Response to Statement by City of London

RNS Number : 2948Y

Advance Developing Markets Fund Ltd

20 February 2013

 



Advance Developing Markets Fund Limited

("ADMF" or the "Company")

Response to Statement by City of London

The Board of Advance Developing Markets Fund Limited ("ADMF" or the "Company") notes the recent announcement by City of London Investment Management Company.

As referred to in the circular to shareholders published on 8 February 2013, the proposals put forward by the Board were made after an extensive consultation exercise covering shareholders owning more than 75% of the Company's  issued shares.  While a wide range of views were expressed by shareholders, it was clear that the majority of those consulted were in favour of continuation of the Company and its focus on a portfolio of funds and products which give diversified exposure to emerging market economies. The Board's obligations are to take into account the views of all shareholders and put forward proposals which it believes will secure majority support.  Accordingly, proposals were announced on 20 December 2012 and formal details are contained in the circular published on 8 February 2013.

The long term performance of the Company has been strong and in structuring the current proposals the Board has ensured that the Investment Manager's focus continues to be on performance, with two Conditional Tender Offers to be implemented if NAV total return performance is behind the MSCI Emerging Markets Net TR index (the "Benchmark") over the relevant 6 monthly measurement periods. Over the twelve months to 31 January 2013, ADMF's performance is ahead of the Benchmark. The Board will continue to monitor performance of the Company as referred to above through regular meetings of the Management Engagement Committee.

It remains the Board's view that the Company is well placed to exploit the long term opportunity in emerging markets and that continuation of ADMF, as proposed at the forthcoming Annual General Meeting, will therefore enable shareholders to continue to have access to the important emerging market universe.

Enquiries

Advance Developing Markets Fund Limited

Richard Bonsor, Chairman                                                                       020 7484 7484

Westhouse Securities Limited

Financial adviser and broker

Alastair Moreton                                                                                         020 7601 6118

Darren Vickers

 

END

 

 

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