(Alliance News) - Genesis Emerging Markets Fund Ltd on Monday said it outperformed its benchmark in its most recent financial year, with Chinese investments "the standout contributors".
The investor posted a 9.0% net asset value per share total return for its year ended June 30, comfortably ahead of the MSCI EM TR Index's 5.4% return for the same period.
Genesis Investment Management LLP, the firm's investment manager, said: "Our Chinese positions were the standout contributors to relative performance over the period, driven largely by the performance of three portfolio holdings: the baijiu producer Wuliangye Yibin (up 61% in GBP), insurer AIA (up 30%) and New Oriental Education (up 74%), which was introduced to the portfolio towards the end of 2018. Further value was added from our positions in Brazil, where investment bank BTG Pactual (up 204%) was one of several notable outperformers."
In GBP terms, Genesis Emerging Market's NAV per participating preference share was GBP8.44 as at June 30, up from GBP7.90 per share the year before. In USD terms, NAV per participating preference share rose to USD10.75 from USD10.44.
The firm will pay a USD0.19 per share dividend per participating preference share, flat year-on-year.
Chair Helene Ploix said: "While the short-term performance of the fund is obviously pleasing, we are reminded by the manager that the portfolio remains focused on the long term, in maintaining a disciplined and consistent investment approach across inevitable market fluctuations. We remain optimistic on the longer-term outlook for emerging markets, for many of the reasons that were valid when the fund was launched fully thirty years ago. We expect continued growth from rising working age populations in emerging markets, and continuing convergence with higher income countries. We also remain of the view that emerging market equities are less efficiently priced than their developed markets counterparts, highlighting the utility of a rigorous fundamental research process."
Shares in Genesis Emerging Markets were flat at 764.00 pence in London on Tuesday.
By Anna Farley; annafarley@alliancenews.com
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