Global Opportunities Trust PLC on Wednesday reported a lower net asset value in the first half of 2023 as the performance of emerging markets was mixed while the US technology sector was buoyant.

The company focused on long-term returns via investing globally in undervalued asset classes said NAV per share at June 30 was 355.5p, down 2.1% from 363.2p at December 31.

NAV total return in the half-year turned to negative 0.2% from positive 10.7% a year prior.

The company noted rebounding equity markets, a well-performing US technology sector and a mixed performance in emerging markets, ‘with Asia not performing particularly well over the period in contrast to Latin America where a number of markets produced very strong returns’. It added that the rise in sterling masked some of the global bond market recovery.

Looking ahead, Chair Cahal Dowds said: ‘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.’

Global Opportunities Trust shares were 0.3% lower at 293.03 pence each on Wednesday morning in London.

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