Global Opportunities Trust plc (LON:GOT) has announced that the investment companies team at Kepler Trust Intelligence has produced a new piece of investment bank quality research about the trust, designed to provide a clear and comprehensive reference for long term investors. This note is free to read for UK investors.
Overview
Managers Dr Sandy Nairn, Alan Bartlett and James Sym take a highly flexible approach for Global Opportunities Trust (GOT), with the goal of generating attractive real returns, low correlation to global markets and downside protection across a market cycle. Exposure is predominantly taken through a wide range of global equities, including both emerging and developed markets, and from across the full range of the market-cap spectrum (see Portfolio).
The managers are highly specific in what stock characteristics they look for, aiming to build a portfolio that can perform well regardless of market conditions. To do this, they have identified several themes they believe can generate success despite the structural shifts seen in the world economy, as many of the key forces that have been the tailwinds to markets over the past 30 years have turned into headwinds. This approach has delivered positive returns in each of the five past calendar years, including 2022, where the wider market fell, but GOT delivered double-digit positive returns (see
Performance).
Manager flexibility extends to asset allocation, with an allowance of up to 50% in cash-like products. At present, this level is c. 40%, inversely reflecting the equity opportunity set, largely due to high market valuations (see Gearing). As a result of the high cash position, the trust’s Discount is in effect even wider than the c. 17% headline level.
Whilst not a core focus of the managers, the trust has recently increased its Dividend level. This means the trust currently yields c. 3%, with a high level of reserves able to support this going forward, although this is unlikely to mean
progressive dividends.
