Emerging markets guru Mark Mobius has said that investors would be wise to take a caution approach as political tensions between America and China escalate again.
The latest factsheet for the Mobius Investment Trust, which was launched last October, shows that the company’s share price dipped 4.6 per cent in May, after gaining 1.2 per cent in April.
The trust’s largest geographical weighting is towards China at 12.7 per cent, with consumer discretionary stocks making up the largest sector at 30.6 per cent.
However, the factsheet says: “In view of the recent re-emergence of the trade war between the US and China, and the resulting market volatility, the manager continues to believe it is in the interest of shareholders to exercise caution and discipline in deploying capital.”
Mobius has already increased his Indian weighting from 7.1 per cent to 11.6 per cent, and reduced his global emerging markets weighting.
Having sold one Brazilian holding, Mobius adds that his cash position is now up 12 per cent, which “will be utilised to increase exposure to the highest conviction portfolio ideas and the pipeline of new companies competing for entry into the portfolio”.
Only 76.5 per cent of capital has been allocated to date.