Discount Delver: the 10 cheapest trusts on 5 April 2024
We reveal the biggest investment trust discount changes over the past week.
5th April 2024 10:08
by Kyle Caldwell from interactive investor
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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).  Â
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.  Â
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In our weekly series, interactive investor highlights the 10 biggest investment trust discount moves over the past week. We publish this article every Friday, using data up to the close of trading the previous day.  Â
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.Â
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Discount changes over the past week were minimal, with only around a three percentage point rise for the 10 biggest movers.
Topping the table is HydrogenOne Capital Growth (LSE:HGEN), which saw its discount rise to -59.7%. It is joined by four other renewable energy infrastructure trusts: Downing Renewables & Infrastructure (LSE:DORE), JLEN Environmental Assets Group (LSE:JLEN) and Ecofin US Renewables Infrastructure (LSE:RNEW).
Property is the other sector that stands out in the table. Phoenix Spree Deutschland (LSE:PSDL) is now on a -54.1% discount, while abrdn European Logistics Income (LSE:ASLI), Tritax EuroBox Euro (LSE:BOXE) and Regional REIT (LSE:RGL) are on respective discounts of -28.1%, -39.6% and -68.9%.
Both renewable energy infrastructure and property, which generate income, now face greater competition from bonds. With low-risk bonds, such as money market funds, offering income of around 5%, there is less incentive to take on extra levels of risk to obtain a higher level of income.
| Investment trust | Sector | Current discount (%) | Discount/premium change over past week* (%) |
| HydrogenOne Capital Growth (LSE:HGEN) | Renewable Energy Infrastructure | -59.70 | -3.74 |
| Phoenix Spree Deutschland (LSE:PSDL) | Property - Europe | -54.11 | -3.61 |
| abrdn European Logistics Income (LSE:ASLI) | Property - Europe | -28.05 | -3.52 |
| Tritax EuroBox Euro (LSE:BOXE) | Property - Europe | -39.64 | -3.27 |
| Syncona (LSE:SYNC) | Biotechnology & Healthcare | -37.83 | -3.19 |
| Artemis Alpha Trust (LSE:ATS) | UK All Companies | -18.96 | -3.13 |
| Regional REIT (LSE:RGL) | Property - UK Commercial | -68.85 | -3.12 |
| Downing Renewables & Infrastructure (LSE:DORE) | Renewable Energy Infrastructure | -37.11 | -3.07 |
| JLEN Environmental Assets Group (LSE:JLEN) | Renewable Energy Infrastructure | -24.80 | -3.06 |
| Ecofin US Renewables Infrastructure (LSE:RNEW) | Renewable Energy Infrastructure | -39.72 | -2.96 |
Source: Morningstar. *Data from close of trading 29 March 2024 to close of trading 5 April 2024.
These articles are provided for information purposes only. Â Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. Â 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.