Global Opportunities Trust Plc (LON:GOT) has announced its half-yearly Results for the six months to 30 June 2025 (unaudited).
Financial Highlights
INCREASE IN NET ASSET VALUE PER SHARE* 1.3% | NET ASSET VALUE TOTAL RETURN* 4.0% |
SHAREHOLDERS’ FUNDS £110.7m | SHARE PRICE DISCOUNT TO NET ASSET VALUE* -18.2% |
30 June2025 | 31 December2024 | %Change | |
Net Assets/Shareholders’ Funds (£) | 110,736,000 | 109,295,000 | +1.3 |
Shares in issue | 29,222,180 | 29,222,180 | – |
Net Asset Value per share (pence)* | 378.9 | 374.0 | +1.3 |
Share Price (pence) | 310.0 | 286.0 | +8.4 |
Share Price Discount to Net Asset Value (%)* | -18.2 | -23.5 | n/a |
* Alternative Performance Measure. For definitions please refer to the Glossary of Terms and Alternative Performance Measures on pages 22 to 24 of the Interim Report.
CHAIR’S STATEMENT
I am pleased to present the Company’s interim report for the six months to 30 June 2025.
Investment Performance
For the six months to 30 June 2025, the Company generated positive returns. Net Asset Value (‘NAV’) Total Return increased by 4.0% whilst Share Price Total Return increased by 12.2%, with dividends assumed to be reinvested. In comparison, the FTSE All-World Index rose a fairly anaemic 1.0% on a total return basis. The Bloomberg Global Aggregate Bond Index in GBP terms declined by approximately 2%, reflecting the strength of sterling. We would continue to remind shareholders, however, that the Company has no stated benchmark against which it seeks to outperform. Its objective is to achieve real long-term total return through investing globally in undervalued assets.
As at 30 June 2025 the Company had Net Assets of £110.7m (31 December 2024: £109.3m), the NAV per ordinary share was 378.9p (31 December 2024: 374.0p) and the middle market price per share on the London Stock Exchange was 310.0p (31 December 2024: 286.0p), representing a discount of 18.2% to NAV.
Share Capital and Discount
The Company’s discount reduced from its year-end position of 23.5% to 18.2% and averaged 22.7% during the period. The average discount of the ‘Flexible Investment’ sector of the Association of Investment Companies (‘AIC’) (of which the Company is a member) was 21.7% as at 30 June 2025. The narrowing of the Company’s discount is a focus of the Board and the Company has begun a detailed marketing programme to highlight the potential appeal of the Company to a wider shareholder base. No share buybacks were undertaken during the period.
2025 Annual General Meeting
I chaired my fourth Annual General Meeting of the Company which was held on 15 May 2025 (‘the AGM’). On behalf of the Board, I would like to thank all those shareholders for their engagement, either in person or by way of proxy, and I was pleased to note that all resolutions were formally passed by the requisite majority at the AGM.
Portfolio Information
Shareholders can keep up to date on the performance of the portfolio through the Company’s website at www.globalopportunitiestrust.com where you will find information on the Company, a monthly factsheet and research articles by our Executive Director, Dr Nairn. There is also an option to sign-up to receive the latest publications directly via email.
Outlook
In many ways it has been a tumultuous period, with the stance of the new US administration appearing to change on a regular basis. This has been most noticeable on trade tariffs which have been used as the primary tool by President Trump to try and achieve his political and economic goals. Markets have remained relatively sanguine through the period, given the potential for severe economic distress. There are no obvious signs of resolution to the ongoing conflicts in Gaza or Ukraine, despite the various initiatives.
The key point for markets is that it takes time for economic impacts to work their way through the system and it is only now where evidence may begin to emerge. To the extent that it is negative we have seen the likely response. Either the messenger will be blamed, or the Federal Reserve will serve as the scapegoat. In the meantime, there have been no meaningful attempts to address the debt overhang facing the world’s developed economies. As before, this leaves us with a continued risk averse approach. Where opportunities have arisen, the Company has sought to exploit them but our principal focus at this time is attempting to make sure that we can continue to provide positive real returns, but retain the downside protection we feel is necessary.
Keep in Touch
As always, the Board welcomes communication from shareholders and I can be contacted through the Company Secretary at [email protected].
Cahal Dowds
Chair
20 August 2025
EXECUTIVE DIRECTOR’S REPORT
Global equity markets remained focused on AI as the core area of interest. Although the shares largely paused for breath, such has been the movement that the US market now accounts for 72% of the world’s equity market capitalisation with the top 10 technology companies alone exceeding over 25%. Attention has turned to the build out of AI infrastructure with the Stargate project targeting expenditure of $500bn on data centres. The expenditure in AI and AI-related fields accounts for much of US current capital expenditure. As a result, there appears a two tier economy with one characterised by capital inflows, growing valuations and inflating salaries. The other appeared reasonably robust, but recent data revision have begun to undermine that view. The White House has reacted by shooting the messenger, claiming recent data revisions are either not accurate or politically inspired. At the same time, the attacks on the Federal Reserve Chairman continue. Undermining the core financial institutions and government bodies is not designed to inspire the confidence of international investors already concerned at the ongoing tariff dramas and reversals. Hitherto, equity markets have been willing to shrug off the twists of policy and the increasingly bellicose rhetoric. If the US economy begins to deteriorate, one can expect the political attacks to increase but for market tolerance to move in the opposite direction.
There are many reasons why this is likely, the most important being the lags that exist in the economic system. The impact of the tariff-induced uncertainty together with the actual rises will soon begin to feed through in prices and volumes. Whilst it is highly likely that some interest rate cuts will follow, it is also likely that these will be limited reflecting the merging inflationary pressures. With markets at historically high valuations and accompanying political stress, it does not make for an appetising cocktail. This does not mean no investment opportunities will emerge, particularly given the current narrowness of markets and the focus on technology. In the first six months, for example, the Company did invest in a number of small/mid cap European companies with attractive long-term valuations whilst still retaining its overall defensive posture. These include out of favour industrials such as Kalmar and Danieli. At the same time, a number of UK holdings including Tesco and Imperial Tobacco performed well and were sold as a consequence.
We expect this to continue, an overall defensive posture but with selected new investments. Against this backdrop, the growth in the NAV has been encouraging reflecting the objective of the Company to provide real returns through different environments, including those where opportunities are limited and there is a focus on obtaining the right risk profile. The Company retains ample liquidity, which will be deployed as opportunities present themselves.
Dr Sandy Nairn
Executive Director
20 August 2025
PORTFOLIO OF INVESTMENTS
as at 30 June 2025 (unaudited)
Company | Sector | Country of incorporation | Valuation£’000 | % ofnet assets |
AVI Japanese Special Situations Fund1 | Financials | Japan | 14,321 | 12.9 |
Volunteer Park Capital Fund SCSp2 | Financials | Luxembourg | 7,747 | 7.0 |
Dassault Aviation | Industrials | France | 3,500 | 3.2 |
Unilever | Consumer Staples | United Kingdom | 3,406 | 3.1 |
Lloyds Banking Group | Financials | United Kingdom | 3,306 | 3.0 |
TotalEnergies | Energy | France | 3,173 | 2.9 |
Alibaba Group | Consumer Discretionary | Hong Kong | 3,117 | 2.8 |
Jet2 | Industrials | United Kingdom | 3,105 | 2.8 |
Qinetiq | Industrials | United Kingdom | 3,093 | 2.8 |
Orange | Communication Services | France | 2,948 | 2.6 |
ENI | Energy | Italy | 2,538 | 2.3 |
RTX | Industrials | United States | 2,413 | 2.2 |
Terveystalo | Health Care | Finland | 2,033 | 1.8 |
Danieli | Industrials | Italy | 1,848 | 1.7 |
General Dynamics | Industrials | United States | 1,806 | 1.6 |
Kalmar | Industrials | Finland | 1,762 | 1.6 |
Bakkafrost | Consumer Staples | Denmark | 1,745 | 1.6 |
Sanofi | Health Care | France | 1,685 | 1.5 |
Azelis Group | Materials | Belgium | 1,672 | 1.5 |
Verizon Communications | Communication Services | United States | 1,459 | 1.3 |
Breedon Group | Materials | United Kingdom | 1,454 | 1.3 |
Nestle | Consumer Staples | Switzerland | 1,332 | 1.2 |
Intel | Information Technology | United States | 1,302 | 1.2 |
Philips | Health Care | Netherlands | 817 | 0.7 |
Equity Investments | 71,582 | 64.6 | ||
Liquidity Fund Investments | 25,307 | 22.9 | ||
Total Investments | 96,889 | 87.5 | ||
Cash and other Net Assets | 13,847 | 12.5 | ||
Net Assets | 110,736 | 100.0 |
1 Sub-Fund of Gateway UCITS Funds PLC
2 Luxembourg Special Limited Partnership
DISTRIBUTION OF INVESTMENTS
as at 30 June 2025 (% net assets)
Sector Distribution | Geographical Distribution | |||
Sector | % | Region / country | % | |
Financials: Japanese Fund | 12.9 | Europe ex UK | 22.6 | |
Financials: Private Equity Fund | 7.0 | North America: Private Equity Fund | 7.0 | |
Financials: Direct Equities | 3.0 | North America: Direct Equities | 6.3 | |
Total Financials | 22.9 | Total North America | 13.3 | |
Industrials | 15.9 | United Kingdom | 13.0 | |
Consumer Staples | 5.9 | Japan | 12.9 | |
Energy | 5.2 | Asia Pacific ex Japan | 2.8 | |
Health Care | 4.0 | Liquidity funds and cash* | 35.4 | |
Communication Services | 3.9 | |||
Consumer Discretionary | 2.8 | |||
Materials | 2.8 | |||
Information Technology | 1.2 | |||
Liquidity funds and cash* | 35.4 |
The figures detailed in the sector distribution list represent the Company’s exposure to those sectors.
The figures detailed in the geographical distribution list represent the Company’s exposure to these countries or regional areas through its investments and cash.
The geographical distribution is based on each investment’s principal stock exchange listing or domicile, except in instances where this would not give a proper indication of where its activities predominate.
*The geographical distribution of cash and other net assets as at 30 June 2025 is based on currencies held in the following regions/countries:
North America | 22.0% |
United Kingdom | 10.7% |
Europe ex UK | 2.7% |
35.4% |
DIRECTORS’ STATEMENT OF PRINCIPAL RISKS AND UNCERTAINTIES
The important events that have occurred during the period under review and the key factors influencing the Financial Statements are set out in the Chair’s Statement and Executive Director’s Report on pages 3 to 5 of the Interim Report. The principal factors that could impact the remaining six months of the financial year are also detailed in the Chair’s Statement and Executive Director’s Report.
Principal Risks and Uncertainties
The Board has considered the principal and emerging risks facing the Company. The Board has concluded that there are no significant additional risks facing the Company other than those detailed below and in the Annual Report and Financial Statements for the year ended 31 December 2024.
The Board considers that the following risks remain the principal risks associated with investing in the Company: geopolitical risk, investment and strategy risk, key person risk, financial and economic risk, discount volatility risk, regulatory risk and operational risk. Other risks associated with investing in the Company include, but are not limited to, credit risk, interest rate risk and gearing risk. These risks, and the way in which they are managed, are described in more detail under the heading “Principal Risks” within the Strategic Report in the Company’s Annual Report and Financial Statements for the year ended 31 December 2024.
The risks identified by the Board as detailed above are not exhaustive and various other risks may apply to an investment in the Company. Potential investors may wish to obtain independent financial advice as to the suitability of investing in the Company.
Going Concern
As detailed in Note 1 to the Financial Statements on page 14 the Half-Yearly Report has been prepared on a going concern basis. The Directors consider that this is the appropriate basis as they have a reasonable expectation that the Company has adequate resources to continue in operational existence and meet its financial commitments as they fall due for a period of at least 12 months from the date of approval of the unaudited financial statements.
DIRECTORS’ STATEMENT OF RESPONSIBILITIES IN RESPECT OF THE FINANCIAL STATEMENTS
The Directors confirm that to the best of their knowledge:
- The condensed set of Financial Statements, prepared in accordance with Financial Reporting Standard (“FRS”) 104: “Interim Financial Reporting”, gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and
- This Half-Yearly Report includes a fair review of the information required by:
(a) Disclosure Guidance and Transparency Rule 4.2.7R, being an indication of important events that have occurred during the first six months of the financial year, and their impact on the condensed set of Financial Statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
(b) Disclosure Guidance and Transparency Rule 4.2.8R, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could do so.
This Half-Yearly Report has not been audited or reviewed by the Company’s auditor.
This Half-Yearly Report was approved by the Board of Directors and the above responsibility statement was signed on its behalf by:
Cahal Dowds
Chair
20 August 2025