Half-yearly report Interim
GENESIS EMERGING MARKETS FUND LIMITED
UNAUDITED HALF YEARLY FINANCIAL REPORT
6 MONTHS TO 31st DECEMBER 2007
To the Members of Genesis Emerging Markets Fund Limited (the "Company")
This unaudited half yearly financial report has been produced by the Company to
provide additional information to shareholders as a body 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 purpose. This
unaudited half yearly financial report relates to the period from 1st July 2007
to 31st December 2007, and contains information that covers this period, and up
to the date of publication of this half yearly financial report, unless
otherwise specified.
Investment Objective
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.
Benchmark
MSCI Emerging Markets Free Index.
Material Events
The six months to 31st December 2007 was marked by a further advance in the Net
Asset Value per share, based on mid market prices, to US$79.57, an increase of
12.9%. Thus the increase for the full calendar year 2007 was 34.5%. (By
comparison, the MSCI Emerging Market Free Index rose 18.7% in the six months and
39.8% for the year as a whole.) With the continuing satisfactory performance by
the emerging markets asset class, 2007 was the seventh year in a row when it
outperformed world equities as represented by the MSCI World Index.
31st December 2007 31st December 2006
Net Asset Value
per Participating Preference Share $79.57 $59.15
Total Return over previous six months
per Participating Preference Share $8.94 $11.24
Outlook for the Company
After the advances in markets over the last five years, and given current
uncertainty in markets generally, it seems unlikely that the returns over the
short term from the emerging markets asset class will match recent experience.
However, the Directors and the Manager share the view that the high economic
growth potential in developing countries, combined with the expansion of the
investment universe, will continue to provide attractive opportunities for the
Company's shareholders.
For latest NAV and share price information please refer to the Investment
Adviser's website www.giml.co.uk.
Portfolio Profile
As at 31st December 2007
Ten Largest Holdings % By Country (Top 15) % By Sector %
Taiwan Semiconductor(Taiwan) 3.2 Russia 11.0 Financials 30.1
Orascom Construction(Egypt) 2.9 South Korea 10.2 Information Technology 11.0
Samsung Electronics(South Korea) 2.7 India 9.1 Consumer Staples 10.9
Standard Bank (South Africa) 2.5 South Africa 8.3 Materials 10.4
PT Telekom (Indonesia) 2.5 Brazil 7.0 Industrials 8.4
Sasol (South Africa) 2.5 China 6.0 Energy 7.9
VTB (Russia) 2.2 Taiwan 5.3 Telecoms 5.8
Bank Rakyat (Indonesia) 2.1 Indonesia 5.0 Consumer Discretionary 4.8
Anglo American (South Africa) 2.0 Mexico 4.4 Utilities 4.4
Commercial Asset Holdings(Malaysia)2.0 Turkey 4.2 Other 3.5
Egypt 3.9 Health Care 2.8
Total 24.7% of Portfolio Malaysia 2.6
Israel 2.5
Number of holdings: 100 Thailand 2.2
Nigeria 2.1
Geographical Diversification
As at 31st December 2007
% % %
Latin America 15.0 Malaysia 2.6 Europe & Central Asia 20.5
Brazil 7.0 Thailand 2.2 Russia 11.0
Mexico 4.4 Philippines 0.8 Turkey 4.2
Chile 1.5 Vietnam 0.2 Hungary 1.7
Peru 1.3 Romania 1.4
Colombia 0.6 Middle East/Africa 21.1 Croatia 0.8
Argentina 0.2 South Africa 8.3 Ukraine 0.5
South Asia 9.4 Egypt 3.9 Estonia 0.4
India 9.3 Israel 2.5 Greece 0.3
Sri Lanka 0.1 Nigeria 2.1 Kazakhstan 0.2
Mauritius 1.6 Czech Republic 0.1
South Asia 9.3 Zambia 1.2
India 9.1 Senegal 0.4
Sri Lanka 0.2 Kenya 0.3 Other* 1.4
Iran 0.3
East Asia 32.3 Lebanon 0.2 Total 100.0
South Korea 10.2 Congo, DR 0.2
China 6.0 Zimbabwe 0.1 * `Other' consists of UK.
Taiwan 5.3 Ghana 0.1
Indonesia 5.0
Performance
To 31st December 2007
Annualised (%p.a)
% Returns - US$ December 1Year 3Year 5Year Since Inception
GEMF(net of annual fees) 2.0 34.5 33.1 38.8 16.1
MSCI EM (TR) 0.4 39.8 35.6 37.5 14.3
MSCI World (TR) (1.3) 9.6 13.3 17.5 8.7
Statistical Sources:
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.
Past performance should not be relied upon as a guide to future performance,
which is not guaranteed. The value of investments can go down as well as up and
there is no guarantee that you will get back the amount originally invested.
Genesis invests in emerging markets which tend to be more volatile than more
established stock markets and therefore your investment is at greater risk.
UNAUDITED CONSOLIDATED BALANCE SHEET
as at 31st December 2007
31st December 30th June
2007 2007
$ $
ASSETS
Financial assets at 1,066,299,755 943,670,957
fair value through
profit or loss
Amounts due from 3,218,148 2,176,880
brokers
Dividends and interest 1,016,905 2,891,851
receivable
Other debtors 145,594 3,766,168
Cash and cash 4,460,145 20,418,085
equivalents
TOTAL ASSETS 1,075,140,547 972,923,941
LIABILITIES
Amounts due to brokers 3,626,717 11,716,433
Bank overdraft - 10,392,156
Creditors and accrued 2,142,405 2,116,791
expenses
TOTAL LIABILITIES 5,769,122 24,225,380
TOTAL NET ASSETS 1,069,371,425 948,698,561
EQUITY
Called-up share 270,633 270,633
capital
Share premium 135,238,840 135,238,840
Capital reserve 919,057,361 799,245,983
Revenue account 15,965,091 15,103,605
Purchase of own shares (1,160,500) (1,160,500)
TOTAL EQUITY 1,069,371,425 948,698,561
EQUITY PER
PARTICIPATING
PREFERENCE SHARE $79.22 $70.28
UNAUDITED CONSOLIDATED
INCOME STATEMENT
for the six months ended 31st December 2007
2007 2006
$ $
INCOME
Net gains realised on 111,135,792 55,298,749
investments sold
Net unrealised gains on 14,191,470 97,687,646
investments
Net exchange losses (5,515,884) (37,059)
Dividend income 12,438,043 6,190,454
Deposit interest 156,165 1,375,445
132,405,586 160,515,235
EXPENSES
Management fees (7,582,156) (5,350,220)
Administration fees (83,388) (67,632)
Custodian fees (1,043,817) (565,008)
Transaction costs (1,200,169) (685,660)
Directors' fees and (152,931) (70,584)
expenses
Other expenses (83,013) (247,520)
TOTAL OPERATING EXPENSES (10,145,474) (6,986,624)
OPERATING PROFIT 122,260,112 153,528,611
FINANCE COSTS
Bank charges (1,231) (805)
Interest expense (423,995) (931,796)
TOTAL FINANCE COSTS (425,226) (932,601)
Withholding taxes (1,162,022) (848,623)
PROFIT FOR THE PERIOD 120,672,864 151,747,387
RETURN PER PARTICIPATING $8.94 $11.24
PREFERENCE SHARE *
* Calculated on an average number of 13,496,306
Participating Preference Shares
outstanding (2006 - 13,496,306)
UNAUDITED CONSOLIDATED STATEMENT
OF CASH FLOWS
for the six months ended 31st December 2007
2007 2006
$ $
OPERATING ACTIVITIES
Investment income received 14,312,989 7,895,729
Withholding taxes paid (1,160,776) (848,371)
Interest received 157,651 1,366,092
Operating expenses paid (10,543,787) (7,226,745)
Purchase of investments (185,872,123) (100,017,434)
Proceeds from sale of 183,056,146 128,122,284
investments
Exchange loss (5,483,284) (465)
NET CASH (OUTFLOW)/INFLOW (5,533,184) 29,291,090
FROM OPERATING ACTIVITIES
NET (DECREASE)/INCREASE IN (5,533,184) 29,291,090
CASH AND CASH EQUIVALENTS
Exchange loss (32,600) (36,594)
(5,565,784) 29,254,496
Cash and cash equivalents at 10,025,929 (26,567,370)
the beginning of the period
CASH AND CASH EQUIVALENTS AT 4,460,145 2,687,126
THE END OF THE PERIOD
RECONCILIATION OF PUBLISHED NET ASSET VALUE
ATTRIBUTABLE TO PARTICIPATING PREFERENCE SHAREHOLDERS
TO THE IFRS EQUIVALENT
31st December, 2007
Total Per
$ Participating
Preference
Share
$
Published Net Asset Value 1,073,927,016 79.57
Change from mid market
pricing to bid pricing for
investments (4,690,361) (0.35)
Net Asset Value under IFRS $1,069,236,655 79.22
Equity Share Capital 134,770
Equity Shareholders' Funds $1,069,371,425
30th June, 2007
Total Per
$ Participating
Preference
Share $
Published Net Asset Value 951,666,480 70.51
Change from mid market (3,102,689) (0.23)
pricing to bid pricing for
investments
Net Asset Value under IFRS $948,563,791 70.28
Equity Share Capital 134,770
Equity Shareholders' Funds $948,698,561
For Genesis Emerging Markets Fund Limited
HSBC Securities Services (Guernsey) Limited, Secretary
27 February 2008
END
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund