Mobius Investment posts negative return, expects ongoing volatility

Mobius Investment Trust PLC on Monday reported a negative total return in the first half of financial 2025, citing geopolitical instability and ‘the ripple effects’ of US tariffs.

The London-based investment trust focuses on companies exposed to emerging or frontier markets. Mobius said its net asset value per share was 136.4 pence at May 31, down from 150.4p at November 30, its financial year-end.

This reflects a negative total return of 8.2% over the six-month period, compared with a negative 1.0% return in the first half of financial 2024. For the year that ended November 30, NAV total return was positive at 5.2%.

According to Mobius, macroeconomic volatility has driven negative performance in financial 2025’s first half, with uncertainty continuing in the two months since May 31. The firm described US tariffs as ‘aggressive and unpredictable’, suggesting that China will accelerate its shift away from US business and towards trading with Europe, Brazil and the Association of Southeast Asian Nations.

‘The world is waking up to the risks of over-reliance on the US market or any single trade partner. As a result, we expect a rise in trade agreements excluding the US - presenting a window of opportunity for emerging markets to strengthen trade ties, both among themselves and with major developed market partners such as the EU,’ Mobius said on Monday.

‘We do not expect global conflicts to abate in the near term. What is emerging, however, is a clear reconfiguration of Middle Eastern geopolitics,’ the firm added.

‘While volatility has persisted beyond the reporting period, the months since the market trough in early April have shown encouraging signs that we are on the right track.’

Mobius shares were 0.4% lower at 138.49 pence on Monday afternoon in London.

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