Interim Management Statement

RNS Number : 1177X

Genesis Emerging Markets Fund Ld

14 November 2014

 



Genesis Emerging Markets Fund Limited ("the Fund"; "the Company")

Interim Management Statement (unaudited)

for the three-month period ended 30^th September, 2014

This Interim Management Statement relates to the period 1^st July 2014 to 30^th September 2014 and is the Fund's first interim management statement for the financial year ending 30^th June 2014, as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3.

 Investment Objective

The investment objective of the Fund is to provide shareholders with a broadly diversified means of investing in developing countries and immature stock markets, and thus to provide access to superior returns offered by high rates of economic and corporate growth, whilst limiting individual country risk.

FINANCIAL POSITION

	As at 30th September 2014 (unaudited)	As at 30th June 2014 (audited)
Total Assets	£787 million	£780 million
Net Asset Value per share	583.0p	578.0p
Share Price	560.0	543.0p
Share Price Discount	-4.0%	-6.1%
Market Capitalisation	£756 million	£733 million
Participating preference shares in issue	134,963,060	134,963,060

FINANCIAL PERFORMANCE

Performance to 30th September 2014 in GBP	Q3	1 Year	3 Years*	5 Years*	10 Years*
	%	%	%	%	%
Share Price	3.1	1.0	8.2	7.7	15.3
Net Asset Value	0.9	5.0	7.5	6.7	13.9
MSCI EM (TR)	1.9	4.5	6.3	4.5	12.3

* Annualised rate of return

Fund performance - Genesis' own records. NAV to NAV. Net of all expenses, including management fees and tax suffered. Net income reinvested. Index performance - calculated by Genesis based upon index values supplied by MSCI.

TEN LARGEST HOLDINGS (at 30^th September 2014)

	%
Taiwan Semiconductor (Taiwan)	4.8
Anglo American (South Africa)	4.1
Samsung Electronics (South Korea)	3.9
SABMiller (South Africa)	3.9
Samsung Fire & Marine (South Korea)	2.6
First Quantum Minerals (Zambia)	2.5
Sun Pharmaceutical (India)	2.5
Tullow Oil (UK/Africa)	2.5
Santander Brasil (Brazil)	2.2
Novatek (Russia)	1.8

GEOGRAPHICAL DIVERSIFICATION (at 30^th September 2014)

	%
Latin America	13.3
Brazil	6.3
Mexico	4.4
Other Latin America	2.6
Asia	50.8
India	14.5
China	11.1
South Korea	8.8
Thailand	6.2
Taiwan	6.2
Indonesia	1.7
Malaysia	1.4
Other Asia	1.0
Middle East/Africa	22.3
South Africa	10.9
Zambia	2.5
UK (Tullow Oil)	2.5
Nigeria	2.3
Saudi Arabia	1.3
Egypt	1.1
Other Middle East/Asia	1.7
Europe/Central Asia	12.1
Russia	6.1
Turkey	3.1
Other Europe/Central Asia	2.9
Cash	1.4

Investment Environment and Outlook

The MSCI EM Index rose 3.3% (in Sterling terms) over the third quarter, despite a fall of 5.1% in September bringing returns back to single digits year-to-date.

Against this backdrop, the Company's Net Asset Value per share rose from 578.0p on 30^th June 2014 to 583.0p on 30^th September 2014; a rise of 0.9% over the three-month period.

Hints of higher interest rates in the US led to a stronger US dollar in September and emerging markets suffered, particularly those with macroeconomic vulnerabilities, including Brazil and Turkey which fell sharply during the month. Optimism in India has surged since the elections in May, although economic recovery remains elusive. Headline consumer inflation at 7.8% in July is above the RBI's comfort zone, making it difficult to ease interest rates in the near term.

The uncertain impact of an eventual normalisation of interest rates in many countries across the world continue to weigh on emerging markets, but even in a lower growth environment the long-term outlook for emerging market companies remains strong, and in particular the portfolio's holdings continue to represent a diversified range of attractive high-quality businesses.

MATERIAL EVENTS AND COMPANY NEWS

There have been no changes to Directors or any material events to report from the period 1^st July 2014 to the date of this statement.

In addition to the Annual Report which was sent to investors in September, the Fund has continued its efforts to keep shareholders informed about their investment. On a monthly basis, a factsheet is posted to the Investment Advisor's website - www.giml.co.uk - and is emailed to shareholders.

This Interim Management Statement has been produced solely to provide additional information to shareholders of the Fund to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied upon by any other party or for any other purposes other than as stated above. In addition, the views, information and data in this publication should not be deemed as a financial promotion or recommendation.

Other than described above, the Board is not aware of any events during the period from 1^st July 2014 to the date of this statement which would have had a material impact on the financial position of the Company.

ANNUAL GENERAL MEETING

The Company's AGM was held on 30^th October 2014. All resolutions were passed.

Issued on behalf of the Board
J.P. Morgan Administration Services (Guernsey) Limited

Secretary

Date: 14^th November 2014

ENQUIRIES

John Mayne/ William Simmonds - 020 7588 2828

J.P. Morgan Cazenove

Coen Teulings (Chairman) - 020 7201 7200

Genesis Emerging Markets Fund Limited

Jonathan Snow - 020 7201 7200

Genesis

 

END

 

 

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