GLOBAL OPPORTUNITIES TRUST PLC

Quarterly Report • Aug 16, 2023

National Storage Mechanism | Additional information

Global Opportunities Trust Plc - Half-yearly Results to 30 June 2023

PR Newswire

LONDON, United Kingdom, August 16

Global Opportunities Trust plc

Legal Entity Identifier: 2138005T5CT5ITZ7ZX58

Half-Yearly Results for the six months to 30 June 2023 (unaudited)

Financial Highlights

SHARE PRICE TOTAL RETURN* 2.2%	NET ASSET VALUE TOTAL RETURN* (0.2)%
SHAREHOLDERS' FUNDS £103.9m	DISCOUNT TO NET ASSET VALUE* (11.1)%

	30 June 2023	31 December 2022	% Change
Net Assets/Shareholders' Funds (£)	103,880,000	106,144,000	(2.1)
Shares in issue	29,222,180	29,222,180	-
Net Asset Value per share - cum inc. (pence)*	355.5	363.2	(2.1)
Share Price (pence)	316.0	314.0	0.6
Share Price Discount to Net Asset Value (%)*	(11.1)	(13.5)	-

* Alternative Performance Measure.

CHAIRMAN'S STATEMENT

I am pleased to present the Company's interim report for the six months to 30 June 2023.

Investment Performance

The first half of the year saw markets rebound somewhat with global equities rising over 9% in sterling terms. The US technology sector was particularly buoyant as softening headline inflation buoyed investor confidence. Emerging markets were mixed with Asia not performing particularly well over the period in contrast to Latin America where a number of markets produced very strong returns. The rise in sterling masked some of the global bond market recovery such that whilst gilts advanced slightly, overseas bonds generally produced negative returns to the sterling investor. Cash returns benefited from the sequential increases in rates by central banks across the world.

For the six months ended 30 June 2023, the Company's Net Asset Value ("NAV") Total Return decreased by 0.2% as equity markets rebounded. On a positive note, the Share Price Total Return increased by 2.2% reflecting a slight narrowing of the discount to NAV.

As at 30 June 2023 the Company had Net Assets of £103.9m (31 December 2022: £106.1m), the NAV per ordinary share ("share") was 355.5p (31 December 2022: 363.2p) and the middle market price per share on the London Stock Exchange was 316.0p (31 December 2022: 314.0p), representing a discount of 11.1% to NAV.

Update on Management Arrangements

Shareholders may have noted that with effect from 30 May 2023, the Company terminated its Investment Management Agreement (the "IMA") with Franklin Templeton Investment Management Limited ("Franklin Templeton"). Following the termination of the IMA with Franklin Templeton, Goodhart Partners LLP ("Goodhart") was appointed to provide investment sub-advisory services to the Company assisting Dr Nairn in managing the global listed equities mandate. The Board looks forward to working with, and further strengthening its relationship with Goodhart.

2023 Annual General Meeting

The Annual General Meeting ("AGM") of the Company was held on 26 April 2023. On behalf of the Board, I would like to thank all those shareholders who attended the meeting in person or voted by way of proxy. I was pleased to note that all resolutions were formally passed by the requisite majority.

Board succession

David Ross retired as a Non-Executive Director of the Company at the conclusion of the AGM and Katie Folwell-Davies was appointed as a Non-Executive Director of the Company. I would like to formally welcome Katie to the Board. As previously noted in the Annual Report for the financial year ended 31 December 2022, following her appointment, Katie has taken on the role of Chair of the Audit and Management Engagement Committee from David.

Portfolio Information

Shareholders can keep up to date on the performance of the portfolio through the Company's website at www.globalopportunitiestrust.com.

If you have not yet done so, you can subscribe to receive the monthly factsheet and other interesting research articles by our Executive Director, Dr Nairn by visiting the Company's website.

Keep in touch

As always, the Board welcomes communication from shareholders and I can be contacted directly through the Company Secretary at cosec@junipartners.com.

Outlook

Much of the return in market confidence stemmed from the decline in headline inflation, allied with the view that tightened monetary policy would be able to engineer an outcome which would see inflation return to target levels whilst avoiding a meaningful recession. Equity markets are more than priced for this outcome. It would be extremely unusual for economic policy to achieve such an outcome, not least because of the historically unprecedented levels of debt which exist in all the developed nations. For this reason, the portfolio remains defensively positioned.

Cahal Dowds

Chairman

15 August 2023

EXECUTIVE DIRECTOR'S REPORT

The first half of 2023 demonstrated the resilience of investor sentiment as markets rallied strongly following the declines of 2022. If we look back at 2022, market concerns principally stemmed from the gradual increase of interest rates to more normal levels in the light of soaring inflation. Part of the inflationary impulse was demand led, stemming from the release of post Covid consumer expenditure. This, combined with supply constraints and logistical issues, and Ukraine-induced energy price rises, exacerbated the headline inflation rate rise. Since the rise in energy prices was not going to repeat arithmetically, headline inflation had to fall. This decline likely gave rise to the resilience in asset markets and was accompanied by continued growth in employment and consumption. Investors could therefore look forward to a time of falling headline inflation and interest rate peaks.

However, this narrative ignores the lagged effects of the interest rate rises that have already happened even if there were to be no further increases. It also ignores the debt overhang which looms for most developed economies. When these are taken into account, combined with the stubborn nature of core inflation, the outlook does not look so benign. Even if we are approaching peak interest rates, which is far from certain, it is likely that the concerns over inflation will be replaced by concerns over economic growth and hence corporate profitability. Unfortunately, equity valuations appear to be discounting the rosiest possible outlook rather than one with potential economic storm clouds. For this reason, the Company retained broadly the same defensive portfolio structure. This structure is one constructed to try and minimise downside risk whilst retaining some upside, but being ready to switch when opportunities arise.

I remain confident that the portfolio is following the correct approach and see investor sentiment turning as the effects of rising interest rates and the debt overhang works its way through the global economy and the post Covid expenditure boom peters out.

Dr Sandy Nairn

Executive Director

15 August 2023

PORTFOLIO OF INVESTMENTS

as at 30 June 2023

Company	Sector	Country	Valuation £'000	% of Net assets
Templeton European Long-Short Equity SIF1	Financials	Luxembourg	13,875	13.4
Volunteer Park Capital Fund SCSp2	Financials	Luxembourg	7,942	7.7
TotalEnergies	Energy	France	3,204	3.1
Unilever	Consumer Staples	United Kingdom	3,155	3.0
Samsung Electronics	Information Technology	South Korea	2,689	2.6
Sumitomo Mitsui Trust Holdings	Financials	Japan	2,588	2.5
Panasonic	Consumer Discretionary	Japan	2,587	2.5
Orange	Communication Services	France	2,448	2.4
ENI	Energy	Italy	2,431	2.3
Novartis	Health Care	Switzerland	2,410	2.3
Raytheon Technologies	Industrials	United States	2,313	2.2
Dassault Aviation	Industrials	France	2,141	2.1
Sanofi	Health Care	France	2,014	1.9
Imperial Brands	Consumer Staples	United Kingdom	1,956	1.9
Lloyds Banking	Financials	United Kingdom	1,879	1.8
General Dynamics	Industrials	United States	1,862	1.8
Nabtesco	Industrials	Japan	1,849	1.8
Murata Manufacturing	Information Technology	Japan	1,797	1.7
Tesco	Consumer Staples	United Kingdom	1,757	1.7
Daiwa House Industry	Real Estate	Japan	1,661	1.6
Fresenius Medical Care	Health Care	Germany	1,601	1.5
Verizon Communications	Communication Services	United States	1,356	1.3
Total investments			65,515	63.1
Cash and other net current assets			38,365	36.9
Net assets			103,880	100.0

1 Luxembourg Specialised Investment Fund

2 Luxembourg Special Limited Partnership

DISTRIBUTION OF INVESTMENTS

as at 30 June 2023 (% net assets)

Sector Distribution			Geographical Distribution
Sector	%		Region / country	%
Financials: Long-Short Fund	13.4		Europe ex UK	15.6
Financials: Private Equity Fund	7.7		Europe: Long-Short Fund	13.4
Financials: Direct Equities	4.3		Total Europe	29.0
Total Financials	25.4		North America: Private Equity Fund	7.7
Industrials	7.9		North America: Direct Equities	5.3
Consumer Staples	6.6		Total North America	13.0
Health Care	5.7		Japan	10.1
Energy	5.4		United Kingdom	8.4
Information Technology	4.3		Asia Pacific ex Japan	2.6
Communication Services	3.7		Cash and other net assets*	36.9
Consumer Discretionary	2.5
Real Estate	1.6
Cash and other net assets*	36.9

The figures detailed in the sector distribution represent the Company's exposure to those sectors.

The figures detailed in the geographical distribution 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 2023 is based on currencies held in the following regions/countries:

North America	25.5%
Japan	8.2%
Europe ex UK	2.7%
United Kingdom	0.5%
	36.9%

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 Chairman's Statement and Executive Director's Report. The principal factors that could impact the remaining six months of the financial year are also detailed in the Chairman's Statement and Executive Director's Report.

Principle 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 2022.

The Board considers that the following risks remain the principal risks associated with investing in the Company: investment and strategy risk, key person risk, discount volatility risk, price risk, foreign currency risk, liquidity risk, operational risk and regulatory 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 and uncertainties" within the Strategic Report in the Company's Annual Report and Financial Statements for the year ended 31 December 2022.

The emerging risks facing the Company have largely remained unchanged since those detailed in the Annual Report for the year ended 31 December 2022, namely geopolitical tension, inflation, and economic recession. During the period under review, the Board monitored emerging risks associated with the banking sector following the collapse of Credit Suisse, First Republic Bank, Silicon Valley Bank, and Signature Bank. The Company's investment portfolio had no direct exposure to any of the aforementioned banks.

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

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 twelve 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

Chairman

15 August 2023

INCOME STATEMENT

for the six months to 30 June 2023 (unaudited)

	Six months to 30 June 2023			Six months to 30 June 2022
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Gains on investments at fair value through profit or loss	-	564	564	-	6,725	6,725
Unrealised foreign exchange (losses)/gains on current assets	-	(2,278)	(2,278)	-	1,539	1,539
Realised foreign exchange (losses)/gains on current assets	-	(7)	(7)	-	384	384
Income	1,539	-	1,539	1,454	-	1,454
Management fee	(25)	(58)	(83)	(73)	(171)	(244)
Other expenses	(348)	-	(348)	(268)	-	(268)
Net return before finance costs and taxation	1,166	(1,779)	(613)	1,113	8,477	9,590
Finance costs
Interest payable and related charges	(8)	-	(8)	(12)	-	(12)
Net return before taxation	1,158	(1,779)	(621)	1,101	8,477	9,578
Taxation - overseas withholding tax	(182)	-	(182)	(141)	-	(141)
Net return after taxation	976	(1,779)	(803)	960	8,477	9,437
Return per share	3.3p	(6.1)p	(2.8)p	3.0p	26.9p	29.9p

All revenue and capital items in the above statement derive from continuing operations.

The total column of this statement is the profit and loss account of the Company.

The revenue and capital columns are prepared in accordance with guidance issued by the Association of Investment Companies ("AIC").

A separate Statement of Comprehensive Income has not been prepared as all gains and losses are included in the Income Statement.

BALANCE SHEET

as at 30 June 2023

	30 June 2023 (unaudited) £'000	31 December 2022 (audited) £'000
Fixed asset investments
Investments at fair value through profit or loss	65,515	69,283
Current assets
Debtors	438	412
Cash at bank and short-term deposits	38,031	36,629
	38,469	37,041
Current liabilities
Creditors	(104)	(180)
	(104)	(180)
Net current assets	38,365	36,861
Net assets	103,880	106,144
Capital and reserves
Called-up share capital	645	645
Share premium	1,597	1,597
Capital redemption reserve	14	14
Special reserve	9,760	9,760
Capital reserve	88,319	90,098
Revenue reserve	3,545	4,030
Total shareholders' funds	103,880	106,144
Net asset value per share	355.5p	363.2p

STATEMENT OF CHANGES IN EQUITY

for the six months to 30 June 2023 (unaudited)

Six months to 30 June 2023	Share capital £'000	Share premium £'000	Capital redemption reserve £'000	Special reserve £'000	Capital reserve £'000	Revenue reserve £'000	Total £'000
At 31 December 2022	645	1,597	14	9,760	90,098	4,030	106,144
Net return after taxation	-	-	-	-	(1,779)	976	(803)
Dividends paid	-	-	-	-	-	(1,461)	(1,461)
At 30 June 2023	645	1,597	14	9,760	88,319	3,545	103,880

Six months to 30 June 2022	Share capital £'000	Share premium £'000	Capital redemption reserve £'000	Special reserve £'000	Capital reserve £'000	Revenue reserve £'000	Total £'000
At 31 December 2021	645	1,597	14	32,961	77,026	3,880	116,123
Net return after taxation	-	-	-	-	8,477	960	9,437
Dividends paid	-	-	-	-	-	(1,461)	(1,461)
Share purchases for treasury	-	-	-	(23,201)	-	-	(23,201)
At 30 June 2022	645	1,597	14	9,760	85,503	3,379	100,898

NOTES TO THE FINANCIAL STATEMENTS

for the six months to 30 June 2023

1. Accounting policies

Basis of accounting

The Company applies Financial Reporting Standard ("FRS") 102: "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Statement of Recommended Practice as issued by the AIC. The Company has prepared the Financial Statements for the six months to 30 June 2023 in accordance with FRS 104: "Interim Financial Reporting". The Company has elected to remove the Cash Flow Statement from the Half-Yearly Report, as permitted by FRS 102 section 7.1A.

The accounting policies are set out in the Company's Annual Report and Financial Statements for the year ended 31 December 2022 and remain unchanged. 70% of management fees and finance costs relating to borrowings are charged to capital, with 30% of these costs charged to revenue, as detailed in the Income Statement.

Going concern

The financial statements have been prepared on a going concern basis and on the basis that approval as an investment trust company will continue to be met.

The Directors have made an assessment of the Company's ability to continue as a going concern and are satisfied that the Company has adequate resources to continue in operational existence for a period of at least 12 months from the date when these financial statements were approved.

The Directors have noted that the Company, holding a portfolio consisting principally of liquid listed investments and cash balances, is able to meet the obligations of the Company as they fall due, any future funding requirements and finance future additional investments. The Company is a closed end fund, where assets are not required to be liquidated to meet day-to-day redemptions.

The Directors have reviewed stress tests assessing the impact of changes and scenario analysis to assist them in determination of going concern. In making this assessment, the Directors have considered plausible downside scenarios that have been financially modelled. These tests apply to any set of circumstances in which asset value and income are significantly impaired. The conclusion was that in a plausible downside scenario, the Company could continue to meet its liabilities. Whilst the economic future is uncertain, and the Directors believe that it is possible the Company could experience further reductions in income and/or market value, the opinion of the Directors is that this should not be to a level which would threaten the Company's ability to continue as a going concern.

The Company and its key service providers have put in place contingency plans to minimise disruption. Furthermore, the Directors are not aware of any material uncertainties that may cast significant doubt on the Company's ability to continue as a going concern, having taken into account the liquidity of the Company's investment portfolio and the Company's financial position in respect of its cash flows, borrowing facilities and investment commitments. Therefore, the financial statements have been prepared on the going concern basis.

Comparative information

The financial information for the six months to 30 June 2023 and for the six months to 30 June 2022 have not been audited or reviewed by the Company's Auditor pursuant to the Auditing Practices Board guidance on such reviews. The financial information contained in this report does not constitute statutory accounts as defined in the Companies Act 2006.

The latest published audited financial statements which have been delivered to the Registrar of Companies are the Annual Report and Financial Statements for the year ended 31 December 2022; the report of the independent Auditor thereon was unqualified and did not contain a statement under Section 498 of the Companies Act 2006. Information shown for the year ended 31 December 2022 is extracted from that Annual Report and Financial Statements.

Segmental reporting

The Directors are of the opinion that the Company is engaged in a single segment of business, being investment business. The Company primarily invests in listed companies.

1. Income

	Six months to 30 June 2023 £'000	Six months to 30 June 2022 £'000
Revenue
Income from investments
UK dividend income	257	235
Overseas dividend income	848	1,176
	1,105	1,411
Total income comprises
Dividend income	1,105	1,411
Rebate income	30	30
Bank interest	404	13
	1,539	1,454

1. Dividends

	Six months to 30 June 2023 £'000	Six months to 30 June 2022 £'000
2022 final dividend of 5.0p per ordinary share paid in May 2023	1,461	-
2021 final dividend of 5.0p per ordinary share paid in May 2022	-	1,461
	1,461	1,461

1. Return per share

	Six months to 30 June 2023		Six months to 30 June 2022
	Net return £'000	Per share pence	Net return £'000	Per share pence
Revenue return after taxation	976	3.3	960	3.0
Capital return after taxation	(1,779)	(6.1)	8,477	26.9
Total return	(803)	(2.8)	9,437	29.9

The returns per share for the six months to 30 June 2023 are based on 29,222,180 shares (six months to 30 June 2022: 31,563,185 shares), being the weighted average number of shares, excluding shares held in treasury, in circulation during the period.

1. Investments

	Six months to 30 June 2023 £'000	Year to 31 December 2022 £'000
Opening book cost	60,663	84,582
Changes in fair value of investments	8,620	(660)
Opening fair value	69,283	83,922
Movements in the period:
Purchases at cost	51	21,645
Sales - proceeds	(4,383)	(46,442)
Sales - realised gains on sales	394	878
Changes in fair value of investments	170	9,280
Closing fair value	65,515	69,283
Closing book cost	56,725	60,663
Changes in fair value of investments	8,790	8,620
Closing fair value	65,515	69,283

The fair value hierarchy for investments held at fair value at the period end is as follows:

	30 June 2023 £'000	31 December 2022 £'000
Level 1	43,698	47,277
Level 2	13,875	14,298
Level 3	7,942	7,708
	65,515	69,283

1. Cash at bank and short-term deposits

	30 June 2023 £'000	31 December 2022 £'000
US dollar	26,553	13,036
Japanese yen	8,448	9,766
Swiss franc	2,299	3,802
Sterling	597	10,013
Euro	123	-
South Korean won	11	12
	38,031	36,629

1. Net asset value per share and share capital

The NAV is based on net assets at 30 June 2023 of £103,880,000 (31 December 2022: £106,144,000) and on 29,222,180 shares (31 December 2022: 29,222,180 shares), being the number of shares, excluding shares held in treasury, in circulation at the period end.

During the six months to 30 June 2023, no shares were repurchased or issued from Treasury by the Company.

As at 30 June 2023 there were 64,509,642 shares in issue of which 35,287,462 shares were held in treasury, resulting in there being 29,222,180 shares in circulation.

1. Related party transactions

Dr Sandy Nairn was appointed as an Executive Director of the Company on 27 April 2022. He is also lead portfolio manager and holds a substantial interest in the shares of the Company.

The Company has invested in Volunteer Park Capital Fund ("VPC"). The Alternative Investment Fund Manager of VPC is Goodhart Partners LLP ("Goodhart"). Goodhart Partners S.a.r.l. is the general partner of VPC which is 100% owned by Goodhart. Dr Nairn is the sole controller of a company which holds a significant shareholding (25.83%) in Goodhart and will be a beneficiary of the management fees and carried interest payable to Goodhart related companies.

Goodhart was also appointed to provide investment sub-advisory services to the Company with effect from 31 May 2023.

1. Post balance sheet events

There were no events subsequent to the half-year end and up to 15 August 2023, the date of this report.

1. Availability of Half-Yearly Report

The Half-Yearly Report will shortly be available to view on the Company's website at www.globalopportunitiestrust.com where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.

A copy of the Half-Yearly Report will shortly be submitted to the Financial Conduct Authority's National Storage Mechanism and will be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism

For further information please contact:

Juniper Partners Limited

Company Secretary

e-mail: cosec@junipartners.com

15 August 2023

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