Discount Delver: the 10 cheapest trusts on 7 October 2022
7th October 2022 10:38
by Kyle Caldwell from interactive investor
We reveal the biggest investment trust discount changes over the past week.
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.
As part of a new 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.
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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.Â
In contrast to last week, when property-focused investment trusts dominated the Discount Delver table, a variety of sectors feature.
Three UK equity trusts have a place, with two of the biggest discount movers over the past week being BlackRock Income and Growth (LSE:BRIG), and abrdn Smaller Companies Income (LSE:ASCI), while Crystal Amber (LSE:CRS) is lower down the table. The UK remains out of favour among investors, with the latest fund statistics from the Investment Association (IA) showing that £1 billion was withdrawn from such funds in August.
Adventurous strategies appear including Schiehallion C (LSE:MNTC), Barings Emerging EMEA Opportunities (LSE:BEMO) and CQS Natural Resources Growth & Income (LSE:CYN). Bear in mind, though, that the main share class for Schiehallion Fund (LSE:MNTN) is trading on a lower discount, of 2.6%.
Discount Delver: the 10 biggest discount moves over the past weekÂ
| Investment trust | Sector | Discount/premium change over past week* (%) | Current discount (%) |
|---|---|---|---|
| BlackRock Income and Growth (LSE:BRIG) | UK Equity Income | -9.15 | -8.43 |
| abrdn Smaller Companies Income (LSE:ASCI) | UK Smaller Companies | -9.04 | -16.07 |
| Premier Miton Global Renewables Trust (LSE:PMGR) | Infrastructure Securities | -7.21 | -10.58 |
| Schiehallion C (LSE:MNTC) | Growth Capital | -6.71 | -30.89 |
| Crystal Amber (LSE:CRS) | UK Smaller Companies | -6.24 | -26.19 |
| VH Global Sustainable Energy Opportunities (LSE:GSEO) | Renewable Energy Infrastructure | -5.38 | -9.91 |
| Barings Emerging EMEA Opportunities (LSE:BEMO) | Global Emerging Markets | -5.25 | -18.88 |
| CT Global Managed Portfolio Growth (LSE:CMPG) | Flexible Investment | -5.00 | -4.64 |
| Jupiter Green (LSE:JGC) | Environmental | -4.80 | -22.43 |
| CQS Natural Resources Growth & Income (LSE:CYN) | Commodities & Natural Resources | -4.58 | -22.10 |
Source: Morningstar. *Data from close of trading 29 September 2022 to close of trading 6 October 2022. Past performance is not a guide to future performance.
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.