Discount Delver: the 10 cheapest trusts on 11 July 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. 

Two investment trusts investing in high-growth public and private shares made the Discount Delver list this week.

They were Seraphim Space Investment Trust, which invests in businesses involved in space, such as satellite and computing companies; and Augmentum Fintech, which invests in early stage businesses in the financial services sector.

They now trade on -21.6% and -40.4% discounts respectively, with the discounts widening 4.4 percentage points and 2.3 percentage points over the past week.

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It is common to see trusts that invest in private assets on the Discount Delver list. This is because the trusts themselves put a value on their unlisted positions, but the market often thinks they should be valued differently. This generally leads to wide discounts during difficult periods for the investment theme, but can also lead to premiums when there’s a lot of demand for the shares.

Fidelity European Trust made an interesting appearance on the Delver list this week. It’s managed by the same team that runs the Super 60-rated Fidelity European fund and has been a strong long-term performer. Bargain-seekers may be attracted to the discount, currently at -4.5%, which is 2.3 percentage points higher than last week.

It looks for quality European stocks that can keep growing their dividends. Top stocks include ASML, Novo Nordisk and Nestle.

Two trusts investing in UK shares made the list: Shires Income and Aberforth Geared Value & Income.

They are UK Equity Income and UK Smaller Companies investment trusts, respectively.

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The rest of the list was populated by more niche investment trusts. For example, Manchester & London is a technology-focused investment trust with an extraordinary 36.5% invested in Nvidia and 27% in Microsoft. It’s now on a -14.6% discount.

Geiger Counter also appears on the list. It invests in uranium and nuclear power shares and is now on a -9.3% discount.

Meanwhile, Weiss Korea Opportunity, Supermarket Income Reit and Gore Street Energy Storage round off the list.

Source: Source: Morningstar. *Data from close of trading 3 June 2025 to 10 July 2025.