TIDMGSS
RNS Number : 9221E
Genesis Emerging Markets Fund Ld
14 February 2018
Genesis EMERGING MARKETS FUND LIMITED
Half Year Report and Unaudited Financial Statements
for the six months ended 31(st) December 2017
The Directors of Genesis Emerging Markets Fund Limited (the
'Fund' or 'GEMF') announce the Fund's results for the six months
ended 31(st) December 2017. The Half Year Report will shortly be
available from the Fund's website www.giml.co.uk and also for
inspection on the National Storage Mechanism, which is located at
www.morningstar.co.uk/uk/NSM where users can access the regulated
information provided by listed entities.
Introduction
Objective
The objective of the GEMF is to achieve long-term capital
growth, primarily through investment in equity markets of
developing countries.
Structure
GEMF is a Guernsey based Authorised Closed-Ended Investment
Scheme with the ability to issue additional shares. The Fund's
shares are listed on the premium segment of the Official List of
the UK Listing Authority, traded on the London Stock Exchange and
are included in the FTSE 250. The number of Participating
Preference Shares outstanding is 134,963,060, as at 31(st) December
2017 (30(th) June 2017: 134,963,060).
Investment Approach
The investment approach is to identify companies which are able
to take advantage of growth opportunities in emerging markets and
invest in them when they are trading at an attractive discount to
the Manager's assessment of their intrinsic value.
New Shares
Shares may be issued twice monthly subject to the following
conditions:
i) the Fund is invested as to at least 75% in emerging market securities;
ii) the Fund will only issue new shares if it is unable, on
behalf of the new subscriber, to acquire shares in the secondary
market at a price equivalent to or below the price at which new
shares would be issued; and
iii) the issued share capital of the Fund is not increased by
more than 10% in any twelve month period.
Highlights and Performance
GEMF Total Return in GBP for the Six Months to 31(st) December
2017
12.3% 10.4% 11.5%
Share Price(*) Net asset value MSCI EM (TR) Index
per Participating
Preference Share(*)
--------------- -------------------- -------------------
30(th)
31(st) December June
Published Data 2017 2017 % change
-------------------------------------- --------------- ----------- --------
Net assets GBP1,102.0m GBP1,011.6m 8.9
Net assets $1,490.8m $1,314.2m 13.4
Net asset value per Participating
Preference Share GBP8.16 GBP7.50 8.9
Net asset value per Participating
Preference Share $11.05 $9.74 13.4
Share price GBP7.22 GBP6.53 10.7
Discount of Share Price
to Net Asset Value per Participating
Preference Share 11.6% 12.9%
Dividend per Participating
Preference Share $0.140 nil n/a
Management fee 0.95% 1.25%
Ongoing charges ratio 1.11% 1.43%
Countries represented in
portfolio 40 36
Number of holdings 134 125
* Actual returns adjusted for dividends paid
MSCI Emerging Markets (Total Return) Index
Chairman's Statement
Investors in emerging markets have been handsomely rewarded in
the last two years. The MSCI EM (TR) Index (the 'Index') rose 37.8%
in US$ terms in 2017, and - with the previous year having also been
relatively strong - the Index has generated some 77.1% in US$ terms
since the beginning of 2016. In the six month period to December
(under review in this report), the Index in sterling terms was up
11.5% (and rose 25.8% over 2017 as a whole).
Against this backdrop, the Fund's share price (adjusted for
dividends paid) increased by 12.3% over the half-year, the discount
of share price to NAV narrowed slightly to 11.6% and the Fund's NAV
(also adjusted for dividends paid) rose by 10.4%.
Shareholders will be aware that the Managers' investment process
has a firm grounding in valuation, meaning that investments the
Manager views as expensive will generally not be held at
particularly high weights, if at all. This explains the fact that
the Fund's performance has lagged that of the Index over the recent
past given an investment environment where the market has been
largely driven upwards by a narrow set of highly popular stocks and
sectors - this time in the form of large technology companies, both
in global hardware and Chinese internet, in which the Fund's
holding is lower than that in the Index.
The Fund held its Annual General Meeting on 6(th) November with
all proposed resolutions passed by shareholders (including the
approval of the appointment of Katherine Tsang as a Director, and
the payment of a dividend); as always, we would like to thank them
for their support. The Fund held its regular Shareholder
Information Meeting on the following day, allowing shareholders an
opportunity to hear from, and ask questions of, representatives of
the Manager.
The dividend of 14.0 cents per Participating Preference Share
was paid to shareholders in early December.
The positive mood surrounding global equity markets, including
those in the developing world, continues to persist. The Manager's
Review notes, in particular, the higher GDP growth and recovery in
corporate earnings, and the expectations for corporate
profitability. Against that, of course, the potential
macro-economic risks to all emerging markets stemming from the
imbalances in the financial system in China (now one-third of the
market cap of the index), or potentially higher interest rates in
the US, remains a significant concern. After the performance of the
last two years valuations of many companies can fairly be described
as stretched - and one does not have to look too far into history
(2015 was not a long time ago) to be reminded of the potential
short-term volatility in emerging markets.
Looking forward, while it seems unlikely in the near-term that
emerging markets will continue to emulate the performance of the
last two years, we - along with the Manager - remain highly
confident about the potential long-term returns that the Fund can
generate.
The Board and the Manager would readily acknowledge that the
Fund's performance relative to the Index over the last three and
five years has not been at the level that shareholders have
typically experienced. But one aspect of the Manager's culture is
its commitment to understanding where things have not worked as
well as they should have, and the implementation of evolutionary
improvements to the investment process in response, as occurred in
the past two years. This helps support our continued belief that
the Manager's investment approach provides an effective framework
for seeking out high-quality emerging markets companies that appear
to be mispriced; and thus for allocating shareholders' capital
profitably.
My colleagues and I look forward to continuing our engagement
with shareholders, in order to hear and understand your views on
the Fund and how it operates. These comments, naturally, inform our
discussions about how we can better address your concerns, and
ultimately ensure the Fund meets your expectations and requirements
as investors.
Hélène Ploix
Chairman
14(th) February 2018
Manager's Review
Investment Environment
In 2017 the Fund gained 21.2% in sterling terms net of fees. A
strong year indeed, but disappointingly our performance lagged that
of the MSCI EM (TR) Index (the 'Index'), which returned 25.8%. The
current rally in emerging markets ('EM') stocks dates to January
2016 and the cumulative Index return since then has been 85%,
whereas our performance has been lower at 75%. As risk-aware
investors who build diversified portfolios of quality companies for
long-term clients, we have at times over our 28-year history
struggled to keep pace with sharp market rallies. This has been the
case now for almost two years.
The second half of 2017 - the focus of this Review - saw a
continuation of the narrowly-focused rally in mega-cap tech, namely
Tencent (and Naspers), Alibaba and Samsung Electronics. Performance
outside this magic circle was noticeably different; the median
stock within the Index was up only 5% over the same period, lagging
the overall Index performance by 7%.
In this environment, the Fund's net asset value failed to match
the return of the Index over the six-month period, gaining 10.4%
versus an Index return of 11.5%.
Performance
Relative to the benchmark, the portfolio enjoyed strong
performance from consumer stocks including instant noodle producer
Tingyi (up 59%) and from the A-share positions in baijiu producers
Kweichow Moutai (up 50%) and Jiangsu Yanghe Brewery (up 32%).
Significant value was also added in the weak Taiwanese market due
to the underweight position and from good stock performance from
the dominant Vietnamese dairy producer Vinamilk, which rose by
30%.
These were outweighed, however, by the portfolio's negative
contributors. The largest country detractor was India due to the
Fund's exposure to pharmaceutical companies. Sun (up 1%) and Lupin
(down 25%), were impacted by a combination of delayed approvals by
the US FDA of new generic drugs due to continuing manufacturing
compliance issues, and increased pricing pressure in the key US
market. Value was also lost in Turkey particularly from the two
banks, Garanti (down 2%) and Yapi Kredi (down 14%), as the impact
of the government announcing an increase in the corporate tax rate
on banks and currency weakness was felt. In Russia, the weak
performance from food retailer Magnit (down 31%) led to further
losses. Magnit had announced disappointing quarterly results as a
combination of a weak consumer environment and heightened
competitive intensity impacting sales. However, we have conviction
in Magnit's management quality and see a favourable outlook for
market consolidation in food retail.
Other significant detractors were the strongly performing
Chinese internet companies despite notable gains from the portfolio
positions in Naspers (which derives the majority of its value from
its holding in the Chinese internet company Tencent) and Alibaba as
they rose 38% and 18% respectively. However, the portfolio's
smaller weighting compared to the index in this sector resulted in
these positions costing the portfolio in terms of relative
performance.
Relative Performance Attribution in GBP - Six Months to 31(st)
December 2017
GEMF vs. MSCI Emerging Markets (TR) Index
Top 10 Stock Contributors % Top 10 Stock Detractors %
--------------------------- ----- ------------------------------- -------
Tencent (China)/ Naspers
Kweichow Moutai (China) 0.52 (South Africa) (0.77)
Sberbank (Russia) 0.41 Magnit (Russia) (0.53)
Tingyi (China) 0.36 LiLAC (United Kingdom) (0.32)
Jiangsu Yanghe Brewery Ping An Insurance
(China) 0.35 (China) (0.31)
Hon Hai Precision Samsung Fire & Marine
(Taiwan) 0.35 (South Korea) (0.28)
Steinhoff International Hikma Pharmaceuticals
(South Africa) 0.34 (Jordan) (0.24)
Vinamilk (Vietnam) 0.34 Lupin (India) (0.23)
Anglo American (South
Africa) 0.28 Universal Robina (Philippines) (0.22)
China Mengniu Dairy Jerónimo Martins
(China) 0.26 (Poland) (0.18)
Tullow Oil (United
Kingdom) 0.19 Heineken (Netherlands) (0.18)
Stocks in italics are omissions at end of period
Top 5 Country Top 5 Country
Sector Contributions % Contributors % Detractors %
------------------------ ------- -------------- ----- -------------- -------
Consumer Discretionary 1.10 Taiwan 1.17 India (0.67)
Industrials 0.75 South Africa 0.53 Turkey (0.51)
Consumer Staples 0.54 Vietnam 0.32 Russia (0.51)
Utilities 0.20 Mexico 0.31 Jordan (0.24)
Real Estate 0.05 Indonesia 0.20 Philippines (0.20)
Telecoms (0.03)
Materials (0.04)
Investment
Companies (0.24)
Energy (0.47)
Financials (0.59)
IT (0.73)
Health Care (0.93)
Source: Calculated by FactSet, treating Genesis' affiliated
investment company on a look-through basis
Portfolio Activity
There was significant trading activity over the six-month
period, with 19 positions initiated. In addition, there were
considerable changes to the weights of certain holdings, mainly in
response to strong performance or due to a change in our assessment
of intrinsic value. On an annualised basis, portfolio turnover
amounted to 34%, slightly higher than the long-term average.
A large portion of activity over the period was in the IT
sector, including further investment in Tencent via Naspers, which
made it the largest position in the portfolio, and the new addition
in 58.com. Elsewhere Magnit (Russia) and Mediclinic (South Africa)
were added to on price weakness and Almarai (Saudi Arabia) was
repurchased for the Fund. Recently initiated positions, such as Yum
China and BB Seguridade, were also built upon.
Purchases were largely funded through sales in Kweichow Moutai
and Jiangsu Yanghe Brewery following strong share price
performance, the sale of Anhui Conch Cement, and reductions in a
number of South African names. Anglo American was sold as its share
price hit a three-year high, Bid Corp and Bidvest Group were
reduced and Aspen Pharmacare was trimmed as we consider its
transition from a South African generics company into a global
speciality pharmaceutical company is now more challenging than
initially expected. In India, Tata Consultancy Services and Infosys
were reduced, based on their respective valuations. Elsewhere in
India, the aggregate pharmaceutical exposure was reduced
considerably; Sun saw its position cut by approximately a quarter
and Lupin exited the portfolio. This was considered prudent
considering the lack of clarity on FDA clearance and margin
erosion.
Outlook
We are optimistic about the performance prospects for your
portfolio in 2018 and beyond. This confidence stems from several
considerations. First, we are long-term bullish on the investment
opportunity in EM. We expect incomes in low- and middle-income
economies to continue to converge with those in high-income
economies. Improving institutional quality should further enhance
returns. And we are convinced that emerging market equities are
less price efficient compared with those in developed markets.
Second, we are confident in the current positioning of your
portfolio. Broadly speaking, the portfolio is overweight in
consumer franchises, expressing our view on income convergence;
overweight smaller companies and frontier markets where we see the
most mis-pricing; underweight technology where we are cautious on
valuations; and underweight state-owned enterprises, given our
scepticism on governance. This positioning is consistent with our
long-term preference for investing alongside good management teams
in quality businesses at attractive prices.
While we are positive about emerging markets and the portfolio's
positioning, macro-economic risks in China and elsewhere deserve
consideration, as do the now less-forgiving valuations. As we have
discussed elsewhere, China's financial imbalances continue to loom
menacingly. According to EM Advisors, outstanding credit to GDP is
about 260% and the system credit/deposit ratio is about 120%. These
numbers are high. Furthermore, bottom-up measures of growth in
China are slowing and, we believe, are now below 5% on an
annualised basis. Any renewed debt stimulus to boost this number
would add to our concerns.
Genesis Asset Managers, LLP
February 2018
Directors' Report
Capital Values
At 31(st) December 2017, the value of Equity Shareholders' Funds
was $1,490,818,000 (30(th) June 2017: $1,314,184,000) and the
Equity per Participating Preference Share was $11.05 (30(th) June
2017: $9.74), or in sterling terms, GBP8.16 (30(th) June 2017:
GBP7.50).
Principal Risks and Uncertainties
The main risks to the value of its assets arising from the
Fund's investment in financial instruments (principally equity
securities) are unanticipated adverse changes in market prices and
foreign currency exchange rates and an absence of liquidity. The
Board reviews and agrees with the Manager policies for managing
each of these risks and they are summarised below. These policies
have remained unchanged since the beginning of the period to which
these financial statements relate.
Volatility of emerging markets and market risk
The economies, the currencies and the financial markets of a
number of developing countries in which the Fund invests can be
extremely volatile. To manage the risks posed by adverse price
fluctuations the Fund's investments are geographically diversified,
and will continue to be so. The Fund will not normally invest more
than 25% of its assets (at the time the investment is made) in any
one country. While the exposure to any one company or group (other
than an investment company, unit trust or mutual fund) is formally
limited to 10% of the Fund's net assets, this exposure is unlikely
to exceed 5% at the time the investment is made.
Foreign currency exposure
The Fund's assets will be invested in securities of companies in
various countries and income will be received by the Fund in a
variety of currencies. However, the Fund will compute its net asset
value in US dollars. The value of the assets of the Fund as
measured in US dollars may be affected favorably or unfavorably by
fluctuations in currency rates and exchange control regulations.
Further, the Fund may incur costs in connection with conversions
between various currencies.
Lack of liquidity
Trading volumes on the stock exchanges of developing countries
can be substantially less than in the leading stock markets of the
developed world. This lower level of liquidity exaggerates the
fluctuations in the value of investments described previously. The
restrictions on concentration and the diversification requirements
detailed above also serve normally to protect the overall value of
the Fund from the risks created by the lower level of liquidity in
the markets in which the Fund operates.
Custody risk
The Fund's key operational risk is custody risk. Custody risk is
the risk of loss of securities held in custody occasioned by the
insolvency or negligence of the custodian. Although an appropriate
legal framework is in place that eliminates the risk of loss of
value of the securities held by the custodian, in the event of its
failure, the ability of the Fund to transfer the securities might
be temporarily impaired. The day to day management of these risks
is carried out by the Manager under policies approved by the
Board.
Manager
In the opinion of the Directors, in order to achieve the
investment objective of the Fund, and having taken into
consideration the performance of the Fund, the continuing
appointment of the Manager is in the interests of the shareholders
as a whole.
A more detailed commentary of important events that have
occurred during the period and their impact on these financial
statements and a description of the principal risks and
uncertainties for the remaining six months of the financial year
are contained in the Manager's Review.
Directors
The following directors served throughout the period under
review (except where noted otherwise): Hélène Ploix, Sujit Banerji,
Russell Edey, Saffet Karpat, Dr John Llewellyn and Katherine Tsang.
Katherine Tsang was appointed a Director from 19(th) July 2017.
As at 31(st) December 2017, Participating Preference Shares were
held by Sujit Banerji (10,000), Saffet Karpat (20,000) and Hélène
Ploix (15,000).
Related Party Transactions
During the reporting period, there were no transactions with
related parties which materially affected the financial position or
performance of the Fund. However, details of related party
transactions are contained in the Annual Financial Report for the
year ended 30(th) June 2017 which should be read in conjunction
with this Half Year Report.
Going Concern
The Directors believe that the Fund has adequate resources to
continue in operational existence for twelve months from the
approval date of the Half Year Report. This is based on various
factors including the Fund's forecast expenditure, its ability to
meet its current liabilities, the highly liquid nature of its
assets, its market price volatility and its closed-ended legal
structure. For these reasons, the Directors continue to adopt the
going concern basis in preparing these Financial Statements.
Statement of Directors' Responsibilities
In accordance with Chapter 4 of the Disclosure and Transparency
Rules the Directors confirm that to the best of their
knowledge:
-- the condensed set of financial statements has been prepared
in accordance with IAS 34 'Interim Financial Reporting' and gives a
true and fair view of the assets, liabilities, financial position
and return of the Fund;
-- the Half Year Report includes a fair review of important
events that have occurred during the first six months of the
financial year, their impact on the condensed financial statements,
and a description of the principal risks and uncertainties for the
remaining six months of the financial year; and
-- the Half Year Report includes a fair review of the
information concerning related party transactions.
Approved by the Board
Hélène Ploix Russell Edey
Director Director
14(th) February 2018
Unaudited Statement of Financial Position
as at 31(st) December 2017 and 30(th) June 2017
(Audited)
30(th)
31(st) December June
2017 2017
$'000 $'000
--------------- ----------
ASSETS
Current assets
Financial assets at fair value
through profit or loss 1,445,934 1,279,759
Amounts due from brokers 15,518 4,636
Dividends receivable 2,401 2,295
Other receivables and prepayments 208 172
Cash and cash equivalents 34,671 35,059
--------------- ----------
TOTAL ASSETS 1,498,732 1,321,921
--------------- ----------
LIABILITIES
Current Liabilities
Amounts due to brokers 3,712 4,644
Capital gains tax payable 2,346 1,038
Payables and accrued expenses 1,856 2,055
--------------- ----------
TOTAL LIABILITIES 7,914 7,737
--------------- ----------
TOTAL NET ASSETS 1,490,818 1,314,184
=============== ==========
EQUITY
Share premium 134,349 134,349
Capital reserve 1,317,206 1,132,448
Revenue account 39,263 47,387
--------------- ----------
TOTAL EQUITY 1,490,818 1,314,184
=============== ==========
NET ASSET VALUE PER PARTICIPATING
PREFERENCE SHARE* $11.05 $9.74
=============== ==========
* Calculated on an average number of 134,963,060 Participating
Preference Shares outstanding (30(th) June 2017: 134,963,060).
Unaudited Statement of Comprehensive Income
for the six months ended 31(st) December 2017 and 31(st)
December 2016
2017 2016
--------------------------- -------------------------
Capital Revenue Capital Revenue
Reserve Account Total Reserve Account Total
$'000 $'000 $'000 $'000 $'000 $'000
INCOME
Net change in financial
assets at
fair value through
profit or loss 192,168 - 192,168 15,423 - 15,423
Net exchange gains/(losses) 150 - 150 (203) - (203)
Dividend income - 14,460 14,460 - 12,170 12,170
Securities lending
income - 306 306 - 45 45
Interest income - 23 23 - 46 46
-------- ------- -------- ------- ------- -------
192,318 14,789 207,107 15,220 12,261 27,481
-------- ------- -------- ------- ------- -------
EXPENSES
Management fees (5,354) (1,339) (6,693) - (7,276) (7,276)
Transaction costs (898) - (898) - (925) (925)
Custodian fees - (622) (622) - (551) (551)
Directors' fees
and expenses - (153) (153) - (162) (162)
Administration
fees - (187) (187) - (137) (137)
Audit fees - (28) (28) - (32) (32)
Legal and professional
fees - (52) (52) - (49) (49)
Other expenses - (65) (65) - (113) (113)
-------- ------- -------- ------- ------- -------
TOTAL OPERATING
EXPENSES (6,252) (2,446) (8,698) - (9,245) (9,245)
-------- ------- -------- ------- ------- -------
OPERATING PROFIT 186,066 12,343 198,409 15,220 3,016 18,236
Finance Costs - (7) (7) - (3) (3)
-------- ------- -------- ------- ------- -------
PROFIT BEFORE TAX 186,066 12,336 198,402 15,220 3,013 18,233
Capital gains tax (1,308) - (1,308) - (130) (130)
Withholding taxes - (1,565) (1,565) - (1,261) (1,261)
-------- ------- -------- ------- ------- -------
PROFIT AFTER TAX 184,758 10,771 195,529 15,220 1,622 16,842
-------- ------- -------- ------- ------- -------
Other Comprehensive
Income - - - - - -
-------- ------- -------- ------- ------- -------
TOTAL COMPREHENSIVE
INCOME ATTRIBUTABLE
TO
PARTICIPATING
PREFERENCE SHARE 184,758 10,771 195,529 15,220 1,622 16,842
======== ======= ======== ======= ======= =======
EARNINGS PER
PARTICIPATING
PREFERENCE SHARE* $1.45 $0.12
======== =======
* Calculated on an average number of 134,963,060 Participating
Preference Shares outstanding (31(st) December 2016:
134,963,060).
With effect from 1(st) July 2017, 80% of the Management fees and
all the Transaction costs and Capital gains tax have been allocated
to the Capital Reserve.
Unaudited Statement of Changes in Equity
for the six months ended 31(st) December 2017 and 31(st)
December 2016
2017
---------------------------------------
Share Capital Revenue
Premium Reserve Account Total
$'000 $'000 $'000 $'000
------- --------- -------- ---------
Balance at the beginning
of the period 134,349 1,132,448 47,387 1,314,184
Total Comprehensive Income - 184,758 10,771 195,529
Dividend paid in the period - - (18,895) (18,895)
------- --------- -------- ---------
Balance at the end of
the period 134,349 1,317,206 39,263 1,490,818
======= ========= ======== =========
2016
Share Capital Revenue
Premium Reserve Account Total
$'000 $'000 $'000 $'000
------- ------- ------- ---------
Balance at the beginning
of the period 134,349 946,972 39,997 1,121,318
Total Comprehensive Income - 15,220 1,622 16,842
------- ------- ------- ---------
Balance at the end of
the period 134,349 962,192 41,619 1,138,160
======= ======= ======= =========
Unaudited Statement of Cash Flows
for the six months ended 31(st) December 2017 and 31(st)
December 2016
2017 2016
$'000 $'000
--------- ---------
OPERATING ACTIVITIES
Dividends and interest received 14,377 13,950
Securities lending income received 306 45
Taxation paid (1,565) (1,261)
Purchase of investments (244,918) (163,194)
Proceeds from sale of investments 259,097 157,289
Interest paid (7) (3)
Operating expenses paid (8,933) (9,454)
--------- ---------
NET CASH INFLOW/(OUTFLOW) FROM OPERATING
ACTIVITIES 18,357 (2,628)
========= =========
FINANCING ACTIVITIES
Dividends paid (18,895) -
--------- ---------
NET CASH OUTFLOW FROM FINANCING ACTIVITIES (18,895) -
========= =========
Effect of exchange gains/(losses)
on cash and cash equivalents 150 (203)
--------- ---------
NET DECREASE IN CASH AND CASH EQUIVALENTS (388) (2,831)
Net cash and cash equivalents at the
beginning of the period 35,059 20,245
--------- ---------
NET CASH AND CASH EQUIVALENTS AT THE
END OF THE PERIOD 34,671 17,414
========= =========
Comprising:
Cash and cash equivalents 34,671 17,414
========= =========
Notes to the Unaudited Financial Statements
for the six months ended 31(st) December 2017
1. Basis of Preparation
The Interim Financial Information for the six months ended
31(st) December 2017 has been prepared in accordance with
International Accounting Standards 34, 'Interim Financial
Reporting'. The Interim Financial Information should be read in
conjunction with the Annual Financial Statements for the year ended
30(th) June 2017, which have been prepared in accordance with
International Financial Reporting Standards ("IFRS").
The unaudited financial statements have been prepared under the
historical cost convention, as modified by the revaluation of
financial assets and financial liabilities at fair value through
profit or loss.
2. Transaction costs
During the period, expenses were incurred in acquiring or
disposing of investments.
31(st) December 31(st) December
2017 2016
$'000 $'000
--------------- ---------------
Acquiring 435 456
Disposing 463 469
--------------- ---------------
898 925
=============== ===============
3. Dividend
31(st) December 31(st) December
2017 2016
Dividend Paid $'000 $'000
--------------- ---------------
2017 final dividend of 14.0
cents (2016: nil) per Participating
Preference Share 18,895 -
=============== ===============
4. Segment Information
The Directors, after having considered the way in which internal
reporting is provided to them, are of the opinion that the Fund
continues to be engaged in a single segment of business, being the
provision of a diversified portfolio of investments in emerging
markets.
All of the Funds' activities are interrelated, and each activity
is dependent on the others. Accordingly, all significant operating
decisions are based upon analysis of the Fund operating in one
segment.
The financial positions and results from this segment are
equivalent to those per the financial statements of the Fund as a
whole, as internal reports are prepared on a consistent basis in
accordance with the measurement and recognition principles of
IFRS.
As at 31(st) December 2017 and 30(th) June 2017, the Fund has no
assets classified as non-current assets.
The Fund is domiciled in Guernsey. All of the Fund's income from
investment is from entities in countries or jurisdictions other
than Guernsey.
[END]
This information is provided by RNS
The company news service from the London Stock Exchange
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