Discount Delver: the 10 cheapest trusts on 21 November

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). 

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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.

A continued frenzy of corporate activity has helped to push discounts out this week, with multiple sectors affected.

A notable appearance in the list is that of HICL Infrastructure PLC Ord (LSE:HICL), which this week outlined plans to absorb its renewables-focused stablemate Renewables Infrastructure Grp (LSE:TRIG). While the mega-merger would create a much larger vehicle and appears to have the backing of some major shareholders, the plans have already attracted substantial criticism.

Some worry that the combination of two different subsectors, core infrastructure and renewable energy infrastructure, in one trust makes little sense.

The tie-up also exposes HICL to the many uncertainties associated with the renewables space, including shifts in power prices.

CG Asset Management, which runs the Capital Gearing Ord (LSE:CGT) portfolio, said it was “appalled” by the plan, describing it as “value destructive” and noting: “If investors wish to have exposure to both these asset classes they can easily do so by buying shares in both TRIG and HICL.

“However, many investors, like us, have made an explicit decision not to be invested in TRIG and have no desire to be forced to do so by the board of HICL.”

It is notable that HICL shares fell sharply when the plans were unveiled, with TRIG shares making gains. TRIG’s share price discount to NAV has narrowed slightly this week.

Other action

Looking beyond HICL, various trusts already in the throes of corporate action have seen their discounts widen. Take the troubled Hydrogen Capital Growth (LSE:HGEN), which is in the process of winding up and suspended its shares in September after its new investment manager faced challenges in assessing the state of the portfolio.

The listing of the shares was restored this week and the discount now looks much wider. But it’s worth noting that quirks in the numbers can cause big changes in the discount figures on trusts involved in corporate action – even if some investors still see an opportunity in buying shares of those names busy winding up.

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A name whose shareholders have backed plans for it to wind up, VH Global Energy Infrastructure Ord (LSE:ENRG), makes the list too. There’s also UK smaller companies play Crystal Amber Ord (LSE:CRS).

Last week Crystal Amber, also in the process of a wind up, noted that its final investment, in Morphic Medical, made up 73.5% of the portfolio, with cash accounting for 18.2%, after the disposal of another position. But the board wants to keep actively managing this one investment, so as to better time an exit from the position.

“Recognising Morphic Medical’s potential to deliver substantial additional shareholder value, the board believes that the optimal time to seek to realise its investment in MMI would be following Food and Drug Administration (FDA) approval and access to the US market. Consequently, the board believes that the fund should continue to actively manage its investment in MMI until then,” it said.

The fund’s current investment manager has also announced its plans to step back, and the board plans to appoint a new manager, Tarncourt Capital, to run the portfolio. Tarncourt also wishes to invest in the fund by buying some of a stake held by activist Saba Capital.

From renewables to private equity

Two solar funds, Foresight Solar Ord (LSE:FSFL) and NextEnergy Solar Ord (LSE:NESF), also appear in the list. This week Foresight Solar unveiled a sharp fall in its NAV over the third quarter of this year.

Some names from other sectors also crop up, from Seraphim Space Investment Trust Ord (LSE:SSIT) to Tritax Big Box Ord (LSE:BBOX), Cordiant Digital Infrastructure Ord (LSE:CORD) and private equity trust HgCapital Trust Ord (LSE:HGT).

Source: Morningstar. Data from close of trading 13 November to 20 November 2025.