The strategy emerging markets veteran Mark Mobius will be employing for his new investment trust is beginning to emerge.
The latest factsheet for the Mobius Investment Trust, which was launched in October, shows that 85 per cent of the capital raised at IPO has now been allocated.
Mobius has so far picked 21 holdings across 11 countries, with consumer discretionary companies the largest sector to date, accounting for 43 per cent of the portfolio. Consumer staples are next largest with 17 per cent, but 15 per cent of the trust is still being held in cash.
Mobius has leaned towards China, Brazil and South Korea as his favoured three geographies, all with an allocation of around 15 per cent.
After a strong January, where the trust returned 8.2 per cent, performance dropped back to 1.2 per cent in February.
Mobius notes that the trust “pursues an active management style….its performance may therefore deviate considerably from that of a comparable market return”.
He adds: “Pronounced fluctuations in price are characteristic of emerging and frontier economies. Other characteristics include specific risks such as lower market transparency, regulatory hurdles, illiquidity of markets as well as political and social challenges.”
However, he adds that focusing on small and medium cap companies is also presenting a host of opportunities for the new vehicle.
“Lower envinronmental, social and governance standards in emerging and frontier markets offer a unique opportunity for active engagement approach…[We can] create value by delivering a clear ESG pathway for our portfolio companies.”