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Mobius IT

Closed-end funds and OEICs
XFool
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Mobius IT

#170603

Postby XFool » October 1st, 2018, 7:11 pm

Anyone else invested in Mobius Partner's 'Mobius IT'? It was first quoted today and closed the day at 100p/101.48p Bid/Offer. I was expecting it to be lower at around 96p - given the £4m (presumably fixed?) costs of launch and the £100m, rather than £200m hoped for cash raising.

Perhaps some of those extra 100m shares are being fed into the market at par? In which case there must still be demand. Have to see how it goes from here.

SalvorHardin
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Re: Mobius IT

#171450

Postby SalvorHardin » October 4th, 2018, 4:42 pm

Looked at it, but decided to wait and see. As you've mentioned, the problem with investment trust new issues is that they are floated at a premium to their NAV because the listing costs come out of the subscriptions (trading at the IPO price of 100p as I type this). So maybe wait for the premium to go to a discount, even allowing for the discount control policies that managers operate nowadays.

That said given Mr. Mobius' track record with Templeton Emerging Markets and that of Carlos Hardenberg, who took over from Mobius, I'd be surprised to see this go to a big discount in the short term. The activist nature of the trust, taking stakes in smaller companies and then trying to persuade them to change their behaviour, will appeal to some investors.

Also given that emerging markets have taken a bit of a beating this year, it's a good time to have money to invest in the sector. But we can currently buy Templeton Emerging Markets at a 14% discount to NAV, which I'm sure will prove more tempting to some than a new issue.

I'm looking at AVI Japan Opportunity Trust, a new issue coming later this month, which is another activist trust. Take decent sized stakes in small Japanese companies which have lots of cash and try to get them to become more shareholder friendly. The Japanese Government has supported this sort of activity in recent years and the managers, who've done this recently with Toyko Broadcasting Service, reckon that there are a lot of companies out there that can be stirred into action. This is the sort of thing that's a bit tricky for private investors to do, which makes it ideal for an investment trust.

https://citywire.co.uk/investment-trust ... t/a1152708

jaizan
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Re: Mobius IT

#176654

Postby jaizan » October 27th, 2018, 9:42 pm

The discount of MMIT is approximately 4% at present.

The discount of TEMIT has been over 10% for most of the time since the start of 2015, presumably due to some of the periods of below par performance.

Think I would want more than a 4% discount to buy into MMIT.
Although TEMIT is my 4th largest holding overall and perhaps there should be a better EM choice for me. More research needed.


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