Discount Delver: the 10 cheapest trusts on 29 November 2024
We reveal the biggest investment trust discount changes over the past week.
29th November 2024 11:42
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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As was the case last week, some UK-focused investment trusts have seen their discounts widen. Even though the UK market is cheap on valuation grounds, and despite performance picking up over the past year, retail investors are continuing to stay away.
Four UK equity trusts make this week’s table: Crystal Amber (LSE:CRS), BlackRock Income and Growth (LSE:BRIG), JPMorgan UK Small Cap Growth & Income (LSE:JUGI) and Montanaro UK Smaller Companies (LSE:MTU).
Topping the table with a near-five percentage point increase in its discount is Aquila Energy Efficiency Trust (LSE:AEET), which is now on a -45.1% discount. Trading on a similar discount of -45.7% is peer SDCL Energy Efficiency Income (LSE:SEIT).
The private equity sector also has two trusts in the table this week, Symphony International Holding (LSE:SIHL) and NB Private Equity Partners (LSE:NBPE). Both have seen their discounts widen by nearly three percentage points to -57.6% and -27.3%.
| Investment trust | Sector | Current discount (%) | Discount/premium change over past week* (%) |
| Aquila Energy Efficiency Trust (LSE:AEET) | Renewable Energy Infrastructure | -45.1 | -4.9 |
| Crystal Amber (LSE:CRS) | UK Smaller Companies | -34.3 | -4.9 |
| BlackRock Income and Growth (LSE:BRIG) | UK Equity Income | -15.6 | -3.6 |
| JPMorgan UK Small Cap Growth & Income (LSE:JUGI) | UK Smaller Companies | -13.6 | -3.5 |
| Hansa Investment Company (LSE:HAN) | Flexible Investment | -40.4 | -3.2 |
| VPC Specialty Lending Investments (LSE:VSL) | Debt - Direct Lending | -49.5 | -2.9 |
| SDCL Energy Efficiency Income (LSE:SEIT) | Renewable Energy Infrastructure | -45.7 | -2.8 |
| Symphony International Holding (LSE:SIHL) | Private Equity | -57.6 | -2.7 |
| Montanaro UK Smaller Companies (LSE:MTU) | UK Smaller Companies | -16.2 | -2.6 |
| NB Private Equity Partners (LSE:NBPE) | Private Equity | -27.3 | -2.6 |
Source: Morningstar. *Data from close of trading 21 November 2024 to close of trading 28 November 2024.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.