Mobius Investment Trust PLC
Active Ownership in Emerging and Frontier Markets
Mobius Investment Trust plc’s objective is to deliver
long-term absolute returns by investing in emerging and
frontier market equities. MMIT will identify companies with resilient business models which are undervalued and mispriced. MMIT does not use any benchmark and follows an active investment style by partnering with portfolio companies.
This is achieved by engaging with stakeholders to improve corporate governance, set out a broader ESG pathway and
act as a catalyst for wider operational and financial improvements.
December saw the continuation of the strong performance of the Mobius Investment Trust (MMIT) with the Net Asset Value (NAV) and Share Price increasing by 6.5% and 5.3% respectively. The average discount for the month stood at 5.6%, closing at 3.8% on 31 December. Despite renewed COVID-19 related lockdowns in Europe, emerging markets continued their rally since the March lows driven by the hopes of a swift recovery as a result of the vaccine roll-out and the expectations of a continued weak USD as a second U.S stimulus package was passed by Congress and signed by President Trump.
For the MMIT, stock selection in general and particularly in India has been a strong driver of performance in 2020 and December alike. Indian software and digital services company Persistent Systems, and leading Indian steel manufacturer APL Apollo were the top two contributors to performance with 2% and 1.9% respectively. They were followed by Turkish apparel company Mavi (+0.6%) which continued its recovery with a slow return to a more regular business environment. Mavi also reported better than expected results for Q3 in December as swift and decisive action taken by management including the strengthening of online sale channels helped mitigate the repercussions of the Covid-19 related lockdowns.
The portfolio performed strongly in December with only a handful of companies marginally detracting from performance. The main detractors were Russian internet company Mail.ru (-0.4%), Indian health care company Metropolis Healthcare (-0.3%), and Korean health care company Hugel (-0.3%).
Commentary - 31 December 2020
MMIT pursues an active management style. Its performance may therefore deviate considerably from that of a comparable market return
Pronounced fluctuations in price are characteristic of emerging and frontier economies. Other characteristics include specific risks such as lower market transparency, regulatory hurdles, illiquidity of markets as well as political and social challenges
Investments via Shanghai or Shenzhen Stock Connect are subject to additional risks, quota limitations, custody risk, clearing/settlement risk and counterparty risk
Focusing intentionally on stocks in small and medium cap companies may entail additional risks (e.g. lower liquidity).
Risk Warnings: This document is issued by Mobius Investment Trust plc for information purposes only and does not constitute an offer or invitation to purchase shares in the Company and has not been prepared in connection with any such offer or invitation. Nothing in this document should be construed as investment advice or a recommendation to buy or sell shares. Before investing in the Company, or any other investment product, you should satisfy yourself as to its suitability and the risks involved, and you may wish to consult a financial adviser. Any return you receive depends on future market performance and is uncertain. Past performance cannot be relied on as a guide to future performance. The Company does not seek any protection from future market performance, so you could lose some or all your investment. Shares of the Company are bought and sold on the London Stock Exchange (LSE). The price you pay or receive, like other listed shares, is determined by supply and demand and may be at a discount or premium to the underlying net asset value of the Company. Usually, at any given time, the price you pay for a share will be higher than the price you could sell it for. For further information on the principal risks the Company is exposed to please refer to the Company’s Investor Disclosure Document available on our website. The Company can borrow to purchase investments, this could potentially magnify any losses or gains made by the Company.
Mobius Investment Trust plc has used all reasonable efforts to ensure the accuracy of the information contained in this document but makes no guarantee or representation as to the reliability, completeness or accuracy of such information.
Mobius Investment Trust plc is a public limited company whose shares are premium listed on the LSE and is registered with HMRC as an investment trust. The Company has a Redemption Facility through which shareholders will be entitled to request the redemption of all or part of their holding of Ordinary Shares on a periodic basis. The first Redemption point for the Ordinary Shares will be 30 November 2022 and each subsequent Redemption point shall fall on 30 November every third year thereafter.