Annual Financial Report

RNS Number : 6571S

Genesis Emerging Markets Fund Ld

25 September 2014

 

GENESIS EMERGING MARKETS FUND LIMITED

(The "Company"; the "Fund")

(Registration Number : 20790)

STOCK EXCHANGE ANNOUNCEMENT

ANNUAL FINANCIAL REPORT

The Directors of Genesis Emerging Markets Fund Limited announce the Fund's results for the year ended 30^th June 2014.  The Annual Financial Report will shortly be available from the Manager's website www.giml.co.uk and also for inspection on the National Storage Mechanism, which is located at http://www.morningstar.co.uk/uk/NSM where users can access the regulated information provided by listed entities.

INVESTMENT APPROACH

The investment approach is to identify companies which are able to take advantage of growth opportunities in emerging markets for the benefit of shareholders, and invest in them when they are trading at an attractive discount to the Manager's assessment of their intrinsic value.

BENCHMARK

MSCI Emerging Markets (Total Return) Index.

RESULTS

	30th June 2014	30th June 2013
Published net asset value*	£780.1m	£757.6m
Published net asset value per Participating Preference Share*	£5.78	£5.61
Published net asset value per Participating Preference Share*†	US$9.88	$8.51
Earnings per Participating Preference Share	$1.40	$0.47

* Figures are based on the last traded price for investments.

† A reconciliation to the 30^th June 2013 net asset value per Participating Preference Share under International Financial Reporting Standards is shown in note 2.

CHAIRMAN'S STATEMENT

Performance

Despite an environment of continued uncertainty for the global economy, stock markets have generally performed extremely well over the last year. Emerging markets shared in this performance, with GEMF returning 16.1% and the MSCI EM (TR) Index returning 14.7% in US dollar terms. The rapid appreciation of sterling against other currencies during the second half of 2013, however, reduced the return for UK-based investors. In sterling terms the Fund's net asset value per share ('NAV') increased from £5.61 at the end of June 2013 to close the financial year at £5.78. This represented a return of 3.0% for shareholders, whilst the index performance translated to a more modest 1.7%.

The share price rose by 9.6% over the year but this was largely a reflection of the share price discount to NAV having been unusually wide at the end of the last financial year in June 2013, and narrowing during the year to a more typical level of 6.1%. The average level of discount over the twelve-month period was 7.7%, and while there was variation around that as a consequence of transactions by some of the Fund's larger shareholders the majority of the period saw the discount in the range of between 5% and 10%.

While this report is focused primarily on the last twelve months, shareholders will of course be aware that the objective of the Fund is to generate consistent returns over a long-term horizon. It is fair to say that the last three years have been challenging for emerging markets investors with the market broadly flat: the MSCI EM (TR) Index has fallen by 2.1% p.a. (and the Fund a small positive return) in sterling over this period. But we believe that the Fund's performance over the longer term (11.7% p.a. over 5 years and 14.9% p.a. over 10 years, both comfortably ahead of the MSCI EM (TR) Index) means that the Fund is achieving its objective, to the benefit of its shareholders.

The Fund's Portfolio and the Manager

An essential role for the Board is to engage regularly with the Manager in order to assess its ongoing ability to generate returns through investments in emerging markets. The Manager's approach is to identify high-quality companies in which it feels able to invest capital over at least (and usually in excess of) a five-year horizon, and which the market appears to be pricing cheaply. This approach has consistently added value for shareholders over the 25 years of the Fund's existence and we continue to believe it is appropriate for the Fund; and hence that the shareholders' interests are well-served by the ongoing appointment of the Manager.

The Fund holds a diversified portfolio of companies from a wide number of emerging market countries, and include a number of smaller companies (although within that overall framework a significant part of the portfolio is concentrated in a relatively small number of larger stocks in which the Manager's conviction is particularly strong). As one would expect given the fundamental long-term approach being followed, the average holding period for companies in the Fund's portfolio is currently around seven years, with turnover correspondingly low at around 18% over the last twelve months.

The Manager's Review which follows the Directors' Report elaborates on the investment environment and highlights some of the companies that have contributed to performance over the last year.

The Board of Directors

The Fund's Annual General Meeting last October saw Dr. Geng Xiao retire as a Director, and the formal election of Sujit Banerji. The number of Directors therefore remains at six.

In accordance with the requirements of the AIC Code of Corporate Governance and the UK Corporate Governance Code, all Directors are required to retire and stand for re-election each year. I hope that shareholders will feel able to vote in favour of the re-election of all Directors at this year's AGM, and allow us to continue to serve them as members of the Board of the Fund.

Regulatory Developments

A number of regulatory developments in recent months have necessitated consideration by the Board. Foremost amongst these is the introduction of the European Union's Alternative Investment Fund Managers' Directive ('AIFMD'), whose aim is the establishment of common requirements governing the authorisation and supervision of Alternative Investment Funds ('AIF'). GEMF, as an AIF that is not based in the EU, is only impacted by the marketing elements of the Directive. However, it seems likely that over time many of the operating requirements of the Directive (for example in terms of reporting disclosure) will be applied to all funds; naturally the Board will look to ensure compliance with all relevant points as soon as they become clear.

AGM and Shareholder Meeting

The notice convening the Annual General Meeting to be held on 30^th October 2014 in Guernsey will be found at the end of this Annual Financial Report, along with the schedule of resolutions to be considered. We would strongly encourage all shareholders to vote on the resolutions thereby allowing the Board to gain the clearest insight into your views.

Accompanying this Annual Financial Report is an invitation to the Fund's Information Meeting, which will take place on 30^th October at the Investment Adviser's office in London. This will provide an opportunity for shareholders to hear directly from representatives of the Manager, and we hope to see as many of you as possible at this event.

Outlook

In many ways the economic environment for emerging markets companies has become more positive in recent months. It seems that concerns over the 'tapering' of the United States' quantitative easing programme are lessening as the gradual pace of change makes it more likely that the majority of countries can adjust to a new environment.

The Manager's Review sounds a longer-term note of caution for investors, however. As you will read, the Manager suggests that emerging markets companies may not be able to maintain the same levels of profitability over the next few years as they have over the last decade, and hence that future stock market returns may be lower than those to which investors have become accustomed.

That said, taken as a whole the companies held in the Fund's portfolio are still trading at very reasonable valuations. As a Board we take the view that in this environment the variation in performance between good and bad companies is likely to widen, and therefore that the importance of good stock selection only increases. A well-diversified portfolio of high-quality stocks - managed by a proven stock-focused manager - remains, we believe, the best way of generating attractive returns from emerging markets over the medium to long term.

Coen Teulings

Chairman

DIRECTORS' REPORT

RESULTS

The total gain for the year for the Fund amounted to $188,714,000 compared to a total gain of $63,745,000 in the previous year. The Directors do not recommend the payment of a dividend in respect of the year ended 30^th June 2014 (2013: nil).

CAPITAL VALUES

At 30^th June 2014, the value of Equity Shareholders' Funds was $1,334,019,000 (2012: $1,145,305,000), the Net Asset Value per Participating Preference Share was $9.88 (2013: $8.48).

PRINCIPAL RISKS AND RISK MANAGEMENT

The investment objective of the Fund is to achieve capital growth over the medium to long term, primarily through investment in equity securities quoted on emerging markets. The main risks to the value of its assets arising from the Fund's investment in financial instruments are unanticipated adverse changes in market prices and foreign currency exchange rates and an absence of liquidity. The Board reviews and agrees with the Manager policies for managing each of these risks and they are summarised below. These policies have remained unchanged since the beginning of the period to which these financial statements relate.

The economies, currencies and the financial markets of a number of developing countries in which the Fund invests may be extremely volatile. To manage the risks posed by adverse price fluctuations the Fund's investments are geographically diversified, and will continue to be so. The Fund will not normally invest more than 25% of its assets (at the time the investment is made) in any one country. Further, the exposure to any one company or group (other than an investment company, unit trust or mutual fund) is unlikely to exceed 5% of the Fund's net assets at the time the investment is made. The Articles of Incorporation place a limit of 10% for securities issued by one company but the Directors use 5% for monitoring purposes.

The Fund's assets will be invested in securities of companies in various countries and income will be received by the Fund in a variety of currencies. However, the Fund will compute its net asset value and make any distributions in US dollars. The value of the assets of the Fund as measured in US dollars may be affected favourably or unfavourably by fluctuations in currency rates and exchange control regulations. Further, the Fund may incur costs in connection with conversions between various currencies.

Trading volumes on the stock exchanges of developing countries can be substantially less than in the leading stock markets of the developed world. This lower level of liquidity exaggerates the fluctuations in the value of investments described previously. The restrictions on concentration and the diversification requirements detailed above also serve normally to protect the overall value of the Fund from the risks created by the lower level of liquidity in the markets in which the Fund operates.

The Fund is also exposed to operational risks such as custody risk. Custody risk is the risk of loss of securities held in custody occasioned by the insolvency or negligence of the Custodian. Although an appropriate legal framework is in place that eliminates the risk of loss of value of the securities held by the Custodian, in the event of its failure, the ability of the Fund to transfer the securities might be temporarily impaired. The day to day management of these risks is carried out by the Manager under policies approved by the Board.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the financial statements for each financial year so that they give a true and fair view, in accordance with applicable Guernsey Law and International Financial Reporting Standards as adopted by the European Union, of the state of affairs of the Fund and of the profit or loss of the Fund for that year.

In the preparation of these financial statements, the Directors are required to:

-        select suitable accounting policies and then apply them consistently;

-        make judgments and estimates that are reasonable and prudent;

-        ensure the financial statements are prepared on a going concern basis unless it is inappropriate to presume that the Fund will continue in business; and

-        state whether applicable accounting standards have been followed subject to any material departures disclosed and explained in the financial statements.

The Directors confirm that they have complied with the above requirements in preparing the financial statements. The Directors are responsible for ensuring that the Fund keeps proper accounting records which disclose with reasonable accuracy at any time the financial position of the Fund and enable them to ensure that the financial statements comply with The Companies (Guernsey) Law, 2008. They are also responsible for ensuring the safeguarding of the assets of the Fund and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Having taken all available information into consideration, the Board has concluded that the Annual Financial Report for the year ended 30^th June 2014, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Fund's performance, business model and strategy.

The financial statements are published on the website, www.giml.co.uk, which is maintained by Genesis Investment Management LLP ('Investment Adviser'). The maintenance and integrity of the website is, so far as relates to the Fund, the responsibility of the Investment Adviser. The work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

Legislation in Guernsey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

AUDITORS AND DISCLOSURE OF INFORMATION TO AUDITORS

In the case of each of the persons who are Directors at the time when the report is approved, the following applies:

-        so far as the Director is aware, there is no relevant audit information of which the Fund's auditors are unaware; and

-        they have taken all steps that ought to have been taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Fund's auditors are aware of that information.

DIRECTORS' INTERESTS

The following Directors who served throughout the year under review (except Sujit Banerji who was elected on 31^st October 2013) had a beneficial interest in the share capital of the Fund at 30^th June 2014:

Directors	Beneficial interest in Participating Preference Shares at 30th June 2014
Coen Teulings	40,000
Michael Hamson (including family interests)	8,700
Saffet Karpat	7,500
Hélène Ploix	7,690

MANAGER'S REVIEW

Despite continued concerns about global growth, emerging market stock markets gathered momentum over the Fund's financial year with the MSCI EM (TR) Index closing up some 14.7% in US dollar terms, although this translated to a return of only 1.7% in sterling terms. The Fund's NAV slightly outperformed the index over the period, with a 3.0% gain in sterling.

In recent months political events in a number of countries have dominated the investment environment, including in two of the major markets, Brazil and India.

The October 2014 Presidential election campaign in Brazil has been turned on its head by the death of the PSB candidate, Eduardo Campos, in a tragic plane accident in August. The nomination of Marina Silva as the replacement candidate has led to a rapid swing in voter intentions and at the time of writing, the incumbent Dilma Rousseff is unlikely to win in a second round run-off against Silva. After three Workers' Party administrations, the economy is underperforming and the voting public are seemingly looking for a change. Our focus has turned to assessing the governability of the country in a Silva administration. The 2015 outlook remains difficult and whoever wins will have to normalise fiscal accounts while pursuing reforms to introduce productivity growth, but Brazil boasts a fantastic collection of high quality businesses and a deep pool of sophisticated management and entrepreneurs.

In India, the BJP-led National Democratic Alliance won an absolute majority with its leader Narendra Modi chosen as the new Prime Minister. Mr Modi, erstwhile governor of the western state of Gujarat, ran on a platform of "less government, more governance" which found widespread appeal in the wake of previous administrations being seen as ineffective and mired in corruption scandals. With a majority on a scale not seen in 30 years, Mr Modi has a clear mandate to move his agenda forward. Immediate priorities are likely to focus on stimulating investment through, for example, the faster clearing of permits for new projects. The rise in the stockmarket reflects investors' confidence that Mr Modi will be able to deliver on his pre-election promises.

Over the Fund's financial year, the best performing sector was IT, which benefitted from both the recovery in developed markets and the strong sentiment in Chinese internet stocks. In terms of countries, there was strong performance from India, whose weaker currency has further helped those IT services companies who export to the developed world, while domestic businesses, particularly banks, performed well post-election. The Fund's weight in banks - which are well placed to benefit from continued financial deepening - was increased, with new positions in Thai retail bank Kasikornbank and Hungarian sector leader OTP Bank.

Looking at market allocations, despite taking some profits in the strongly performing health care (Sun Pharmaceutical) and IT (Cognizant, Infosys) sectors, India became the country with the largest weight in the Fund as a result of market movements. In contrast, the largest market reduction in the Fund was in China, primarily due to the sales of richly valued internet stocks (Ctrip, Tencent, Baidu).

A number of new positions have been introduced to the portfolio in recent months, including new positions in Jiangsu Yanghe Brewery (China), mobile payments operator Safaricom (Kenya), 7-Eleven Malaysia, and within the financials sector Kasikornbank, AIA Group (China), First Cash (Mexico) and OTP Bank. Turning to sales, there were notable reductions to holdings in the IT sector - Baidu and Tencent (both China) exited the portfolio following strong share price performance and there were significant reductions to Infosys and Cognizant (both India). Elsewhere, China Life Insurance and MOL (Hungary) were both sold and we further took advantage of the strong Indian market by reducing a number of holdings there, most notably Maruti Suzuki.

In terms of outlook, whilst we continue to believe that the long-term outlook for emerging market companies remains strong, our bottom-up analysis suggests the portfolio is likely to deliver a lower return going forward than over the previous decade (which produced an annualised return of 18.4% from January 2003 to March 2014).

Over the last three years, the portfolio return on equity has fallen from over 22% to around 16%, and our analysis indicates that, although there may be a recovery in some sectors, we do not anticipate the portfolio profitability recovering to previous levels. In addition, growth in many industries is likely to be slower as penetration rates in emerging markets have increased, for example beverage consumption, bank credit, mobile telephones, the shift to modern retail trade, cement and steel consumption in China. There are still many areas of under-penetration (e.g. banking in India, consumer goods in Africa, e-commerce globally) but looking at the portfolio in aggregate, companies have fewer opportunities for reinvestment than a decade ago. Companies may deliver results that exceed our expectations but we prefer to be cautious, especially given the challenges China faces in rebalancing its economy and the uncertain impact of an eventual normalisation of interest rates in developed and some developing economies.

Despite the compression of profitability in certain key sectors and a slightly lower growth environment, we believe the portfolio holdings represent a diversified range of attractively-priced, high-quality businesses that should continue to deliver attractive returns to its shareholders over the long term.

Genesis Asset Managers, LLP

September 2014

STATEMENT OF FINANCIAL POSITION

as at 30^th June 2014

	Note	2014 $'000		2013 $'000
ASSETS
Current assets
Financial assets at fair value through profit or loss		1,310,219		1,134,380
Amounts due from brokers		7,637		4,067
Dividends receivable		1,426		1,845
Other receivables and prepayments		167		167
Cash and cash equivalents		17,416		9,389
TOTAL ASSETS		1,336,865		1,149,848
LIABILITIES
Current Liabilities
Capital gains tax payable		267		247
Amounts due to brokers		265		2,216
Payables and accrued expenses		2,314		2,080
TOTAL LIABILITIES		2,846		4,543
TOTAL NET ASSETS		1,334,019		1,145,305
EQUITY
Share premium		134,349		134,349
Capital reserve		1,169,925		982,168
Revenue account		29,745		28,788
TOTAL EQUITY		1,334,019		1,145,305
NET ASSET VALUE PER PARTICIPATING PREFERNCE SHARE*	2	$9.88		$8.48

* Calculated on an average number of 134,963,060 Participating Preference Shares outstanding (2013: 134,963,060).

STATEMENT OF COMPREHENSIVE INCOME

for the year ended 30^th June 2014

		2014 $'000		2013 $'000
INCOME
Net change in financial assets at fair value through profit or loss		187,622		66,311
Net exchange gains/(losses)		135		(338)
Dividend income		25,201		20,694
Miscellaneous income		7		130
		212,965		86,797
EXPENSES
Management fees		(18,440)		(17,927)
Custodian fees		(1,008)		(1,386)
Transaction costs		(1,455)		(1,350)
Directors' fees and expenses		(523)		(332)
Administration fees		(298)		(181)
Audit fees		(100)		(95)
Other expenses		(151)		(191)
TOTAL OPERATING EXPENSES		(21,975)		(21,462)
OPERATING PROFIT		190,990		65,335
FINANCE COSTS
Bank charges		-		(1)
TOTAL FINANCE COSTS		-		(1)
Capital gains tax		(20)		701
Withholding taxes		(2,256)		(2,290)
		(2,276)		(1,589)
PROFIT/(LOSS) AFTER TAX FOR THE YEAR ATTRIBUTABLE TO PARTICIPATING PREFERENCE SHARES		188,714		63,745
Other Comprehensive Income		-		-
TOTAL COMPREHENSIVE INCOME		188,714		63,745
EARNINGS PER PARTICIPATING PREFERENCE SHARE		$1.40		$0.47

* Calculated on an average number of 134,963,060 Participating Preference Shares outstanding (2013: 134,963,060).

STATEMENT OF CHANGES IN EQUITY

for the year ended 30^th June 2014

	2014
	Share Premium $'000		Capital Reserve $'000		Revenue Account $'000		Total $'000
Balance at the beginning of the year	134,349		982,168		28,788		1,145,305
Total Comprehensive Income	-		-		188,714		188,714
Transfer to Capital Reserve	-		187,757		(187,757)		-
Balance at the end of the year	134,349		1,169,925		29,745		1,334,019
	2013
	Share Premium $'000		Capital Reserve $'000		Revenue Account $'000		Total $'000
Balance at the beginning of the year	134,349		916,195		31,016		1,081,560
Total Comprehensive Income	-		-		63,745		63,745
Transfer to Capital Reserve	-		65,973		(65,973)		-
Balance at the end of the year	134,349		982,168		28,788		1,145,305

STATEMENT OF CASH FLOWS

for the year ended 30^th June 2014

			2014 $'000			2013 $'000
OPERATING ACTIVITIES
Dividends received		25,627				21,789
Taxation paid		(2,256)				(3,006)
Purchase of investments		(227,103)				(227,597)
Proceeds from sale of investments		233,365				229,572
Operating expenses paid		(21,741)				(21,438)
NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES		7,892				(680)
Effect of exchange gains/ (losses) on cash and cash equivalents		135				(338)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS		8,027				(1,018)
Net cash and cash equivalents at the beginning of the year		9,389				10,407
NET CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR		17,416				9,389
Comprising: Cash and cash equivalents		17,416				9,389

1.   BASIS OF PREPARATION

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated.

The financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ('IFRS') and interpretations by the International Financial Reporting Interpretations Committee of the International Accounting Standards Board.

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities at fair value through profit or loss.

The preparation of financial statements in conformity with IFRS may require management to make critical accounting judgements, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expense. The estimates and associated assumptions about the future which are made by management relating to unlisted securities, are made using models generally recognised as standard within the industry and inputs are based on the historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. 

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

Following the adoption of IFRS 13 for the year ending 30^th June 2014 the published net asset value equals the Net Asset Value presented in the financial statements under IFRS.

	2013 Total $'000		Per Participating Preference Share $
Published net asset value	1,148,987		8.51
Change from last traded price to bid pricing for investments	(3,682)		(0.03)
Net asset value under IFRS	1,145,305		8.48

3.   SIGNIFICANT AGREEMENTS AND RELATED PARTIES

Manager's remuneration and terms of appointment

The Manager's appointment is under a rolling contract which may be terminated by three months written notice given by the Fund and twelve months by the Manager.

Under the Management Agreement, the Manager is entitled to receive a management fee from the Fund, payable monthly in arrears and is equal to 1.5% per annum, calculated and accrued on the Net Asset Value of the Fund as at each weekly Valuation Day, except for investments in Investee Funds, where the Manager will absorb the expenses of the management of such funds to a maximum of 1% per annum of the value of the Fund's holding in the relevant fund at the relevant time. The effective management fee on the average Net Assets of the Fund was 1.50% (2013: 1.50%). Where, in order to gain access to a particular market, investment is made in a vehicle directly managed by Genesis, no fee will be payable by the Fund on that proportion of its assets so invested, unless no management fee is charged to that vehicle.

Administration fees 

The Administrator is entitled to receive a fee, payable monthly, based on time incurred. Administration fees for the year were $298,000 and charged by JPM Administration Services (CI) Limited (2013: $181,000 being $141,000 charged by HSBC Securities Services (Guernsey) and $40,000 charged by JPM Administration Services (CI) Limited).

Custodian fee

Under the Custodian Agreement, the Custodian to the Fund is entitled to receive a fee payable monthly, based on the Net Asset Value of the Fund. Since 1^st May 2013 all custody services have been performed by JP Morgan Chase Bank. Prior to 1^st May 2013, HSBC Custody Services (Guernsey) Limited was the Custodian and JP Morgan Chase Bank the Sub-Custodian, with the latter entitled to receive a fee calculated on the same basis as the Custodian's fee.

The Fund also reimburses the charges and expenses of other organisations with whom securities are held. The total of all Custodian fees for the year represented approximately 0.08% (2013: 0.12%) per annum of the average Net Assets of the Fund.

Directors' fees and expenses

Included in Directors' fees and expenses are Directors' fees for the year of $374,000 (2013: $193,000). Also included are travelling, hotel and other expenses which the Directors are entitled to when properly incurred by them in travelling to, attending and returning from meetings and while on other business of the Fund.

Other group investments

The Genesis Indian Investment Company Limited and Genesis Smaller Companies SICAV are related parties of the Fund by virtue of having a common Manager in Genesis Asset Managers, LLP. The Fund's holdings in these funds are summarised in the portfolio statement of the Annual Financial Report, subscriptions and redemptions during the year under review are detailed in the table below. No dividends were received from these funds during the year (2013: nil). There were no other transactions between the Fund and such related parties during the year except as noted above and there were no outstanding balances between these entities at 30^th June 2014.

	2014
	Subscriptions $'000		Redemptions $'000
Genesis Indian Investment Company Limited	-		3,987
Genesis Smaller Companies SICAV	-		5,267
	2013
	Subscriptions $'000		Redemptions $'000
Genesis Indian Investment Company Limited	-		13,279
Genesis Smaller Companies SICAV	370		26,345

This Annual Financial Report announcement does not constitute the Company's statutory accounts for the years ended 30^th June 2014 and 30^th June 2013 but is derived from those accounts.

The audited Annual Financial Report for the year ended 30^th June 2014 will be sent to shareholders shortly and will be available for inspection at the registered office: 1^st Floor, Les Echelons Court, Les Echelons, South Esplanade, St. Peter Port, Guernsey GY1 6JB, Channel Islands.

For Genesis Emerging Markets Fund Limited

JPM Administration Services (CI) Limited

24^th September 2014

 

END

 

 

FR EALNSAADLEFF