Interactive Investor

Discount Delver: the 10 cheapest trusts on 15 March 2024

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

15th March 2024 10:16

by Kyle Caldwell from interactive investor

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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. 

The biggest discount move over the past week is India Capital Growth (LSE:IGC), which has moved from trading on a small premium to a discount of 7.14%. It has been a strong performer across multiple time periods, up 29.5% over one year, 78.7% over five years and 343.5% over 10 years. It has appeared in our top 10 most-bought investment trust table over the past couple of months.  

There are a couple of big trends at play that have been recent tailwinds for India Capital Growth. One is that India’s stock market is enjoying a purple patch, another is that investors are showing a tendency to prefer India over China as an investment destination. In part, this is due to the latter’s underwhelming stock market performance over the past couple of years. There are also concerns about political risk in China, with government interventions in certain sectors a couple of years ago still fresh in investors’ minds.

Property and infrastructure trusts continue to be out of favour due to higher interest rates and higher bond yields, which have reduced demand for alternative assets.

Investment trust Sector Current discount (%)Discount/premium change over past week* (%)
India Capital Growth (LSE:IGC)India/Indian Subcontinent-7.14-7.49
Alpha Real Trust (LSE:ARTL)Property - Debt-39.87-5.84
Gresham House Energy Storage (LSE:GRID)Renewable Energy Infrastructure-62.53-5.48
Regional REIT (LSE:RGL)Property - UK Commercial-78.83-4.87
Pantheon Infrastructure (LSE:PINT)Infrastructure-28.98-4.75
GCP Infrastructure Investment (LSE:GCP)Infrastructure-35.57-4.47
Supermarket Income REIT (LSE:SUPR)Property - UK Commercial-17.34-4.24
Eurocastle Investment (EURONEXT:ECT)Debt - Loans & Bonds-34.47-4.04
VH Global Sustainable Energy Opportunities  (LSE:GSEO)Renewable Energy Infrastructure-38.23-3.68
Tritax EuroBox Euro (LSE:BOXE)Property - Europe-38.27-3.66

Source: Morningstar. *Data from close of trading 7 March 2024 to close of trading 14 March 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.

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