24th Jul 2020 14:51
(Alliance News) - Mobius Investment Trust PLC on Friday posted a fall in first-half net assets, with emerging markets "hit hard" by the Covid-19 pandemic.
Net asset value per share fell 4.0% to 87.78 pence on May 31, from 91.42p at the end of November. The stock was 2.2% higher at 95.90p each in London on Friday afternoon.
"Emerging markets have been hit hard by the crisis. The Covid-19 pandemic and the subsequent shutdowns all over the world have meant that countries have seen dramatic declines in their economies and a concomitant stress on government finances. In many cases exports have tanked, tourism has disappeared, and foreign investment has vanished. Many countries have been faced with very large reductions in foreign exchange revenues," Mobius Investment said.
At May 31, just over 18% of its portfolio was weighted to China, 17% to Brazil and roughly 15% to India.
The trust added: "Unquestionably the last six months, in the wake of the Covid-19 pandemic have been challenging. The Covid-19 pandemic, is a drastic reminder of how vulnerable the global economy remains, despite decades of efforts to improve economic stability. Emerging markets have in the past gone through repetitive episodes of crisis and market volatility, and have had the chance, so one could argue, to improve policies and develop better 'know how' in dealing with such situations."
It cited the SARS outbreak back in 2002, the global financial crisis between 2008 and 2009 and the Tequila crisis in 1994 in Mexico which saw the peso tumble by as much as 50%.
By Eric Cunha; [email protected]
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