Global Opportunities Trust entered 2026 with a clear focus on protecting capital while preparing to take advantage of better opportunities as they appear. During the first quarter, the Trust maintained a cautious stance, reduced exposure where risks had changed, and added selectively to areas where share price weakness created more attractive long-term potential.
The Trust delivered positive net asset value growth over the period despite a market environment marked by volatility, geopolitical tension and continued debate around artificial intelligence investment. Management remains selective about companies linked to AI infrastructure and is focused on whether future returns can justify current market expectations.
Rather than follow crowded market momentum, the Trust focused on resilience and flexibility. It held a substantial portion of assets in cash, money market funds and short-dated government bonds at the end of the quarter. This reduced exposure to market setbacks while giving the managers meaningful capacity to invest when valuations become more attractive.
Portfolio activity during the quarter was practical and disciplined. The Trust sold Viscofan after legal concerns in the US weakened the investment case. The decision showed a clear willingness to act when the risk and reward profile changes, rather than waiting for uncertainty to be resolved.
The Trust then increased healthcare exposure through RaySearch Laboratories and Bonesupport. Both companies had fallen sharply over the previous year, creating what management saw as more attractive entry points. The appeal lies in demand that is linked to long-term medical need rather than short-term economic confidence. In a slower or more uncertain growth environment, that can offer a valuable source of resilience.
Healthcare now sits within the Trust’s “inevitable growth” theme. The managers favour specialist businesses with clear product demand and less reliance on blockbuster drug cycles. This gives the portfolio exposure to structural growth while reducing some of the patent and pricing risks associated with larger pharmaceutical groups. It also adds a practical growth element to a portfolio that remains firmly valuation aware.
Defence and energy holdings remained part of the portfolio through the Trust’s “geopolitical winners” theme. These areas continue to reflect the managers’ view that security, supply chains and energy reliability are becoming more important investment themes. Management also recognised that defence stocks have already re-rated significantly, which reinforces the need for selectivity rather than broad exposure. Consumer and telecom holdings, including Orange and Verizon, helped support performance during the quarter and added to the portfolio’s defensive profile.
Global Opportunities Trust plc LON:GOT) invests globally in undervalued asset classes without reference to the composition of any stock market index.
