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Genesis Malaysia (BB40)

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Friday 20 March, 2009

Genesis Malaysia

Final Results

                           GENESIS MALAYSIA MAJU FUND LIMITED
                               STOCK EXCHANGE ANNOUNCEMENT

                        ANNOUNCEMENT OF RESTRUCTURING OF THE COMPANY
                         AND RESULTS FOR YEAR TO 31ST DECEMBER 2008


Reorganisation

At its meeting in Kuala Lumpur the Board of Genesis Malaysia Maju Fund Ltd ("Fund") instructed Genesis Asset Managers,
LLP ("Manager") to examine in detail the practicality of reorganising the Fund's structure.  The purpose of this
reorganisation is to create increased liquidity for shareholders. The Board stressed that this decision did not result
from any failing by the Manager or poor investment performance.  The current conditions in the market for specialised
closed ended funds do not provide a sufficiently deep pool of potential investors to allow either a ready exit for
existing shareholders or opportunities for investors wishing to increase their interest to acquire shares and so a
reorganization of the Fund needs to be undertaken to provide liquidity.  The Board wishes the Manager to examine in
particular a proposal to wind up the existing Guernsey investment company and transfer the assets of eligible electing
shareholders in Maju in specie into a newly formed open ended umbrella fund resident and listed in Dublin.

Results for the year
Chairman's Statement
                                                                    2008                     2007

                                                                     US$                      US$

Total net assets*                                              53,524,159             117,358,661


Net assets per Participating Share*                                35.58                    77.15

Total (deficit)/return per Participating Share                    (41.97)                   24.70

*Published Net Asset Value



Commenting on the results the Chairman has made the following statement:

As a consequence of the reorganisation proposal (announced with this Preliminary Statement), the Directors will shortly
be sending shareholders a circular describing in detail a proposal to offer shareholders the opportunity to convert
their shares in the Fund into shares in an open-ended investment company registered and listed in Dublin carrying a
broader investment mandate than the current fund by permitting investments in all of the ASEAN countries.

Shareholders should therefore be aware that these financial statements have been prepared on the assumption that the
proposal will be approved and so the "going concern" basis is not appropriate. For the purposes of these financial
statements all performance measures are expressed using figures before charging the costs of winding up the Fund.

In investment terms, it has been a very difficult year for your Fund, operating as it has within the context of rapidly
declining stock markets reflecting a severe global economic downturn. In my statement accompanying the Fund's Interim
Report six months ago, I noted that the first half of 2008 was an uncomfortable period for investors in Malaysian mid-
and smaller capitalised companies. Unfortunately the remainder of the year proved to be even more difficult as the scale
of the financial crisis became more apparent. Consequently the Fund's holdings suffered alongside other emerging markets
and indeed world markets.

During the year, the Fund's published net asset value per share (before winding up costs) fell from US$77.15 to
US$35.58, representing a decline of 53.9%. The Kuala Lumpur Stock Exchange index declined by less, at 43.1%, reflecting
the fact that larger capitalised stocks tend to hold up better than the smaller capitalised stocks in declining markets.

The immediate economic outlook is of course rather negative: the IMF is forecasting overall global growth to fall to
0.5% in 2009, a significant downward revision from the 3.9% growth estimate for the period it made in the middle of
2008. As has been widely publicised, this would be the lowest growth rate since World War II. The world economy is
expected to recover only gradually in 2010.

With this economic background in mind, your board recognises that 2009 will be a challenging year. We do though believe
in the long-term merits of investing in Malaysia and the ASEAN region and support the Manager's positive long-term view
as articulated in the report in the following pages of this Report and Accounts. The Malaysian economy, and the
companies operating within it, is in better shape than many of its peers. Corporate valuations appear as attractively
low now as they have been for some years.

Despite the dramatic market declines of 2008 (which have so far continued into 2009), the Directors are of the view that
the ongoing structural changes taking place in Malaysia - when combined with the prudent stock selection approach of the
Manager - should provide good long-term opportunities..

In accordance with recent past practice, the Directors do not recommend the payment of a dividend. There were also no
changes in the composition of your board during the year.

Gordon Young
Chairman
March 2009


Manager's Report

Commenting on the results the Manager has made the following statement:

It says a lot about the environment for emerging market equities that Malaysia put in one of the better performances in
2008, despite a 41.8% fall in the KLSE Index in US dollars. The Malaysian market seems to have suffered less than some
from foreign equity withdrawal because foreign investors had a relatively low exposure to begin with. However smaller
company equities performed worse than those of larger companies - in both Malaysia and elsewhere - and this held back
the Fund's performance; the Fund's NAV fell 53.9% in US dollars, before winding up costs.

Malaysia has one of the world's most open economies, with trade around 200% of GDP. Weak global demand has thus shown up
very quickly in the trade data: exports fell nearly 15% year-on-year in December. While this will affect the outlook for
employment, luckily it is not a disaster for the balance of payments or the currency because imports fell even more than
exports, so the trade balance was stable. This import compression is likely to persist because electronic and electrical
goods, which together constitute around half of Malaysia's total exports, have a very high import content.

The issues facing the corporate sector are two-fold, and are exactly what companies everywhere are experiencing, that
is, demand has shrunk and credit has dried up. Fortunately the local banks are among the most liquid in the world (loans
to deposits around 75%) so a good business should still be able to find ringgit funding even if dollars are less
forthcoming. It helps that the Malaysian banking system entered the credit squeeze from a strong position. Credit has
been steadily shrinking as a proportion of GDP since 1998, a result of corporate sector deleveraging after the currency
turmoil in 1997 and a reluctance to borrow much ever since. By and large the companies know what to do, having survived
the slump of the late 1990s. Thus they are delaying expansion plans, cutting nonessential spending and letting go some
contract labour.  As a result, it is possible that some companies could even emerge from the downturn stronger than many
of their international competitors, notably in the more specialised areas of construction and manufacturing and in
banking.

The very testing environment has brought down our expectations for earnings and cash flow generation for many of the
Fund's holdings, and this inevitably reduces our estimates of what these businesses are worth. However in most cases
share prices have more than reflected these reductions. The challenge is to look through the cycle to the eventual
recovery and ensure the Fund is exposed to a good spread of companies that will benefit when the capital markets start
to thaw. In trying to establish firm value in a volatile environment, it also pays to use a range of valuation
techniques - for example book value can be a useful tool when earnings and cash flow are, for whatever reason, not
representative of the company's long run potential.

Domestic political upheaval took a temporary break in September with the Prime Minister's announcement that he will
retire as UMNO President in March 2009. The leadership will fall to Deputy Prime Minister Najib, who seems fully aware
that his administration's survival will depend on its performance. Najib has said it is time to adjust the long-standing
policies of positive affirmation (put in place in 1971 by his father when he was Prime Minister), and that failure to do
so will lose UMNO the next election. It seems Malaysia may be entering an interesting period of political reform, and if
successfully executed it might help to open the country further in terms of human capital and could stem the brain drain
among non-Malays.

In the near term however, the incoming Najib administration is likely to focus on the economy. Growth is likely to be in
the very low single digits at best in 2009 and it speaks volumes about the gravity of the situation that the government
is already working on a second stimulus package just months after delivering its first one. It is unclear how effective
the multiplier of this fiscal spending can be, given the low level of consumer confidence and relatively high level of
personal debt, but at least a coordinated plan should provide a degree of support that is currently missing.

Longer term the damage is not expected to be crippling. Malaysia has a broad and competitive industrial base and a
stable macro policy, which give some protection from extreme volatility. In addition the incoming administration appears
to have an eye on international competitiveness and attractiveness to foreign direct investment. Malaysia's export
orientation and economic diversity are likely to perk up with any international recovery and it is a fair bet that its
entrepreneurial and flexible corporate sector will not stay in the doldrums for long.


Genesis Asset Managers, LLP
March 2009


Principal Risks and Uncertainties

The principal risks and uncertainties faced by the Company fall into five broad categories: investment and strategy;
accounting, legal and regulatory; corporate governance and shareholder relations; operational and financial. Information
on each of these areas is given in the Directors Report within the Annual Report and Audited Financial Statements for
the year ended 31st December, 2008.

Related Party Transactions

During the financial year, no transactions with related parties have taken place which have materially affected the
financial position or the performance of the Company during the period.

Directors' Responsibilities

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

(i)     the financial statements have been prepared in accordance with applicable International Financial Reporting
Standards, and give a true and fair view of the assets, liabilities, financial position and profit or loss of the
Company; and

(ii)    the Annual Report, to be published shortly, includes a fair review of the development and performance of the
business and the position of the Company, together with a description of the principal risks and uncertainties that they
face.


For and on behalf of the Board
Gordon Young
Chairman

20th March 2009



                          GENESIS MALAYSIA MAJU FUND LIMITED

                                     BALANCE SHEET
                               as at 31st December, 2008

                                                                      2008                     2007
                                            $                        $


        ASSETS
        Financial assets at fair value through profit or loss   53,242,341              116,882,779
        Amounts due from brokers                                    38,403                1,366,338
        Trade and other receivables                                124,973                  135,156
        Cash and cash equivalents                                  965,441                  572,793

        TOTAL ASSETS                                            54,371,158              118,957,066

        LIABILITIES
        Amounts due to brokers                                           -                1,235,665
        Bank overdraft                                                   -                   21,140
        Trade and other payables                                   846,999                  341,600

        TOTAL LIABILITIES                                          846,999                1,598,405

        TOTAL NET ASSETS                                        53,524,159              117,358,661

        EQUITY
        Called-up share capital                                     26,000                   26,000
        Share premium                                           13,736,332               13,736,332
        Retained earnings                                       39,761,827              103,596,329

        TOTAL EQUITY                                            53,524,159              117,358,661

        EQUITY PER PARTICIPATING
        PREFERENCE SHARE                                            $35.18                   $77.15





                                      INCOME STATEMENT
                          for the year ended 31st December, 2008


                                                                      2008                     2007
                                                                        $                        $
        INCOME
        Net (losses)/gains from designated financial
        assets at fair value through profit or loss           (63,611,156)               37,706,937
        Net exchange losses                                      (141,990)                  (36,616)
        Dividend income                                         3,016,693                 2,759,070
        Deposit interest                                            5,357                    61,824
        TOTAL NET (LOSS)/INCOME                               (60,731,096)               40,491,215
        TOTAL OPERATING EXPENSES                               (2,434,711)               (2,262,798)
        OPERATING (LOSS)/PROFIT                               (63,165,807)               38,228,417

        FINANCE COSTS
        Bank charges                                                 (572)                     (183)
        Interest expense                                           (6,009)                   (7,291)
        Overdraft expenses                                         (5,000)                        -
        TOTAL FINANCE COSTS                                       (11,581)                   (7,474)

        (LOSS)/PROFIT FOR THE YEAR BEFORE TAX                 (63,177,388)               38,220,943
        Taxation                                                 (657,114)                 (654,667)
        (LOSS)/PROFIT FOR THE YEAR                            (63,834,502)               37,566,276

        (DEFICIT)/RETURN PER PARTICIPATING PREFERENCE SHARE *    $(41.968)                  $24.698

*  Calculated on an average number of 1,521,022 Participating Preference Shares outstanding(2007: 1,521,022)





                               STATEMENT OF CHANGES IN EQUITY
                           For the year ended 31st December, 2008


                                   31st December, 2008

                                       Share Capital    Share Premium   Retained Earnings        Total
                                                 $               $                   $              $

Net assets at the beginning of the year       26,000       13,736,332         103,596,329  117,358,661

Loss for the year                                  -                -         (63,834,502) (63,834,502)


Net assets at the end of the year             26,000       13,736,332          39,761,827   53,524,159




                                    31st December, 2007

                                       Share Capital    Share Premium   Retained Earnings        Total
                                                 $                 $                   $            $

Net assets at the beginning of the year       26,000       13,736,332          66,030,053   79,792,385

Profit for the year                                -                -          37,566,276   37,566,276


Net assets at the end of the year             26,000       13,736,332         103,596,329  117,358,661




                                  STATEMENT OF CASH FLOWS
                           for the year ended 31st December, 2008


                                                                                    2008         2007
                                                                                       $            $
        OPERATING ACTIVITIES
        Investment income received                                             3,018,840    2,099,685
        Taxation paid                                                           (657,114)    (654,667)
        Interest received                                                         13,845       65,015
        Interest paid                                                             (6,232)      (7,068)
        Operating expenses paid                                               (1,935,113)  (1,741,801)
        Purchase of investments                                              (16,226,692) (24,776,236)
        Proceeds from sale of investments                                     16,348,244   24,845,311
        Exchange losses                                                         (141,990)     (36,616)

        NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES                      413,788     (206,377)


        NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS                     413,788     (206,377)

        Cash and cash equivalents at the beginning of the year                   551,653      758,030

        CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR                         965,441      551,653






   RECONCILIATION OF PUBLISHED NET ASSET VALUE ATTRIBUTABLE TO EQUITY SHAREHOLDERS TO THE IFRS EQUIVALENT

                                                            31st December, 2008         Per Participating
                                                                          Total          Preference Share
                                                                             $                         $

Published Net Asset Value, Participating Preference Shares           54,113,369                    35.58
Accrual for winding up costs                                           (600,000)                   (0.40)
Net Asset Value under IFRS,                                          53,513,369                    35.18
Participating Preference Shares

Equity share capital                                                     10,790                     0.01

Net Asset Value under IFRS                                           53,524,159                    35.19

                                                            31st December, 2007         Per Participating
                                                                          Total          Preference Share
                                                                             $                         $

Published Net Asset Value, Participating Preference Shares          117,347,871                    77.15
Equity share capital                                                     10,790                     0.01

Net Asset Value under IFRS                                          117,358,661                    77.16


Notes
1. Accounting policies
The Fund financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS).
2. Status of preliminary announcement
The financial information set out in this preliminary announcement does not constitute the Fund's statutory financial
statements for the years ended 31st December 2008 or 2007. The financial information for the year ended 31st December
2008 is derived from the statutory financial statements for that year. Given the pending wind up of the Fund following
the year end (as discussed above), the going concern basis of accounting is no longer appropriate. Adjustments have been
made in the statutory financial statements to reduce assets to their realisable values, to provide for liabilities
arising from the decision, and to reclassify fixed assets and long-term liabilities as current assets and liabilities.
The auditors will report on those financial statements; their opinion is not expected to be qualified in this respect,
but will emphasise these issues.

The statutory financial statements for the year ended 31st December 2008 will be finalised on the basis of the
information presented by the Directors in this preliminary announcement following the approval of the financial
statements by the Board of Directors. Whilst the financial information included in this preliminary announcement has
been computed in accordance with International Financial Reporting Standards (IFRS), this announcement does not in
itself contain sufficient information to comply with IFRS. The Fund expects to publish full financial statements that
comply with IFRS following the approval of the financial statements by the Board of Directors.


For Genesis Malaysia Maju Fund Limited
HSBC Securities Services (Guernsey) Limited, Secretary
20th March, 2009