Discount Delver: the 10 cheapest trusts on 29 August 2025
We reveal the biggest investment trust discount changes over the past week.
29th August 2025 10:33
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.
Investor demand for more specialist strategies continues to cool, reflected in investment trust discount movements over the past week. Over the past few months, such approaches have often appeared in our Discount Delver table.
The biggest mover over the week was Seraphim Space Investment Trust (LSE:SSIT), where the discount ballooned to -29.55%, a 9.1 percentage point increase. The trust, which backs early stage space tech firms, is an adventurous investment, so vulnerable to changes in risk appetite.
Seraphim Space has been a stellar performer over the past year, up 30% in share price terms. The trust has rebounded strongly, having suffered during the period in which interest rates rose from rock-bottom levels to peak at 5.25%.
BlackRock Latin American (LSE:BRLA), Schiehallion Fund (LSE:MNTN) and Hydrogen Capital Growth (LSE:HGEN) are other examples of higher-risk specialist trusts where discounts have widened, with the latter trading on a sky-high discount of -70.7%.
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Second in the table is a case study on the dangers of buying a trust on a high premium. In May 2019, global portfolio Lindsell Train (LSE:LTI), managed by Nick Train, was trading on a premium of 85%. Today, it’s trading on a discount of -20.6%, with its discount having widened by more than six percentage points over the past week.
In the past, Train has warned investors against buying the investment trust when it was trading on a high premium. He’s also cautioned against buying it when the premium is over 20%.
It’s generally not a good idea to buy a trust on a high premium because it tends to be unsustainable over the long term and can turn into a discount when an investment style goes out of favour, or if sentiment cools towards the area of the market it invests in.
| Investment trust | Sector | Current discount (%) | Discount/premium change over past week* (%) |
| Seraphim Space Investment Trust (LSE:SSIT) | Growth Capital | -29.6 | -9.1 |
| Lindsell Train (LSE:LTI) | Global | -20.6 | -6.4 |
| Gresham House Energy Storage (LSE:GRID) | Renewable Energy Infrastructure | -35.5 | -5.0 |
| BlackRock Latin American (LSE:BRLA) | Latin America | -9.6 | -3.3 |
| New Star Investment Trust (LSE:NSI) | Flexible Investment | -35.8 | -3.1 |
| Schiehallion Fund (LSE:MNTN) | Growth Capital | -20.3 | -3.1 |
| JPMorgan Global Core Real Assets (LSE:JARA) | Flexible Investment | -22.9 | -3.1 |
| Shires Income (LSE:SHRS) | UK Equity Income | -7.7 | -2.8 |
| Hydrogen Capital Growth (LSE:HGEN) | Renewable Energy Infrastructure | -70.7 | -2.6 |
| Symphony International Holding (LSE:SIHL) | Private Equity | -54.6 | -2.5 |
Source: Morningstar. *Data from close of trading 21 August 2025 to 28 August 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.