Register Log-in Investor Type

News

Mobius matches EM index fall in tumultous year

Mobius Investment Trust MMIT

Mobius Investment Trust has published results for the period from 1 December 2021 to 30 November 2022. The NAV and share price on a total return basis decreased by 12.3% and 15.0% respectively. The MSCI EM Index lost 13%. The shares traded at an average discount to NAV of 2.3%, closing at a discount of 2.4% on 30 November 2022. As at the close of business on 24 February 2023, the premium of share price to NAV per share stood at 0.25%. There is a dividend of 1.2p per share.

Extracts from the managers’ report

After an optimistic start, 2022 turned out to be a tumultuous year for investors. Many short-term predictions were proven wrong. Russia invaded Ukraine against the odds, global growth predictions had to be downgraded significantly, inflation forecasts were completely off target, the Fed changed gear on monetary policy faster and more resolutely than anyone had expected, and the US dollar continued its rally against expectations.

The weaker performance was driven by negative sentiment, rather than company fundamentals. In addition, the cyclical downturn in the semiconductor industry with weak demand and high inventories after two years of rapid pandemic-induced growth, also affected performance. However, once again we believe it is important to look beyond 2023 when we expect demand to pick up and the chip industry to resume its growth path.

Over the reporting period, the top three contributors to performance were Turkish apparel brand Mavi (+2.1%), software firm EPAM Systems (+1.9%), and Indian steel tube manufacturer APL Apollo (+1.4%). These companies benefitted significantly from their strong balance sheets during the difficult conditions for trade and economic activity seen in the past year.

Hong Kong-based EC Healthcare (-4.2%), and Taiwanese semiconductor businesses Parade Technologies (-2.7%) and ZillTek Technologies (-1.9%) were the main detractors over the reporting period. EC Healthcare was heavily impacted by China’s zero-Covid policy as mainland Chinese were unable to travel to the Hong Kong-based clinics. Since the reversal of China’s zero-Covid policy in November 2022, EC Healthcare’s share price has more than doubled.

MMIT : Mobius matches EM index fall in tumultous year

Leave a Reply

Your email address will not be published. Required fields are marked *

Please review our cookie, privacy & data protection and terms and conditions policies and, if you accept, please select your place of residence and whether you are a private or professional investor.

You live in…

You are a…