Mobius awaits trust premium to spark share issuance

Mobius awaits trust premium to spark share issuance

Mobius Capital Partners is preparing to issue new shares in the Mobius Investments trust once the company is able to shrug off a stubborn discount to NAV afflicting most emerging market peers.

Speaking to Investment Week, founder Mark Mobius said there is a “good chance” the trust will soon swing to a premium in reaction to improved optimism over the outlook for emerging markets, and the team are hoping to grow the company’s assets amid its three-year anniversary.

Mobius Investments is currently sitting on a 6.7% discount to NAV of £121m, according to the Association of Investment Companies, reflecting a similar theme across its peer group.  

Mobius IT slashes cash weighting as it deploys capital into ‘vulnerable’ Brazil and Turkey

The average trust in the AIC Global Emerging Markets sector is sitting on a discount of 6.7%. The largest discount in the sector is 18.2% for Stewart Investors-managed ScotGems, while JPMorgan Emerging Markets is the only company in the sector trading at a premium at 1.4%.

Mobius Investors has delivered a share price return of 21.9% and a NAV total return of 20.2% over one year, compared to sector averages of 21.4% and 18.7% respectively.

“We really would like to see that discount disappear and actually go to a premium,” Mobius said. “It could happen because there is more and more optimism about emerging markets generally.”

“We think that there iss a good chance that it will go to a premium.”

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He added that once a premium is achieved, the trust can then issue more shares in order to bolster asset growth.

“We would like to get a premium so we can issue more shares,” Mobius said. “This fund is not large, and certainly not as large as we believe it should be.

“So we would like to issue more shares if it has gone to a premium.”

Mobius Capital Partners is preparing to issue new shares in the Mobius Investments trust once the company is able to shrug off a stubborn discount to NAV afflicting most emerging market peers.

Speaking to Investment Week, founder Mark Mobius said there is a “good chance” the trust will soon swing to a premium in reaction to improved optimism over the outlook for emerging markets, and the team are hoping to grow the company’s assets amid its three-year anniversary.
Mobius Investments is currently sitting on a 6.7% discount to NAV of £121m, according to the Association of Investment Companies, reflecting a similar theme across its peer group.  
Mobius IT slashes cash weighting as it deploys capital into ‘vulnerable’ Brazil and Turkey
The average trust in the AIC Global Emerging Markets sector is sitting on a discount of 6.7%. The largest discount in the sector is 18.2% for Stewart Investors-managed ScotGems, while JPMorgan Emerging Markets is the only company in the sector trading at a premium at 1.4%.
Mobius Investors has delivered a share price return of 21.9% and a NAV total return of 20.2% over one year, compared to sector averages of 21.4% and 18.7% respectively.
“We really would like to see that discount disappear and actually go to a premium,” Mobius said. “It could happen because there is more and more optimism about emerging markets generally.”
“We think that there iss a good chance that it will go to a premium.”
Co-founder of Mobius Capital Partners Konieczny to retire
He added that once a premium is achieved, the trust can then issue more shares in order to bolster asset growth.
“We would like to get a premium so we can issue more shares,” Mobius said. “This fund is not large, and certainly not as large as we believe it should be.
“So we would like to issue more shares if it has gone to a premium.”Read More– Investment Week

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