Discount Delver: the 10 cheapest trusts on 12 July 2024
We reveal the biggest investment trust discount changes over the past week.
12th July 2024 10:12
by Sam Benstead 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
Aberforth Geared Value & Income Trust had the biggest discount move over the past week, moving from a 1.5% premium to a –5.4% discount. Â
This trust was launched on 1 July 2024 following the planned reconstruction and voluntary winding up of Aberforth Split Level Income Trust. It is part of the Association of Investment Companies (AIC) UK Smaller Companies sector. Â
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The second-largest discount move last week was another UK smaller companies strategy: Rights & Issues Investment Trust. The discount widened from –10.5% to –15.2%. Run by Jupiter Asset Management, its largest holdings include Gamma Communications, Treatt and Spirax-Sarco Engineering. Â
Two other UK equity trusts made the list: Artemis Alpha (now on a –15% discount) and Chelverton UK Dividend Trust (now on a –0.9% discount). Â
Seraphim Space has the widest discount on this week’s Discount Delver list, at –37%, followed by Eurocastle Investment (-34.8%) and SDCL Energy Efficiency Incomee (-30.9%).Â
The final trusts featuring this week are Literacy Capital (-1.1% discount), JPMorgan Global Core Real Assets (-22.1% discount) and Global Opportunities Trust (-21.2% discount). Â
| Group/Investment | Association of Investment Companies (AIC) Sector | Current discount (%) | Change in discount (%)* |
| Aberforth Geared Value & Income (LSE:AGVI) | UK Smaller Companies | -5.4 | -6.9 |
| Rights & Issues Investment Trust (LSE:RIII) | UK Smaller Companies | -15.2 | -4.7 |
| Literacy Capital (LSE:BOOK) | Private Equity | -1.1 | -3.9 |
| Artemis Alpha Trust (LSE:ATS) | UK All Companies | -15.0 | -3.5 |
| Eurocastle Investment (EURONEXT:ECT) | Debt - Loans & Bonds | -34.8 | -3.1 |
| JPMorgan Global Core Real Assets (LSE:JARA) | Flexible Investment | -22.1 | -3.1 |
| Global Opportunities Trust (LSE:GOT) | Flexible Investment | -21.2 | -3.0 |
| SDCL Energy Efficiency Income (LSE:SEIT) | Renewable Energy Infrastructure | -30.9 | -3.0 |
| Seraphim Space Investment Trust (LSE:SSIT) | Growth Capital | -37.0 | -2.6 |
| Chelverton UK Dividend Trust (LSE:SDV) | UK Equity Income | -0.9 | -2.6 |
Source: Morningstar. *Data from close of trading 5 July 2024 to close of trading 11 July 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.