Discount Delver: the 10 cheapest trusts on 25 July 2025

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. 

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Schroders Capital Global Innovation Trust (LSE:INOV) tops the table this week. Its discount rose nearly four percentage points to -35.3%. The trust, originally known as Woodford Patient Capital and taken over by Schroders in December 2019, recently launched a tender offer, which gave shareholders the opportunity to sell some of their shares.

The trust is in wind-down mode, returning cash to shareholders when it can sell its underlying holdings. However, because the underlying investments are private companies, it will be a gradual process. Performance has been painful, with those buying in at launch in April 2025 down over 80%.

In second place is Law Debenture Corporation (LSE:LWDB), with a very small discount of -1.9%. A week ago, the UK equity income trust was trading on a small premium. Half-yearly results published today (to 30 June 2025) show Law Debenture outperformed the FTSE Actuaries All-Share Index by over 5% with a total return of 14.2%. The performance of its underlying investments – the net asset value (NAV) – was up 15%. The trust is managed by James Henderson and Laura Foll.

In third place is Bellevue Healthcare (LSE:BBH), which is also trading on a small discount of -3.3%. In common with other specialist trusts in this sector performance over the past one, three and five years is a sea of red. It is trading on a much tighter discount than peers, with the average discount among the seven trusts in the sector standing at -14.6%.

The two biggest discounts this week are in the renewable energy infrastructure sector: Gresham House Energy Storage (LSE:GRID) and SDCL Efficiency Income Trust (LSE:SEIT), with respective discounts of -30.1% and -38.7%. This sector has produced steep losses over a three-year time frame, with higher interest rates proving a headwind. However, as we observe in our latest On The Money podcast episode, the sector’s deep discounts and high yields are tempting some investors.

Source: Morningstar. *Data from close of trading 17 July 2025 to 24 July 2025.