Investment trusts, due to their closed-ended structure, offer investors the chance of picking up a potential bargain. Such an opportunity arises when a trust’s share price is lower than the underlying investments held by the trust (the net asset value, or NAV).
However, a trust trading on a discount to NAV is not necessarily a buying opportunity. There’s likely a good reason why the trust is cheap, such as subdued short- or long-term performance, or poor investor sentiment towards how it invests.
In our weekly series, interactive investor highlights the 10 biggest investment trust discount moves over the past week.
In total, nearly 400 investment trusts have been screened, with the data sourced from Morningstar. Venture Capital Trusts (VCTs) have been excluded. We also strip out trusts with less than £20 million in assets and those that are not available on the interactive investor platform.
The biggest discount moves last week, from Wednesday to Wednesday, were at two UK equity trusts: Aberforth Geared Value & Income and CT UK High Income. They now trade on -17.1% and -1% discounts respectively.
Aberforth Geared Value & Income buys smaller UK companies, while CT UK High Income looks across the whole UK market for firms with attractive dividend yields.
Two other UK-listed equity trusts made the Discount Delver list this week: income trust BlackRock Income and Growth and UK smaller companies investor River UK Micro Cap. They are now on -13.5% and -18.3% discounts.
The final UK trust to make the list was Schroder British Opportunities, which buys both listed and unlisted assets. Due to the unlisted portion of the fund, where there is no live pricing of some of its assets, this means the trust’s discount to NAV can often become very wide during times of market stress. Therefore it is on a -44.8% discount currently.
Completing the Discount Delver list this week were: Premier Miton Global Renewables Trust (-13.7% discount); Manchester & London (-23% discount); CQS Natural Resources Growth & Income (-13% discount); Livermore Investments (-3.6% discount) and Weiss Korea Opportunity (-5.9% discount).
Source: Morningstar. *Data from close of trading 9 April 2025 to 16 April 2025.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company’s or index name highlighted in the article.
