TIDMMMIT
RNS Number : 0688I
Mobius Investment Trust PLC
02 August 2023
Legal Entity Identifier: 21380033EKFQS15X1W22
2 August 2023
Mobius Investment Trust plc
Half-yearly report and financial statements for the six months
to 31 May 2023
Mobius Investment Trust plc (the "Company" or "MMIT") has today
released its half-yearly report for the six months to 31 May
2023.
The half-yearly report and other information will be available
via www.mobiusinvestmenttrust.com
A copy of the half-yearly report will also be submitted to the
National Storage Mechanism and will shortly be available for
inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Enquiries:
Mobius Capital Partners LLP
Anna von Hahn, Investor Relations
Tel: +44 (0)203 829 8505
Email: anna@mobiuscapitalpartners.com
Frostrow Capital LLP
Company Secretary
Tel: +44 (0)20 3709 8732
Email: info@frostrow.com
Financial Highlights
As at As at
31 May 30 November
2023 2022 % change
----------------------------------- ------ ----------- --------
Net Asset Value per Ordinary share 127.6p 134.2p (4.9)
Share price 125.0p 131.0p (4.6)
Discount to net asset value* (2.0)% ( 2.4)% -
----------------------------------- ------ ----------- --------
UK GAAP measure
* Alternative performance measure, see Glossary.
Six months
ended Year ended
31 May 30 November
2023 2022
-------------------------------------------------- ---------- -----------
Net Asset Value per Ordinary share total return*^ (4.0)% (12.3)%
Share price total return*^ (3.7)% (15.0)%
-------------------------------------------------- ---------- -----------
* Alternative performance measure, see Glossary.
^ Source: Morningstar.
Chairman's Statement
Introduction
Dear Shareholders,
The past six months covered by this report to 31 May 2023 have
continued to bring history-defining events. I would like to thank
you for your continued support and confidence in Mobius Investment
Trust plc's ("MMIT" or the "Company") strategy and vision.
At the beginning of the year, there were high hopes that this
year would be better than the last, and January seemed to bode
well, with equity markets starting the year on a strong footing.
However, the first half of 2023 saw continued volatility. This was
driven by the well-known elephant in the room: interest rates.
Uncertainty about the future course of the Federal Reserve's
monetary policy, coupled with the US banking crisis and the
collapse of Credit Suisse in Europe, weighed on investor sentiment.
At the same time, the US debt ceiling debate, the ongoing war in
Ukraine, elections in Turkey, heightened tensions between China and
the US and a slower-than-expected recovery in China after the end
of the zero-Covid policy impacted markets. In April, the IMF warned
that the medium-term global growth outlook was the weakest in 30
years and markets are now pricing in a shallow US recession at the
end of this year. In May, caution turned to enthusiasm over the
hype surrounding the potential of artificial intelligence, and
major equity indices around the world resumed their January rally
after a few volatile months. Technology growth stocks - last year's
villains - became everybody's darlings.
Emerging markets continued to underperform their developed
market peers, driven by weakness in China, where consumer sentiment
remained cautious. However, there were differences among emerging
market economies, with technology-heavy markets such as Taiwan and
South Korea posting strong gains. MMIT delivered a Net Asset Value
per share ("NAV") performance of -4.0% over the period, as
macroeconomic developments in Turkey, China and Kenya affected the
short-term performance of some portfolio holdings. The Board
remained in close contact with the Mobius Capital Partners ("MCP")
team throughout the period and was reassured by the steps taken to
monitor the situation in these countries. I firmly believe that the
team's close relationship with senior stakeholders at MMIT's
portfolio holdings and their regular interactions on the ground are
an important risk management tool. In addition, the focus on
fundamental quality has continued to provide downside protection.
Portfolio companies continue to have little or no debt and have
shown resilience in times of rising interest rates.
Following a visit to Turkey in Q4 2022, the team continued to
engage closely with management in the run-up to the May elections
to understand the challenges faced in the current political and
macroeconomic environment and how they are addressing them. MCP
added to MMIT's Kenyan holding, Safaricom, following a research
trip to the country in May, where they met with management and
local experts. The team also revisited a Hong Kong investment that
has been affected by the slow recovery in China.
In the first quarter of 2023, the team spent six weeks in India
meeting portfolio companies, experts and policymakers. They
returned with a strengthened conviction in the Indian market and
new investment ideas in niche segments of the financial,
manufacturing and technology sectors that would benefit from the
country's longer-term opportunities arising from consumer and
business spending. For further information please see the
Investment Managers' Review.
Throughout the period, the Board continued to see good progress
on the engagement side, with discussions on governance factors
accounting for almost half (49%) of the 169 engagement points in
progress. I firmly believe that good governance is key to managing
risk and fostering sustainable business models. The focus on
governance has helped the team avoid main pit-falls at macro and
micro levels. It was also pleasing to see that the overall
proportion of portfolio companies reporting their CDP* score
increased from 32% to 54%. Disclosure drives action and will help
companies ensure good environmental management.
*CDP (Carbon disclosure project): A score representing a
snapshot of a company's environmental disclosure and performance.
More information on: https://www.cdp.net/
Performance and share issuances
The NAV and share price of MMIT decreased by 4.0% and 3.7%
respectively over the six-month period to 31 May 2023, with the NAV
reaching a high of 146.0p on 03 February 2023 and closing at
127.6p. Our investment managers provide a comprehensive appraisal
of the developments within MMIT's portfolio during the period under
review.
MMIT traded at an average premium to NAV of 0.36% during the
period under review, closing at a discount of 2.0%.
Due to the Company's shares trading at a premium for much of the
period, MMIT was able to issue a total of 3,650,000 shares to meet
investor demand thereby raising GBP4.6 million for investment.
Since the period-end to 1 August 2023, a further 4,056,353 shares
have been issued. The share price at close of business on 1 August
2023 was 140.50p.
The AGM
We were delighted that this year we were again able to hold our
Annual General Meeting ("AGM") in person with a number of investors
attending. Anna von Hahn and Mark Mobius presented on the
performance of the Company at the event and were able to answer
shareholders' questions.
The Board and Portfolio Manager
The Board continued to meet both formally and informally and it
has been in regular communication with the portfolio manager on the
delivery of the strategy. I am thankful to my colleagues for their
continuous support. Our main objective is to deliver results to all
investors and we will continue to review performance and strategic
direction in the midst of these difficult markets. We are pleased
to see developments with the portfolio management team and the
constant strengthening of internal controls and governance via the
adoption of state-of-the-art digital applications.
Outlook
Despite the volatility in the first six months, there are
positive signs in the market today.
Monetary policy is working and inflation is falling, and while
there is still some uncertainty about when US interest rates will
start to come down, we believe that we are close to the peak.
Investors confidence is rising, and the volatility index ("VIX") is
at a three-year low. The pandemic has spurred technological
innovation and the use of new technologies is growing
exponentially. Recently, there has been much talk of a new
super-cycle in artificial intelligence ("AI"), which has the
potential to boost economic productivity across all sectors.
Many emerging markets have proven to be more resilient than
during previous crises, thanks to prudent central bank policies. I
believe that after a decade of lacklustre performance, emerging
markets may be at an inflection point with low valuations, a
weakening dollar and highly innovative companies founded by
talented entrepreneurs. While there is still some uncertainty about
a possible recession in the US and Europe, the economic data seems
to suggest that it will be shallow rather than deep and later
rather than sooner, giving central banks some room to react.
MMIT's business cases are longer term. The recent buzz around AI
has, reaffirmed the potential of the Company's portfolio of highly
innovative companies serving growing trends such as AI, autonomous
driving, digitalisation and renewable energy. A number of companies
in the portfolio that supply key components to the likes of Nvidia,
Samsung or TSMC have already seen their share prices rise on the
back of the AI drive. The team remains focused on researching and
working with these innovative, often under-covered companies with
strong fundamentals that provide essential products and services
catering to megatrends.
I am delighted that our investors share our views and passion
for identifying, and investing in, rising stars within a large
universe of over 100,000 companies that make up the emerging
markets public investment space. We will continue to focus on what
we do best: researching and working with our investee companies to
deliver long-term investment performance.
Maria Luisa Cicognani
Chairman
2 August 2023
Investment Objective and Policy
Investment Objective
The Company's investment objective is to achieve long-term
capital growth and income returns predominantly through investment
in a diversified portfolio of companies exposed directly or
indirectly to emerging or frontier markets.
Investment Policy
Asset allocation
The Company seeks to meet its investment objective by investing
in a diversified portfolio of companies exposed directly or
indirectly to emerging or frontier markets. The Company invests
predominantly in:
-- companies incorporated in and/or traded on stock exchanges
located in emerging or frontier markets; or
-- companies which have the majority of their operations, or
earn a significant amount of their revenues in, emerging or
frontier markets but are traded on stock exchanges located in
developed countries.
The Company focuses on small to mid-cap companies. The Company
may invest in pre-IPO and unlisted companies subject to the
investment restrictions detailed below.
In pursuing its investment objective, the Company may:
-- invest in equity or equity related securities (including
preference shares, convertible unsecured loan stock, warrants and
other similar securities);
-- hedge against directional risk using index futures and/or cash;
-- hold bonds and warrants on transferable securities;
-- utilise options and futures for hedging purposes and for efficient portfolio management;
-- enter into contracts for differences;
-- hold participation notes;
-- use forward currency contracts; and
-- hold liquid assets.
Notwithstanding the above, the Company does not intend to
utilise derivatives or other financial instruments to take short
positions, nor to increase the Company's leverage in excess of the
limit set out in the borrowing policy.
The Company does not track or mirror any index or benchmark and,
accordingly, the Company is frequently overweight or underweight in
certain investments, or concentrated in a more limited number of
sectors, geographical areas or countries, when compared with a
particular index or benchmark.
The Company focuses on companies that have:
-- a resilient business model and sound management;
-- the possibility for operational and environmental, social and
governance ("ESG") improvements;
-- the potential to improve competitive advantages and cash flow generation; and
-- stakeholders that are open to, and have an interest in, positive change.
The Company, through its Investment Manager, seeks to unlock
value in investee companies by actively partnering with them
through a governance-oriented approach, seeking to act as a
catalyst for broader ESG improvements.
The Company does not expect to take controlling interests in
investee companies.
The Company seeks to provide shareholders with exposure to a
portfolio which is appropriately diversified by geography and
sector to achieve an appropriate balance of risk over the long
term. The Company's portfolio will comprise approximately 20 to 30
investments. The Company at all times invests and manages its
assets in a manner which is consistent with the objective of
spreading and mitigating investment risk.
Investment restrictions
The Company observes the following investment restrictions, each
calculated at the time of investment:
-- no more than 10 per cent. of Gross Assets are invested in a single company;
-- no more than 35 per cent. of Gross Assets are invested in
companies incorporated in or traded on an exchange in or otherwise
primarily exposed to a single emerging or frontier market; and
-- no more than 15 per cent. of Gross Assets are invested in
companies that are not traded on a stock exchange.
In compliance with the UK Listing Rules, no more than 10 per
cent., in aggregate, of Gross Assets may be invested in other
investment companies which are listed on the Official List.
Borrowing
The Company may deploy leverage of up to 20 per cent. of Net
Asset Value (calculated at the time of borrowing) to seek to
enhance long-term capital growth and income returns and for the
purpose of capital flexibility. The Company's leverage is expected
to primarily comprise bank borrowings but may include the use of
derivative instruments and such other methods as the Board may
determine.
Hedging
The Company's reporting currency and share price quotation is
Sterling. However, the Company makes investments denominated in
currencies other than Sterling. In addition, the majority of the
income from the Company's investments is generated in currencies
other than Sterling.
The Company does not intend to hedge currency risk in respect of
the capital value of its portfolio or in respect of its Sterling
distributions. However, the Company reviews its hedging strategy on
a regular basis. The Company does not engage in currency trading
for speculative purposes.
Cash management
Whilst it is the intention of the Company to be fully or near
fully invested in normal market conditions, the Company may hold
cash on deposit and may invest in cash equivalent investments,
which may include short-term investments in money market type funds
and tradeable debt securities ("Cash and Cash Equivalents").
There is no restriction on the amount of Cash and Cash
Equivalents that the Company may hold and there may be times when
it is appropriate for the Company to have a significant cash or
cash equivalent position instead of being fully or near fully
invested.
Investment Policy Commentary
Borrowing
There was no borrowing during the period under review or after
the period end, nor have any derivatives been used.
Hedging
The Investment Manager does not use currency hedging products
but manages currency risk through "natural hedging" by maintaining
a geographically diversified portfolio. The Investment Manager
closely monitors all portfolio companies on a daily basis and is in
a regular dialogue with portfolio companies on a range of issues,
including currency hedging. Analysing currency risk is an integral
part of the Investment Manager's macroeconomic framework and is
fully integrated throughout the investment process.
Breaches
In the event of a breach of the investment policy set out above
and the investment and leverage restrictions set out therein, the
Investment Manager shall inform the Board upon becoming aware of
the same and if the Board considers the breach to be material,
notification will be made to a Regulatory Information Service.
During the period under review, no breaches of the investment
policy occurred.
Changes to the investment policy
No material change will be made to the investment policy without
the approval of shareholders by ordinary resolution.
Investment Portfolio
as at 31 May 2023
Fair Value % of
Company Country GBP'000 Net Assets
----------------------------- ------------- ---------- ----------
Persistent Systems India 10,342 7.3
EPAM Systems USA 9,156 6.5
LEENO Industrial South Korea 8,680 6.1
Classys South Korea 8,206 5.8
TOTVS Brazil 8,105 5.7
Sinbon Electronics Taiwan 7,685 5.4
EC Healthcare China 6,772 4.8
Elite Material Taiwan 6,595 4.7
APL Apollo Tubes India 6,429 4.5
Zilltek Technologies Taiwan 5,880 4.1
----------------------------- ------------- ---------- ----------
Top 10 investments 77,850 54.9
-------------------------------------------- ---------- ----------
Parade Technologies Taiwan 5,314 3.8
Vietnam Dairy Products Vietnam 4,896 3.5
E Ink Holdings Taiwan 4,696 3.3
Safaricom Kenya 4,577 3.2
CE Info Systems India 4,182 2.9
Park Systems South Korea 4,152 2.9
eMemory Technology Taiwan 4,105 2.9
Kangji Medical Holdings China 3,765 2.6
Logo Türkiye 3,271 2.3
Mavi Giyim Sanayi Ve Ticaret Türkiye 3,139 2.2
----------------------------- ------------- ---------- ----------
Top 20 investments 119,947 84.5
-------------------------------------------- ---------- ----------
Dreamfolks Service India 2,722 1.9
WIN Semiconductors Taiwan 2,689 1.9
Clicks Group South Africa 2,595 1.8
Metropolis Healthcare India 2,484 1.8
Hitit Bilgisayar Türkiye 2,419 1.7
Bluebik Group Thailand 381 0.3
----------------------------- ------------- ---------- ----------
Total Investments 133,237 93.9
-------------------------------------------- ---------- ----------
Net Other Assets 8,677 6.1
-------------------------------------------- ---------- ----------
Shareholders' Funds 141,914 100.0
-------------------------------------------- ---------- ----------
Portfolio Breakdown
Sector Breakdown
31 May 2023
Technology 61.8%
Health Care 15.0%
------
Industrials 6.4%
------
Consumer Staples 5.3%
------
Communications 3.2%
------
Consumer Discretionary 2.2%
------
Cash 6.1%
------
Geographical Breakdown
31 May 2023
Taiwan 26.1%
India 18.4%
------
South Korea 14.8%
------
China 7.4%
------
United States 6.5%
------
Turkiye 6.2%
------
Brazil 5.7%
------
Vietnam 3.5%
------
Kenya 3.2%
------
South Africa 1.8%
------
Thailand 0.3%
------
UK* 6.1%
------
* includes univested cash
Investment Managers' Review
The first half of 2023 was another eventful period for emerging
market equities. After an optimistic start to the new year as China
lifted its Covid restrictions and shifted its policy focus to
reviving growth, renewed tensions between the US and China and the
failure of three US banks and the second-largest Swiss bank
undermined investor confidence.
Uncertainty over US monetary policy, a slower than expected
recovery in China and a slowdown in semiconductor demand in the
first half of the second quarter added to the volatility.
Short-termism continued to influence investors as they seemed to
focus more on news flow and the next quarter than on fundamentals
and the longer term. This was illustrated by the swing in sentiment
regarding the outlook for the semiconductor industry which went
from optimism to doom to euphoria in a matter of months. By May,
the hype around ChatGPT and the potential of artificial
intelligence brought semiconductor stocks back into favour and
technology growth stocks back on the investor map after a beating
in 2022.
Emerging markets underperformed developed markets over the
period and MMIT delivered a negative net asset value return of 4.0%
as selected holdings were affected by political and macroeconomic
developments. Over the past six months we have travelled
extensively, meeting with companies, stakeholders and local experts
in Kenya, Hong Kong, Taiwan, India and Thailand. We returned with a
strengthened conviction in the long-term business cases of our
portfolio holdings and some exciting new investment ideas (see
Portfolio section below).
Our six week-long visit to India in Q1 2023 confirmed our
bullish outlook on the region, and the exciting companies diligent
stock pickers can find in the country. In its latest World Economic
Outlook, the IMF forecast India to grow by 5.9% in 2023 and 6.3% in
2024, more than any other major economy. India has been an
important allocation for MMIT since its inception. MMIT's Indian
holdings have contributed 40% to (gross) performance as of the end
of June 2023. This was almost entirely driven by stock
selection.
The most satisfying finding from our trip was that our holdings
are doing even better than we had expected. APL Apollo Tubes, one
of our key holdings for over three years, had just reported its
highest ever quarterly volume of 600k tons of steel tubes. At a
visit to one of their plants, we witnessed the highly efficient
manufacturing process with >90% of energy needs met through
renewable sources. A key holding - and one of the top performers
for us since inception - is Persistent Systems, a global digital
engineering company that differentiates itself from other IT
companies in India by catering to a niche customer segment. Despite
the macro headwinds, Persistent continues to be among the fastest
growing companies and has kept up its trajectory of new deal
wins.
In the run-up to the Turkish election in May, we trimmed our
positions to limit downside risk, kept in close contact with our
holdings in person and via video conference to understand the
impact of the election on their respective businesses, and reviewed
and reaffirmed each business case and investment thesis. Our
Turkish holdings have reported strong results for 2022 and their
outlook remains positive, despite the volatility surrounding the
election. They benefit from revenues in hard currencies and costs
in a depreciating Turkish Lira. This makes them very competitive
both internationally and domestically.
In volatile times, when sub-asset classes can fall in and out of
favour in a matter of weeks, it is important to cut through the
noise and focus on fundamentals and the long-term potential of our
quality portfolio. The strongest factor in our decision-making
process is the information we get from the companies themselves,
and what we have heard in our regular interactions with the
management teams has strengthened our conviction and given us a
positive outlook for FY24 and FY25.
Performance
The NAV and share price of MMIT decreased by 4.0% and 3.7%
respectively over the six-month period to 31 May 2023, with the NAV
reaching a high of 146.0p on 3 February 2023 and closing at 127.6p.
MMIT traded at an average premium to NAV of 0.36% during the period
under review, closing at a discount of 2.0%.
Over the reporting period, the top contributor to performance
was South Korean medical device manufacturer Classys (+1.8%). The
company published strong Q1 results, beating EPS estimates by 18%
and continuing to invest heavily in R&D. Taiwanese technology
companies SINBON Electronics and eMemory Technology contributed
+1.3% and +1.1% each. The main detractors were technology companies
EPAM Systems (-2.3%) and LEENO Industrial (-1.8%), followed by
Kenyan communications business Safaricom (-1.7%).
MMIT continues to lead the peer group since inception with a
return of 37.2% (as of 30 June 2023). Driven by investor interest
the Company has been trading at a premium for much of the reporting
period and has repeatedly issued shares to meet investor
demand.
An analysis done by InterSec Research showed that over three
years the MCP strategy generated significant outsized returns at
median downside risk if compared with the MSCI Emerging Markets
Index and the global universe of EM equity managers.
Excess Return Downside Risk
------------- ------------- -------------
MCP Strategy 14.10 13.61
MSCI EM 0.00 12.50
Median 1.29 12.84
Population 95 95
------------- ------------- -------------
Source: InterSec Research, as of 31 March 2023. MCP strategy
performance analysis based on USD returns, compared to the MSCI
Emerging Markets Index and global universe of EM equity managers.
Dark blue dot = MCP Strategy, red dot = Index. Downside risk =
semideviation (downside leg only of standard deviation measuring
periods when portfolio returns were below the mean return.
Portfolio Overview
As of 31 May 2023, MMIT had invested 93.9% of its capital, with
26 holdings across 11 countries. The largest geographic exposure
was Taiwan (26.1%), followed by India (18.4%) and South Korea
(14.8%). The team continues to find the most high-conviction ideas
in Asia, with the region accounting for over 60% in the portfolio.
The largest sector exposure was technology (61.8%), followed by
health care (15.0%) and industrials/materials (6.4%). MMIT's
technology exposure is well diversified across globally operating
software companies (26.7%), asset-light businesses in the
semiconductor space (23.4%), and producers of niche, IP-protected
hardware (11.7%).
During the reporting period, MCP exited one holding over
liquidity concerns, and added five new companies to the
portfolio.
-- Turkish software company Hitit Bilgisayar Hizmetleri AS
provides IT solutions to the airline industry in Turkey and
internationally. Hitit offers customers IATA compliant state of the
art solutions at significantly lower cost than its competitors. 80%
of the company's revenues are generated in USD and EUR, providing
Hitit with a natural hedge against currency risks.
-- South Korean hardware company Park Systems is a developer and
manufacturer of atomic force microscopes and a pioneer in AFM
Nanometrology. Its flagship "NX Wafer" product provides surface
analysis solutions to microchip manufacturers. MCP believes growth
will be driven by 1) smaller chips, 2) wider usage in the BioTech
space and 3) usage in the EUV (extreme ultraviolet) mask repair
industry.
-- Following in-person company meetings in India, MCP added
MapMyIndia to the portfolio. The firm offers digital maps under
software as a service (SaaS) and platform as a service (PaaS) model
to 2,000+ large and small customers, including Apple, Hyundai and
Amazon. The $97bn geospatial technology and mapping industry is
growing at >15% annually, with the local Indian market being
relatively small and growing faster at >18%.
-- MCP invested in Dreamfolks, India's largest airport services
aggregator integrating global card networks, credit and debit card
issuers and airport lounge operators. The firm benefits from a 95%
market share, protected by a deep moat and first-mover advantage.
Dreamfolks' asset-light business model has delivered strong growth,
consistent margins and return metrics with a healthy balance sheet
(zero debt).
-- As a result of an in-depth Southeast Asia screen, MCP
initiated a position in Bluebik, a management consulting company
based in Thailand. The firm focuses on consulting services in the
digital information and strategy space. A major growth driver will
be digital transformation in the local financial services industry
(growing at 20% CAGR).
Engagement
During the reporting period, the team at MCP was able to travel
extensively and engage in-person with companies in India, Kenya,
and Taiwan. Emphasising good governance and remaining in close
contact with portfolio holdings has been a key element of MCP's
conservative risk management process since the strategy's
inception.
Over the past six months, several of the portfolio's holdings
have made significant progress on governance: Software companies
Logo and EPAM each appointed additional female independent
directors to their respective boards. In addition, nearly 90% of
investee companies were audited by Big 4 auditors as of Q1, 2023,
which has increased the transparency and credibility of accounting
standards. We were also pleased to see that more companies are now
reporting their CDP score. For us, this is an important starting
point for improving a company's environmental footprint.
A good example of a company that continuously has been able to
improve its ESG+C(R) footprint is Persistent Systems. Already
benefiting from excellent governance, Persistent Systems has
devoted significant resources to ensuring environmental, social and
cultural excellence. Almost a third of its employees are female and
seven of its ten board members are independent, including two
women. 46% of its electricity comes from renewable sources and the
company's solar roofs and wind turbines saved over 1,300 tonnes of
CO2 emissions last year. Fostering a good corporate culture is high
on the management agenda, with over 400 events on fitness, health
and work-life balance held last year. Employees are offered annual
health checks, access to mental health counselling and a range of
learning opportunities (Persistent University). In addition,
employees regularly volunteer for projects such as tree planting,
soil and water conservation, community development and educational
initiatives through the Persistent Foundation. Following our
discussions with senior management at the company's offices, we
look forward to sharing further details of upcoming initiatives and
engagement successes in the near future.
Outlook
There's a lot we don't know, or to say it with ChatGPT, "we
don't have the ability to predict specific future events". There
could be further interest rate hikes. There could be a shallow
recession in the US and Europe. There could be a deep recession.
There could be no recession. There could be more geopolitical
tension. There could be further fallout in the banking sector.
There could be another pandemic. We don't know.
But let's focus on what we think we know. We know that interest
rates are nearing their peak. We know that inflation is falling. We
know that investor confidence is rising and volatility is falling.
We know that emerging markets, and Asia in particular, will grow
faster than developed markets. We know that emerging markets are
under-owned and undervalued. We know that China will recover,
albeit more slowly than expected. We know that the semiconductor
cycle will turn sooner or later. We know that megatrends such as
digitalisation, cybersecurity and artificial intelligence will
continue to grow exponentially. And we believe that as they
accelerate, so will the markets for MCP's portfolio companies.
The market for artificial intelligence (AI), for example, is
expected to grow strongly over the next decade. Its value of nearly
$100 billion is expected to increase twentyfold to nearly $2
trillion by 2030 (5) . AI-based products and services will
transform industries ranging from health care and finance to
transportation and logistics. AI runs on computer processing power
and data, so specialised semiconductor manufacturers (and those
that provide essential products and services to them) are likely to
be beneficiaries, as are companies with access to large amounts of
computing power, cloud storage and data.
Elite Material (EMC) is a good example of a company that is
already benefiting from the recent hype around artificial
intelligence. The company's products, such as copper clad laminates
(CCLs), are essential components of printed circuit boards (PCBs),
which are used to connect the various components of a chip. As
AI-related applications require high-end PCBs, demand for Elite
Material's products will grow in line with the increasing use of
AI. JP Morgan expects EMC to be one of the top two suppliers of AI
server CCLs. The Taiwanese specialty materials producer delivered a
total return of over 70% YTD (as of 17 July 2023).
Similar scenarios could be drawn for other key trends that
MMIT's portfolio companies are addressing, such as autonomous
driving, digitalisation, renewable energy or cybersecurity.
Cybercrime, for example, is predicted to cost a staggering $13
trillion by 2028. With risk comes opportunity. The global cyber
security market was valued at nearly 222 billion U.S. dollars in
2022. By 2030, the market is forecast to exceed 650 billion U.S.
dollars (5) . MMIT's portfolio company, eMemory, provides
encryption technology for microchips. eMemory's NeoPUF is a
hardware security technology based on physical, unclonable
variations that occur in silicon manufacturing processes. Since our
investment, the company has delivered a share price return of over
800%.
In summary, we expect the road to recovery to be a little bumpy,
but we believe that the stars are beginning to align and that our
businesses are well positioned to benefit when the recovery takes
hold.
Carlos Hardenberg
Mark Mobius
Mobius Capital Partners LLP
Investment Managers
2 August 2023
Income Statement
for the six months ended 31 May 2023
(Unaudited) (Unaudited)
Six months to Six months to
31 May 2023 31 May 2022
Revenue Capital Revenue Capital
return return Total return return Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------- ---- -------- -------- -------- -------- -------- --------
Losses on investments held
at fair value - (5,627) (5,627) - (19,256) (19,256)
Exchange losses on currency
balances - (66) (66) - (168) (168)
Investment income 2 1,413 - 1,413 1,150 - 1,150
Investment Management and
Management Services fees 3 (264) (614) (878) (283) (659) (942)
Other expenses (253) - (253) (258) - (258)
-------------------------------- ---- -------- -------- -------- -------- -------- --------
Net return/(loss) on ordinary
activities before taxation 896 (6,307) (5,411) 609 (20,083) (19,474)
-------------------------------- ---- -------- -------- -------- -------- -------- --------
Taxation on ordinary activities (150) (160) (310) (83) 94 11
-------------------------------- ---- -------- -------- -------- -------- -------- --------
Return/(loss) on ordinary
activities after taxation 4 746 (6,467) (5,721) 526 (19,989) (19,463)
-------------------------------- ---- -------- -------- -------- -------- -------- --------
Return/(loss) per share basic
and diluted 4 0.69p (5.97)p (5.28)p 0.48p (18.38)p (17.90)p
-------------------------------- ---- -------- -------- -------- -------- -------- --------
The Total column of this statement represents the Company's
Income Statement.
The revenue and capital return columns are supplementary to this
and are prepared under guidance published by the Association of
Investment Companies ("AIC").
All items in the above statement derive from continuing
operations. There are no recognised gains or losses other than
those declared in the Income Statement.
Statement of Changes in Equity
for the six months ended 31 May 2023
Share Capital
Share premium Special redemption Capital Revenue
capital account reserve reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------- -------- -------- -------- ----------- -------- -------- --------
Six months to 31 May 2023
(Unaudited)
At 1 December 2022 1,088 10,833 95,093 14 35,390 1,876 144,294
Issue of Ordinary Shares 37 4,600 - - - - 4,637
Ordinary dividends paid - - - - - (1,296) (1,296)
(Loss)/return for the period - - - - (6,467) 746 (5,721)
----------------------------- -------- -------- -------- ----------- -------- -------- --------
At 31 May 2023 1,125 15,433 95,093 14 28,923 1,326 141,914
----------------------------- -------- -------- -------- ----------- -------- -------- --------
Six months to 31 May 2022
(Unaudited)
At 1 December 2021 1,098 10,184 96,932 - 57,579 709 166,502
Issue of Ordinary Shares 5 649 - - - - 654
Ordinary dividends paid - - - - - (381) (381)
(Loss)/return for the period - - - - (19,989) 526 (19,463)
----------------------------- -------- -------- -------- ----------- -------- -------- --------
At 31 May 2022 1,103 10,833 96,932 - 37,590 854 147,312
----------------------------- -------- -------- -------- ----------- -------- -------- --------
Statement of Financial Position
as at 31 May 2023
(Unaudited) (Audited)
30 November
31 May 2023 2022
Note GBP'000 GBP'000
---------------------------------------------- ---- ------------- -------------
Fixed assets
Investments held at fair value through profit
or loss 133,237 126,834
---------------------------------------------- ---- ------------- -------------
Current assets
Debtors 288 1,196
Cash and cash equivalents 10,488 20,104
---------------------------------------------- ---- ------------- -------------
10,776 21,300
---------------------------------------------- ---- ------------- -------------
Current liabilities
Creditors: amounts falling due within one
year (709) (2,452)
---------------------------------------------- ---- ------------- -------------
Net current assets 10,067 18,848
---------------------------------------------- ---- ------------- -------------
Total assets less current liabilities 143,304 145,682
---------------------------------------------- ---- ------------- -------------
Non-current liabilities
---------------------------------------------- ---- ------------- -------------
Deferred tax liability (1,390) (1,388)
---------------------------------------------- ---- ------------- -------------
Net assets 141,914 144,294
---------------------------------------------- ---- ------------- -------------
Capital and reserves
Share capital 5 1,125 1,088
Share premium account 15,433 10,833
Special reserve 95,093 95,093
Capital redemption reserve 14 14
Retained earnings:
Capital reserves 28,923 35,390
Revenue reserve 1,326 1,876
---------------------------------------------- ---- ------------- -------------
Total Shareholders' funds 6 141,914 144,294
---------------------------------------------- ---- ------------- -------------
Net asset value per share (p) 6 127.62 134.17
---------------------------------------------- ---- ------------- -------------
Notes to the Financial Statements
for the six months ended 31 May 2023
1 Accounting Policies
The Company is a public limited company (PLC) incorporated in
England and Wales, with its registered office at 25 Southampton
Building, London WC2A 1AL, United Kingdom.
The principal accounting policies, all of which have been
applied consistently throughout the year in the preparation of
these Financial Statements, are set out below:
(a) Basis of preparation
The condensed financial statements for the six months to 31 May
2023 comprise the statements set out above including the related
notes below.
They have been prepared in accordance with FRS 104 "Interim
Financial Reporting" and the principals of the AIC's Statements of
Recommended Practice (SORP) issued in July 2022.
The Financial Statements have also been prepared on a going
concern basis under the historical cost convention, as modified by
the revaluation of investments held at fair value through profit or
loss. The Directors believe this is appropriate as the Company
maintains sufficient cash balances to meet its expected liabilities
over the next twelve months.
The Company's financial statements are presented in sterling,
being the functional and presentational currency of the Company.
All values are rounded to the nearest thousand pounds (GBP'000)
except where otherwise indicated.
Presentation of the Income Statement
In order to reflect better the activities of an investment trust
company and in accordance with the SORP, supplementary information
which analyses the Income Statement between items of a revenue and
capital nature has been presented alongside the Income
Statement.
(b) Investments held at fair value through profit or loss
As the Company's business is investing in financial assets with
a view to profiting from their total return in the form of
dividends, interest or increases in fair value, investments are
designated by the Company, as held for fair value through profit or
loss.
The Company manages and evaluates the performance of these
investments on a fair value basis in accordance with its investment
strategy, and information about the investments is provided
internally on this basis to the Board.
Fair value for quoted investments is deemed to be bid market
prices, or last traded price, depending on the convention of the
stock exchange on which they are quoted.
Changes in the fair value of investments held at fair value
through profit or loss, and gains and losses on disposal are
recognised in the Income Statement as a capital item.
All purchases and sales of investments are accounted for on the
trade date basis.
Transaction costs of acquisitions and disposals are expensed
through the capital column of the Income Statement.
(c) Investment income
Dividends receivable from equity shares are included in revenue
on ex-dividend basis except where, in the opinion of the Board, the
dividend is capital in nature, in which case it is included in
capital.
Overseas dividends are included gross of withholding tax.
Special dividends are looked at individually to ascertain the
reason behind the payment. In deciding whether a dividend should be
regarded as a capital or revenue receipt, the Company reviews all
relevant information as to the reasons for and sources of the
dividend on a case by case basis.
Deposit interest receivable is taken to revenue on an accruals
basis.
(d) Expenses and finance costs
All the expense and finance costs are accounted for on an
accruals basis. Expenses are charged through the revenue column of
the Income Statement except as follows:
-- Expenses which are incidental to the acquisition or disposal
of an investment are treated as part of the cost or proceeds of
that investment;
-- Expenses are taken to the capital reserve via the capital
column of the Income Statement, where a connection with the
maintenance or enhancement of the value of investments can be
demonstrated. In line with the Board's expected long-term split of
returns, in the form of capital gains and income from the Company's
portfolio, 70% of the Investment Management fees, Administration
and Management Services fees and finance costs are taken to the
capital reserve.
(e) Taxation
In line with the recommendations of the SORP, the tax effect of
different items of expenditure is allocated between capital and
revenue using the marginal basis. Deferred taxation is provided on
all timing differences that have originated but not been reversed
by the Statement of Financial Position date other than those
regarded as permanent. This is subject to deferred tax assets only
being recognised if it is considered more likely than not that
there will be suitable profits from which the reversal of timing
differences can be deducted. Any liability to deferred tax is
provided for at the rate of tax enacted or substantially
enacted.
Dividend income received by the Company may be subject to
withholding tax imposed in the country of origin. The tax charges
shown in the Income Statement relates to overseas withholding tax
on dividend income and Indian capital gains tax.
(f) Foreign currency
The currency of the primary economic environment in which the
Company operates (the functional currency) is sterling, which is
also the presentational currency of the Company. Transactions
recorded in overseas currencies during the year are translated into
sterling at the appropriate daily exchange rates. Assets and
liabilities denominated in overseas currencies at the Statement of
Financial Position date are translated into sterling at the
exchange rate ruling at that date.
Exchange differences are included in the Income Statement and
allocated as capital if they are of a capital nature, or as revenue
if they are of a revenue nature.
(g) Functional and presentational currency
The financial information is shown in sterling, being the
Company's presentational currency. In arriving at the functional
currency, the Directors have considered the following:
(i) the primary economic environment of the Company;
(ii) the currency in which the original capital was raised;
(iii) the currency in which distributions are made;
(iv) the currency in which performance is evaluated; and
(v) the currency in which the capital would be returned to shareholders on a break-up basis.
The Directors have also considered the currency to which
underlying investments are exposed and liquidity is managed. The
Directors are of the opinion that sterling best represents the
functional currency.
(h) Cash and cash equivalents
Cash and cash equivalents are defined as cash and demand
deposits readily convertible to known amounts of cash and subject
to insignificant risk of changes in value.
(i) Nature and Purpose of Reserves
Ordinary share capital
Represents the nominal value of the issued share capital.
Share premium account
The share premium arose on the issue of new shares.
Special reserve
This reserve was created upon the cancellation of the Share
Premium Account. This reserve is distributable by way of a
dividend.
Capital redemption reserve
A transfer will be made to this reserve on cancellation of the
Company's own shares purchased, equal to the nominal value of the
shares.
Capital reserve
This reserve reflects any:
-- gains or losses on the disposal of investments;
-- exchange differences of a capital nature;
-- the increases and decreases in the fair value of investments
which have been recognised in the capital column of the Income
Statement;
-- expenses which are capital in nature as disclosed above; and
-- this reserve can also be used to distribute realised capital
profits by way of a dividend.
Any gains in the fair value of investments that are not readily
convertible to cash are treated as unrealised gains in the capital
reserve.
Revenue reserve
This reserve reflects all income and expenditure which are
recognised in the revenue column of the Income Statement and is
distributable by way of dividend.
(j) Equity dividends payable
Dividends paid by the company are recognised in the Financial
Statements and are shown in the Statement of Changes in Equity in
the period in which they become legally binding, which in the case
of a final dividend is when it is approved by shareholders at the
AGM, in line with the ICAEW Tech Release 02/17BL. The Company does
not pay interim dividends.
2 Income
(Unaudited) (Unaudited)
Six months Six months
to to
31 May 31 May
2023 2022
GBP'000 GBP'000
----------------------------- ----------- -----------
Income
Overseas Dividends 1,298 1,150
Other income - bank interest 115 -
----------------------------- ----------- -----------
1,413 1,150
----------------------------- ----------- -----------
3 Investment Management and Management Services Fees
(Unaudited) (Unaudited)
Six months to 31 May Six months to 31 May
Revenue Capital 2023 Revenue Capital 2022
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------ ------- ------- ------- ------- ------- -------
Investment Management fee
- Mobius Capital Partners LLP 215 501 716 231 538 769
Management Services fee
- Frostrow Capital LLP 49 113 162 52 121 173
------------------------------ ------- ------- ------- ------- ------- -------
264 614 878 283 659 942
------------------------------ ------- ------- ------- ------- ------- -------
4 Return/(loss) per share - basic and diluted
The return/(loss) per share figures are based on the following
figures:
(Unaudited) (Unaudited)
Six months Six months
to to
31 May 31 May
2023 2022
GBP'000 GBP'000
---------------------------------------------------- ----------- -----------
Net revenue return 746 526
Net capital loss (6,467) (19,989)
---------------------------------------------------- ----------- -----------
Net total loss (5,721) (19,463)
---------------------------------------------------- ----------- -----------
Weighted average number of Ordinary Shares in issue
during the period 108,307,225 108,742,044
---------------------------------------------------- ----------- -----------
Pence Pence
---------------------------------------------------- ----------- -----------
Revenue earnings per share 0.69 0.48
---------------------------------------------------- ----------- -----------
Capital loss per share (5.97) (18.38)
---------------------------------------------------- ----------- -----------
Total loss per share (5.28) (17.90)
---------------------------------------------------- ----------- -----------
During the period there were no dilutive instruments held (2022:
nil), therefore the basic and diluted return/(loss) per share are
the same.
5 Share capital
(Unaudited) (Audited)
30 November
31 May 2023 2022
Number of Number of
shares shares
----------------------------------------------------- ----------- -----------
Opening Issued and fully paid Ordinary shares 107,548,983 108,510,000
Shares issued during the period/year 3,650,000 450,000
Shares redeemed and cancelled during the period/year - (1,411,017)
----------------------------------------------------- ----------- -----------
At period/year end 111,198,983 107,548,983
----------------------------------------------------- ----------- -----------
Non-redeemable preference shares 50,000 50,000
----------------------------------------------------- ----------- -----------
2023 2022
GBP'000 GBP'000
------------------------------------------- ------- -------
Issued and fully paid Ordinary shares
Shares of 1p 1,112 1,075
Non-redeemable preference shares GBP1 each 13 13
------------------------------------------- ------- -------
1,125 1,088
------------------------------------------- ------- -------
The Share capital includes 50,000 non-redeemable preference
shares with a nominal value of GBP1 each; of which one quarter is
paid up. These shares are held by the Investment Manager.
There were 3,650,000 shares issued by the Company during the six
months to 31 May 2023 (year to 30 November 2022: 450,000 issued and
1,411,017 redeemed and cancelled). Since the period end to 1 August
2023, a further 4,056,353 new ordinary shares were issued.
6 Net asset value per share
The net asset value per share is based on the net assets
attributable to the equity shareholders of GBP141,914,000 (30
November 2022: GBP144,294,000) and 111,198,983 (30 November 2022:
107,548,983) shares being the number of Ordinary Shares in issue at
the period end.
7 Financial instruments
(i) Management of Risk
As an investment trust, the Company's investment objective is to
seek capital growth and income returns from a portfolio of
securities. The holding of these financial instruments to meet this
objective results in certain risks.
The Company's financial instruments comprise securities in
equities, trade receivables, trade payables, and cash and cash
equivalents.
The main risks arising from the Company's financial instruments
are fluctuations in market price, and liquidity and credit risk.
The policies for managing each of these risks are summarised below.
These policies have remained constant throughout the period under
review.
Market Price
Market price risk arises mainly from uncertainty about future
prices of financial instruments in the portfolio. It represents the
potential loss the Company might suffer through holding market
positions in the face of price movements, mitigated by stock
diversification.
Liquidity
This is the risk that the Company will encounter difficulty in
setting obligations associated with financial liabilities. All
payables are due within three months.
Credit
The Company's exposure to credit risk principally arises from
cash and cash equivalents. Only highly rated banks are used and the
level of cash is reviewed on a regular basis.
The Company manages the levels of cash and cash equivalents held
whilst maintaining sufficient liquidity for investments and to meet
operating liabilities as they fall due.
See the Interim Management Report for details of the principal
risks faced by the Company.
(ii) Fair Value Hierarchy
Fair value is the amount for which an asset could be exchanged
between knowledgeable willing parties in an arm's length
transaction.
The Company measures fair value using the following fair value
hierarchy that reflects the significance of the inputs used in
making the measurements.
The levels of fair value measurement bases are defined as
follows:
Level 1: fair values measured using quoted prices (unadjusted)
in active markets for identical assets or liabilities.
Level 2: fair values measured using valuation techniques for all
inputs significant to the measurement other than quoted prices
included within Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e.
derived from prices).
Level 3: fair values measured using valuation techniques for
which any significant input to the valuation is not based on
observable market data (unobservable inputs).
The determination of what constitutes 'observable' requires
significant judgement by the Directors. The Company considers
observable data to be market data that is readily available,
regularly distributed or updated, reliable and verifiable, not
proprietary and provided by independent sources that are actively
involved in the relevant market.
All investments were classified as Level 1 investments as at,
and throughout the period to, 31 May 2023.
8 2022 accounts
These are not statutory accounts in terms of section 434 of the
Companies Act 2006 and are unaudited. Statutory accounts for the
year to 30 November 2022, which received an unqualified audit
report, have been lodged with the Registrar of Companies.
Earnings for the first six months should not be taken as a guide
to the results for the full year.
Interim Management Report
as at 31 May 2023
The Directors are required to provide an Interim Management
Report in accordance with the UK Listing Authority's Disclosure and
Transparency Rules. They consider that the Chairman's Statement and
the Investment Managers' Review, the following statements and the
Directors' Responsibility Statement below together constitute the
Interim Management Report for the Company for the six months ended
31 May 2023.
Going Concern
The Directors believe, having considered the Company's
investment objective, risk management policies, capital management
policies and procedures, as well as the nature of the portfolio and
the expenditure projections, that the Company has adequate
resources, an appropriate financial structure and suitable
management arrangements in place to continue in operational
existence for the foreseeable future. In addition, there are no
material uncertainties relating to the Company that would prevent
its ability to continue in such operational existence for at least
twelve months from the date of the approval of this half-yearly
report. For these reasons, the Directors consider it is appropriate
to continue to adopt the going concern basis in preparing the
Financial Statements.
Principal Risks and Uncertainties
A review of the half year and the outlook for the Company can be
found in the Chairman's Statement and in the Investment Managers'
Review. The principal risks faced by the Company fall into the
following broad categories:
-- Investment Risks (including Market, Foreign Exchange and
Fiscal Risk in Emerging and Frontier Markets, Portfolio Risk and
Counterparty Risk);
-- Strategic Risks (including Strategy Implementation Risk,
Investment Management Key Person Risk and Shareholder Relations
Risk); and
-- Operational Risks (including Service Providers Risk,
Geopolitical Risk, UK Regulatory Risk, UK Legal Risk, Governance
Risk and ESG and Climate Change Risk).
Information on each of these areas is given in the Strategic
Report/Business Review within the Annual Report and Accounts for
the year ended 30 November 2022. The principal risks and
uncertainties have not changed since the date of that report,
although the war in Ukraine has moved Geopolitical Risk more into
focus.
In addition, the Board identified as an emerging risk the
deteriorating economic environment in many countries, including the
cost of living crisis, rising interest rates, increased energy
costs and food supply difficulties from a country macro level down
to every household and business.
Related Party Transactions
During the first six months of the current financial year, no
transactions with related parties have taken place which have
materially affected the financial position or the performance of
the Company.
Alternative Performance Measures
The Financial Statements set out the required statutory
reporting measures of the Company's financial performance.
In addition, the Board assesses the Company's performance
against a range of criteria that are viewed as particularly
relevant for investment trusts. Further details of these are
included in the Annual Report and Accounts for the year ended 30
November 2022.
Directors' Responsibilities
The Board confirms that, to the best of the Directors'
knowledge:
(i) the condensed set of financial statements contained within
the half-yearly report have been prepared in accordance with
applicable United Kingdom Generally Accepted Accounting Practice
standards; and
(ii) the interim management report includes a true and fair
review of the information required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency
Rules, 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 financial year ending 30 November 2023;
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency
Rules, 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 most recent annual report.
The half-yearly report has not been audited by the Company's
auditors.
This half-yearly report contains certain forward-looking
statements. These statements are made by the Directors in good
faith based on the information available to them up to the date of
this report and such statements should be treated with caution due
to the inherent uncertainties, including both economic and business
risk factors, underlying any such forward looking information.
For and on behalf of the Board of Directors
Maria Luisa Cicognani
Chairman
2 August 2023
Directors and Other Information
Directors
Maria Luisa Cicognani (Chairman)
Christopher M. Casey
(Audit Committee Chairman and Senior Independent Director)
Gyula Schuch
(Chairman of the Management Engagement and Remuneration
Committee)
Registered Office
Mobius Investment Trust plc
25 Southampton Buildings
London WC2A 1AL
United Kingdom
Incorporated in England and Wales with company number 11504912
and registered as an investment company under Section 833 of the
Companies Act 2006.
Investment Manager and AIFM
Mobius Capital Partners LLP
17 Cavendish Square
London W1G 0PH
United Kingdom
Company Secretary, Administrator and Management Services
Frostrow Capital LLP
25 Southampton Buildings
London WC2A 1AL
United Kingdom
Tel.: 0203 008 4910
Email: info@frostrow.com
Corporate Broker
Peel Hunt LLP
7th Floor
100 Liverpool Street
London EC2M 2AT
United Kingdom
Custodian
The Northern Trust Company
50 Bank Street
Canary Wharf
London E14 5NT
United Kingdom
Depositary
Northern Trust Investor Services Limited
50 Bank Street
Canary Wharf
London E14 5NT
United Kingdom
Legal Adviser to the Company
Stephenson Harwood LLP
1 Finsbury Circus
London EC2M 7SH
United Kingdom
Independent Auditors
PricewaterhouseCoopers LLP
7 More London Riverside
London SE1 2RT
United Kingdom
Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
United Kingdom
Tel.: 0370 703 6304 (#)
(#) Calls cost no more than calls to geographic numbers (01 or
02) and must be included in inclusive minutes and discount schemes
in the same way. Calls from landlines are typically charged up to
9p per minute; calls from mobile phones typically cost between 3p
and 55p per minute. Calls from landlines and mobiles are included
in free call packages.
Identification Codes
SEDOL: BFZ7R98
ISIN: GB00BFZ7R980
Ticker: MMIT
Legal Entity Identifier (LEI):
21380033EKFQS15X1W22
Global Intermediary Identification
Number ("GIIN"): J9AYNU.99999.SL.826
Glossary and Alternative Performance Measures ("APM"s)
Alternative Investment Fund Managers Directive ("AIFMD")
Agreed by the European Parliament and the Council of the
European Union and transposed into UK legislation, the AIFMD
classifies certain investment vehicles, including investment
companies, as Alternative Investment Funds ("AIFs") and requires
them to appoint an Alternative Investment Fund Manager ("AIFM") and
depositary to manage and oversee the operations of the investment
vehicle. The Board of the Company retains responsibility for
strategy, operations and compliance and the Directors retain a
fiduciary duty to shareholders.
Discount or Premium (APM)
A description of the difference between the share price and the
net asset value per share. The size of the discount or premium is
calculated by subtracting the share price from the net asset value
per share and is usually expressed as a percentage (%) of the net
asset value per share. If the share price is higher than the net
asset value per share the result is a premium. If the share price
is lower than the net asset value per share, the shares are trading
at a discount.
30 November
31 May 2023 2022
--------------------------------------------- ----------- -----------
Share price (p) 125.0 131.0
---------------------------------------------- ----------- -----------
Net Asset Value per share (p) 127.6 134.2
---------------------------------------------- ----------- -----------
(Discount) of share price to net asset value (2.0)% (2.4)%
---------------------------------------------- ----------- -----------
IPO
An initial public offering or stock launch is a public offering
in which shares of a company are sold to institutional investors
and usually also retail investors.
MSCI Index
Certain information contained herein (the "Information") is
sourced from/copyright of MSCI Inc., MSCI ESG Research LLC, or
their affiliates ("MSCI"), or information providers (together the
"MSCI Parties") and may have been used to calculate scores,
signals, or other indicators. The Information is for internal use
only and may not be reproduced or disseminated in whole or part
without prior written permission. The Information may not be used
for, nor does it constitute, an offer to buy or sell, or a
promotion or recommendation of, any security, financial instrument
or product. trading strategy, or index, nor should it be taken as
an indication or guarantee of any future performance. Some funds
may be based on or linked to MSCI indexes, and MSCI may be
compensated based on the fund's assets under management or other
measures. MSCI has established an information barrier between index
research and certain Information. None of the Information in and of
itself can be used to determine which securities to buy or sell or
when to buy or sell them. The Information is provided "as is" and
the user assumes the entire risk of any use it may make or permit
to be made of the Information. No MSCI Party warrants or guarantees
the originality, accuracy and/or completeness of the Information
and each expressly disclaims all express or implied warranties. No
MSCI Party shall have any liability for any errors or omissions in
connection with any Information herein, or any liability for any
direct. indirect, special. punitive, consequential or any other
damages (including lost profits) even if notified of the
possibility of such damages.
Net Asset Value ("NAV")
The value of the Company's assets, principally investments made
in other companies and cash being held, minus any liabilities. The
NAV per share is also described as 'shareholders' funds' per share.
The NAV is often expressed in pence per share after being divided
by the number of shares which are in issue. The NAV per share is
unlikely to be the same as the share price which is the price at
which the Company's shares can be bought or sold by an investor.
The share price is determined by the relationship between the
demand for and supply of the shares.
NAV Total Return (APM)
The theoretical total return on shareholders' funds per share,
including an assumed GBP100 original investment at the beginning of
the period specified, reflecting the change in NAV assuming that
any dividends paid to shareholders were reinvested at NAV at the
time the shares were quoted ex-dividend. A way of measuring
investment management performance of investment trusts which is not
affected by movements in the share price discount/premium.
Six months Year ended
NAV Per Share ended 30 November
Total Return 31 May 2023 2022
-------------------------------- ------------ ------------
Opening NAV (p) 134.2 153.4
Decrease in NAV (p) (6.6) (19.2)
Closing NAV (p) 127.6 134.2
--------------------------------- ------------ ------------
Decrease in NAV (4.9)% (12.5)%
--------------------------------- ------------ ------------
Impact of reinvested dividends* 0.9% 0.2%
--------------------------------- ------------ ------------
NAV Total Return (4.0)% (12.3)%
--------------------------------- ------------ ------------
* 1.20p dividends were paid during the period (2022: 0.35p). The
source is Morningstar who have calculated the return on an industry
comparative basis.
Revenue Return per Share
The revenue return per share is calculated by taking the return
on ordinary activities after taxation and dividing it by the
weighted average number of shares in issue during the period (see
note 4 to the Financial Statements for further information).
Share Price Total Return (APM)
The theoretical total return on an investment over a specified
period assuming dividends paid to shareholders were reinvested in
shares at the share price at the time the shares were quoted
ex-dividend.
Year ended
Share Price Period ended 30 November
Total Return 31 May 2023 2022
------------------------------- ------------ ------------
Opening Share price (p) 131.0 154.5
Decrease in share price (p) (6.0) (23.5)
Closing Share price (p) 125.0 131.0
-------------------------------- ------------ ------------
Decrease in share price (4.6)% (15.2)%
-------------------------------- ------------ ------------
Impact of reinvested dividends 0.9% 0.2%
-------------------------------- ------------ ------------
Share price Total Return (3.7)% (15.0)%
-------------------------------- ------------ ------------
Financial Calendar
Date Event
----------- ---------------------------
30 November Financial Year End
February Financial Results Announced
April Annual General Meeting
31 May Half Year End
August Half Year Results Announced
Website
For further information on share prices, regulatory news and
other information, please visit www.mobiusinvestmenttrust.com
Shareholder Enquiries
In the event of queries regarding your shareholding, please
contact the Company's Registrar, Computershare Investor Services,
who will be able to assist you with:
-- Registered holdings
-- Balance queries
-- Lost certificates
-- Change of address notifications
Computershare's full details are provided above or please visit
www.computershare.com/uk.
Risk Warnings
-- Past performance is no guarantee of future performance.
-- The value of your investment and any income from it may go
down as well as up and you may not get back the amount invested.
This is because the share price is determined, in part, by the
changing conditions in the relevant stock markets in which the
Company invests and by the supply and demand for the Company's
shares.
-- As the shares in an investment trust are traded on a stock
market, the share price will fluctuate in accordance with supply
and demand and may not reflect the underlying net asset value of
the shares; where the share price is less than the underlying value
of the assets, the difference is known as the 'discount'. For these
reasons, investors may not get back the original amount
invested.
-- Although the Company's financial statements are denominated
in sterling, some of the holdings in the portfolio are currently
denominated in currencies other than sterling and therefore they
may be affected by movements in exchange rates. As a result, the
value of your investment may rise or fall with movements in
exchange rates.
-- Investors should note that tax rates and reliefs may change at any time in the future.
-- The value of ISA and Junior ISA tax advantages will depend on
personal circumstances. The favourable tax treatment of ISAs and
Junior ISAs may not be maintained.
To view the report online
If you would like to view video updates about the company,
please visit: www.mobiusinvestmenttrust.com
END
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END
IR GIGDIXUGDGXD
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August 02, 2023 04:56 ET (08:56 GMT)
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