Interim Management Statement

RNS Number : 2164N

Advance Developing Markets Fund Ltd

04 September 2013

 



Advance Developing Markets Fund Limited ("the Company")

Interim Management Statement

This interim management statement covers the period from 1 May 2013 to 31 July 2013 and up to the date of publication of this statement. It is the second interim management statement issued by the Company in its financial year to 31 October 2013, as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3.

Investment objective and policy

The Company's investment objective is to achieve consistent returns for Shareholders in excess of the MSCI Emerging Markets Net Total Return Index in Sterling terms.

Advance Emerging Capital Limited (the "Investment Manager") invests in a portfolio of funds and products which give diversified exposure to emerging market economies and those of the Pacific Rim. The Company's geographic asset allocation is derived from the Investment Manager's analysis of the prospects for regions and countries and of the underlying opportunities for investment. Individual investments are selected for their potential to outperform as a result of one or more of the following criteria: the performance of the region, market or asset class in which they invest; the skill of the underlying fund manager; and, in the case of closed end funds, through the narrowing of discounts at which their shares trade to net asset value. The Investment Manager may employ hedging mechanisms where it believes that this would protect the performance of the Company's investment portfolio in a cost effective manner.

Highlights

During the period from 1 May 2013 to 31 July 2013:

* Net Asset Value ("NAV") per ordinary share ("Share") fell by 7.1%

* Share price fell by 7.5%

* MSCI Emerging Markets Net Total Return Index in Sterling terms fell by 5.8%

* NAV per Share was 485.6p as at 31 July 2013

* Share price (mid-market) was 436.5p as at 31 July 2013

* Net assets were £311.4 million as at 31 July 2013

Gearing

Gearing is not used as a tool to enhance performance but short term borrowing is permitted to assist in the management of liquidity.

Material transactions and events

The Board of Directors is not aware of any material transactions or events that have occurred between 1 May 2013 and the date of this interim management statement that would have a material impact on the financial position or performance of the Company.

Top 10 Holdings as at 31 July 2013                                       % of NAV

Korea Fund Inc                                                                           5.7%

BlackRock Latin American IT                                                      5.1%

Templeton Emerging Markets IT                                                  5.1%

Neuberger Berman - China Equity Fund                                       4.9%

JPMorgan Russian Securities                                                       4.7%

Coronation Top 20 Fund                                                              4.6%

Edinburgh Dragon Trust                                                              4.4%

Aberdeen Latin America Equity Fund                                          4.1%

Schroder Asia Pacific Fund                                                         3.7%

India Fund Inc                                                                            3.5%

Total for top 10 holdings                                                         45.7%                                                                        

4 September 2013

Enquiries:

Advance Emerging Capital Limited (Investment Manager to Advance Developing Markets Fund Limited)

Roger Allen

Tel: [phone]           Email: [e-mail]

 

END

 

 

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