Discount Delver: the 10 cheapest trusts on 24 January 2025
We reveal the biggest investment trust discount changes over the past week.
24th January 2025 12:02
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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Over the period 16 January to 22 January, Digital 9 Infrastructure (LSE:DGI9) was the biggest discount mover, with a 14 percentage point increase, reaching -70.3%. It’s in the process of returning cash to shareholders having announced a year ago proposals for a managed wind-down of the company.
Over the past couple of weeks some of the trusts targeted by Saba Capital have appeared in the Discount Delver table. This week, the trend continued, with both Herald (LSE:HRI) and The European Smaller Companies Trust (LSE:ESCT)Â appearing in the table, with their discounts widening to -7.3% and -4.7% respectively.
Herald shareholders voted against Saba’s proposals to remove the entire board, and introduce two new directors that it had chosen. The general meeting for The European Smaller Companies Trust takes place on 5 February, and interactive investor customers have until 31 January to cast their votes.
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Property investments remain out of favour, with discounts widening over the period for Alternative Income REIT (LSE:AIRE), Care REIT (LSE:CRT), Supermarket Income REIT Ord (LSE:SUPR), and TR Property (LSE:TRY).
| Investment trust | Sector | Current discount (%) | Discount/premium change over past week* (%) |
| Digital 9 Infrastructure (LSE:DGI9) | Infrastructure | -70.32 | -14.30 |
| Herald (LSE:HRI) | Global Smaller Companies | -9.04 | -7.30 |
| CT UK High Income (LSE:CHI) | UK Equity Income | -3.79 | -6.50 |
| Supermarket Income REIT (LSE:SUPR) | Property - UK Commercial | -27.52 | -5.00 |
| Majedie Investments (LSE:MAJE) | Flexible Investment | -6.85 | -4.70 |
| The European Smaller Companies Trust (LSE:ESCT) | European Smaller Companies | -8.91 | -4.70 |
| NB Distressed Debt Inv Extended Life (LSE:NBDX) | Debt - Loans & Bonds | -26.19 | -4.60 |
| Alternative Income REITÂ (LSE:AIRE) | Property - UK Commercial | -18.40 | -4.30 |
| Care REITÂ (LSE:CRT) | Property - UK Healthcare | -32.89 | -4.10 |
| TR Property (LSE:TRY) | Property Securities | -7.94 | -4.00 |
Source: Morningstar. *Data from close of trading 16 January to 22 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.