Discount Delver: the 10 cheapest trusts on 20 June 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.  

Long-run outperformer HgCapital Trust made a rare appearance on the Discount Delver list this week, moving from a -4.3% discount to -7.3% discount. It owns a concentrated portfolio of private software shares, mainly in Europe, and has delivered excellent returns for investors.

Since 1995, the share price total return is 7,177%, compared with 2,204% for the S&P 500 and 793% for the FTSE All-Share.

One other private equity trust featured: CT Private Equity Trust. It is now on a -35.5% discount.

Infrastructure and property trusts are also common in our Discount Delver analysis. This week, Custodian Property Income Reit, Residential Secure Income and Pantheon Infrastructure all featured. They are now on -18.8%, -23% and -11% discounts, after widening about 3 percentage points each.

• Momentum building in UK but these stocks still cheap
• Two largest European equities trusts to merge

This is because trusts that own unlisted investments are not marked to market every day, as listed shares or bonds are. This means that there can be big swings between the NAVs and the price of the investment trust, leading to discounts and premiums emerging. 

There were three straightforward equity investment trusts on this week’s list: Odyssean Investment Trust (which buys smaller UK companies), CC Japan Income & Growth (Japanese shares) and Chelverton UK Dividend Trust (UK dividend stocks). They now trade on -2.9%, -12.2% and -7.4% discounts respectively.

Completing this week’s list were DP Aircraft I and HydrogenOne Capital Growth, on -33% and -69% discounts.

Source: Morningstar. *Data from close of trading 12 June 2025 to 19 June 2025.