What is the outlook for the investment trust sector after a volatile start to 2026?

QuotedData’s Gavin Lumsden is joined by Jonathan Davis, editor of the Investment Trusts Handbook and presenter of the Money Makers podcast, to assess the health of the market and the forces reshaping the sector. They discuss the recovery in investment trust performance, the narrowing of average discounts and the strong returns delivered by technology, AI, space, Asian and emerging-market trusts. The conversation also examines Saba Capital’s impact on the sector, including its attempts to take control of investment trust boards, the FCA’s proposed rule changes and whether shareholder activism has ultimately encouraged boards to become more responsive. Other topics include: • The recent performance of Scottish Mortgage, Polar Capital Technology and Seraphim Space Investment Trust • Why investment trust boards are increasing buybacks and cutting fees • Mergers, mandate changes and new manager appointments • Artemis UK Future Leaders and the outlook for UK smaller companies • The role of continuation votes • The challenges of attracting younger investors • Why the sector may need to shrink before it can grow again • What would signal a genuine revival in new investment trust launches Despite the challenges, Jonathan argues that a leaner and more accountable investment trust sector could emerge – although a return of new launches may be needed before the recovery can be considered complete. Subscribe to QuotedData for more investment trust news, analysis, manager interviews and market discussions. #InvestmentTrusts #Investing #StockMarket #UKInvesting #QuotedData #InvestmentCompanies #ScottishMortgage #SeraphimSpace #ArtificialIntelligence #EmergingMarkets #UKSmallCaps #SabaCapital #FundInvesting #PersonalFinance