Genesis Emerging Markets Fund

LN: GSS

£852.7m market cap

702p last close

Launched in July 1989, GSS was one of the first emerging markets funds in the UK. The company seeks long-term capital appreciation through investment in companies operating in emerging and frontier markets, or listed on the stock markets of such countries. This may include companies that have a significant amount of their revenues in emerging markets, but which are listed on stock exchanges in developed countries. Performance is benchmarked against the MSCI Emerging Markets Index.

Investment summary

Genesis Emerging Markets Fund (GSS) was launched in July 1989, making it one of the first emerging markets funds to be listed in the UK. It seeks to generate long-term capital growth, primarily through investing in emerging and frontier markets equities. With few constraints relative to the benchmark MSCI Emerging Markets index, the investment approach is bottom-up and focused on high-quality companies that trade on reasonable valuations. The manager believes income convergence with developed economies, and a rapidly growing middle-class, creates compelling long-term opportunities for the asset class. In the nearer term, the manager is finding attractive entry points for investments following a c 20% correction of the benchmark index since January 2018. The board has recently increased its efforts to promote GSS, including a resumption of distributions, while a tender offer was successfully completed in August 2018. The fund’s 13.5% discount to cum-income NAV is at the lower end of the peer group range, suggesting there is scope to narrow over time.

Share price graph
Price performance
%
1m
3m
12m
Actual 3.2 11.1 (1.3)
Relative* (0.2) 6.8 (0.4)
52-week high/low 734.0p/615.0p
*% relative to local index
Key management
Jonathan Snow Client Relationships Director

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