Discount Delver: the 10 cheapest trusts on 14 February 2025
We reveal the biggest investment trust discount changes over the past week.
14th February 2025 11:13
by Kyle Caldwell from interactive investor
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).  Â
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.  Â
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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.Â
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Property-focused investment trusts remain out of favour, with three trusts featuring in this week’s table, having seen their discounts widen.
Value and Indexed Property Income (LSE:VIP) tops the table after its discount increased by nearly five percentage points (from 6 February to 13 February) to reach -18.3%. It is accompanied by Care REIT (LSE:CRT) and Target Healthcare REIT (LSE:THRL), where discounts rose by more than three percentage points to -31.6% and -28.4% respectively.
Commercial property is a bellwether for the wider economy, and an economically sensitive asset class. The commercial property market is made up primarily of shops and offices, as well as industrial buildings, such as warehouses.
Data this week showed that the UK economy grew 0.1% in the final three months of last year, beating expectations of a 0.1% contraction. However, most commentators are pessimistic about the outlook, with some warning that stagflation is potentially on the cards. This occurs when a country experiences slow economic growth at the same time as rising or high inflation.
| Investment trust | Sector | Current discount (%) | Discount/premium change over past week* (%) |
| Value and Indexed Property Income (LSE:VIP) | Property - UK Commercial | -18.3 | -4.8 |
| Baker Steel Resources (LSE:BSRT) | Commodities & Natural Resources | -40.5 | -3.9 |
| Chelverton UK Dividend Trust (LSE:SDV) | UK Equity Income | -5.7 | -3.7 |
| Aquila European Renewables (LSE:AERI) | Renewable Energy Infrastructure | -32.5 | -3.6 |
| Literacy Capital (LSE:BOOK) | Private Equity | -18.8 | -3.6 |
| GCP Asset Backed Income (LSE:GABI) | Debt - Direct Lending | -23.8 | -3.4 |
| Care REIT (LSE:CRT) | Property - UK Healthcare | -31.6 | -3.3 |
| Target Healthcare REITÂ (LSE:THRL) | Property - UK Healthcare | -28.4 | -3.3 |
| Riverstone Energy (LSE:RSE) | Commodities & Natural Resources | -34.1 | -3.3 |
| Symphony International Holding (LSE:SIHL) | Private Equity | -58.8 | -2.9 |
Source: Morningstar. *Data from close of trading 6 February 2025 to 13 February 2025. Â
These articles are provided for information purposes only. Â Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. Â 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.