Discount Delver: the 10 cheapest trusts on 28 February 2025
We reveal the biggest investment trust discount changes over the past week.
28th February 2025 10:55
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).
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.
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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.
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Specialist strategies are on deep discounts, which has been the case for the past few years. Over the past week, the biggest riser is Ground Rents Income Fund (LSE:GRIO), which has seen its discount widen seven percentage points to -48.5%. In second and third positions are JZ Capital Partners (LSE:JZCP) and Baker Steel Resources (LSE:BSRT), moving to discounts of -3.7% and -3.4%.
Fidelity China Special Situations Ord (LSE:FCSS) features lower down the table, with its discount rising just over two percentage points to -9.9%. As one of our specialist writers pointed out this week, China has been the standout bright spot for global stock markets this year. Unlike open-ended funds, investment trusts offer investors the opportunity to buy at a cheaper entry point.
| Investment trust | Sector | Current discount (%) | Discount/premium change over past week* (%) |
| Ground Rents Income Fund (LSE:GRIO) | Property - UK Residential | -48.47 | -7.00 |
| JZ Capital Partners (LSE:JZCP) | Private Equity | -36.86 | -3.70 |
| Baker Steel Resources (LSE:BSRT) | Commodities & Natural Resources | -41.64 | -3.40 |
| CT Private Equity Trust (LSE:CTPE) | Private Equity | -30.66 | -2.70 |
| Nippon Active Value (LSE:NAVF) | Japanese Smaller Companies | -7.17 | -2.30 |
| Custodian Property Income REIT (LSE:CREI) | Property - UK Commercial | -24.32 | -2.10 |
| Digital 9 Infrastructure (LSE:DGI9) | Infrastructure | -74.58 | -2.10 |
| Fidelity China Special Situations (LSE:FCSS) | China/Greater China | -9.87 | -2.10 |
| Brunner (LSE:BUT) | Global | -5.68 | -2.10 |
| Crystal Amber (LSE:CRS) | UK Smaller Companies | -32.98 | -2.10 |
Source: Morningstar. *Data from close of trading 20 February 2025 to 27 February 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.