Interim Management Statement

Interim Management Statement

Genesis Emerging Markets Fund Ld

GENESIS EMERGING MARKETS FUND LIMITED (the "Company")

Interim Management Statement (unaudited)

17th November 2010

This statement has been prepared 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 party for any purpose other than as stated above.

Genesis Emerging Markets Fund Limited was incorporated with limited liability in Guernsey under the Companies Laws on 7th June 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.

Investment Objective

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

Performance Summary

After a tough final quarter of the Company’s financial year, July and September both saw strong growth, sandwiching a weak August and bringing the MSCI EM Index Sterling returns for the quarter to the end of September to 12.62%. The following month growth slowed again, showing modest returns and bringing performance for the four months to the end of October to 13.71%.

Against this background the Company’s Net Asset Value per share rose from £4.85 at the end of June 2010 to £5.50 at the end of October, a gain of 13.48% for the four month period.

Market Update

Following global macroeconomic unease in August, the world’s capital markets bounced in September, with emerging market equities ahead of the pack, up 8.63% in Sterling terms according to the MSCI. This brought the third quarter return to 12.62%, the best quarterly gain for a year, and emerging markets seemed to be magnifying any positive sentiment on global growth just as they magnified the negative sentiment two years ago.

In recent weeks stockmarkets were calmer and the MSCI Emerging Markets Index rose a more sedate 0.96% in October. Behind the scenes there was a distinct lack of calm, with talk of "currency wars" around the annual meetings of the IMF and G20. The arguments are familiar. Developed economies say that China and other emerging economies' foreign exchange intervention is preventing the exchange rate adjustments needed to reduce global imbalances. Emerging economies blame ultra-low interest rates in the US for creating destabilising capital flows, with a resulting loss of domestic monetary control and/or an appreciating currency. Rather than use the latter as the mechanism to discourage hot money, some countries have resorted to administrative measures to stem the inflows. While these stop short of outright capital controls they do place hurdles in front of the entry and exit of foreign capital. Brazil, Colombia, Thailand, Indonesia and South Korea are among the countries to have introduced various taxes and other penalties, and others such as the Czech Republic are wondering aloud if they should follow suit. The measures are varied but all target short-term flows, mainly into the currency or bond markets and so far any collateral damage to long-term equity holders has been small. Also in common is that the measures seem to have been ineffective in achieving their aim of reducing currency appreciation, as short-term investors have simply absorbed them as an additional cost of doing business; and as derivatives teams at investment banks have discovered a new outlet for their under-employed creativity.

Whether foreign investor flows lead or follow the markets is a moot point. There is no doubt however, that 2010 is shaping up to be one of the strongest years ever for portfolio inflows into emerging markets, and this trend has lead to increasingly fair-valued stockmarkets. Despite this, good opportunities are still available and profits in emerging markets remain strong.