Discount Delver: the 10 cheapest trusts on 19 December 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.

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 £30 million in assets and those that are not available on the interactive investor platform.

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A chunky upward revaluation for their position in SpaceX has seen multiple popular Baillie Gifford-managed trusts move out to wider discounts this week.

The boards of Schiehallion Fund Ord (LSE:MNTNl), Scottish Mortgage Ord (LSE:SMT), Baillie Gifford US Growth Ord (LSE:USA) and Edinburgh Worldwide Ord (LSE:EWI) have been advised of a trigger event for the upward valuation, following the reported completion of a SpaceX insider tender offer. That reportedly hit an $800 billion (£598 billion) valuation, double an amount set in July.

Appearing in the table are Scottish Mortgage and Baillie Gifford US Growth. From the data provided by Morningstar, it is unclear whether Schiehallion Fund’s discount move would have put it in the top 10 table, so we have not included it.

As such, SpaceX now represents 15.9% of NAV for EWI versus 8.5% at the end of November. It makes up 14% of MNTN (up from 7.5%), 15.3% of SMT (up from 8.2%) and 11.4% of USA (up from 6%). These boosts to NAV have triggered discount widening for all the trusts this week.

It’s worth noting that rumours have also surfaced of a SpaceX initial public offering (IPO). That could potentially give the trusts more liquidity – and could potentially give EWI and USA more firepower to part ways with activist investor Saba via mechanisms such as tender offers.

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There’s plenty of other news pushing out discounts this week. Troubled battery fund Gore Street Energy Storage Fund Ord (LSE:GSF) published interim results showing that portfolio NAV had fallen from 102.8p a share to 90.1p in the six months to the end of September.

The shares tumbled on the update, while activist investors continue to circle. RM Funds, which has already tussled with the board, issued a letter criticising the board on various fronts.

“If the share price has not improved materially and the discount remains entrenched, we are minded to take further action to protect shareholders’ interests, which might include proposing additional resolutions related to board nominations and or bringing forward mechanisms to ensure accountability, including consideration of the continuation vote timetable,” the letter added.

It’s also worth noting that Saba this week doubled its stake in the trust to 10%. Meanwhile, the fund’s one remaining rival, Gresham House Energy Storage Ord (LSE:GRID), also experienced some widening. That trust has delivered phenomenal share price gains in 2025, having suffered a difficult couple of years.

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Elsewhere, some trusts in wind-down have seen their discounts grow somewhat.

abrdn Diversified Income & Growth Ord (LSE:ADIG) this week confirmed that it was set to sell down some more assets, raising around £3.4 million. The board said the trust “remains on track to put forward proposals in Q1 2026 to place the company into members' voluntary liquidation”, although there was no certainty around timings of further sales or returns of capital.

Another name in the process of winding down, abrdn European Logistics Income PLC (LSE:ASLI), this week received an open letter from DL Invest Group, which owns 18% of the trust, arguing that the wind-down could be detrimental for investors.

They have argued that the trust change strategy by rebuilding its asset base using DL’s “proprietary pipeline” of logistics assets and new data-centre developments.

The trust’s board has sought to rebuff this, arguing that the wind-down is “well progressed and nearing completion”. The board said shareholders representing 25% of the trust had confirmed their continued support for the wind-down.

Meanwhile, other trusts such as Lindsell Train Ord (LSE:LTI) saw some widening without an obvious major trigger.

Source: Morningstar. Data from close of trading 11 December to 18 December.