- BH Macro has a good record of delivering a different pattern of returns to equity markets
- But the trust has high fees and its underlying strategy is not transparent
Classic safe haven assets have come under greater scrutiny lately, but defensive investment trusts which make the most of them have fared pretty well. Ruffer Investment Company (RICA), Personal Assets Trust (PNL) and Capital Gearing Trust (CGT), three “wealth preservation” trusts known for turning to gold and bonds, among other defensive assets, have held up nicely in recent months as equities have faltered (see 'Which defensive funds are working?' IC, 4 March 2022). But with fixed income facing a reckoning and gold prone to its own idiosyncrasies, if you want to mitigate downside you might need to look further afield.
This month’s investment trust in the spotlight, BH Macro (BHMG), has certainly turned heads in this respect. Its share price performance has outpaced those of the wealth preservation trusts in the first quarter of 2022 and in the past six months, thanks to strong net asset value (NAV) performance. And the trust has an impressive record of delivering the goods at other times of equity market strife, making it a rare reliable diversifier.