Discount Delver: the 10 cheapest trusts on 3 January 2025

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. 

Three commodity-focused investment trusts made the Discount Delver list this week. Geiger Counter, which invests in uranium miners and the element itself, had the biggest discount move of this group and is now on a –19.5% discount.  

The next largest move was at Golden Prospect Precious Metal, which moved to a –22.6% discount. It owns gold and silver mining companies from around the world, but is focused on Canada and Australia. 

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The final commodity trust to feature was CQS Natural Resources G&I, which moved to a -4.8% discount. It also invests in mining companies.  

Three emerging market trusts made the list: BlackRock Frontiers, Utilico Emerging Markets and Pacific Assets. They are now on –7.6%,–19.3% and –13.2% discounts respectively. Utilico is one of our Super 60 investment ideas – it invests in infrastructure assets across emerging markets, such as airports. It yields around 4%.  

Pacific Assets is also part of the Super 60. It invests across Asia but is particularly focused on Indian companies.  

Meanwhile, BlackRock Frontiers invests in even riskier markets, such as Indonesia, Kazakhstan and Pakistan. 

One UK trust made the list: CT UK High Income, which is now on a –4.5% discount. It owns large UK companies and yields 6%. The largest positions are Shell, HSBC and AstraZeneca. 

Premier Miton Global Renewables, Eurocastle Investment and Livermore Investments round off the list, now trading at –12.3%, -25.5% and –20% discounts respectively. 

Source: Morningstar. *Data from close of trading 26 December 2024 to close of trading 2 January 2025.