Interim Management Statement
20 May 2008 - 1:21AM
UK Regulatory
Interim Management Statement
GENESIS MALAYSIA MAJU FUND LIMITED (the "Company")
Interim Management Statement - 1 January 2008 to 19 May 2008 (unaudited)
19th May 2008
This statement has been prepared to provide additional information to Shareholders
as a body to meet the relevant requirements of the UK Listing Authority's Disclosure
and Transparency Rules. It should not be relied upon by any party for any purpose other
than as stated above.
Genesis Malaysia Maju Fund Limited was incorporated with limited liability in Guernsey
under the Companies Laws on 24 January 1990 with registered number 21934 as a
closed-ended investment company which has the ability to issue additional shares.
The Fund's shares are listed on the London Stock Exchange.
Investment Objective
The investment objective of the Company is to seek long-term capital growth by investment
in a professionally managed portfolio consisting primarily of securities
(principally equity securities) in small to medium sized companies in Malaysia.
The Company has appointed Genesis Asset Managers, LLP to act as Investment Manager
with responsibility for providing advice on the Company's investment portfolio,
in accordance with the Company's investment objective and policy, subject to the overall
supervision of the directors.
Market Update
Malaysian Stocks have had a torrid start to 2008. Global stock markets fell sharply at
the start of the year (and smaller capitalization stocks suffered more than most),
after which March's surprise election result, where the Government did much worse than expected,
caused the Kuala Lumpur Stock Exchange to fall 10% in a single day. This was an extreme reaction,
as shifts in the political landscape mainly affect short term sentiment rather than longer term
business plans, while for Malaysia's development as a whole the greater level of political debate
should lead to better governance. However, at the same time there have emerged considerable
pressures on the fiscal budget from the higher price of oil due to Malaysia's unreformed oil
subsidies. Thus some infrastructure projects may be cancelled or rescheduled to make way for
the rising cost of insulating the population from global commodity prices.
Economic growth may be slightly slower in 2008 than last year, but as a producer of petroleum
and palm oil - which are enjoying super-strong prices - the economy also benefits. In particular
when palm oil and rubber prices are high there is a widespread improvement in household incomes
because of the sheer number of people employed in the sector.
Performance Summary
The Fund's net asset value per share has fallen from US$77.15 at the start of the year
to US$61.70 on 15th May 2008, a decline of 20%. Given the positive fundamentals in Malaysia
the lower prices have uncovered considerable value, particularly among the smaller
capitalization stocks. The outlook for the Fund is very positive, given strong earnings
prospects for many of the companies represented in the portfolio, combined with very
undemanding share price valuations.
For further information contact:
HSBC Securities Services (Guernsey) Limited
as Company Secretary
Miss Alison Bilham
Direct Tel: +44 (0) 1481 707213
Fax: +44 (0) 1481 726275
Email: alison.bilham@gg.hsbc.com
END
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