Conditional tender offer and net asset value

RNS Number : 1628S

Advance Developing Markets Fund Ltd

04 November 2013

 



For release on 4 November 2013

Advance Developing Markets Fund Limited (the "Company")

Conditional tender offer and net asset value

Conditional tender offer

At the extraordinary general meeting of the Company held on 15 March 2013, shareholders approved proposals for two conditional tender offers in respect of the six month periods ending 31 October 2013 and 30 April 2014. Such conditional tender offers would be made for up to 10% of the ordinary shares in issue at a 1% discount to formula asset value ("FAV"), being the net asset value of the tendered shares less the costs and expenses of the tender offer, if either (i) the Company's ordinary shares trade at an average discount of more than 10% over the period from 1 May 2013 to 31 October 2013 and 1 November 2013 to 30 April 2014 or (ii) the Company's performance over those periods, as measured by its net asset value total return, is less than that of the MSCI Emerging Markets Net Total Return Index in Sterling terms.

In the first six month measurement period ended 31 October 2013, the Company's ordinary shares traded at an average discount of 10.5% and the Company's performance over the same period, as measured by its net asset value total return, was 3.0% below that of the MSCI Emerging Markets  Net Total Return Index in Sterling terms. Consequently, the Board will be implementing a tender offer for up to 10% of the Company's shares in issue at a 1% discount to FAV. 

The Board expects to send a circular to shareholders before the end of November 2013 providing further details of the terms and conditions of the tender offer. The record date for participation in the tender offer will be 7 November 2013.

The Company out-performed its benchmark in the first half of its financial year, being the six months ended 30 April 2013.  However, the measurement period over the second half of the financial year proved to be one of exceptional volatility within emerging markets, with market performance largely driven by speculation over the future path of US monetary policy.

Net asset value

With effect from 1 November 2013, with a view to increasing the Company's transparency, the Board has resolved to move from the current publication of a weekly net asset value per share to publishing the Company's net asset value per share through a Regulatory Information Service on a daily basis. Accordingly, the average discount to net asset value per share for the second tender monitoring period ending 30 April 2014 will be calculated by reference to such daily net asset value per share and the quoted closing price of the shares (as derived from Bloomberg).

Enquiries

Advance Developing Markets Fund Limited

Richard Bonsor, Chairman                                                                                                   020 7484 7484

Westhouse Securities Limited

Financial adviser and broker

Alastair Moreton                                                                                                                     020 7601 6118

Hannah Young

Darren Vickers

 

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