LONDON (Alliance News) - Genesis Emerging Markets Fund Ltd on Monday said it performed behind its benchmark in the first half of its current financial year amid a decline in net asset value.
The FTSE 250-listed investment firm reported NAV per share of 715.4 pence for the six months to the end of December 2018, down 9.5% from 790.4p at the end of June 2018.
As a result, NAV total return was negative 7.7% in the first half, while the company's benchmark, the MSCI EM TR Index, returned negative 4.9%.
Genesis Emerging explained that its underperformance largely related to weakness in some of the portfolio's holdings in consumer companies.
"These losses were predominantly the result of multiple de-rating rather than fundamental changes in earnings power," said Chair Helene Ploix.
The fund's share price total return was negative 6.6%. The stock price stood at 636 pence at the end of the period, representing an 11% discount to NAV.
Genesis Emerging was trading 0.6% lower on Monday in London at 702.00 pence a share.
For the first half, the company reported a loss of USD150.5 million, compared to a profit of USD195.5 million for the six months to the end of December 2017.
"We remain confident that the manager is well-placed to generate outperformance," said Ploix.
"It has reduced the number of holdings in the portfolio to enable deeper research on each company, and attracted new investment team members with a focus on emerging Asia, the fastest-growing part of the opportunity set," added Ploix.
As at December 31, Genesis Emerging was invested in 118 companies, down from 126 at the end of June 2018.