With the investment trust sector currently under such strain, it seems to be the actions of boards, rather than portfolio managers, driving the biggest share price movements. That was evident enough in September: Round Hill Music Royalty (RHM) enjoyed the best share price performance among investment trusts during the month (a 69 per cent gain) after its board recommended a cash offer. Digital 9 Infrastructure (DGI9), whose board withdrew the trust's dividend, ranked as the worst performer with a 35 per cent loss.
Eye-catching as corporate action in the space has been, it's still important not to lose track of what investment teams are doing in such uncertain times. One trust whose managers attracted my attention in recent days is Pacific Horizon (PHI).
Run by Baillie Gifford, the trust has in some ways had a similar trajectory to many of its stablemates. A growth bias and exposure to the likes of the Chinese internet giants and e-commerce plays helped it deliver huge returns in 2020, whereas last year was pretty dismal for the portfolio. But PHI held up surprisingly well in 2021 thanks to a well-timed pivot away from Chinese stocks and towards commodities and India.