Discount Delver: the 10 cheapest trusts on 7 March 2025
We reveal the biggest investment trust discount changes over the past week.
7th March 2025 12:13
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.
Investment trusts that own fast-growing but risky companies saw the biggest discount moves last week, as investors dumped tech shares following tariff announcements from US president Donald Trump.
Schiehallion Fund, the private shares vehicle from Baillie Gifford, saw its discount move from -10.5% to -18.7%, while Seraphim Space Investment Trust moved to a -44.6% discount.
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Fellow “growth capital” trust Petershill Partners also saw its discount move significantly, from -19.8% to -24.4%.
Other adventurous trusts that saw large discount moves this week included Odyssean Investment Trust, which buys smaller UK companies and Pershing Square Holdings, which owns just a handful of US shares, including Alphabet and Hilton.
Generally speaking, during risk-off market periods, the share prices of technology-focused trusts and very concentrated funds can suffer, which is what we saw this week.
Completing the Discount Delver list were Majedie Investments (-6 percentage point discount move); abrdn Property Income Trust (-5.2 point move); abrdn European Logistics Income (-5 point move); Greencoat Renewables (-4.9 point move) and Schroder Real Estate Invest (-4.2 point move).
| Trust | AIC sector | Current discount (%) | Change in discount over past week (%)* |
| Schiehallion Fund Ord (LSE:MNTN) | Growth Capital | -18.69 | -8.21 |
| Seraphim Space Investment Trust Ord (LSE:SSIT) | Growth Capital | -44.55 | -7.56 |
| Majedie Investments Ord (LSE:MAJE) | Flexible Investment | -11.8 | -5.98 |
| Pershing Square Holdings Ord (LSE:PSH) | North America | -33.266 | -5.26 |
| abrdn Property Income Trust Ord (LSE:API) | Property - UK Commercial | -45.524 | -5.17 |
| abrdn European Logistics Income PLC (LSE:ASLI) | Property - Europe | -24.092 | -4.96 |
| Odyssean Investment Trust Ord (LSE:OIT) | UK Smaller Companies | -4.3866 | -4.84 |
| Greencoat Renewables (LSE:GRP) | Renewable Energy Infrastructure | -33.864 | -4.83 |
| Petershill Partners Ord (LSE:PHLL) | Growth Capital | -24.357 | -4.6 |
| Schroder Real Estate Invest Ord (LSE:SREI) | Property - UK Commercial | -24.36 | -4.23 |
Source: Morningstar. *Data from close of trading 27 February 2025 to 6 March 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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