Half-year Report
02/08/2023 09:56
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230802:nRSB0688Ia&default-theme=true
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 (http://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
(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 (mailto:anna@mobiuscapitalpartners.com)
Frostrow Capital LLP
Company Secretary
Tel: +44 (0)20 3709 8732
Email: info@frostrow.com (mailto: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 £4.6 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 £'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® 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
Note Revenue return Capital return Total Revenue return Capital return Total
£'000
£'000 £'000 £'000 £'000 £'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 £'000 Share premium account Special reserve £'000 Capital redemption reserve Capital Revenue reserve Total
£'000 £'000 reserve £'000 £'000
£'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
Note (Unaudited) (Audited)
31 May 2023
30 November 2022
£'000
£'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 (£'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 to
Six months to
31 May 31 May
2023 2022
£'000 £'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
£'000 £'000 £'000 £'000 £'000 £'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 to Six months to
31 May 2023 31 May 2022
£'000 £'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)
31 May 2023 30 November 2022
Number of shares Number of 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
£'000 £'000
Issued and fully paid Ordinary shares
Shares of 1p 1,112 1,075
Non-redeemable preference shares £1 each 13 13
1,125 1,088
The Share capital includes 50,000 non-redeemable preference shares with a
nominal value of £1 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 £141,914,000 (30 November 2022: £144,294,000) 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.
31 May 2023 30 November 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 £100 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.
NAV Per Share Six months Year ended
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.
Share Price Period ended Year ended
Total Return
31 May 2023 30 November 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
(http://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 (http://www.mobiusinvestmenttrust.com)
END
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on this announcement (or any other website) is
incorporated into, or forms part of, this announcement.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR GIGDIXUGDGXD