Discount Delver: the 10 cheapest trusts on 8 August 2025

We reveal the biggest investment trust discount changes over the past week.

8th August 2025 11:26

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).   

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 £20 million in assets and those that are not available on the interactive investor platform. 

Nine of the top 10 investment trusts featuring this week focus on listed equities, contrasting with last week’s line-up where trusts investing in alternative assets dominated. The outlier is CT Private Equity Trust (LSE:CTPE).

Topping the table is Bellevue Healthcare (LSE:BBH), an investment trust that was among a small group of trusts trading on a premium. Its eight-percentage point move has resulted in this sector specialist trading on a discount of -4.4%.

Most investment trusts are trading on discounts. From September 2022, the average discount was wider than 10%, peaking at 19% in October 2023. At present, the average investment trust discount is around 13%.

Overall, our data provided by Morningstar shows that there are 20 investment trusts trading on a premium out of a universe of 289.

In second place is a case study of 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 is trading on a discount of -18.2%, having seen its discount widen by over six percentage points over the past week.

In the past, Train has warned investors against buying his own investment trust when it was trading on a high premium. He has also previously cautioned against buying when the premium is over 20%.

It’s generally not a good idea to buy a trust on a high premium because it tends not to be sustainable over the long term and can turn into a discount when an investment style goes out of favour or if investor sentiment cools towards the area of the market it invests in.

Elsewhere in the table, two UK equity income trusts feature: Chelverton UK Dividend Trust (LSE:SDV) and Diverse Income Trust (LSE:DIVI). As we reported this week, while the FTSE 100 has been enjoying a strong spell of performance over the past couple of months, many investors are giving the market the cold shoulder, with UK fund outflows almost reaching £1 billion in June.

Investment trust Sector Current discount (%)Discount/premium change over past week* (%)
Bellevue Healthcare (LSE:BBH)Biotechnology & Healthcare-4.43-8.00
Lindsell Train (LSE:LTI)Global-18.21-6.90
Chelverton UK Dividend Trust (LSE:SDV)UK Equity Income-5.24-4.60
Vietnam Enterprise (LSE:VEIL)Country Specialist-18.42-4.00
CT Private Equity Trust (LSE:CTPE)Private Equity-31.69-4.00
BlackRock Latin American (LSE:BRLA)Latin America-8.32-3.90
Greencoat UK Wind (LSE:UKW)Renewable Energy Infrastructure-20.31-3.50
Diverse Income Trust (LSE:DIVI)UK Equity Income-8.03-3.40
Global Opportunities Trust (LSE:GOT)Flexible Investment-19.85-3.20
Renewables Infrastructure Group (LSE:TRIG)Renewable Energy Infrastructure-25.07-3.10

Source: Morningstar. *Data from close of trading 31 July 2025 to 7 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.

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