Mobius Capital Partners is looking to raise £200m through the float of its new Mobius Investment Trust.
Mobius CP’s founding partners veteran emerging markets fund manager Mark Mobius, Carlos Hardenberg and Greg Konieczny will run the trust. They will participate in the IPO with some £5.7m, according to the company’s statement.
The portfolio will consist of 20 to 30 small and mid-cap companies across emerging and frontier markets.
It will focus on undervalued companies in emerging markets with potential for operational, financial and environmental, social and governance improvements.
Mobius says: “We will look to work with these firms to improve corporate governance, set out a broader ESG pathway and act as a catalyst for wider operational and financial improvements.”
The trust annual management fee was set at 1 per cent, reducing to 0.85 per cent above £500m and 0.75 per cent above £1bn based on the NAV or market cap of the trust. There are no performance fees included.
MIT targets total return between 12 per cent and 15 per cent per annum over the long term and it is looking for dividends to be a meaningful component of returns, as the team expects that dividend yield of portfolio companies to increase as a direct result of corporate governance engagement.