Discount Delver: the 10 cheapest trusts on 20 March 2026

Investment trusts offer investors the chance of picking up a potential bargain thanks to their closed-ended structure. That happens when a trust’s share price is lower than the value of its underlying investments (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 it.   

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In this 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. 

More bad news for dividend hunters 

We noted last week that NextEnergy Solar Ord (LSE:NESF) had experienced discount widening after cutting its dividend, and this time round we see further disappointment for income investors. 

Another troubled renewables name, US Solar Fund Ord (LSE:USF), saw its discount blow out beyond the 50% mark after the board announced that it would “temporarily pause” regular dividends to improve the trust’s balance sheet.  

Future payouts will be set only “once performance and cash generation improve”. Like many of its peers, the trust has a big debt pile, struggles with a massive share price discount and has delivered weak returns in recent years. 

We also saw debt fund Fair Oaks Income 2021 Ord (LSE:FAIR) lower its quarterly dividend, from $0.02 to €0.01, pulling its annual dividend yield down from around the 17% mark to 10%, in response to “the evolution of the portfolio” and its underlying market.

This very niche fund has paid out huge dividends over many years, and the changes do still leave it with a substantial level of income generation. 

Investors are worried about the exposure debt funds might have to software companies, and Fair Oaks also used its update to note that it had “limited exposure to the sectors most affected by recent market weakness”. 

‘Market weakness’ strikes 

Staying with that theme, all major equity markets have struggled since 28 February, when conflict escalated in the Middle East. Certain trusts have taken a big hit in the midst of this, with discounts blowing out as a result. 

A couple of erstwhile strong performers have slipped back, potentially as a result of investors taking profits on their winners and running to cash as they worry about market conditions. 

Seraphim Space Investment Trust Ord (LSE:SSIT) shares are down by almost 14% since conflict broke out, which might seem surprising given the fund’s exposure to the defence spending theme.

We have also seen the gold price tumble, taking down some funds with precious metal miner exposure such as Baker Steel Resources Ord (LSE:BSRT). 

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Private equity behemoth 3i Group Ord (LSE:III) continues its tumble, with the shares trading on a modest discount.

We have also seen a decent level of discount widening for Pershing Square Holdings Ord (LSE:PSH), the concentrated US equity fund that has a good track record of beating the S&P 500 but has struggled this year. 

The fund has upped its exposure to Magnificent Seven members in recent history.

An investor presentation from February pointed to the fact that the team had bought into Meta Platforms Inc Class A (NASDAQ:META), with them saying: “We believe concerns around Meta’s AI-related spending initiatives are underestimating the company’s long-term upside potential from AI”. They have also backed names like Alphabet Inc Class A (NASDAQ:GOOGL), Amazon.com Inc (NASDAQ:AMZN) and Uber Technologies Inc (NYSE:UBER). 

As is often the case we also see some UK equity funds make the list, in the form of CT UK High Income Ord (LSE:CHI) and Oryx International Growth Ord (LSE:OIG). 

The table also includes Edinburgh Worldwide Ord (LSE:EWI), which this week published the circular for its Saba-related tender offer. 

Source: Morningstar, close of trading 12 March to 19 March 2026.