Interim Management Statement

RNS Number : 0394F

Genesis Emerging Markets Fund Ld

17 May 2013

 



Genesis Emerging Markets Fund Limited ("the Fund")

Interim Management Statement (unaudited)

for the three month period ended 31^st March, 2013

This Interim Management Statement relates to the period 1^st January 2013 to 31^st March 2013 and is the Fund's second interim management statement for the financial year ending 30^th June 2013, as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3.

Investment objective

Genesis Emerging Markets Fund Limited was incorporated with limited liability in Guernsey under the Companies Laws on 19^th September 1989 with registered number 20790 as a closed-ended investment company which has the ability to issue additional shares. The Fund's shares are listed on the London Stock Exchange.

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.

The Fund has appointed Genesis Asset Managers, LLP to act as Manager with responsibility for providing advice on the Fund's investment portfolio, in accordance with the Fund's investment objective and policy, subject to the overall supervision of the directors.

Financial position

GBP	As at 31st March 2013 (unaudited)	As at 31st December 2012 (unaudited)
Total Assets (mil)	815	760
Net Asset Value per share	603.99p	562.94p
Share Price Discount	-4.8%	-3.6%

Financial performance

Performance to 31st March 2013 in GBP	Q1	1 Year	3 Years*	5 Years*	10 Years*
	%	%	%	%	%
Share Price	6.0	15.7	7.3	11.5	22.1
Net Asset Value	7.3	11.7	5.5	10.0	20.4
MSCI EM (TR)	5.2	7.6	3.5	7.0	17.9

* 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 31^st March 2013)

	%
Samsung Electronics (South Korea)	4.8
Taiwan Semiconductor (Taiwan)	4.7
Anglo American (South Africa)	4.1
SABMiller (South Africa)	3.8
América Móvil (Mexico)	2.8
Tullow Oil (UK/Africa)	2.5
First Quantum Minerals (Zambia)	2.3
Sberbank (Russia)	2.2
Santander Brasil (Brazil)	2.0
Infosys (India)	1.8

Geographical diversification (at 31st March 2013)

	%
Latin America	14.8
Brazil	7.0
Mexico	5.4
Other Latin America	2.4
Asia	48.4
China	12.4
India	10.8
South Korea	8.8
Taiwan	6.2
Thailand	5.3
Indonesia	2.5
Other Asia	2.4
Middle East/Africa	20.9
South Africa	10.3
Zambia	2.3
Nigeria	2.3
Egypt	1.1
Other Middle East/Africa	4.9
Europe/Central Asia	14.3
Russia	7.3
Turkey	3.6
Other Europe/Central Asia	3.4
Cash	1.6

Investment environment and outlook

Despite a reflective March, strong returns in January and February pushed the MSCI EM Index (in sterling terms) up 5.2% in the three-month period.

Against this backdrop, the Company's Net Asset Value per share rose from 562.94p on 31^st December 2012 to 603.99p on 31^st March 2013; a gain of 7.3% over the three-month period.

The quarterly gain came despite repeatedly disappointing economic data, particularly out of the developed world, but with much of Asia also looking relatively weak. Emerging markets companies have had mixed results in the 2012 reporting season. Global demand has been challenging while domestic consumption has been mostly more resilient. Cost pressures have been evident, particularly labour and utility costs. Yet many of the emerging markets companies we monitor continue to gain global market share, and in many cases, exercise pricing power to offset those cost pressures.

The latest round of IMF growth and inflation estimates was published in April. The aggregate GDP growth expected for emerging markets this year was reduced from 5.6% to 5.3% (developed markets growth was also reduced, from 1.5% to 1.2%). The larger EM countries to be adjusted downwards were Brazil, Taiwan, South Korea and Russia, while notable upgrades were seen for Chile, Malaysia, Nigeria, Peru and the Philippines. Looking further afield to 2014, growth anticipated for emerging markets was also reduced, from 5.9% to 5.7%, with the Philippines and Nigeria again bucking the trend by being revised upwards. Reflective of that pricing power mentioned above, aggregate 2013 CPI inflation for emerging markets was revised up slightly from 5.7% to 5.8%, driven by significant upward revisions in India and Thailand.

Material events and company news

There are no material events to report from the period 1^st January 2013 to the date of this statement.

In addition to the Interim Report which was sent to investors in February, 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 January 2013 to the date of this statement which would have had a material impact on the financial position of the Company.

Issued on behalf of the Board

JPM Administration Services (CI) Limited

Secretary

Date: 17^th May 2013

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

 

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