Interim Management Statement

RNS Number : 8189B

Advance Developing Markets Fund Ltd

07 March 2014

Advance Developing Markets Fund Limited ("the Company")

This interim management statement covers the period from 1 November 2013 to 28 February 2014 and up to the date of publication of this statement. It is the first interim management statement issued by the Company in its financial year to 31 October 2014, 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 November 2013 to 28 February 2014:

* Net Asset Value ("NAV") per ordinary share ("Share") fell by 9.6%

* Share price fell by 11.9%

* MSCI Emerging Markets Net Total Return Index in Sterling terms fell by 10.1%

* NAV per Share was 447.2p as at 28 February 2014

* Share price was 398.5p (mid-market) as at 28 February 2014

* Net assets were £258.1 million as at 28 February 2014

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

During the period the Company conducted a Tender Offer and 6,412,758 ordinary shares were repurchased and cancelled, equating to 10 percent of the Company's shares in issue as at 7 November 2013 at a price of 466.40p per share.

In addition, the Company purchased 10,000 ordinary shares, to be held in treasury, at a price of 398.00p per share on 19 February 2014.

Top 10 Holdings as at 28 February 2014	% of NAV
Korea Fund Inc	7.3%
Neuberger Berman - China Equity Fund	5.8%
Coronation Top 20 Fund	5.4%
India Fund Inc	5.3%
Templeton Emerging Markets Investment Trust	5.2%
JPMorgan Russian Securities	4.7%
Edinburgh Dragon Trust	4.5%
Schroder Asia Pacific Fund	4.5%
China Fund Inc	4.3%
GBM Mexico Fund	4.1%
Total for top 10 holdings	51.1%