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

14th August 2026

by Dave Baxter

Investment trusts offer a potential bargain thanks to their closed-ended structure. That happens when a trust’s share price is lower than the value of its underlying investments (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 it.         

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In this 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 £30 million in assets and those that are not available on the interactive investor platform. 

Top Billing 

Even the biggest discount increases of the last week have been fairly modest, something that might be down to the holiday season. 

Investors in some of the featured trusts have nevertheless had some big news to digest. 

A standout name is Bill Ackman’s Pershing Square Holdings Ord 

PSH

whose already very wide discount edges out a little further.  

The trust’s interim results, published yesterday, pointed to a dire performance in the first half of 2026.  

Shareholders lost around 24%, quite the contrast to the healthy gain enjoyed by the S&P 500 index. 

Ackman put this down to the market’s current obsession with artificial intelligence (AI), and used the market conditions to introduce six new holdings to the portfolio. 

There’s Visa Inc Class A  V

Mastercard Inc Class A  MA

 S&P Global Inc SPGI,  Intercontinental Exchange Inc ICE Alcon Inc ALC and Netflix Inc NFLX. 

Bill Ackman talks IPOs, SpaceX and favourite tech stocks

It’s worth remembering that Ackman has already been busy in recent history, particularly in putting money into Magnificent Seven members such as Microsoft Corp  MSFT

 and Meta Platforms Inc Class A  META

Takeover talks 

We meanwhile see continued consolidation in the investment trust sector, with a knock-on effect for discounts. 

As one example take property trust Alternative Income REIT Ord  AIRE

The trust’s board has been fighting a takeover attempt from its biggest shareholder, Glenstone REIT, and this week argued that a “negligible proportion” of AIRE shares had accepted a final offer from Glenstone. 

The AIRE board believes that the offer “fundamentally undervalues” the company. 

It’s worth noting that another fund, AEW UK REIT Ord  AEWU

announced last month that it was considering a bid for AIRE. A potential bid had already fallen through earlier this year.

Sticking with the theme of consolidation, Schroder Asian Total Return Inv. Company  ATR

 has seen its tiny discount advance slightly. The trust plans to absorb its underperforming rival Pacific Assets Ord  if shareholders give their approval at a vote in September. 

The merger, if approved, would involve a cash exit at a 2% discount to NAV for up to a quarter of the Pacific Assets shares. 

The new, combined entity would come with some of the usual sweeteners, from increased scale to lower fees and a performance-related tender offer for up to 15% of shares if the trust missed a performance target over the five years to the end of 2030. 

From 3i to renewables 

Other names crop up in this week’s table without much big news. 3i Group Ord III

which has staged quite a recovery in recent months, sees its discount move back into double-digit territory, while two names from the troubled renewable energy infrastructure sector make the list. One of these, SDCL Efficiency Income Trust plc. 

SEIT is looking to wind down. 

It’s also interesting to see the presence of CT Healthcare Trust plc 

CTHT which carried out one of its quarterly tender offers earlier this month. 

Investment trust	Sector	Current discount (%)	Discount/premium change over past week (pp)
3i Group Ord III0	Private Equity	-10.1	-3
Pershing Square Holdings Ord PSH	North America	-36.1	-2.9
Alternative Income REIT Ord AIRE	Property – UK Commercial	-13.1	-2.8
Livermore Investments Ord LIV	Flexible Investment	-41.8	-2.3
Chenavari Toro Income Fund Ord TORO	Debt – Structured Finance	-4.5	-2.3
Schroder Asian Total Return Inv. Company ATR0	Asia Pacific	-3.3	-2.1
SDCL Efficiency Income Trust plc. SEIT	Renewable Energy Infrastructure	-51.5	-2.1
JPMorgan Global Core Real Assets Ord JARA	Flexible Investment	-14.1	-2
CT Healthcare Trust plc CTHT	Healthcare & Biotechnology	-5.7	-2
Foresight Solar Ord FSFL	Renewable Energy Infrastructure	-30.2	-1.9

Source: Morningstar, close of trading 6 August to 13 August 2026.

I’ve bought for the SNOWBALL 841 shares in SUPR for £729.00 as portfolio tidying exercise bringing the holding to 10k.

You know that the SAP 500 rises over time but not in a straight line.

You know that holding a share above the cloud means the sun may shine on your holding.

Below the cloud, it’s most probably raining on your parade, unless the share is reversing from a low.

Current yield 2.9%, if you buy from the chart in the late stage of a bull rally, you are likely to lose some of your hard earned.

Total interim dividends declared in respect of the period therefore amount to 7.30p per share, representing an increase of 45.1% compared with the corresponding period in 2025. The Board continues to believe that the enhanced dividend policy, which distributes 1.5% of the Company’s NAV each quarter, equivalent to approximately 6% of NAV annually, provides shareholders with an attractive and sustainable income level while enabling ongoing exposure to the breadth of the US equity market.

So not a yield of 7% but currently some profit could be booked and re-invested into a higher yielder.

You wanted to buy a share, the main criteria being a gently rising dividend, yielding 7% or greater, without too much risk to your hard earned.

7% is important as it doubles your income every ten years.

First check, how reliable is the dividend ?

You check back 5 years, a lot can change in 5 years, so recent history is more important than days of yore. A gently rising dividend.

7% is important as it doubles your income every ten years.

Mr. Market has given you a great opportunity as the yield historically was around 5%. If in time interest rates fall and the yield falls as the price rises, the yield could fall back to around 5%.

Compound growth on 10k of seed capital. The really good news is that if you only have a modest amount to invest, compound interest takes a few years to make a big difference to your Snowball.

Now PHP may not be traded in 30 years time, so you may have to switch horses but as long as your new Investment Trust or ETF, yields 7%, your yield on initial investment will be around 53%, why would you want to sell any of your shares ?

You need to check the dividend announcement 4 times a year and if the dividend is maintained or increased, you could re-invest the earned dividends back into PHP, until the yield falls below 7%.

You wanted to buy a share, the main criteria being a gently rising dividend, yielding 7% or greater, without too much risk to your hard earned.

7% is important as it doubles your income every ten years.

First check, how reliable is the dividend ?

You check back 5 years, a lot can change in 5 years, so recent history is more important than days of yore. There has been one miss, June 2021 but a gently rising dividend.

7% is important as it doubles your income every ten years.

Mr. Market has given you a great opportunity as the yield historically was around 5%. If you had been following SUPR you could have earned a yield of 9.3%, 2% compounded over 30 years makes a huge difference. If in time interest rates fall and the yield falls as the price rises, the yield could fall back to around 5%.

Compound growth on 10k of seed capital. The really good news is that if you only have a modest amount to invest, compound interest takes a few years to make a big difference to your Snowball.

Now SUPR may not be traded in 30 years time, so you may have to switch horses but as long as your new Investment Trust or ETF, yields 7%, your yield on initial investment will be around 53%, why would you want to sell any of your shares ?

You need to check the dividend announcement 4 times a year and if the dividend is maintained or increased, you could re-invest the earned dividends back into SUPR, until the yield falls below 7%.

Current earned income £8,643

Current xd cash £1,307

Total £9,950

Current cash £931. To buy shares that pay a dividend and use those dividends to buy more shares that pay a dividend.

Current income target for this year is for the year 2031.

Next years target will be for the year 2030.

How much do you need in a SIPP to aim for a passive income of £7,777 a year

Harvey Jones shows how investors can use a SIPP to fund a comfortable retirement, supplementing it with an ISA to balance their tax bills.

Posted by Harvey Jones

Published 12 August

You’re reading a free article with opinions that may differ from The Twelfth Magpie’s Premium Investing Services.

I love my SIPP. The Self-Invested Personal Pension, to use its full name, has a terrific upfront advantage. Investors get tax relief on their contributions.

This means that every £100 that goes into SIPP only costs a basic rate taxpayer £80. That falls to £60 for a higher rate taxpayer (they have to claim the extra £20 via their tax return).

Because pension tax relief is paid right at the start, all subsequent growth is generated on that higher sum. Basically, you’re off to a flier.

When it’s time to start drawing the money in retirement, 25% can be taken entirely free of tax, what’s called the pension commencement lump sum.

Investing tax-free for retirement

In contrast to a Stocks and Shares ISA, further SIPP income withdrawals are taxable. But if you earn enough to claim 40% or 45% pensions tax relief while working, but pay just 20% income tax in retirement, you’re winning again.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

At The Twelfth Magpie, we encourage investors to build wealth by creating a balanced portfolio of FTSE 100 and FTSE 250 shares. So how much would you need in your SIPP to generate income of £7,777 a year? 

The answer depends on the dividend yield on your shares.

• With a 4% yield, you’d need £194,425 invested.
• At 5%, the required total falls to £155,540.
• And at 6%, the figure drops to £129,617.

Ideally, I’d recommend investing more than that. When your retirement comes, the bigger your pension the better. Supplementing a SIPP with a Stocks and Shares ISA also makes sense. That would allow you to tax blend taxable SIPP withdrawals with tax-free ISA ones, reducing your overall exposure to HMRC.

FORESIGHT ENVIRONMENTAL INFRASTRUCTURE LIMITED

(“FGEN” or the “Company”)

Net Asset Value and Dividend Update

The Board of FGEN, a leading investor in private environmental infrastructure assets across the UK and mainland Europe, announces its unaudited Net Asset Value (“NAV”) and dividend for the quarter ended 30 June 2026.

Highlights

·   Positive NAV total return delivered: NAV total return of 1.4% for the quarter, demonstrating the resilience of the Company’s diversified portfolio despite softer power price forecasts.

·   Total Shareholder Return (“TSR”): TSR of 28.2% for the quarter, reflecting increased investor recognition of FGEN’s differentiated strategy, the resilient portfolio and progressive dividend policy.

·   Stable NAV supported by operational performance: NAV of £652.4 million (31 March 2026: £655.5 million), with NAV per share of 104.7 pence. Positive valuation movements and portfolio performance largely offsetting the impact of lower power price assumptions.

·   Strong cash generation underpinning dividend target: The portfolio continues to generate robust cash flows, with dividend cover expected to remain within the Company’s target range of 1.2x to 1.3x, post project debt amortisation.

·   Quarterly dividend declared in line with target: Quarterly dividend of 2.01 pence per share declared, maintaining progress towards the Company’s full-year dividend target of 8.04 pence per share.

·   Prudent balance sheet maintained: Gearing remained amongst the lowest in the sector at 29.2% as at 30 June 2026 (28.8% at 31 March 2026), providing financial flexibility to support disciplined capital allocation.

·   Well positioned for organic NAV growth: the Board remains focused on delivering the Company’s progressive dividend strategy, alongside NAV growth through consistent operational performance, value enhancements and selective capital recycling.

Stephanie Coxon, Chair-designate of FGEN, said: “FGEN has delivered another strong operational quarter, underpinned by the resilient performance of our highly cash-generative, diversified environmental infrastructure portfolio.

lt is encouraging to see the quality of our assets recognised, with FGEN delivering a 28.2% TSR during the period and a partial rerating in our share price. Whilst the wider renewable infrastructure sector continues to face headwinds, the Board believes that an 18.8%¹ discount to NAV continues to undervalue the Company and its underlying assets.

The breadth and quality of our distinct portfolio remain the Company’s true differentiator that supports our confidence in its future and our ability to continue delivering shareholder returns, as reflected in the declaration of today’s quarterly dividend of 2.01 pence per share.”

Summary of changes in NAV:

	NAV per share
NAV at 31 March 2026	105.2p
Dividends paid in the period	-2.0p
Power price forecasts	-1.3p
Other movements (including discount rate unwind less fund overheads)	+2.8p
NAV at 30 June 2026	104.7p

Valuation factors

Power price forecasts

Independent market forecasts for power and gas prices softened during the period, contributing to the overall 1.3p decrease in NAV per share. The principal driver was a reduction in short to medium-term power price assumptions, reflecting improved stability in energy markets and lower uncertainty surrounding gas supplies. Long-term power price assumptions remain broadly unchanged. Since 30 June 2026, near-term power prices have strengthened, however, these movements are not reflected in the period-end valuation.

Gearing

In line with the Company’s stated approach to capital allocation, FGEN continues to maintain one of the lowest levels of gearing in the sector. As at 30 June 2026, total gearing was 29.2% (31 March 2026: 28.8%), with the Company’s Revolving Credit Facility (“RCF”) £128.5 million drawn.

Portfolio performance

Overall, the portfolio performed broadly in line with expectations over the quarter. The renewable energy generation portfolio was a notable highlight, with generation 3.8% ahead of budget, supported by strong output from the anaerobic digestion and biomass portfolios.

Dividend

The Company declares a quarterly interim dividend of 2.01 pence per share for the quarter ended 30 June 2026, consistent with the full-year target of 8.04 pence per share for the year to 31 March 2027, as set out in the 2026 Annual Report. This equates to a yield of 9.4% on the closing share price on 11 August 2026.

Dividend Timetable

Ex-dividend date                    3 September 2026

Record date                            4 September 2026

Payment date                         25 September 2026

The SNOWBALL, no longer holds FGEN, the current profit is £3,317.20.

The current yield is 9.3% so a share I would consider, maybe, buying back.

Discount to Nav 18%,