Emerging markets veteran Mark Mobius has reduced the exposure to China in his recently launched investment trust, favouring South Korea as a region.
The latest factsheet for the trust released today shows that South Korea is now the largest geographic weighting at 14.5 per cent, with China dipping to third at 12.7 per cent.
India’s weighting is also up, coming in at 7.1 per cent in April compared to 5.9 per cent the previous month.
The trust launched on 1 October last year, and has now allocated 86.4 per cent of capital, according to the factsheet.
Nearly 14 per cent remains in cash holdings, but the top three sector targets remain consumer discretionary, consumer staples and technology investments.
Since launch, the share price is down 0.5 per cent, but the net asset value is up 0.3 per cent.
April’s performance saw a 1.2 per cent rise in the share price, after it dropped by 5 per cent in March.
The factsheet says that while the trust’s “focus on dynamic small and mid-sized
companies in many of the fastest growing economies in the world” presents it with oppoerunities, it will be open to volatility due to the nature of its investments.
It reads: “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.”