Discount Delver: the 10 cheapest trusts on 16 May 2025
We reveal the biggest investment trust discount changes over the past week.
16th May 2025 11:25
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).
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.
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Three real estate investment trusts (REITs) feature in this week’s table, with Warehouse REIT (LSE:WHR) the biggest discount mover, advancing by over seven percentage points to -23.6%. It is joined by Residential Secure Income (LSE:RESI) and Social Housing REIT (LSE:SOHO), which have seen discounts nudge up around four percentage points to -37.1% and -42.4% respectively.
Warehouse REIT has enjoyed a strong start to 2025, with its share price up 25.4% year-to-date. It focuses on UK commercial property warehouse assets. Residential Secure Income, however, is down -7.1% so far this year, while Social Housing REIT is up 8.7%.
Property investment trust have been out of form over the past couple of years due to higher interest rates. However, with rates now falling, it could now be a more favourable environment for the sector.
There are two types of REITs. First, most investment trusts set up to invest in property in the UK have elected to become REITs. Second, there are a number of property development companies listed on the London Stock Exchange with REIT status, such as Land Securities Group (LSE:LAND).
| Investment trust | Sector | Current discount (%) | Discount/premium change over past week* (%) |
| Warehouse REIT (LSE:WHR) | Property - UK Logistics | -23.62 | -7.60 |
| Manchester & London (LSE:MNL) | Global | -14.57 | -4.60 |
| VietNam Holding (LSE:VNH) | Country Specialist | -9.02 | -4.30 |
| Odyssean Investment Trust (LSE:OIT) | UK Smaller Companies | -2.79 | -4.20 |
| International Biotechnology (LSE:IBT) | Biotechnology & Healthcare | -12.42 | -4.00 |
| Residential Secure Income (LSE:RESI) | Property - UK Residential | -37.14 | -4.00 |
| Social Housing REIT (LSE:SOHO) | Property - UK Residential | -42.43 | -3.60 |
| NextEnergy Solar (LSE:NESF) | Renewable Energy Infrastructure | -28.81 | -3.40 |
| Polar Capital Global Healthcare (LSE:PCGH) | Biotechnology & Healthcare | -7.47 | -3.10 |
| RM Infrastructure Income (LSE:RMII) | Debt - Direct Lending | -17.05 | -3.10 |
Source: Morningstar. *Data from close of trading 8 May 2025 to 15 May 2025.
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.