Legal Entity Identifier: 21380033EKFQS15X1W22

2 August 2023

Mobius Investment Trust plc

Half-yearly report and financial statements for the six months to 31 May 2023

Mobius Investment Trust plc (the "Company" or "MMIT") has today released its half-yearly report for the six months to 31 May 2023.

The half-yearly report and other information will be available via www.mobiusinvestmenttrust.com

A copy of the half-yearly report will also be submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism

Enquiries:

Mobius Capital Partners LLP

Anna von Hahn, Investor Relations

Tel:      +44 (0)203 829 8505

Email: anna@mobiuscapitalpartners.com

Frostrow Capital LLP

Company Secretary

Tel: +44 (0)20 3709 8732

Email: info@frostrow.com

Financial Highlights

†      UK GAAP measure

*       Alternative performance measure, see Glossary.

*       Alternative performance measure, see Glossary.  

^      Source: Morningstar.

Chairman's Statement

Introduction

Dear Shareholders,

The past six months covered by this report to 31 May 2023 have continued to bring history-defining events. I would like to thank you for your continued support and confidence in Mobius Investment Trust plc's ("MMIT" or the "Company") strategy and vision.

At the beginning of the year, there were high hopes that this year would be better than the last, and January seemed to bode well, with equity markets starting the year on a strong footing. However, the first half of 2023 saw continued volatility. This was driven by the well-known elephant in the room: interest rates. Uncertainty about the future course of the Federal Reserve's monetary policy, coupled with the US banking crisis and the collapse of Credit Suisse in Europe, weighed on investor sentiment. At the same time, the US debt ceiling debate, the ongoing war in Ukraine, elections in Turkey, heightened tensions between China and the US and a slower-than-expected recovery in China after the end of the zero-Covid policy impacted markets. In April, the IMF warned that the medium-term global growth outlook was the weakest in 30 years and markets are now pricing in a shallow US recession at the end of this year. In May, caution turned to enthusiasm over the hype surrounding the potential of artificial intelligence, and major equity indices around the world resumed their January rally after a few volatile months. Technology growth stocks - last year's villains - became everybody's darlings.

Emerging markets continued to underperform their developed market peers, driven by weakness in China, where consumer sentiment remained cautious. However, there were differences among emerging market economies, with technology-heavy markets such as Taiwan and South Korea posting strong gains. MMIT delivered a Net Asset Value per share ("NAV") performance of -4.0% over the period, as macroeconomic developments in Turkey, China and Kenya affected the short-term performance of some portfolio holdings. The Board remained in close contact with the Mobius Capital Partners ("MCP") team throughout the period and was reassured by the steps taken to monitor the situation in these countries. I firmly believe that the team's close relationship with senior stakeholders at MMIT's portfolio holdings and their regular interactions on the ground are an important risk management tool. In addition, the focus on fundamental quality has continued to provide downside protection. Portfolio companies continue to have little or no debt and have shown resilience in times of rising interest rates.

Following a visit to Turkey in Q4 2022, the team continued to engage closely with management in the run-up to the May elections to understand the challenges faced in the current political and macroeconomic environment and how they are addressing them. MCP added to MMIT's Kenyan holding, Safaricom, following a research trip to the country in May, where they met with management and local experts. The team also revisited a Hong Kong investment that has been affected by the slow recovery in China.

In the first quarter of 2023, the team spent six weeks in India meeting portfolio companies, experts and policymakers. They returned with a strengthened conviction in the Indian market and new investment ideas in niche segments of the financial, manufacturing and technology sectors that would benefit from the country's longer-term opportunities arising from consumer and business spending. For further information please see the Investment Managers' Review.

Throughout the period, the Board continued to see good progress on the engagement side, with discussions on governance factors accounting for almost half (49%) of the 169 engagement points in progress. I firmly believe that good governance is key to managing risk and fostering sustainable business models. The focus on governance has helped the team avoid main pit-falls at macro and micro levels. It was also pleasing to see that the overall proportion of portfolio companies reporting their CDP* score increased from 32% to 54%. Disclosure drives action and will help companies ensure good environmental management.

*CDP (Carbon disclosure project): A score representing a snapshot of a company's environmental disclosure and performance. More information on: https://www.cdp.net/

Performance and share issuances

The NAV and share price of MMIT decreased by 4.0% and 3.7% respectively over the six-month period to 31 May 2023, with the NAV reaching a high of 146.0p on 03 February 2023 and closing at 127.6p. Our investment managers provide a comprehensive appraisal of the developments within MMIT's portfolio during the period under review.

MMIT traded at an average premium to NAV of 0.36% during the period under review, closing at a discount of 2.0%.

Due to the Company's shares trading at a premium for much of the period, MMIT was able to issue a total of 3,650,000 shares to meet investor demand thereby raising £4.6 million for investment. Since the period-end to 1 August 2023, a further 4,056,353 shares have been issued. The share price at close of business on 1 August 2023 was 140.50p.

The AGM

We were delighted that this year we were again able to hold our Annual General Meeting ("AGM") in person with a number of investors attending. Anna von Hahn and Mark Mobius presented on the performance of the Company at the event and were able to answer shareholders' questions.

The Board and Portfolio Manager

The Board continued to meet both formally and informally and it has been in regular communication with the portfolio manager on the delivery of the strategy. I am thankful to my colleagues for their continuous support. Our main objective is to deliver results to all investors and we will continue to review performance and strategic direction in the midst of these difficult markets. We are pleased to see developments with the portfolio management team and the constant strengthening of internal controls and governance via the adoption of state-of-the-art digital applications.

Outlook

Despite the volatility in the first six months, there are positive signs in the market today.

Monetary policy is working and inflation is falling, and while there is still some uncertainty about when US interest rates will start to come down, we believe that we are close to the peak. Investors confidence is rising, and the volatility index ("VIX") is at a three-year low. The pandemic has spurred technological innovation and the use of new technologies is growing exponentially. Recently, there has been much talk of a new super-cycle in artificial intelligence ("AI"), which has the potential to boost economic productivity across all sectors.

Many emerging markets have proven to be more resilient than during previous crises, thanks to prudent central bank policies. I believe that after a decade of lacklustre performance, emerging markets may be at an inflection point with low valuations, a weakening dollar and highly innovative companies founded by talented entrepreneurs. While there is still some uncertainty about a possible recession in the US and Europe, the economic data seems to suggest that it will be shallow rather than deep and later rather than sooner, giving central banks some room to react.

MMIT's business cases are longer term. The recent buzz around AI has, reaffirmed the potential of the Company's portfolio of highly innovative companies serving growing trends such as AI, autonomous driving, digitalisation and renewable energy. A number of companies in the portfolio that supply key components to the likes of Nvidia, Samsung or TSMC have already seen their share prices rise on the back of the AI drive. The team remains focused on researching and working with these innovative, often under-covered companies with strong fundamentals that provide essential products and services catering to megatrends.

I am delighted that our investors share our views and passion for identifying, and investing in, rising stars within a large universe of over 100,000 companies that make up the emerging markets public investment space. We will continue to focus on what we do best: researching and working with our investee companies to deliver long-term investment performance.

Maria Luisa Cicognani

Chairman

2 August 2023

Investment Objective and Policy

Investment Objective

The Company's investment objective is to achieve long-term capital growth and income returns predominantly through investment in a diversified portfolio of companies exposed directly or indirectly to emerging or frontier markets.

Investment Policy

Asset allocation

The Company seeks to meet its investment objective by investing in a diversified portfolio of companies exposed directly or indirectly to emerging or frontier markets. The Company invests predominantly in:

●       companies incorporated in and/or traded on stock exchanges located in emerging or frontier markets; or

●       companies which have the majority of their operations, or earn a significant amount of their revenues in, emerging or frontier markets but are traded on stock exchanges located in developed countries.

The Company focuses on small to mid-cap companies. The Company may invest in pre-IPO and unlisted companies subject to the investment restrictions detailed below.

In pursuing its investment objective, the Company may:

●       invest in equity or equity related securities (including preference shares, convertible unsecured loan stock, warrants and other similar securities);

●       hedge against directional risk using index futures and/or cash;

●       hold bonds and warrants on transferable securities;

●       utilise options and futures for hedging purposes and for efficient portfolio management;

●       enter into contracts for differences;

●       hold participation notes;

●       use forward currency contracts; and

●       hold liquid assets.

Notwithstanding the above, the Company does not intend to utilise derivatives or other financial instruments to take short positions, nor to increase the Company's leverage in excess of the limit set out in the borrowing policy.

The Company does not track or mirror any index or benchmark and, accordingly, the Company is frequently overweight or underweight in certain investments, or concentrated in a more limited number of sectors, geographical areas or countries, when compared with a particular index or benchmark.

The Company focuses on companies that have:

●       a resilient business model and sound management;

●       the possibility for operational and environmental, social and governance ("ESG") improvements;

●       the potential to improve competitive advantages and cash flow generation; and

●       stakeholders that are open to, and have an interest in, positive change.

The Company, through its Investment Manager, seeks to unlock value in investee companies by actively partnering with them through a governance-oriented approach, seeking to act as a catalyst for broader ESG improvements.

The Company does not expect to take controlling interests in investee companies.

The Company seeks to provide shareholders with exposure to a portfolio which is appropriately diversified by geography and sector to achieve an appropriate balance of risk over the long term. The Company's portfolio will comprise approximately 20 to 30 investments. The Company at all times invests and manages its assets in a manner which is consistent with the objective of spreading and mitigating investment risk.

Investment restrictions

The Company observes the following investment restrictions, each calculated at the time of investment:

●       no more than 10 per cent. of Gross Assets are invested in a single company;

●       no more than 35 per cent. of Gross Assets are invested in companies incorporated in or traded on an exchange in or otherwise primarily exposed to a single emerging or frontier market; and

●       no more than 15 per cent. of Gross Assets are invested in companies that are not traded on a stock exchange.

In compliance with the UK Listing Rules, no more than 10 per cent., in aggregate, of Gross Assets may be invested in other investment companies which are listed on the Official List.

Borrowing

The Company may deploy leverage of up to 20 per cent. of Net Asset Value (calculated at the time of borrowing) to seek to enhance long-term capital growth and income returns and for the purpose of capital flexibility. The Company's leverage is expected to primarily comprise bank borrowings but may include the use of derivative instruments and such other methods as the Board may determine.

Hedging

The Company's reporting currency and share price quotation is Sterling. However, the Company makes investments denominated in currencies other than Sterling. In addition, the majority of the income from the Company's investments is generated in currencies other than Sterling.

The Company does not intend to hedge currency risk in respect of the capital value of its portfolio or in respect of its Sterling distributions. However, the Company reviews its hedging strategy on a regular basis. The Company does not engage in currency trading for speculative purposes.

Cash management

Whilst it is the intention of the Company to be fully or near fully invested in normal market conditions, the Company may hold cash on deposit and may invest in cash equivalent investments, which may include short-term investments in money market type funds and tradeable debt securities ("Cash and Cash Equivalents").

There is no restriction on the amount of Cash and Cash Equivalents that the Company may hold and there may be times when it is appropriate for the Company to have a significant cash or cash equivalent position instead of being fully or near fully invested.

Investment Policy Commentary

Borrowing

There was no borrowing during the period under review or after the period end, nor have any derivatives been used.

Hedging

The Investment Manager does not use currency hedging products but manages currency risk through "natural hedging" by maintaining a geographically diversified portfolio. The Investment Manager closely monitors all portfolio companies on a daily basis and is in a regular dialogue with portfolio companies on a range of issues, including currency hedging. Analysing currency risk is an integral part of the Investment Manager's macroeconomic framework and is fully integrated throughout the investment process.

Breaches

In the event of a breach of the investment policy set out above and the investment and leverage restrictions set out therein, the Investment Manager shall inform the Board upon becoming aware of the same and if the Board considers the breach to be material, notification will be made to a Regulatory Information Service.

During the period under review, no breaches of the investment policy occurred.

Changes to the investment policy

No material change will be made to the investment policy without the approval of shareholders by ordinary resolution.

Investment Portfolio

as at 31 May 2023

Portfolio Breakdown

Sector Breakdown
31 May 2023

Geographical Breakdown
31 May 2023

*       includes univested cash

Investment Managers' Review

The first half of 2023 was another eventful period for emerging market equities. After an optimistic start to the new year as China lifted its Covid restrictions and shifted its policy focus to reviving growth, renewed tensions between the US and China and the failure of three US banks and the second-largest Swiss bank undermined investor confidence.

Uncertainty over US monetary policy, a slower than expected recovery in China and a slowdown in semiconductor demand in the first half of the second quarter added to the volatility.

Short-termism continued to influence investors as they seemed to focus more on news flow and the next quarter than on fundamentals and the longer term. This was illustrated by the swing in sentiment regarding the outlook for the semiconductor industry which went from optimism to doom to euphoria in a matter of months. By May, the hype around ChatGPT and the potential of artificial intelligence brought semiconductor stocks back into favour and technology growth stocks back on the investor map after a beating in 2022.

Emerging markets underperformed developed markets over the period and MMIT delivered a negative net asset value return of 4.0% as selected holdings were affected by political and macroeconomic developments. Over the past six months we have travelled extensively, meeting with companies, stakeholders and local experts in Kenya, Hong Kong, Taiwan, India and Thailand. We returned with a strengthened conviction in the long-term business cases of our portfolio holdings and some exciting new investment ideas (see Portfolio section below).

Our six week-long visit to India in Q1 2023 confirmed our bullish outlook on the region, and the exciting companies diligent stock pickers can find in the country. In its latest World Economic Outlook, the IMF forecast India to grow by 5.9% in 2023 and 6.3% in 2024, more than any other major economy. India has been an important allocation for MMIT since its inception. MMIT's Indian holdings have contributed 40% to (gross) performance as of the end of June 2023. This was almost entirely driven by stock selection.

The most satisfying finding from our trip was that our holdings are doing even better than we had expected. APL Apollo Tubes, one of our key holdings for over three years, had just reported its highest ever quarterly volume of 600k tons of steel tubes. At a visit to one of their plants, we witnessed the highly efficient manufacturing process with >90% of energy needs met through renewable sources. A key holding - and one of the top performers for us since inception - is Persistent Systems, a global digital engineering company that differentiates itself from other IT companies in India by catering to a niche customer segment. Despite the macro headwinds, Persistent continues to be among the fastest growing companies and has kept up its trajectory of new deal wins.

In the run-up to the Turkish election in May, we trimmed our positions to limit downside risk, kept in close contact with our holdings in person and via video conference to understand the impact of the election on their respective businesses, and reviewed and reaffirmed each business case and investment thesis. Our Turkish holdings have reported strong results for 2022 and their outlook remains positive, despite the volatility surrounding the election. They benefit from revenues in hard currencies and costs in a depreciating Turkish Lira. This makes them very competitive both internationally and domestically.

In volatile times, when sub-asset classes can fall in and out of favour in a matter of weeks, it is important to cut through the noise and focus on fundamentals and the long-term potential of our quality portfolio. The strongest factor in our decision-making process is the information we get from the companies themselves, and what we have heard in our regular interactions with the management teams has strengthened our conviction and given us a positive outlook for FY24 and FY25.

Performance

The NAV and share price of MMIT decreased by 4.0% and 3.7% respectively over the six-month period to 31 May 2023, with the NAV reaching a high of 146.0p on 3 February 2023 and closing at 127.6p. MMIT traded at an average premium to NAV of 0.36% during the period under review, closing at a discount of 2.0%.

Over the reporting period, the top contributor to performance was South Korean medical device manufacturer Classys (+1.8%). The company published strong Q1 results, beating EPS estimates by 18% and continuing to invest heavily in R&D. Taiwanese technology companies SINBON Electronics and eMemory Technology contributed +1.3% and +1.1% each. The main detractors were technology companies EPAM Systems (-2.3%) and LEENO Industrial (-1.8%), followed by Kenyan communications business Safaricom (-1.7%).

MMIT continues to lead the peer group since inception with a return of 37.2% (as of 30 June 2023). Driven by investor interest the Company has been trading at a premium for much of the reporting period and has repeatedly issued shares to meet investor demand.

An analysis done by InterSec Research showed that over three years the MCP strategy generated significant outsized returns at median downside risk if compared with the MSCI Emerging Markets Index and the global universe of EM equity managers.

Source: InterSec Research, as of 31 March 2023. MCP strategy performance analysis based on USD returns, compared to the MSCI Emerging Markets Index and global universe of EM equity managers. Dark blue dot = MCP Strategy, red dot = Index. Downside risk = semideviation (downside leg only of standard deviation measuring periods when portfolio returns were below the mean return.

Portfolio Overview

As of 31 May 2023, MMIT had invested 93.9% of its capital, with 26 holdings across 11 countries. The largest geographic exposure was Taiwan (26.1%), followed by India (18.4%) and South Korea (14.8%). The team continues to find the most high-conviction ideas in Asia, with the region accounting for over 60% in the portfolio. The largest sector exposure was technology (61.8%), followed by health care (15.0%) and industrials/materials (6.4%). MMIT's technology exposure is well diversified across globally operating software companies (26.7%), asset-light businesses in the semiconductor space (23.4%), and producers of niche, IP-protected hardware (11.7%).

During the reporting period, MCP exited one holding over liquidity concerns, and added five new companies to the portfolio.

●    Turkish software company Hitit Bilgisayar Hizmetleri AS provides IT solutions to the airline industry in Turkey and internationally. Hitit offers customers IATA compliant state of the art solutions at significantly lower cost than its competitors. 80% of the company's revenues are generated in USD and EUR, providing Hitit with a natural hedge against currency risks.

●    South Korean hardware company Park Systems is a developer and manufacturer of atomic force microscopes and a pioneer in AFM Nanometrology. Its flagship "NX Wafer" product provides surface analysis solutions to microchip manufacturers. MCP believes growth will be driven by 1) smaller chips, 2) wider usage in the BioTech space and 3) usage in the EUV (extreme ultraviolet) mask repair industry.

●    Following in-person company meetings in India, MCP added MapMyIndia to the portfolio. The firm offers digital maps under software as a service (SaaS) and platform as a service (PaaS) model to 2,000+ large and small customers, including Apple, Hyundai and Amazon. The $97bn geospatial technology and mapping industry is growing at >15% annually, with the local Indian market being relatively small and growing faster at >18%.

●    MCP invested in Dreamfolks, India's largest airport services aggregator integrating global card networks, credit and debit card issuers and airport lounge operators. The firm benefits from a 95% market share, protected by a deep moat and first-mover advantage. Dreamfolks' asset-light business model has delivered strong growth, consistent margins and return metrics with a healthy balance sheet (zero debt).

●    As a result of an in-depth Southeast Asia screen, MCP initiated a position in Bluebik, a management consulting company based in Thailand. The firm focuses on consulting services in the digital information and strategy space. A major growth driver will be digital transformation in the local financial services industry (growing at 20% CAGR).

Engagement

During the reporting period, the team at MCP was able to travel extensively and engage in-person with companies in India, Kenya, and Taiwan. Emphasising good governance and remaining in close contact with portfolio holdings has been a key element of MCP's conservative risk management process since the strategy's inception.

Over the past six months, several of the portfolio's holdings have made significant progress on governance: Software companies Logo and EPAM each appointed additional female independent directors to their respective boards. In addition, nearly 90% of investee companies were audited by Big 4 auditors as of Q1, 2023, which has increased the transparency and credibility of accounting standards. We were also pleased to see that more companies are now reporting their CDP score. For us, this is an important starting point for improving a company's environmental footprint.

A good example of a company that continuously has been able to improve its ESG+C® footprint is Persistent Systems. Already benefiting from excellent governance, Persistent Systems has devoted significant resources to ensuring environmental, social and cultural excellence. Almost a third of its employees are female and seven of its ten board members are independent, including two women. 46% of its electricity comes from renewable sources and the company's solar roofs and wind turbines saved over 1,300 tonnes of CO2 emissions last year. Fostering a good corporate culture is high on the management agenda, with over 400 events on fitness, health and work-life balance held last year. Employees are offered annual health checks, access to mental health counselling and a range of learning opportunities (Persistent University). In addition, employees regularly volunteer for projects such as tree planting, soil and water conservation, community development and educational initiatives through the Persistent Foundation. Following our discussions with senior management at the company's offices, we look forward to sharing further details of upcoming initiatives and engagement successes in the near future.

Outlook

There's a lot we don't know, or to say it with ChatGPT, "we don't have the ability to predict specific future events". There could be further interest rate hikes. There could be a shallow recession in the US and Europe. There could be a deep recession. There could be no recession. There could be more geopolitical tension. There could be further fallout in the banking sector. There could be another pandemic. We don't know.

But let's focus on what we think we know. We know that interest rates are nearing their peak. We know that inflation is falling. We know that investor confidence is rising and volatility is falling. We know that emerging markets, and Asia in particular, will grow faster than developed markets. We know that emerging markets are under-owned and undervalued. We know that China will recover, albeit more slowly than expected. We know that the semiconductor cycle will turn sooner or later. We know that megatrends such as digitalisation, cybersecurity and artificial intelligence will continue to grow exponentially. And we believe that as they accelerate, so will the markets for MCP's portfolio companies.

The market for artificial intelligence (AI), for example, is expected to grow strongly over the next decade. Its value of nearly $100 billion is expected to increase twentyfold to nearly $2 trillion by 2030⁵. AI-based products and services will transform industries ranging from health care and finance to transportation and logistics. AI runs on computer processing power and data, so specialised semiconductor manufacturers (and those that provide essential products and services to them) are likely to be beneficiaries, as are companies with access to large amounts of computing power, cloud storage and data.

Elite Material (EMC) is a good example of a company that is already benefiting from the recent hype around artificial intelligence. The company's products, such as copper clad laminates (CCLs), are essential components of printed circuit boards (PCBs), which are used to connect the various components of a chip. As AI-related applications require high-end PCBs, demand for Elite Material's products will grow in line with the increasing use of AI. JP Morgan expects EMC to be one of the top two suppliers of AI server CCLs. The Taiwanese specialty materials producer delivered a total return of over 70% YTD (as of 17 July 2023).

Similar scenarios could be drawn for other key trends that MMIT's portfolio companies are addressing, such as autonomous driving, digitalisation, renewable energy or cybersecurity. Cybercrime, for example, is predicted to cost a staggering $13 trillion by 2028. With risk comes opportunity. The global cyber security market was valued at nearly 222 billion U.S. dollars in 2022. By 2030, the market is forecast to exceed 650 billion U.S. dollars⁵. MMIT's portfolio company, eMemory, provides encryption technology for microchips. eMemory's NeoPUF is a hardware security technology based on physical, unclonable variations that occur in silicon manufacturing processes. Since our investment, the company has delivered a share price return of over 800%.

In summary, we expect the road to recovery to be a little bumpy, but we believe that the stars are beginning to align and that our businesses are well positioned to benefit when the recovery takes hold.

Carlos Hardenberg
Mark Mobius
Mobius Capital Partners LLP
Investment Managers

2 August 2023

Income Statement

for the six months ended 31 May 2023

The Total column of this statement represents the Company's Income Statement.

The revenue and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies ("AIC").

All items in the above statement derive from continuing operations. There are no recognised gains or losses other than those declared in the Income Statement.

Statement of Changes in Equity

for the six months ended 31 May 2023

Statement of Financial Position

as at 31 May 2023

Notes to the Financial Statements

for the six months ended 31 May 2023

1 Accounting Policies

The Company is a public limited company (PLC) incorporated in England and Wales, with its registered office at 25 Southampton Building, London WC2A 1AL, United Kingdom.

The principal accounting policies, all of which have been applied consistently throughout the year in the preparation of these Financial Statements, are set out below:

(a) Basis of preparation

The condensed financial statements for the six months to 31 May 2023 comprise the statements set out above including the related notes below.

They have been prepared in accordance with FRS 104 "Interim Financial Reporting" and the principals of the AIC's Statements of Recommended Practice (SORP) issued in July 2022.

The Financial Statements have also been prepared on a going concern basis under the historical cost convention, as modified by the revaluation of investments held at fair value through profit or loss. The Directors believe this is appropriate as the Company maintains sufficient cash balances to meet its expected liabilities over the next twelve months.

The Company's financial statements are presented in sterling, being the functional and presentational currency of the Company. All values are rounded to the nearest thousand pounds (£'000) except where otherwise indicated.

Presentation of the Income Statement

In order to reflect better the activities of an investment trust company and in accordance with the SORP, supplementary information which analyses the Income Statement between items of a revenue and capital nature has been presented alongside the Income Statement.

(b) Investments held at fair value through profit or loss

As the Company's business is investing in financial assets with a view to profiting from their total return in the form of dividends, interest or increases in fair value, investments are designated by the Company, as held for fair value through profit or loss.

The Company manages and evaluates the performance of these investments on a fair value basis in accordance with its investment strategy, and information about the investments is provided internally on this basis to the Board.

Fair value for quoted investments is deemed to be bid market prices, or last traded price, depending on the convention of the stock exchange on which they are quoted.

Changes in the fair value of investments held at fair value through profit or loss, and gains and losses on disposal are recognised in the Income Statement as a capital item.

All purchases and sales of investments are accounted for on the trade date basis.

Transaction costs of acquisitions and disposals are expensed through the capital column of the Income Statement.

(c) Investment income

Dividends receivable from equity shares are included in revenue on ex-dividend basis except where, in the opinion of the Board, the dividend is capital in nature, in which case it is included in capital.

Overseas dividends are included gross of withholding tax.

Special dividends are looked at individually to ascertain the reason behind the payment. In deciding whether a dividend should be regarded as a capital or revenue receipt, the Company reviews all relevant information as to the reasons for and sources of the dividend on a case by case basis.

Deposit interest receivable is taken to revenue on an accruals basis.

(d) Expenses and finance costs

All the expense and finance costs are accounted for on an accruals basis. Expenses are charged through the revenue column of the Income Statement except as follows:

·          Expenses which are incidental to the acquisition or disposal of an investment are treated as part of the cost or proceeds of that investment;

·          Expenses are taken to the capital reserve via the capital column of the Income Statement, where a connection with the maintenance or enhancement of the value of investments can be demonstrated. In line with the Board's expected long-term split of returns, in the form of capital gains and income from the Company's portfolio, 70% of the Investment Management fees, Administration and Management Services fees and finance costs are taken to the capital reserve.

(e) Taxation

In line with the recommendations of the SORP, the tax effect of different items of expenditure is allocated between capital and revenue using the marginal basis. Deferred taxation is provided on all timing differences that have originated but not been reversed by the Statement of Financial Position date other than those regarded as permanent. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the reversal of timing differences can be deducted. Any liability to deferred tax is provided for at the rate of tax enacted or substantially enacted.

Dividend income received by the Company may be subject to withholding tax imposed in the country of origin. The tax charges shown in the Income Statement relates to overseas withholding tax on dividend income and Indian capital gains tax.

(f) Foreign currency

The currency of the primary economic environment in which the Company operates (the functional currency) is sterling, which is also the presentational currency of the Company. Transactions recorded in overseas currencies during the year are translated into sterling at the appropriate daily exchange rates. Assets and liabilities denominated in overseas currencies at the Statement of Financial Position date are translated into sterling at the exchange rate ruling at that date.

Exchange differences are included in the Income Statement and allocated as capital if they are of a capital nature, or as revenue if they are of a revenue nature.

(g) Functional and presentational currency

The financial information is shown in sterling, being the Company's presentational currency. In arriving at the functional currency, the Directors have considered the following:

(i)      the primary economic environment of the Company;

(ii)     the currency in which the original capital was raised;

(iii)     the currency in which distributions are made;

(iv)    the currency in which performance is evaluated; and

(v)     the currency in which the capital would be returned to shareholders on a break-up basis.

The Directors have also considered the currency to which underlying investments are exposed and liquidity is managed. The Directors are of the opinion that sterling best represents the functional currency.

(h) Cash and cash equivalents

Cash and cash equivalents are defined as cash and demand deposits readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

(i) Nature and Purpose of Reserves

Ordinary share capital

Represents the nominal value of the issued share capital.

Share premium account

The share premium arose on the issue of new shares.

Special reserve

This reserve was created upon the cancellation of the Share Premium Account. This reserve is distributable by way of a dividend.

Capital redemption reserve

A transfer will be made to this reserve on cancellation of the Company's own shares purchased, equal to the nominal value of the shares.

Capital reserve

This reserve reflects any:

·          gains or losses on the disposal of investments;

·          exchange differences of a capital nature;

·          the increases and decreases in the fair value of investments which have been recognised in the capital column of the Income Statement;

·          expenses which are capital in nature as disclosed above; and

·          this reserve can also be used to distribute realised capital profits by way of a dividend.

Any gains in the fair value of investments that are not readily convertible to cash are treated as unrealised gains in the capital reserve.

Revenue reserve

This reserve reflects all income and expenditure which are recognised in the revenue column of the Income Statement and is distributable by way of dividend.

(j) Equity dividends payable

Dividends paid by the company are recognised in the Financial Statements and are shown in the Statement of Changes in Equity in the period in which they become legally binding, which in the case of a final dividend is when it is approved by shareholders at the AGM, in line with the ICAEW Tech Release 02/17BL. The Company does not pay interim dividends.

2 Income

3 Investment Management and Management Services Fees

4 Return/(loss) per share - basic and diluted

The return/(loss) per share figures are based on the following figures:

During the period there were no dilutive instruments held (2022: nil), therefore the basic and diluted return/(loss) per share are the same.

5 Share capital

The Share capital includes 50,000 non-redeemable preference shares with a nominal value of £1 each; of which one quarter is paid up. These shares are held by the Investment Manager.

There were 3,650,000 shares issued by the Company during the six months to 31 May 2023 (year to 30 November 2022: 450,000 issued and 1,411,017 redeemed and cancelled). Since the period end to 1 August 2023, a further 4,056,353 new ordinary shares were issued.

6 Net asset value per share

The net asset value per share is based on the net assets attributable to the equity shareholders of £141,914,000 (30 November 2022: £144,294,000) and 111,198,983 (30 November 2022: 107,548,983) shares being the number of Ordinary Shares in issue at the period end.

7 Financial instruments

(i) Management of Risk

As an investment trust, the Company's investment objective is to seek capital growth and income returns from a portfolio of securities. The holding of these financial instruments to meet this objective results in certain risks.

The Company's financial instruments comprise securities in equities, trade receivables, trade payables, and cash and cash equivalents.

The main risks arising from the Company's financial instruments are fluctuations in market price, and liquidity and credit risk. The policies for managing each of these risks are summarised below. These policies have remained constant throughout the period under review.

Market Price

Market price risk arises mainly from uncertainty about future prices of financial instruments in the portfolio. It represents the potential loss the Company might suffer through holding market positions in the face of price movements, mitigated by stock diversification.

Liquidity

This is the risk that the Company will encounter difficulty in setting obligations associated with financial liabilities. All payables are due within three months.

Credit

The Company's exposure to credit risk principally arises from cash and cash equivalents. Only highly rated banks are used and the level of cash is reviewed on a regular basis.

The Company manages the levels of cash and cash equivalents held whilst maintaining sufficient liquidity for investments and to meet operating liabilities as they fall due.

See the Interim Management Report for details of the principal risks faced by the Company.

(ii) Fair Value Hierarchy

Fair value is the amount for which an asset could be exchanged between knowledgeable willing parties in an arm's length transaction.

The Company measures fair value using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements.

The levels of fair value measurement bases are defined as follows:

Level 1: fair values measured using quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: fair values measured using valuation techniques for all inputs significant to the measurement other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: fair values measured using valuation techniques for which any significant input to the valuation is not based on observable market data (unobservable inputs).

The determination of what constitutes 'observable' requires significant judgement by the Directors. The Company considers observable data to be market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary and provided by independent sources that are actively involved in the relevant market.

All investments were classified as Level 1 investments as at, and throughout the period to, 31 May 2023.

8 2022 accounts

These are not statutory accounts in terms of section 434 of the Companies Act 2006 and are unaudited. Statutory accounts for the year to 30 November 2022, which received an unqualified audit report, have been lodged with the Registrar of Companies.

Earnings for the first six months should not be taken as a guide to the results for the full year.

Interim Management Report

as at 31 May 2023

The Directors are required to provide an Interim Management Report in accordance with the UK Listing Authority's Disclosure and Transparency Rules. They consider that the Chairman's Statement and the Investment Managers' Review, the following statements and the Directors' Responsibility Statement below together constitute the Interim Management Report for the Company for the six months ended 31 May 2023.

Going Concern

The Directors believe, having considered the Company's investment objective, risk management policies, capital management policies and procedures, as well as the nature of the portfolio and the expenditure projections, that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future. In addition, there are no material uncertainties relating to the Company that would prevent its ability to continue in such operational existence for at least twelve months from the date of the approval of this half-yearly report. For these reasons, the Directors consider it is appropriate to continue to adopt the going concern basis in preparing the Financial Statements.

Principal Risks and Uncertainties

A review of the half year and the outlook for the Company can be found in the Chairman's Statement and in the Investment Managers' Review. The principal risks faced by the Company fall into the following broad categories:

·          Investment Risks (including Market, Foreign Exchange and Fiscal Risk in Emerging and Frontier Markets, Portfolio Risk and Counterparty Risk);

·          Strategic Risks (including Strategy Implementation Risk, Investment Management Key Person Risk and Shareholder Relations Risk); and

·          Operational Risks (including Service Providers Risk, Geopolitical Risk, UK Regulatory Risk, UK Legal Risk, Governance Risk and ESG and Climate Change Risk).

Information on each of these areas is given in the Strategic Report/Business Review within the Annual Report and Accounts for the year ended 30 November 2022. The principal risks and uncertainties have not changed since the date of that report, although the war in Ukraine has moved Geopolitical Risk more into focus.

In addition, the Board identified as an emerging risk the deteriorating economic environment in many countries, including the cost of living crisis, rising interest rates, increased energy costs and food supply difficulties from a country macro level down to every household and business.

Related Party Transactions

During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company.

Alternative Performance Measures

The Financial Statements set out the required statutory reporting measures of the Company's financial performance.

In addition, the Board assesses the Company's performance against a range of criteria that are viewed as particularly relevant for investment trusts. Further details of these are included in the Annual Report and Accounts for the year ended 30 November 2022.

Directors' Responsibilities

The Board confirms that, to the best of the Directors' knowledge:

(i)      the condensed set of financial statements contained within the half-yearly report have been prepared in accordance with applicable United Kingdom Generally Accepted Accounting Practice standards; and

(ii)     the interim management report includes a true and fair review of the information required by:

(a)     DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the financial year ending 30 November 2023;

(b)     DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during that period; and any changes in the related party transactions described in the most recent annual report.

The half-yearly report has not been audited by the Company's auditors.

This half-yearly report contains certain forward-looking statements. These statements are made by the Directors in good faith based on the information available to them up to the date of this report and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward looking information.

For and on behalf of the Board of Directors

Maria Luisa Cicognani

Chairman

2 August 2023

Directors and Other Information

Directors

Maria Luisa Cicognani (Chairman)

Christopher M. Casey

(Audit Committee Chairman and Senior Independent Director)

Gyula Schuch

(Chairman of the Management Engagement and Remuneration Committee)

Registered Office

Mobius Investment Trust plc

25 Southampton Buildings

London WC2A 1AL

United Kingdom

Incorporated in England and Wales with company number 11504912 and registered as an investment company under Section 833 of the Companies Act 2006.

Investment Manager and AIFM

Mobius Capital Partners LLP

17 Cavendish Square

London W1G 0PH

United Kingdom

Company Secretary, Administrator and Management Services

Frostrow Capital LLP

25 Southampton Buildings

London WC2A 1AL

United Kingdom

Tel.: 0203 008 4910

Email: info@frostrow.com

Corporate Broker

Peel Hunt LLP

7th Floor

100 Liverpool Street

London EC2M 2AT

United Kingdom

Custodian

The Northern Trust Company

50 Bank Street

Canary Wharf

London E14 5NT

United Kingdom

Depositary

Northern Trust Investor Services Limited

50 Bank Street

Canary Wharf

London E14 5NT

United Kingdom

Legal Adviser to the Company

Stephenson Harwood LLP

1 Finsbury Circus

London EC2M 7SH

United Kingdom

Independent Auditors

PricewaterhouseCoopers LLP

7 More London Riverside

London SE1 2RT

United Kingdom

Registrar

Computershare Investor Services PLC

The Pavilions

Bridgwater Road

Bristol BS99 6ZZ

United Kingdom

Tel.: 0370 703 6304^#

^#                Calls cost no more than calls to geographic numbers (01 or 02) and must be included in inclusive minutes and discount schemes in the same way. Calls from landlines are typically charged up to 9p per minute; calls from mobile phones typically cost between 3p and 55p per minute. Calls from landlines and mobiles are included in free call packages.

Identification Codes

SEDOL: BFZ7R98

ISIN: GB00BFZ7R980

Ticker: MMIT

Legal Entity Identifier (LEI):

21380033EKFQS15X1W22

Global Intermediary Identification

Number ("GIIN"): J9AYNU.99999.SL.826

Glossary and Alternative Performance Measures ("APM"s)

Alternative Investment Fund Managers Directive ("AIFMD")

Agreed by the European Parliament and the Council of the European Union and transposed into UK legislation, the AIFMD classifies certain investment vehicles, including investment companies, as Alternative Investment Funds ("AIFs") and requires them to appoint an Alternative Investment Fund Manager ("AIFM") and depositary to manage and oversee the operations of the investment vehicle. The Board of the Company retains responsibility for strategy, operations and compliance and the Directors retain a fiduciary duty to shareholders.

Discount or Premium (APM)

A description of the difference between the share price and the net asset value per share. The size of the discount or premium is calculated by subtracting the share price from the net asset value per share and is usually expressed as a percentage (%) of the net asset value per share. If the share price is higher than the net asset value per share the result is a premium. If the share price is lower than the net asset value per share, the shares are trading at a discount.

IPO

An initial public offering or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also retail investors.

MSCI Index

Certain information contained herein (the "Information") is sourced from/copyright of MSCI Inc., MSCI ESG Research LLC, or their affiliates ("MSCI"), or information providers (together the "MSCI Parties") and may have been used to calculate scores, signals, or other indicators. The Information is for internal use only and may not be reproduced or disseminated in whole or part without prior written permission. The Information may not be used for, nor does it constitute, an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product. trading strategy, or index, nor should it be taken as an indication or guarantee of any future performance. Some funds may be based on or linked to MSCI indexes, and MSCI may be compensated based on the fund's assets under management or other measures. MSCI has established an information barrier between index research and certain Information. None of the Information in and of itself can be used to determine which securities to buy or sell or when to buy or sell them. The Information is provided "as is" and the user assumes the entire risk of any use it may make or permit to be made of the Information. No MSCI Party warrants or guarantees the originality, accuracy and/or completeness of the Information and each expressly disclaims all express or implied warranties. No MSCI Party shall have any liability for any errors or omissions in connection with any Information herein, or any liability for any direct. indirect, special. punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

Net Asset Value ("NAV")

The value of the Company's assets, principally investments made in other companies and cash being held, minus any liabilities. The NAV per share is also described as 'shareholders' funds' per share. The NAV is often expressed in pence per share after being divided by the number of shares which are in issue. The NAV per share is unlikely to be the same as the share price which is the price at which the Company's shares can be bought or sold by an investor. The share price is determined by the relationship between the demand for and supply of the shares.

NAV Total Return (APM)

The theoretical total return on shareholders' funds per share, including an assumed £100 original investment at the beginning of the period specified, reflecting the change in NAV assuming that any dividends paid to shareholders were reinvested at NAV at the time the shares were quoted ex-dividend. A way of measuring investment management performance of investment trusts which is not affected by movements in the share price discount/premium.

*          1.20p dividends were paid during the period (2022: 0.35p). The source is Morningstar who have calculated the return on an industry comparative basis.

Revenue Return per Share

The revenue return per share is calculated by taking the return on ordinary activities after taxation and dividing it by the weighted average number of shares in issue during the period (see note 4 to the Financial Statements for further information).

Share Price Total Return (APM)

The theoretical total return on an investment over a specified period assuming dividends paid to shareholders were reinvested in shares at the share price at the time the shares were quoted ex-dividend.

Financial Calendar

Website

For further information on share prices, regulatory news and other information, please visit www.mobiusinvestmenttrust.com

Shareholder Enquiries

In the event of queries regarding your shareholding, please contact the Company's Registrar, Computershare Investor Services, who will be able to assist you with:

·          Registered holdings

·          Balance queries

·          Lost certificates

·          Change of address notifications

Computershare's full details are provided above or please visit www.computershare.com/uk.

Risk Warnings

·          Past performance is no guarantee of future performance.

·          The value of your investment and any income from it may go down as well as up and you may not get back the amount invested. This is because the share price is determined, in part, by the changing conditions in the relevant stock markets in which the Company invests and by the supply and demand for the Company's shares.

·          As the shares in an investment trust are traded on a stock market, the share price will fluctuate in accordance with supply and demand and may not reflect the underlying net asset value of the shares; where the share price is less than the underlying value of the assets, the difference is known as the 'discount'. For these reasons, investors may not get back the original amount invested.

·          Although the Company's financial statements are denominated in sterling, some of the holdings in the portfolio are currently denominated in currencies other than sterling and therefore they may be affected by movements in exchange rates. As a result, the value of your investment may rise or fall with movements in exchange rates.

·          Investors should note that tax rates and reliefs may change at any time in the future.

·          The value of ISA and Junior ISA tax advantages will depend on personal circumstances. The favourable tax treatment of ISAs and Junior ISAs may not be maintained.

To view the report online

If you would like to view video updates about the company, please visit: www.mobiusinvestmenttrust.com

END

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on this announcement (or any other website) is incorporated into, or forms part of, this announcement.