Interactive Investor

Discount Delver: the 10 cheapest trusts on 1 March 2024

We reveal the biggest investment trust discount changes over the past week.

1st March 2024 11:33

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.   

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.   

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. 

Property-focused investment trusts remain out of favour, reflected by five of the top 10 biggest discount movers of the past week specialising in the asset class: AEW UK REIT (LSE:AEWU)Phoenix Spree Deutschland (LSE:PSDL)Globalworth Real Estate Investments (LSE:GWI)Warehouse REIT (LSE:WHR) and Schroder Real Estate Invest  (LSE:SREI). As explained in our feature on the asset class in a rising interest rate environment, the yields property must deliver to remain competitive with other asset classes increases. As a result, there's less demand for property investments.

Elsewhere, some adventurous strategies saw their discounts widen, including Intuitive Investments Group (LSE:IIG)VietNam Holding (LSE:VNH) and Schiehallion Fund (LSE:MNTN)

Investment trust Sector Current discount (%)Discount/premium change over past week* (%)
Intuitive Investments Group (LSE:IIG)Biotechnology & Healthcare-12.01-9.60
Manchester & London (LSE:MNL)Global-16.76-8.40
AEW UK REIT (LSE:AEWU)Property - UK Commercial-15.91-6.20
VietNam Holding (LSE:VNH)Country Specialist-5.24-5.90
Phoenix Spree Deutschland (LSE:PSDL)Property - Europe-50.18-5.60
Globalworth Real Estate Investments (LSE:GWI)Property - Europe-65.90-5.40
Warehouse REIT (LSE:WHR)Property - UK Logistics-39.19-5.20
Symphony International Holding (LSE:SIHL)Private Equity-53.64-4.60
Schroder Real Estate Invest (LSE:SREI)Property - UK Commercial-34.87-4.60
Schiehallion Fund Ord (LSE:MNTN)Growth Capital-50.70-4.00

Source: Morningstar. *Data from close of trading 22 February 2024 to close of trading 29 February 2024.

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.