Voluntary Redemption of Ordinary Shares

Mobius Investment Trust

03/10/2025 07:00

RNS Number : 9015B

Mobius Investment Trust PLC

03 October 2025

 

MOBIUS INVESTMENT TRUST PLC (the "Company" or "MMIT")

LEGAL ENTITY IDENTIFIER ('LEI'): 21380033EKFQS15X1W22

3 October 2025

VOLUNTARY REDEMPTION OF ORDINARY SHARES

YOU DO NOT HAVE TO TAKE ANY ACTION IF YOU WISH TO RETAIN YOUR SHARES

In accordance with the Company's Articles of Association, the Company shall operate a voluntary redemption facility on 1 December 2025 and every three years thereafter through which shareholders may request the redemption of all or part of their holding of redeemable ordinary shares of nominal value £0.01 each ("Ordinary Shares") for cash.

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.

None of the Directors of the Company nor any of the members of the Investment Manager's team, holding a total of 1,332,074 shares, representing 1.2% of the issued share capital, will be redeeming any shares under the redemption facility.

There is no requirement for shareholders to take any action should they wish to retain their Ordinary Shares.  

SUMMARY OF PERFORMANCE

Since its launch on 1 October 2018 until 30 September 2025, Mobius Investment Trust plc has delivered a net asset value ("NAV") total return of 58.6%, outperforming the MSCI Emerging Markets Mid Cap NET total return Index in GBP terms by 6.2 percentage points. As at 30 September 2025, the Ordinary Share price and NAV per share (including current period revenue) were 144.5 pence and 149.77 pence respectively, representing a discount of 3.5%, versus the Association of Investment Companies' ("AIC") Global Emerging Markets peer group[1] average discount of 7.0%. Since inception, the Company has traded at an average discount of 4.5%. This compares to the average discount of 10.7%, weighted by market capitalisation, of the AIC's Global Emerging Markets peer group1 over the same period.

The Board notes the benefit to shareholders of the Company's share price trading close to NAV and monitors the position on a continuous basis. The redemption facility is designed to assist in discount management while the Board regularly reviews other options which can be deployed, such as share buy-backs and enhanced dividends, in between redemption opportunities.

A distinguishing feature of MMIT's strategy is its focus on under-covered, lesser-known businesses that usually require extensive proprietary research. These companies, often overlooked by mainstream emerging market funds, should provide differentiated access to structural growth opportunities beyond the usual Emerging Market mega-caps. The portfolio is typically concentrated in asset-light, low debt, innovative companies with good governance and competitive advantages aligned to fast-growing trends.

The Investment Manager considers some of the most compelling opportunities to be in Asia at present. In India, accelerating GDP growth, infrastructure spending, tax reform and a young consumer base are helping to drive local consumption. In Taiwan, global leadership in advanced semiconductors underpins both industry demand and geopolitical importance. In South Korea, the government's Value-Up programme is creating potential to unlock shareholder value by targeting the improvement of governance and capital efficiency. Reflecting these dynamics, MMIT holds companies such as E Ink in Taiwan, a global leader in electronic paper technology, best known for powering e-readers like the Kindle but increasingly adopted in retail through electronic shelf labels. In India, CarTrade operates a leading digital platform for vehicle transactions, directly tied to the growth in local consumption as rising incomes and shorter ownership cycles fuel demand for new and used cars. In South Korea, Park Systems develops atomic force microscopes essential for semiconductor quality control, underpinned by proprietary technologies, a growing patent base, and founder-let expertise.

While this financial year has been challenging, with performance diverging from the broader market, such periods are a natural feature of a strategy with an 98% active share. Importantly, several of the underlying portfolio companies have continued to deliver strong results and constructive outlooks, and some of the headwinds that weighed on sentiment - including tariff uncertainty, higher U.S. rates and weaker EM currencies - appear to be easing. The Company has used this environment to initiate new positions and add to existing high-conviction positions, with the objective of enhancing the portfolio's exposure to long-term growth opportunities.

This disciplined strategy, combining proprietary research, active ownership, a focus on quality and long-term conviction, aims to identify exceptional businesses across emerging markets and to generate sustainable long-term outperformance. Engagement is considered an important pillar of the strategy, particularly in times of global volatility, involving close interaction with portfolio companies and a strong emphasis on governance. In this context, Mobius Investment Trust plc was selected as the winner of Best ESG Communication at the AIC Shareholder Communication Awards 2025, which recognise exceptional shareholder communication by AIC member investment companies and their managers.

INFORMATION ON THE REDEMPTION FACILITY

Shareholders submitting valid requests for the redemption of Ordinary Shares will have their shares redeemed at the Redemption Price. The Company may, prior to the Redemption Point, in its sole discretion, invite investors to purchase Ordinary Shares which are the subject of Redemption Requests pursuant to a matched bargain facility. In addition, the Company may, subject to law and regulation, purchase Ordinary Shares which are the subject of Redemption Requests on-market via an intermediary pursuant to an existing shareholder authority. The price at which such transfers or purchases will be made will not be less than the Redemption Price which the Shareholder requesting redemption would have received if the Redemption Price had been determined by reference to the Dealing Value per Ordinary Share applicable on the relevant Redemption Point (see further below). Shareholders will be notified after the Redemption Point whether their Ordinary Shares have been redeemed by the Company under the redemption facility at the Redemption Price or sold to incoming investors under the matched bargain facility or purchased by the Company.

The Directors may elect, at their absolute discretion, to calculate the Redemption Price on either of the following bases:

1.  The Redemption Price shall be equal to the Dealing Value per Ordinary Share calculated as at the appropriate Valuation Point on the appropriate Redemption Point, being the value of all the assets of the Company less its liabilities, including such provisions and allowances for contingencies and accrued costs and expenses payable by the Company, including a provision for the costs that would be incurred in disposing of the Company's investments; or

2.  The Directors may elect to calculate the Redemption Price by reference to the amount generated upon the realisation of a Redemption Pool created for the purpose of funding the redemption.

Shareholders wishing to request the redemption of all or any of their certificated Ordinary Shares at the proposed Redemption Point should deliver to the Company's Registrar a duly completed Redemption Request form together with (i) in the case of certificated shareholders, their share certificate; or (ii) in the case of uncertificated shareholders, a transfer of their Ordinary Shares from their CREST account to the Company's Registrar's CREST account (3RA18, member account MMIRED01) via a  Transfer to Escrow ("TTE") instruction, in accordance with the timetable set out below.  Redemption Request forms are available from the Company's website www.mobiusinvestmenttrust.com or from the Company's Registrar, Computershare Investor Services PLC (details below).

The relevant dates for the 2025 Redemption Point are outlined below:

3 November 2025
Latest date for receipt of Redemption Requests and certificates for certificated shares.
1.00 pm on 3 November 2025
Latest date and time for TTE instructions for uncertificated shares via CREST.
6.00 pm on 1 December 2025
The Redemption Point.
On or before 15 December 2025
Company to notify Redemption Price and dispatch redemption monies; or
 If the redemption is to be funded by way of a Redemption Pool, the Company to notify the number of shares being redeemed. Notification of the Redemption Price and dispatch of redemption monies take place as soon as practicable thereafter.
On or before 31 December 2025
Balance certificates to be sent to shareholders.

Shareholders wishing to request a redemption of their Ordinary Shares are strongly advised to seek independent professional tax advice as to the consequences of doing so, in light of their own particular circumstances.

It should be noted that, for UK tax purposes, a redemption of Ordinary Shares by the Company will generally be treated as involving both (i) a disposal of Ordinary Shares by the shareholder for the purposes of UK capital gains tax (or, as applicable, corporation tax on chargeable gains) and (ii) an income distribution from the Company.  The amount of the income distribution element would be calculated by reference to the difference between the redemption proceeds received by the shareholder and the amount that for tax purposes is treated as paid-in capital attributable to the Ordinary Shares redeemed.  Generally, the amount of paid-in capital attributable to the Ordinary Shares for these purposes is the amount that was subscribed for them by the original subscriber when they were first issued by the Company, though it may be less if there have been subsequent transactions that are treated as having returned capital on the shares.  Accordingly, the amount treated as paid-in capital attributable to the Ordinary Shares for these purposes may be less than the shareholder paid to acquire their Ordinary Shares. 

For UK tax resident individual shareholders, the distribution element arising on a redemption of Ordinary Shares by the Company will generally be subject to income tax as if it were a dividend, but to the extent that this element is subject to income tax it should generally then be excluded from the calculation of any chargeable gain arising on the disposal of Ordinary Shares pursuant to the redemption. 

For shareholders within the charge to UK corporation tax, the distribution element arising on a redemption of Ordinary Shares is likely to qualify for exemption from corporation tax, but it should be noted that this exemption for distributions is subject to a number of conditions and independent professional tax advice should accordingly be taken.  Based on HM Revenue & Customs published practice, the distribution element arising on a redemption of Ordinary Shares should, for corporation tax purposes, generally be disregarded in determining whether a  chargeable gain arises on the disposal of Ordinary Shares pursuant to the redemption (though the treatment of a buy-back of Ordinary Shares, as distinct from a redemption, would be different in this regard). 

Shareholders should also note that their tax treatment may be different if their Ordinary Shares are acquired by a third party in the market pursuant to the "matched bargain" facility, rather than being redeemed by the Company directly.  In this case, the shareholder should generally not be treated as receiving an income distribution element from the Company and instead the proceeds should generally be treated as the consideration for a disposal of the Ordinary Shares for the purposes of capital gains tax or, as applicable, corporation tax on chargeable gains.

The comments above are general in nature and not intended to be an exhaustive summary of all potentially relevant tax considerations.  They do not constitute, and should not in any way be relied upon as, or treated as a substitute for, tax advice.  All Shareholders should seek their own independent professional tax advice in light of their own particular circumstances, including those who may be subject to tax in any jurisdiction other than the United Kingdom.  Shareholders should note that no clearances or assurances have been sought from HM Revenue & Customs in relation to the proposed arrangements.

Further details of the redemption facility are set out in the Company's Articles of Association and summarised in Part 5 of the prospectus issued by the Company on 10 September 2018 (the "Prospectus"). Such details are also available from the Company Secretary on request. 

The Directors of the Company have discretion over the operation of the redemption facility and the calculation of the Redemption Price. The Directors are minded to approve all valid redemption requests unless there are exceptional reasons why this would be contrary to the interests of Shareholders as a whole.

Defined terms in the announcement have the same meaning as set out in the Articles of Association. Copies of the Articles of Association and the Prospectus can be obtained from the Company Secretary or can be found on the Company's website, www.mobiusinvestmenttrust.com.

 

Enquiries:

Company Secretary

Frostrow Capital LLP

Kerstin Rucht (Tel: 0203 709 8732)

Richard Plaskett (Tel: 0203 709 2407)

 

Registrar

Computershare Investor Services PLC  

The Pavilions

Bridgwater Road

Bristol BS13 8AE

Tel: +44 (0) 370 703 6304

 

Corporate Broker

Peel Hunt LLP

Luke Simpson / Huw Jeremy

Tel: 0207 418 8900

 

[1] Peer group average excludes MMIT and JPMorgan Emerging Europe, Middle East & Africa.

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