19th Feb 2016 15:12
LONDON (Alliance News) - Genesis Emerging Markets Fund Ltd Friday said it outperformed its benchmark index in the second half of its financial year but said the relative returns in 2015 have been "disappointing".
The investment company focused on emerging markets said its net asset value at the end of December fell to USD693.9 million from USD771.4 million at the end of June, equating to a NAV per share of USD7.58 compared to USD8.99 - or GBP5.14 per share from GBP5.72.
Genesis said the loss per share in the six month period was USD1.41, compared to a loss per share of USD0.89 in the six months ended June.
"Emerging market returns were clearly extremely disappointing in the second half of 2015, as investors responded to slowing growth (principally in China, but in other markets too), further weakening in commodity prices, and an awareness of a lack of necessary reform in a number of developing countries (Brazil being a major example)," said Genesis.
The 10.1% decline in its net asset value per share, in pounds, can be compared its benchmark index, the MSCI EM (TR) Index, which fell 11.1% in pound terms over the same period.
"Although this result was slightly ahead of the Index, it is fair to say that both the board and the manager feel that relative returns in 2015 have been disappointing, given that when this kind of environment has occurred in the past, the manager's investment approach and process has generally delivered better returns than the market," said Genesis.
The loss after tax widened to USD189.4 million in the six months to end December from a GBP121.2 million loss in the same period a year earlier.
Genesis shares were down 0.3% to 434.50 pence per share on Friday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
GSS.L