Annual report & accounts Preliminary Announ...
GENESIS EMERGING MARKETS FUND LIMITED
PRELIMINARY ANNOUNCEMENT
The Directors of Genesis Emerging Markets Fund Limited announce results for the
year ended 30th June, 2007 as follows:
2007 2006
US$ US$
Total net assets 951,666,480 647,801,722
(at mid-market prices)
Net asset value per Participating Preference Share 70.51 48.00
(at mid-market prices)
Total Return per Participating 22.49 11.07
Preference Share
Comment -
As at 30th June, 2007, the net asset value per Participating Preference Share
was US$70.51. This compares with US$59.15 at 31st December, 2006 and US$48.00
at 30th June, 2006 (all figures based on mid-market prices). The Directors do
not recommend a dividend.
The year has again been a satisfying one for your Fund. Over the year its net
asset value, measured on mid-prices in US dollars, rose 46.9% to US$ 70.51 per
share, compared to an increase of 45.5% in the MSCI Emerging Market Free Index.
The net asset value of your Fund has now increased for six years in a row. At
year end the total assets measured on midprices, in the Fund were US$951.7
million, up from US$647.8 million a year earlier. The discount to net asset
value ranged between 7.8% and 11.0% during this year.
It is clear that the trend to increased corporate profitability in emerging
markets is being maintained. It is also exciting to see the considerable
development of many local stock markets, which continue to increase in
importance as a financing mechanism for companies in developing countries. This
is demonstrated by the volume of new investment opportunities becoming available
in the Fund's investment markets.
Emerging markets indices have seen increases of 30% plus every year for the last
four, a level of performance from the asset class that seems unlikely to be
sustained. That said our view is that the outlook for growth and profitability
remains positive, and believe that emerging markets continue to offer attractive
potential returns to investors. We therefore remain optimistic about the Fund's
prospects over the coming year.
By Order of the Board
Genesis Emerging Markets Fund Limited
Dated: 11th October, 2007
GENESIS EMERGING MARKETS FUND LIMITED
PRELIMINARY ANNOUNCEMENT (continued)
Financial Highlights
2007 2006
US$ Per US$ Per
Participating Participating
Preference Preference
Share Share
CONSOLIDATED BALANCE SHEET:
Fixed assets 943,670,957 669,221,437
investments at valuation
Current assets 29,252,984 21,620,697
Current liabilities (24,225,380) (45,633,558)
Net current assets(liabilities) 5,027,604 (24,012,861)
Total net assets $948,698,561 $645,208,576
CAPITAL AND RESERVES:
Called-up share capital 270,633 270,633
Share premium 135,238,840 135,238,840
Capital reserve 799,245,983 495,919,799
Revenue account 15,103,605 14,939,804
Purchase of own shares (1,160,500) (1,160,500)
Equity shareholders' funds $948,698,561 $645,208,576
Equity per Participating $70.28 $47.80
Preference Share
RECONCILIATION OF PUBLISHED NET ASSET VALUE ATTRIBUTABLE TO PARTICIPATING PREFERENCE
SHAREHOLDERS TO THE UK GAAP EQUIVALENT:
Published net asset value 951,666,480 70.51 647,801,722 48.00
Change from mid-market to bid (3,102,689) (0.23) (2,727,916) (0.20)
pricing for investments
Net asset value under UK GAAP $948,563,791 $70.28 $645,073,806 $47.80
Equity share capital 134,770 134,770
Equity shareholders' funds $948,698,561 $645,208,576
GENESIS EMERGING MARKETS FUND LIMITED
PRELIMINARY ANNOUNCEMENT (continued)
2007 2006
US$ US$
CONSOLIDATED INCOME:
Gains realised on investments sold 115,617,470 143,963,631
Unrealised gains on investments 187,789,395 6,621,761
Net exchange losses (80,681) (436,835)
Dividend income 17,779,472 15,050,187
Deposit interest 1,457,957 109,572
Expenses (16,528,748) (14,054,033)
Taxation (2,544,879) (1,904,996)
Total return attributable to $303,489,985 $149,349,287
Participating Preference Shares
Total return per Participating $22.49 $11.07
Preference Share
STATEMENT OF CASH FLOWS:
Investment income received 15,463,380 10,521,564
(net of withholding taxes)
Interest received 1,482,664 83,720
Management fees paid (11,365,671) (9,192,896)
Other expense payments (4,573,136) (4,867,474)
Purchase of investments (220,218,452) (270,658,438)
Sale of investments 255,885,195 261,082,831
Exchange loss (1,160) (5,613)
Net Cash Inflow (Outflow) $36,672,820 $(13,036,306)
from operating activities
RECONCILIATION OF NET CASHFLOW TO MOVEMENT IN NET FUNDS:
Net cash inflow (outflow) 36,672,820 (13,036,306)
Exchange loss (79,521) (431,222)
36,593,299 (13,467,528)
Net liquid funds at beginning of (26,567,370) (13,099,842)
year
Net liquid funds at end of year $10,025,929 $(26,567,370)
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