(Alliance News) - Genesis Emerging Markets Fund Ltd on Tuesday said the fund took a slight knock from COVID-19 in the most recent financial year, but ultimately "stood up well to the challenges".
The Guernsey-based closed-ended investment fund said its net asset value per share at June 30 decreased 5.4% to USD10.17 from USD10.75 a year prior.
Net assets decreased 5.3% year on year to USD1.24 billion from USD1.31 billion a year prior.
Genesis said the fund suffered during the height of the crisis due to underweight positions in markets that handled the pandemic well, such as China, South Korea and Taiwan. Ultimately, the impact of the COVID-19 crisis on the fund has resulted in weaker performance this year, it said.
Chair Helene Ploix added: "These have obviously been extraordinary times, not least for financial markets. In response to the disruption brought about by the COVID-19 crisis, the fund's liquid and well diversified portfolio has stood up well to the challenges posed."
The company proposed a dividend of USD0.17 per share for the year end, down from USD0.19 a year before.
Going forward, Ploix said: "Given the magnitude of the global pandemic, the investment manager expects continued challenges over the short to medium term. The impact on economies and businesses will vary considerably across emerging markets.
"We are reminded by the investment manager of its bottom-up and long-term approach to investing, applying a rigorous investment process to populate the portfolio with quality businesses at attractive prices.
"While the pandemic has resulted in short-term relative underperformance, the resultant volatility has allowed the investment manager to upgrade the quality of the portfolio."
Genesis shares closed up 1.6% at 778.00 pence each in London on Tuesday.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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