Discount Delver: the 10 cheapest trusts on 31 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. 

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For the second week in a row, Digital 9 Infrastructure (LSE:DGI9) tops the table, having seen its discount advance eight percentage points to -78.8% over the period (23 January to 30 January). It’s in the process of returning cash to shareholders after announcing proposals for a managed wind-down of the company a year ago.

Digital 9 is joined in the table by peer Cordiant Digital Infrastructure (LSE:CORD), which saw its discount increase by three percentage points to -32.1%. Another infrastructure strategy, Pantheon Infrastructure Ord (LSE:PINT), also features in the table. Its discount widened by just over three percentage points to -22.2%. As well as digital infrastructure, it invests in other areas, including power and utilities, as well as renewables.

Two renewable energy infrastructure trusts also appear in the cheapest trusts’ table: Gresham House Energy Storage (LSE:GRID) and VH Global Energy Infrastructure (LSE:ENRG), trading on discounts of -62.7% and -50.9%.

As mentioned previously, infrastructure assets have been out of favour for a couple of years due to rising interest rates, which caused bond yields to increase. Given that investors can earn a good level of income from bonds, there is less incentive to take greater risk.

Source: Morningstar. *Data from close of trading 23 January to 30 January 2025.