Discount Delver: the 10 cheapest trusts on 17 January 2025
We reveal the biggest investment trust discount changes over the past week.
17th January 2025 13:45
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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Aseana Properties (LSE:ASPL) is the biggest mover of the past week, seeing its sky-high discount increase by seven percentage points to -75.9%.
In second and third place are two of the seven investment trusts being targeted by activist investor Saba Capital – Henderson Opportunities (LSE:HOT) and CQS Natural Resources Growth & Income (LSE:CYN).
Over the period 9 January to 15 January, Henderson Opportunities discount moved from a small premium to -5.8%, while CQS Natural Resources Growth & Income moved from a discount of -4.7% to 10.7%.
Saba Capital has called for the removal of board members at seven investment trusts in which it is the largest shareholder. Dates of each meeting, how interactive investor customers can cast their votes, and the deadline for online voting can be found here.  Â
Henderson Opportunities is joined in the table by another UK trust, Aberforth Geared Value & Income (LSE:AGVI). Despite carrying a cheap price tag, the UK equity market remains unloved, reflected in the discounts on offer for UK equity trusts.
Also noteworthy is that an investment trust that was trading on a small premium, AVI Japan Opportunity (LSE:AJOT), has slipped on to a small discount.
According to Kepler Partners, the analyst, this investment trust seeks to take advantage of the corporate governance reform programme and its potential to unlock value in deeply discounted Japanese companies.Â
| Investment trust | Sector | Current discount (%) | Discount/premium change over past week* (%) |
| Aseana Properties (LSE:ASPL) | Property - Rest of World | -75.9 | -7.8 |
| Henderson Opportunities (LSE:HOT) | UK All Companies | -5.8 | -6.6 |
| CQS Natural Resources Growth & Income(LSE:CYN) | Commodities & Natural Resources | -10.7 | -6.0 |
| AVI Japan Opportunity (LSE:AJOT) | Japanese Smaller Companies | -2.9 | -3.4 |
| Aberforth Geared Value & Income (LSE:AGVI) | UK Smaller Companies | -10.8 | -3.2 |
| EPE Special Opportunities (LSE:ESO) | Private Equity | -50.6 | -3.1 |
| Schiehallion Fund (LSE:MNTN) | Growth Capital | -20.2 | -3.1 |
| BlackRock Latin American (LSE:BRLA) | Latin America | -12.2 | -3.1 |
| BlackRock Frontiers (LSE:BRFI) | Global Emerging Markets | -7.7 | -3.0 |
| Symphony International Holding (LSE:SIHL) | Private Equity | -54.6 | -3.0 |
Source: Morningstar. *Data from close of trading 9 January to 15 January 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.