Interim Results
GENESIS EMERGING MARKETS FUND LIMITED
INTERIM ANNOUNCEMENT
The Board of Directors of Genesis Emerging Markets Fund Limited announce
unaudited results for the six months to 31st December, 2003:
2003 2002
Total net assets US$341,431,535 US$208,606,728
Capital (Deficit) 92,305,345 (9,854,881)
Return
Revenue Return 731,975 605,800
Net asset value
per
Participating
Preference Share 25.29 15.45
Total (Deficit)
Return per
Participating
Preference Share 6.893 (0.685)
Comment - Net Asset Value per Participating Preference Share as at 31st
December, 2003 was US$25.29 compared to US$18.39 at 30th June, 2003 and US$15.45
at 31st December, 2002.
Emerging market equities handsomely outperformed the major markets, as
represented by the MSCI World Index (TR), by around 2,300 basis points for the
full calendar year. This extends the period of outperformance by emerging
markets to five years from 31st December 1998.
The global enthusiasm for equities resulting from abundant liquidity was one of
the most notable features of emerging markets in 2003. In the second half of the
year the extra themes of China and commodities were added to the mix, resulting
in a strong investment performance after a good showing in the first half. Not
only did this performance produce a virtuous circle of strong returns to
investors and rising inflows, but it also encouraged new stock issues to appear,
helping economies to develop in the longer term.
Your Manager expects superior long-term economic and corporate growth rates to
continue in the emerging markets compared with the developed world. Domestic
demand in most places is strong, fiscal deficits are shrinking and export
performance should continue to contribute positively. Dynamic growth is notable
not only in China, but also India, Russia and pockets of Southeast Asia, while
Brazil and Argentina continue to recover strongly, Chile and South Africa expand
more moderately and South Korea and Taiwan to rise from their position towards
the back of the pack. While the high returns achieved in 2003 are unlikely to be
repeated in 2004, the attractive valuation differential between emerging markets
and developed markets still remains.
By Order of the Board
and
MANAGEMENT INTERNATIONAL (GUERNSEY) LIMITED
Dated: 30th March, 2004
GENESIS EMERGING MARKETS FUND LIMITED
INTERIM ANNOUNCEMENT (continued)
APPENDIX
31st December, 31st December,
2003 2002
US$ US$
FINANCIAL HIGHLIGHTS
Total net assets 341,431,535 208,606,728
Dividends and Bond interest 3,056,972 2,861,541
Deposit interest 13,768 1,360
Gross income 3,520,740 2,862,901
Revenue return for the year 731,975 605,800
Capital (deficit) return for 92,305,345 (9,854,881)
the year
Net assets per Participating 25.29 15.45
Preference Share
Total (deficit) return per
Participating Preference
Share 6.893 (0.685)
STATEMENT OF CASH FLOWS
OPERATING ACTIVITIES
Investment income received 3,243,693 2,713,292
Interest received 13,856 (118,946)
Management fees paid (1,893,250) (1,620,576)
Other expense payments (547,610) (618,421)
Purchase of investments (29,364,958) (34,606,187)
Sales of investments 25,232,608 33,503,423
Exchange loss (14) 335,618
_____________ _____________
NET CASH OUTFLOW
FROM OPERATING ACTIVITIES (3,315,675) (411,797)
Exchange gain (loss) (49,597) 234
Net liquid funds at the (628,189) (8,593,147)
beginning of period _____________ _____________
Net liquid funds at the end $(3,993,461) $(9,004,710)
of period