.

· Future revenue and expenditure projections.

· The Company's ability to meet liquidity requirements given its investment Portfolios consist principally of listed investment companies which can be realised if required.

· The ability to undertake share buy-backs if required and the Board's aim, in normal market conditions, of using buy-backs to maintain the discount to NAV at which the Company's shares trade at not more than 5%.

· Whether the Company's investment objective and policy continue to be relevant to investors.

· Directors are non-executive and the Company has no employees and consequently the Company does not have potential redundancy or other employment-related liabilities or responsibilities.

· The uncertainty in markets and macroeconomic and geopolitical concerns and the prospects for the Company's investment Portfolios.

These matters were assessed over a five year period to September 2031, and the Board will continue to assess viability over rolling five year periods. A rolling five year period represents the horizon over which the Directors believe they can form a reasonable expectation of the Company's prospects, although they do have due regard to viability over the longer term.

In considering the viability of the Company, the Directors carried out a robust assessment of the principal risks and uncertainties which could threaten the Company's objective and strategy, future performance and solvency. The assessment also included a number of stress tests and scenarios which considered the impact of inflation and the impact of market volatility and a significant fall in equity markets on the Company's investment Portfolios over a five year period. These risks, their mitigations and the processes for monitoring them are set out in Principal Risks and Uncertainties and in the Report of the Audit Committee and in notes 18 to 23 to the financial statements in the Annual Report and Financial Statements.

The results demonstrated the impact on the Company's net assets and its expenses and its ability to meet its liabilities over that period and adhere to its financial covenants.

Based on their assessment, and in the context of the Company's business model, strategy and operational arrangements set out above, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the five year period to September 2031.

Responsibility Statement of the Directors in Respect of the Annual Report and Financial Statements

We confirm that to the best of our knowledge:

· the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company;

· the Strategic Report and the Report of the Directors include a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that the Company faces; and

· we consider the Annual Report and Financial Statements, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's position and performance, business model and strategy.

On behalf of the Board

David Warnock

Chairman

1 September 2026

Notes

1. These financial statements of the Company, which are the responsibility of, and were approved by, the Board on 1 September 2026, have been prepared on a going concern basis in accordance with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, Financial Reporting Standards (FRS 102) and the Statement of Recommended Practice (SORP) "Financial Statements of Investment Trust Companies and Venture Capital Trusts" issued by The Association of Investment Companies (AIC). The audited financial statements for the Company comprise the Income Statement and the total columns of the Balance Sheet, the Cash Flow Statement and the Statement of Changes in Equity and the Company totals shown in the notes to the financial statements. The analysis showing the two separate Portfolios of assets attributable to the Income shares and Growth shares is disclosed to assist shareholders' understanding, but is additional to that required. The Company's capital structure is explained in the Capital Structure section on page 90 of the Annual Report and Financial Statements.

There have been no significant changes to the Company's accounting policies during the year ended 31 May 2026. 

The preparation of the Company's financial statements on occasion requires management to make judgements, estimates and assumptions that affect the reported amounts in the primary financial statements and accompanying disclosures. These assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in the current or future periods, depending on the circumstance. Management do not believe that any significant accounting judgements or estimates have been applied to this set of financial statements that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

The Company's assets consist mainly of equity shares in closed-end investment companies which are traded on a UK or other Regulated Stock Exchange and in most circumstances, including in the current market environment, are expected to be readily realisable.

The Company has a £10 million unsecured revolving credit facility, which is available until 10 February 2027. The Board has set limits for borrowing and regularly reviews the Company's gearing levels and its compliance with bank covenants. The Board has considered the Company's principal risks and uncertainties and other matters, and has considered a number of stress tests and scenarios which considered the impact of severe stock market volatility on shareholders' funds and demonstrated that if required the Company had the ability to raise sufficient funds so as to remain within its debt covenants and meet its liabilities.

As such, and in light of the controls and review processes in place and the operational robustness of key service providers, and bearing in mind the nature of the Company's business and assets and revenue and expenditure projections, the Directors believe that the Company has adequate resources to continue in operational existence for a period of at least twelve months from the date of approval of the financial statements. For this reason, the Board continues to adopt the going concern basis in preparing the financial statements.

2. Segmental Analysis

The Company carries on business as an investment trust and manages two separate Portfolios of assets: the Income Portfolio and the Growth Portfolio. The Company's Income Statement can be analysed as follows. This has been disclosed to assist shareholders' understanding, but this analysis is additional to that required.

Year ended 31 May 2026

Year ended 31 May 2025

(1) Any net revenue return attributable to the Growth Portfolio is transferred to the Income Portfolio and a corresponding transfer of an identical amount of capital is made from the Income Portfolio to the Growth Portfolio and accordingly the whole return in the Growth Portfolio is capital. Refer to the Statement of Changes in Equity.

3. Return per share

The return per share for the year ended 31 May 2026 is as follows:

The return per share for the year ended 31 May 2025 is as follows: