REG - Mobius Inv.Trust PLC - Half-year Report
02/08/2024 12:00
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RNS Number : 0212Z Mobius Investment Trust PLC 02 August 2024
Legal Entity Identifier: 21380033EKFQS15X1W22
2 August 2024
Mobius Investment Trust plc
Half-yearly report and financial statements for the six months to 31 May 2024
Mobius Investment Trust plc (the "Company" or "MMIT") has today released its
half-yearly report for the six months to 31 May 2024.
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
2024 2023 % change
Net Asset Value per Ordinary share† 141.7p 144.3p (1.8)%
Share price 131.0p 132.5p (1.1)%
Discount to net asset value* 7.6% 8.2% -
† UK GAAP measure
* Alternative performance measure, see Glossary.
Six months
ended Year ended
31 May 30 November
2024 2023
Net Asset Value per Ordinary share total return*^ -1.0% +8.5%
Share price total return*^ -0.2% +2.1%
* Alternative performance measure, see Glossary.
^ Source: Morningstar.
CHAIRMAN'S STATEMENT
Introduction
Dear MMIT Shareholders,
Thank you for your continued support. The events of the last six months
continue to challenge the world with political change and volatility in some
major nations. Many large countries have held elections and it will take time
to see how the results will affect global economies. This half-year report of
Mobius Investment Trust plc ("MMIT", the "Trust" or the "Company") covers the
period from 1 December 2023 to 31 May 2024. Since the end of the reporting
period, several events have focused the world's attention on the political
landscape in the developed world, including elections in France, the EU and
the UK and the withdrawal of President Biden from the UK presidential race.
Meanwhile, in India, Modi's BJP party's loss of an outright majority came as a
surprise to investors. These developments will have an impact on the
medium-term economic outlook.
It has been an eventful period with various forces contributing to market
volatility. US inflation proved to be more persistent than expected, reducing
the number of anticipated rate cuts this year from six to two or possibly one.
However, the strong US economic data underpinning this development suggests an
increased likelihood of a soft landing, which should be positive for the
global economy and exporting emerging markets. The dollar remained strong and
several of the 'Magnificent Seven', a group of high-performing technology
companies, notably Nvidia, delivered outstanding returns. Partly as a result,
emerging markets lagged over the period but began to gain some ground in the
second quarter, driven in part by the surge in demand for products and
services related to artificial intelligence, with Taiwan, a center of
semiconductor innovation and MMIT's largest geographic exposure, up a
remarkable 20.2% over the period, as measured by the MSCI Taiwan Index.
MMIT's differentiated, unconstrained and benchmark-agnostic approach
identifies largely under-researched and lesser-known companies in the supply
chain of giants such as Nvidia or TSMC that have strong potential to generate
alpha. Accordingly, some of MMIT's portfolio's holdings have already seen a
positive impact on earnings and share prices.
However, in the first few months of 2024, IT software spending fell short of
expectations as companies delayed projects and adopted a cautious stance in
the face of interest rate uncertainty. This affected some of the Trust's
portfolio holdings such as EPAM Systems. In addition, towards the end of the
period, some Indian holdings were affected by market volatility ahead of the
Indian election results, resulting in a negative net asset value return per
share of -1.8% over the period for the Trust, -1.0% on a total return basis.
As we move into the second half of the year, India has resumed its rally and
demand for software services appears to be picking up, with Gartner predicting
that global IT spending will total $5.06 trillion in 2024, an increase of 8%
from 2023. The Board has been particularly reassured by the team's reports
from their research trips, as companies have shared their positive outlook for
the second half of the year, as well as some more encouraging news (see the
Investment Manager's Review for more details). Accordingly, the net asset
value ("NAV") per share has already increased by 3.6% between 31 May 2024 and
31 July 2024, the latest practicable date before the publication of this
report.
In recent months, the team has met with companies, experts and policymakers in
India, Taiwan, China, Hong Kong, Malaysia, Indonesia and Thailand, resulting
in the addition of high conviction ideas to the portfolio. Progress on
engagement continues to be positive, with several companies receiving
prestigious awards for their achievements in this area (see Investment
Manager's Review).
The Board has maintained close contact with the team throughout this period
and has observed their continued commitment to refining and calibrating the
portfolio. We are confident that their focus on exceptional, innovative
companies with strong financial characteristics, sustainable earnings and deep
competitive advantages positions the portfolio well to deliver sustainable
returns to our shareholders. Portfolio holdings are poised to benefit from the
economic recovery and growth trends that we expect to continue in the second
half of the year.
Performance
The NAV per share and share price of MMIT decreased by 1.0% and 0.2%
respectively, on a total return basis, over the six-month period to 31 May
2024, with the NAV reaching a high of 152.9p on 15 February 2024 and closing
at 141.7p. MMIT traded at an average discount to NAV of 8.0% during the period
under review, closing at a discount of 7.6%. At the close of business on 31
July 2024, the latest practicable date for this half-year report, the discount
of the share price to NAV per share was 5.3%, with NAV and share price at
146.8p and 139.0p respectively.
In accordance with its premium and discount management policy, as set out in
MMIT's prospectus, the Board continues to closely monitor the discount or
premium and will take action either through buybacks or share issuances to
reduce discount or premium respectively, if it concludes it is in
shareholders' interests to do so. We have observed continued strong interest
from investors, which we expect to help bring the share price closer to NAV
per share. In respect of the recent wider discount, it was decided, due to the
relatively small size of the Trust, not to buy back shares for the time being
in order not to reduce shareholders' funds but wait for the share price
further align with MMIT's NAV per share through continued strong performance
and investor demand.
The Board
The governance of the Company remains crucial for effective oversight on the
delivery of results. I would like to thank my fellow Board members for their
continued support and contributions. A little later this year, an external
independent firm will conduct a full Board assessment to ensure that the
Directors collectively possess all necessary skills, and we will report on
this in the next annual report.
Audit Tender
Since the publication of the last annual report, the Board has decided to
undertake a review of the Company's external auditors, in order to ensure that
shareholders receive the best possible service. We will update our investors
in due course on the outcome.
Meetings with shareholders
The Company's Annual General Meeting ("AGM") was held on Tuesday, 23 April
2024 and the Board was delighted to welcome an increasing number of
shareholders and guests who listened to the Investment Manager's presentation
and were able to ask questions.
Later this year, in September, the Investment Manager will hold an Investor
Day in London. For shareholders unable to attend the presentations will be
available for viewing on the Manager's website: www.mobiuscapitalpartners.com.
Outlook
Uncertainties remain as we move into the second half of the year. Key issues
such as inflation, interest rates, geopolitical tensions, elections and
China's slower-than-expected recovery will continue to shape the landscape.
However, we believe emerging markets are poised for significant growth in the
medium-term, driven by a favourable macroeconomic backdrop, structural and
cyclical growth stories and attractive valuations. The rise of artificial
intelligence is a key investment driver, with companies that supply major tech
companies benefiting significantly from this trend, including a number of
MMIT's holdings.
We would argue, that the US market poses some challenges with its high
valuations and concentrated structure, while European equities are less
attractive due to concerns about an economic slowdown. Emerging markets offer
a compelling diversification opportunity with strong growth potential and
attractive valuations. The growing economic links between emerging markets
will continue to boost inter-emerging market trade and reduce their dependence
on developed markets.
The Board is always mindful of the risks. The outlook for US growth,
inflation, Federal Reserve rate cuts and the US dollar remains critical for
emerging market assets. Chinese policy developments also require close
monitoring. Geopolitical risks are inherent in emerging market investing,
especially in an election year. The US elections could have a significant
impact on the US dollar and foreign policy. Global geopolitical tensions, such
as the war in Ukraine and the conflict in the Middle East, pose significant
risks, potentially affecting energy prices and driving inflation. With the
share of the democratic world shrinking and with 40% of the world living in
what the EIU defines as "autocratic" states(1) there will be challenges to
maintain a steady state of development and growth.
MMIT focuses on highly innovative, high-quality companies with strong
fundamentals and balance sheets that are well positioned to gain market share
and demonstrate resilience in an environment of high interest rates and market
volatility. We believe that investing in these fundamentally sound companies
will continue to deliver sustainable returns over time. The team's reports
from the field support this view. In addition, the team continues to pay close
attention to macroeconomic developments. The deep macro overlay of MMIT's
investment process has been instrumental in avoiding volatile markets, thereby
enhancing stability and performance.
We share NVIDIA CEO Jensen Huang's view that we are at the dawn of a new
AI-driven technology revolution. MMIT's portfolio reflects this, with
company-specific products and exciting new additions that are capturing this
trend with differentiated, highly innovative offerings. We also believe that
the circumstances are now right for Emerging Markets to thrive after a
challenging decade. MMIT's portfolio is well positioned to take advantage of
these opportunities.
Maria Luisa Cicognani
Chairman
2 August 2024
1 https://www.eiu.com/n/campaigns/democracy-index-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 2024
Fair Value % of
Company Country £'000 Net Assets
Classys South Korea 9,386 5.7
TOTVS Brazil 7,970 4.9
Park Systems South Korea 7,493 4.6
E Ink Holdings Taiwan 7,169 4.4
Elite Material Taiwan 6,806 4.1
Mavi Giyim Sanayi Ve Ticaret Turkiye 6,676 4.1
Sinbon Electronics Taiwan 6,507 4.0
APL Apollo Tubes India 6,208 3.8
EPAM Systems USA 6,180 3.8
360 ONE WAM India 5,935 3.6
Top Ten Investments 70,330 43.0
Vivara Participacoes SA Brazil 5,816 3.6
Persistent Systems India 5,767 3.5
Hitit Bilgisayar Turkiye 5,199 3.2
Safaricom Kenya 5,013 3.1
CE Info Systems India 4,966 3.0
Zilltek Techonologies Taiwan 4,912 3.0
eMemory Technology Taiwan 4,544 2.8
Vietnam Dairy Products Vietnam 4,351 2.7
Clicks Group South Africa 4,211 2.5
Chroma ATE Taiwan 4,123 2.5
Top Twenty Investments 119,232 72.9
Metropolis Healthcare India 4,005 2.5
Lotes Co. Ltd. Taiwan 3,977 2.4
LEENO Industrial South Korea 3,778 2.3
Parade Technologies Taiwan 3,701 2.3
Dreamfolks Service India 3,514 2.2
Logo Turkiye 3,326 2.0
Bluebik Group Thailand 3,297 2.0
Kangji Medical Holdings China 3,175 1.9
Smartfit Escola Brazil 3,174 1.9
EC Healthcare China 2,400 1.5
Total Investments 153,579 93.9
Net Other Assets 9,966 6.1
Shareholders' Funds 163,545 100.0
PORTFOLIO BREAKDOWN
Sector Breakdown
31 May 2024
Technology 54.9%
Health Care 11.6%
Consumer Discretionary 9.6%
Industrials 5.9%
Consumer Staples 5.2%
Financials 3.6%
Communications 3.1%
Cash 6.1%
Geographical Breakdown
31 May 2024
Taiwan 25.5%
India 18.6%
South Korea 12.6%
Brazil 10.4%
Turkiye 9.3%
United States 3.8%
China 3.4%
Kenya 3.1%
Vietnam 2.7%
South Africa 2.5%
Thailand 2.0%
UK* 6.1%
INVESTMENT MANAGER'S REVIEW
As we are entering the second half of 2024, we are reflecting on a year which
started with mixed signals such as a weak recovery in China, the ongoing
conflict in Gaza, elevated election rhetoric in the US, increasing tensions
between Nato and Russia, and uncertainty over interest rate cuts. These
factors weighed on the performance of emerging markets, and MMIT delivered a
net asset value return per share of -1.0%, on a total return basis, over the
period. However, we believe the outlook for H2 2024 is more positive and the
NAV has increased by 3.6% since the end of the period (as of 31 July 2024).
Uncertainty over US monetary policy has dominated market sentiment and
impacted emerging market flows over the past six months, with
stronger-than-expected US data raising fears of a prolonged period of higher
interest rates. However, the macro outlook for emerging markets in the second
half of the year appears favourable, with the Fed expected to cut rates by the
end of the year.
Many global central banks have already embarked on rate-cutting cycles,
diverging from the Fed. This easing of monetary policy should support the
recovery and boost consumer spending. Over the course of 2024, we increased
our exposure to the consumer discretionary sector and added some
high-conviction consumer stocks to the portfolio, including Smart Fit, Latin
America's leading fitness chain, which should benefit from cooling inflation
and lower interest rates in South American countries, particularly Brazil, its
largest market. (See the Investment Update section below for more information
on the new holdings).
Uncertainty about interest rates led many companies to be cautious about IT
spending, exacerbating the lack of expenditure in the first few months of the
year due to a longer than expected downturn in the software cycle. This had an
impact on the Trust's software holdings. However, we are now seeing signs of
recovery in the sector and discussions with companies have confirmed a more
positive outlook for the second half of the year.
While the software sector had a slow start to H1 2024, other technology
sectors, particularly those driven by AI optimism, certainly did not, as
global equity gains were partly driven by the strong performance of some of
the 'Magnificent 7' on the back of innovation linked to artificial
intelligence.
MMIT's portfolio offers investment opportunities beyond the 'Mag 7', with
investments in lesser-known emerging market holdings that provide vital parts
and services to the supply chains of well-known mega-cap names. Given our high
conviction exposure to technology, we expect the portfolio to continue to
benefit from accelerating technology trends and macro developments in the
second half of the year and beyond.
This view is supported by the team's observations and discussions during their
extensive research trips to Asia in H1 2024 which preceded the addition of two
high-conviction technology stocks to the portfolio. Carlos Hardenberg's trip
to Smarter E Europe, Europe's largest exhibition alliance for the energy
industry, provided further insight into the role of emerging markets in
providing some of the most innovative technologies across industries. In
addition, insightful company news and positive outlooks, some of which have
already translated into better-than-expected quarterly results, plus the
Trust's stronger performance since the end of the period, have reinforced our
constructive view for the second half of the year. (See Investment Update
section below).
As well as exploring the technology industry, the team's research trip to Asia
provided a timely opportunity to consider the investment case for China at a
time when valuations in the market are low. The team gained insights from
local experts and companies, and observed issues on the ground, including the
on-going problems in the property sector, the slow recovery in domestic demand
and poor corporate governance. These insights reinforced our conviction that
investment in China warrants a cautious approach, and MMIT, therefore,
continues to have little exposure to the country.
The global election year has added volatility to EM investing, but most EM
elections have not produced major negative surprises. Despite warnings from
Beijing, the election of William Lai of the DPP in Taiwan did not elicit a
major reaction from China. Mexico elected its first female president and in
South Africa the ANC formed a coalition with the pro-business DA party. In
India, the BJP lost its parliamentary majority, forcing Modi to form a
coalition government within the NDA.
Some of the Trust's Indian holdings were affected by market volatility ahead
of the Indian election results, weighing on the period's performance. However,
after some brief post-election volatility, Indian markets quickly bounced back
and have resumed their long-term rally.
India continues to be an important allocation for the Trust and our conviction
in India's long-term growth story has further strengthened over the past year,
leading MCP to add three new high-conviction Indian ideas to the portfolio in
2023. These companies have already contributed significantly to the
performance of the Trust. A two-month trip by an MCP analyst in early 2024 to
meet with companies and experts on the ground reinforced our bullish view.
This is supported by positive news from our Indian holdings. For example, our
engagement with MapmyIndia, India's leading digital map provider, to improve
IR activities is progressing well, with the company significantly increasing
its efforts to proactively communicate with the markets. The company has
continued to execute on its strategy in recent months, winning significant
long-term contracts with high-profile customers such as Hyundai and Kia. In
late June, two new sell-side houses, including a large foreign bank, initiated
coverage of MapmyIndia.
The team constantly monitors the prospects, positioning and challenges facing
companies, and engages, refines and repositions the portfolio accordingly. The
addition of two technology holdings, following in-depth due diligence and site
visits, reflects our continued belief that these types of highly innovative
companies, serving growing trends yet to be discovered by the market, have
strong potential to deliver alpha over the long term. In addition, we believe
that falling interest rates will strengthen consumer sentiment, and we have
increased our consumer exposure with high-conviction ideas in Brazil, where we
are already seeing an improvement in consumer sentiment and household
spending.
Performance
The NAV per share and share price of MMIT decreased by 1.0% and 0.2%
respectively, on a total return basis, over the six-month period to 31 May
2024, with the NAV per share reaching a high of 152.9p on 15 February 2024 and
closing at 141.7p. MMIT traded at an average discount to NAV of 8.0% during
the period under review, closing at a discount of 7.6%. At the time of writing
(31 July 2024), MMIT had delivered a strong NAV per share and share price
performance of 3.6% and 6.1% respectively since 31 May 2024.
Over the reporting period, the top contributor to performance was LEENO
Industrial (+1.7%). LEENO is a specialist supplier of semiconductor test
components and has contributed +8.8% to the portfolio since its addition in
2021. The other top performers were Turkish retailer Mavi (+1.5%) and Kenyan
communications company Safaricom (+1.1%). Mavi benefitted from its brand
strength in Turkish retail and reported robust growth. Better than expected
revenue, profitability and inventory management resulted in a share price
increase of more than 60% (USD) over the reporting period.
The main detractors were software providers EPAM Systems (-1.8%), Bluebik
(-1.3%), and Totvs (-1.1%). As mentioned above, the recovery in IT spending
was slower than expected with corporates taking a cautious stance and delaying
projects amidst rate cut uncertainty.
Investment Update
As of 31 May 2024, MMIT had invested 93.9% of capital, with 30 holdings across
11 countries. The largest geographic exposure was Taiwan (25.5%), followed by
India (18.6%) and South Korea (12.6%). 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 (54.9%), followed by
health care (11.6%) and consumer discretionary (9.6%). MMIT's technology
exposure is well diversified across globally operating software companies
(22.4%), asset-light businesses in the semiconductor space (10.4%), and
producers of niche, IP-protected hardware (22.1%).
During a Greater China research trip, the team conducted due diligence on two
new investment ideas (Lotes and Chroma), engaged with portfolio companies in
Taiwan and spoke with their competitors, clients, and suppliers. The outlook
seemed positive, with end-user sales driven by new AI products on devices and
cutting-edge technologies such as liquid cooling for next-generation servers,
system-level testing for AI/HPC chips and wafer inspection tools shaping the
market. The local culture of innovation caught the team's attention. The
island's business parks resembled condensed versions of Silicon Valley, with
leading foundries, IC designers and hardware manufacturers densely packed
together, and the local population's deep connection to high-end manufacturing
and technology was evident even in casual conversation - while a London cabbie
might discuss football, a Taipei taxi driver enthusiastically explained to the
team the latest chip architecture and its reliance on local assembly and test
services.
The team did not observe any critical changes in the geopolitical landscape
during the research trip. It remains unlikely that China would jeopardise its
long-term economic interests. Military action by China against Taiwan would
destabilise the region, threaten China's growth prospects and almost certainly
lead to extensive sanctions against China. In addition, MCP's Taiwanese
holdings are primarily global companies with significant international
operations and revenues generated overseas. Nevertheless, we continue to
closely monitor the relationship between Taiwan and China from both a macro
and geopolitical perspective. We are also closely watching the US election for
any potential impact on this situation.
During the reporting period, MCP added four new companies to the portfolio.
Lotes - During Q1 2024, MCP invested in Lotes Co, a top CPU socket and
connector manufacturer based in Taiwan. Lotes has a good track record in an
industry with high entry barriers, long production development and vendor
approval lead times, and is vertically integrated from design to manufacture
ensuring superior cost and quality control. Strong relationships with AMD,
Intel, and cloud providers position Lotes as a major beneficiary of
generational change in CPU platforms. It continues to innovate and is in the
final stages of winning approval for key products in the server market which
offer additional growth potential. Managed by an experienced management team,
Lotes boasts best-in-class margins and the highest ROE/ROIC in its peer group.
Since our investment, Lotes achieved a record 51% gross margin and delivered
double-digit sales volume growth (YoY), beating consensus, and we remain
optimistic considering increasing server and PC shipment growth.
Chroma - During Q1 2024, we added Chroma ATE to the portfolio. Based in
Taiwan, Chroma specialises in testing equipment for EVs, battery formation,
and semiconductors. Chroma stood out for its best-in-class margins, solid
capital allocation, execution track record, and robust niche positioning.
Despite its small market cap, Chroma traded at a significant discount to
peers. During the research trip to Taiwan, we learned about Chroma's
long-standing ties to NVIDIA and its customised testing equipment for AI and
high-performance computing. After channel checks with clients and peers, MCP
invested in Chroma. Recently, Chroma's Q1 earnings beat consensus by over 7%,
with double-digit growth in the semiconductor segment, highlighting a bright
outlook for 2024/25.
Vivara - During Q4 2023, MCP added Brazil's largest jewellery brand, Vivara,
to its portfolio. After thorough due diligence, including interviews with the
founding family, senior management, and global retail experts, MCP invested in
this 60-year-old market leader. With 18% market share and nearly 400 stores
across Brazil, Vivara's strong brand recognition and vertical integration
create a solid competitive moat. The company controls sourcing, design, and
production, resulting in high profitability. Favourable macroeconomic
conditions, expected interest rate cuts, and buoyant consumer spending are
positive tailwinds. Additionally, Vivara is ranked number one in gender
diversity, has Leeds Silver certified stores, and boasts a robust
sustainability roadmap.
Smartfit - MCP invested in Smartfit, which operates over 1,000 clubs across
Latin America, with significant presence in Brazil (55%), Mexico (20%), and 11
other countries. The company's strong brand, positive customer perception, and
affordable memberships have positioned it well in an underpenetrated market
with an increasingly health-conscious population. We are convinced that
Smartfit will continue to deliver on its strong execution track record, gain
market share, retain/win customers and maintain diligent cost control, thus
driving earnings growth.
Engagement & ESG+C(®)
Integral to our conservative risk management approach is our commitment to
good governance and active engagement with portfolio holdings. During the
period, the team engaged with companies in India, Taiwan, China, Hong Kong and
Thailand on ESG+C(®) in-person.
Our portfolio companies made significant strides in enhancing their ESG+C
standards during the reporting period. Regarding environmental and social
improvements, Vietnamese dairy company Vinamilk was globally recognised as a
sustainability leader by Brand Finance in December 2023, ranking among the top
five in the global dairy industry. 360 One published its first integrated
sustainability report, including contributions to the UN SDGs, an important
step in improving its sustainability transparency.
Improvements in social standards through the specific use of healthcare
initiatives involved Metropolis Healthcare conducting a groundbreaking study
on hereditary cancer symptoms, published ahead of World Cancer Day,
contributing to cancer awareness and proactive healthcare measures.
Additionally, Persistent Systems, in collaboration with Microsoft, launched a
cutting-edge generative AI-powered population health management solution,
enhancing patient care and healthcare provider efficiency.
Companies have also gained recognition for their workplace culture. In May,
Sinbon Electronics joined the "TALENT, in Taiwan, Taiwan Talent Sustainability
Alliance" for the third year running, showcasing the company's commitment to
fostering a positive work environment. EPAM Systems was recognised as an
Employee's Choice Winner in Glassdoor's Top 100 Best Places to Work in 2024.
They were also acknowledged as the preferred tech employer among young
professionals in Colombia by the Top of Mind Index Tech study, ranking sixth
out of more than 1,400 companies identified, up five places from 2023, as well
as being named the best workplace for career growth in Europe by LinkedIn in
April. EPAM also announced a performance-linked ESOP. Additionally, Persistent
Systems launched a Women's Returnship Programme, which recruits exclusively
women who have taken a career break.
Outlook
We believe EM equities are poised for a stronger second half of 2024 as global
inflation cools and monetary policy eases. MCP's recent addition of
consumer-focused holdings such as Smart Fit and Vivara anticipates favourable
consumer sentiment as a result of these macro shifts.
In addition, cyclical upturns and growing technology trends, particularly in
AI, are expected to sustain the momentum of technology stocks in both
developed and emerging markets. Insights from our recent research trips and
positive news flow from portfolio companies underline the robustness of these
trends. The trip also reaffirmed the pivotal role of emerging Asia in global
technology supply chains, highlighting their deep expertise and vibrant
innovation cultures.
Despite some uncertainties surrounding events like the US election with
potential implications for the US dollar and foreign policy and the timing of
Fed rate cuts, MCP remains well positioned to benefit from both macro and
technology trends. As a result, we anticipate robust portfolio performance in
the second half of the year.
Carlos Hardenberg
Mobius Capital Partners LLP
Investment Manager
2 August 2024
INCOME STATEMENT
for the six months ended 31 May 2024
(Unaudited) (Unaudited)
Six months to Six months to
31 May 2024 31 May 2023
Revenue return Capital return Total Revenue return Capital return Total
Note £'000 £'000 £'000 £'000 £'000 £'000
Losses on investments held at fair value - (2,075) (2,075) - (5,627) (5,627)
Exchange losses on currency balances - (112) (112) - (66) (66)
Investment income 2 1,980 - 1,980 1,413 - 1,413
Investment Management and Management Services fees 3 (284) (664) (948) (264) (614) (878)
Other expenses (251) - (251) (253) - (253)
Net return/(loss) on ordinary activities before taxation 1,445 (2,851) (1,406) 896 (6,307) (5,411)
Taxation on ordinary activities (117) (18) (135) (150) (160) (310)
Return/(loss) on ordinary activities after taxation 4 1,328 (2,869) (1,541) 746 (6,467) (5,721)
Return/(loss) per share basic and diluted 4 1.15p (2.49)p (1.34)p 0.69p (5.97)p (5.28)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 2024
Share Share premium account Special reserve Capital redemption reserve Capital reserve Revenue reserve Total
capital £'000 £'000 £'000 £'000 £'000 £'000
£'000
Six months to 31 May 2024
(Unaudited)
At 1 December 2023 1,167 21,158 95,093 14 46,902 2,195 166,529
Ordinary dividends paid - - - - - (1,443) (1,443)
(Loss)/return for the period - - - - (2,869) 1,328 (1,541)
At 31 May 2024 1,167 21,158 95,093 14 44,033 2,080 163,545
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
STATEMENT OF FINANCIAL POSITION
as at 31 May 2024
Note (Unaudited) (Audited)
31 May 30 November
2024 2023
£'000 £'000
Fixed assets
Investments held at fair value through profit or loss 153,579 156,690
Current assets
Debtors 962 1,399
Cash and cash equivalents 11,703 10,722
12,665 12,121
Current liabilities
Creditors: amounts falling due within one year (1,099) (491)
Net current assets 11,566 11,630
Total assets less current liabilities 165,145 168,320
Non-current liabilities
Deferred tax liability (1,600) (1,791)
Net assets 163,545 166,529
Capital and reserves
Share capital 5 1,167 1,167
Share premium account 21,158 21,158
Special reserve 95,093 95,093
Capital redemption reserve 14 14
Retained earnings:
Capital reserves 44,033 46,902
Revenue reserve 2,080 2,195
Total Shareholders' funds 6 163,545 166,529
Net asset value per share (p) 6 141.70 144.28
NOTES TO THE FINANCIAL STATEMENTS
for the six months ended 31 May 2024
1 Accounting Policies
The Company is a public limited company (PLC) incorporated in England and
Wales, with its registered office at 25 Southampton Buildings, 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 2024 comprise
the statements set out 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
2024 2023
£'000 £'000
Income
Overseas Dividends* 1,852 1,298
Other income - bank interest 128 115
1,980 1,413
*includes special dividend received from Kangji Medical Holdings of £564,000
(2023: £nil)
3 Investment Management and Management Services Fees
(Unaudited) (Unaudited)
Six months to 31 May Six months to 31 May
Revenue Capital 2024 Revenue Capital 2023
£'000 £'000 £'000 £'000 £'000 £'000
Investment Management fee
- Mobius Capital Partners LLP 232 542 774 215 501 716
Management Services fee
- Frostrow Capital LLP 52 122 174 49 113 162
284 664 948 264 614 878
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 31 May
2024 2023
£'000 £'000
Net revenue return 1,328 746
Net capital loss (2,869) (6,467)
Net total loss (1,541) (5,721)
Weighted average number of Ordinary Shares in issue during the period 115,420,336 108,307,225
Pence Pence
Revenue earnings per share 1.15 0.69
Capital loss per share (2.49) (5.97)
Total loss per share (1.34) (5.28)
During the period there were no dilutive instruments held (2023: nil),
therefore the basic and diluted return/(loss) per share are the same.
5 Share capital
(Unaudited) (Audited)
31 May 2024 30 November 2023
Number of shares Number of shares
Opening Issued and fully paid Ordinary shares 115,420,336 107,548,983
Shares issued during the period/year - 7,871,353
At period/year end 115,420,336 115,420,336
Non-redeemable preference shares 50,000 50,000
2024 2023
£'000 £'000
Issued and fully paid Ordinary shares
Shares of 1p 1,154 1,154
Non-redeemable preference shares £1 each 13 13
1,167 1,167
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 no shares issued or bought back by the Company during the six
months to 31 May 2024 (year to 30 November 2023: 7,871,353) retaining total
number of shares of 115,420,336.
6 Net asset value per share
The net asset value per share is based on the net assets attributable to the
equity shareholders of £163,545,000 (30 November 2023: £166,529,000) and
115,420,336 (30 November 2023: 115,420,336) 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 below 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 2024.
8 2023 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 2023,
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 2024
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 Manager's
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 2024.
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 Manager's 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
2023. The principal risks and uncertainties have not changed since the date of
that report, although the wars in Ukraine and Gaza have moved Geopolitical
Risk more into focus.
In addition, the Board identified as an ongoing 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. Uncertainty
has also been added by elections taking place this year in Europe, the US, and
several emerging market including India, Georgia and Venezuela.
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
2023.
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 2024;
(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 2024
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
Fitzrovia House
3-5 Gower Street
London WC1E 6HA
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 30 November
2024 2023
Share price (p) 131.0 132.5
Net Asset Value per share (p) 141.7 144.3
(Discount) of share price to net asset value (7.6)% (8.2)%
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
Total Return ended 30 November
31 May 2024 2023
Opening NAV (p) 144.3 134.2
(Decrease)/increase in NAV (p) (2.6) 10.1
Closing NAV (p) 141.7 144.3
(Decrease)/increase in NAV (1.8)% 7.5%
Impact of reinvested dividends* 0.8% 1.0%
NAV Total Return (1.0)% 8.5%
* 1.25p dividends were paid during the period (2023: 1.20p).
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 2024 30 November
2023
Opening Share price (p) 132.5 131.0
(Decrease)/increase in share price (p) (1.5) 1.5
Closing Share price (p) 131.0 132.5
(Decrease)/increase in share price (1.1)% 1.1%
Impact of reinvested dividends 0.9% 1.0%
Share price Total Return (0.2)% 2.1%
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.
Computershare Investor Services - Share Dealing Service
A share dealing service is available to existing shareholders through the
Company's Registrar, Computershare, to either buy or sell shares.
Shareholders wishing to use this service will need their Shareholder Reference
Number ("SRN"), which can be found on the share certificate. If shareholders
are unable to locate their SRN, they should contact Computershare.
Computershare's Internet and Telephone Share Dealing Service provides
shareholders with a simple way to sell or purchase shares (subject to
availability) on the London Stock Exchange. Real time trading is available
during market hours (08.00 to 16.30 Monday to Friday excluding bank holidays).
Shareholders who would like to use Computershare's Share Dealing Service
should do so online at
https://www‑uk.computershare.com/Investor/#ShareDealingInfo.
The fee for this service will be 1.4% of the value of each sale or purchase of
shares, subject to a minimum of £40. Stamp duty of 0.5% may also be payable
on purchases.
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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