Discount Delver: the 10 cheapest trusts on 6 September 2024
We reveal the biggest investment trust discount changes over the past week.
6th September 2024 10:00
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. We publish this article every Friday, using data up to the close of trading the previous day.  Â
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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It's been a quiet week overall for investment trust discounts, with Baker Steel Resources (LSE:BSRT) topping the table with a small discount move from -32.8% to -36.6%.
In second place is Pershing Square Holdings (LSE:PSH), managed by star investor Bill Ackman, who oversees a concentrated portfolio of US-listed stocks. Performance has been impressive, but the trust is consistently on a wide discount, currently -30.3%.
A number of adventurous approaches make this week’s table, including Schiehallion Fund (LSE:MNTN) and VietNam Holding (LSE:VNH), which were the third and fourth biggest discount movers of the past week.
| Investment trust | Sector | Current discount (%) | Discount/premium change over past week* (%) |
| Baker Steel Resources (LSE:BSRT) | Commodities & Natural Resources | -36.62 | -3.80 |
| Pershing Square Holdings (LSE:PSH) | North America | -30.27 | -3.70 |
| Schiehallion Fund (LSE:MNTN) | Growth Capital | -25.74 | -3.30 |
| VietNam Holding (LSE:VNH) | Country Specialist | -7.38 | -3.10 |
| North Atlantic Smaller Companies (LSE:NAS) | Global Smaller Companies | -30.68 | -3.00 |
| Value and Indexed Property Income (LSE:VIP) | Property - UK Commercial | -13.84 | -2.70 |
| Crystal Amber (LSE:CRS) | UK Smaller Companies | -10.36 | -2.60 |
| Augmentum Fintech (LSE:AUGM) | Financials & Financial Innovation | -37.57 | -2.50 |
| Patria Private Equity Trust (LSE:PPET) | Private Equity | -28.19 | -2.50 |
| Lindsell Train (LSE:LTI) | Global | -20.18 | -2.50 |
Source: Morningstar. *Data from close of trading 29 August 2024 to close of trading 5 September 2024.
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.