UK-listed investment trusts are intensifying efforts to narrow the gap between their share prices and underlying net asset values (NAVs), deploying buybacks, fee reforms and structural changes in response to mounting shareholder pressure.

HarbourVest Global Private Equity (HVPE) last week announced a package of measures aimed at addressing its persistent discount, which has hovered around 35 per cent in recent months. The $3.9bn trust, a vehicle for Boston-based HarbourVest’s private equity portfolios, said it would double the cash available for share repurchases to 30 per cent of available liquidity. It also committed to simplifying its investment structure and introducing a continuation vote in 2026. The moves followed pressure from investors frustrated by a prolonged gap between market price and portfolio valuation, a trend that has blighted much of the private equity trust sector.

Elsewhere, renewable energy trusts — once the darlings of income-focused investors — have also come under scrutiny. Octopus Renewables Infrastructure Trust (ORIT), which invests in wind and solar projects across the UK, Europe & Australia has faced a discount of more than 20% amid concerns over power price volatility and rising interest rates. In response, its board has stepped up share buybacks and highlighted its pipeline of new projects designed to stabilise cash flows. The trust has also underscored its dividend target, seeking to reassure income-focused shareholders while signalling confidence in long-term asset values.

Foresight Environmental Infrastructure (FGEN), another member of the renewables peer group, has pursued a different route. The company has implemented a more active capital recycling programme, selling minority stakes in certain projects to release cash for both reinvestment and buybacks. This approach, the board argues, should help maintain balance sheet flexibility while demonstrating a commitment to narrowing the discount. Like ORIT, FGEN has also placed greater emphasis on dividend cover to rebuild investor confidence in its income profile.

It remains to be seen whether or not these measure result in a narrowing of the discount across the sector, but analysts note that corporate activity has already shaved a few percentage points off the average gap in 2025. Property, renewables and private equity trusts remain among the most heavily discounted, yet the recent wave of buybacks and reform packages suggests boards are becoming more proactive in addressing the issue.

Industry observers caution, however, that discounts are unlikely to vanish entirely. “These measures can provide a floor, but ultimately investor sentiment on asset classes and the macro environment will drive the range,” said one London-based analyst. “What we’re seeing is boards acknowledging that they need to meet shareholders halfway.”

For investors, the moves from HVPE, ORIT and FGEN underscore a broader shift in governance across the investment trust sector: boards are more willing to use balance sheet tools, fee reform and even structural changes to support market ratings. Whether that proves enough to restore long-term confidence remains an open question.