Genesis Emerging Markets Fund (GSS) 2020年年度報告「LSE」.pdf

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1、EMERGING MARKETS FUND LIMITEDANNUAL FINANCIAL REPORTFOR THE YEAR ENDED 30 JUNE 2020We aim to generate excellent long-term investment performance in Emerging Market equities for our shareholders.In doing so,we will uphold our values and consider the interests of all stakeholders.Investment ObjectiveT

2、he investment objective of Genesis Emerging Markets Fund Limited(the Fund or GEMF)is to achieve long-term capital growth,primarily through investment in listed equity markets of low-and middle-income countries.Investment ApproachThe investment approach is to identify companies which are able to take

3、 advantage of growth opportunities in Emerging Markets and invest in them when they are trading at an attractive discount to the Investment Managers assessment of their intrinsic value.StructureGEMF is a Guernsey based Authorised Closed-Ended Investment Scheme with the ability to issue additional sh

4、ares.The Funds 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 in issue is 121,466,754 as at 30 June 2020(30 June 2019:121,466,754).Investment

5、ManagerThe investment manager of the Fund is Genesis Investment Management,LLP(the Investment Manager or Genesis).More information on Genesis and their investment philosophy and process can be found on pages 12 to 15.Contents Strategic Report 02 Financial Highlights and Performance 04 Chairmans Stat

6、ement 06 Strategy,Business Model and Principal Risks Portfolio Report 12 Investment Manager 13 Our Values 14 Investment Philosophy and Process 16 Investment Team 18 Investment Managers Review 22 Geographical Diversification 24 Country and Sector Exposure of the Portfolio 26 Twenty Largest Holdings 2

7、8 The Portfolio Governance Report 34 Board of Directors 36 Directors Report 40 Directors Remuneration Report 41 Audit and Risk Committees Report 43 Nomination Committees Report 45 Statement of Directors Responsibilities Financial Statements 48 Independent Auditors Report 51 Statement of Financial Po

8、sition 52 Statement of Comprehensive Income 53 Statement of Changes in Equity 54 Statement of Cash Flows 55 Notes to the Financial Statements Other Information 74 Remuneration Disclosure 75 Administration 76 Glossary of Terms 78 Notice of Annual General MNOTE:All reference to dollars/cents or$/throu

9、ghout this report are to the United States currency.GovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsAnnual Report 2020Genesis Emerging Markets Fund Limited01Strategic ReportGovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioRepor

10、tContentsGenesis Emerging Markets Fund LimitedAnnual Report 202002GEMF Total Return in GBP for the year to 30 June 2020(3.3)%Share Price Total Return(1)$(0.8)%Net asset value per Participating Preference Share Total Return(1)$(0.1)%MSCI EM(TR)Index(2)30 June 202030 June 2019%changeUSDNet Assets(3)$1

11、,235.8m$1,305.3m(5.3)Net Asset Value per Participating Preference Share(3)$10.17$10.75(5.4)Dividend per Participating Preference Share(3)(4)$0.17$0.19(10.5)GBPNet Assets(5)1,000.1m1,025.6m(2.5)Net Asset Value per Participating Preference Share(5)8.238.44(2.5)Share Price7.187.57(5.2)Discount of Share

12、 Price to Net Asset Value per Participating Preference Share(1)12.8%10.3%Number of Participating Preference Shares121,466,754 121,466,754Ongoing charges ratio(1)1.07%1.11%Countries represented in portfolio3032Number of holdings96112ANNUALISED TOTAL RETURNSGBP to 30 June 2020%ChangeGEMF Share Price(1

13、)GEMF NAV(net of annual fees)(1)MSCI EM(TR)(2)Since Incep?onof Fund(5)0510151 Year3 Years5 Years10 Years(6 July 1989)10.711.29.55.26.05.68.68.78.35.24.94.0(3.3)(0.8)(0.1)(1)AlternativePerformanceMeasuresrefertoGlossaryofTermsonpage76.(2)MSCIEmergingMarkets(TotalReturn)Index.(3)IFRSmeasure.Refertopag

14、es51to72intheFinancialStatementsandNotestotheFinancialStatements.(4)Adividendof$0.17perParticipatingPreferenceShareontheFundsprofitsfortheyearended30June2020hasbeenproposed.(5)TranslationoftheUSDmeasuresusingtheGBP/USDexchangerateasat30June2020of1.2356(2019:1.2727).Pastperformanceisnoguaranteeoffutu

15、reperformance.Financial Highlights and PerformanceGovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsAnnual Report 2020Genesis Emerging Markets Fund Limited03PERFORMANCE LAST 5 YEARS(1)Value(rebased to 100 on 28 June 2015)80.090.0100.0110.0120.0130.0140.0150.

16、0160.0170.030.06.1530.06.1630.06.1729.06.1828.06.1928.06.20151.5 NAV per share149.3 MSCI EM(TR)Index 150.8 Share PriceDISCOUNT TO NAV LAST 5 YEARS(1)(16.0)%(14.0)%(12.0)%(10.0)%(8.0)%(6.0)%(4.0)%(2.0)%0.0%30.06.1530.06.1630.06.1729.06.1828.06.1930.06.20Average(11.8)%(12.8)%(1)Basedonmonth-endNetAsse

17、tValuesGovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsGenesis Emerging Markets Fund LimitedAnnual Report 202004OverviewOver the year to 30 June 2020,the Funds net asset value(NAV)fell by 0.8%in sterling total return terms to 8.23 per Participating Prefere

18、nce Share.This compares to a fall of 0.1%in the Funds benchmark,the MSCI Emerging Markets Total Return Index(the Index).It should be noted that the Fund invests in a significant number of non-benchmark stocks which the Invesment Manager believes have long-term growth potential.The Funds share price

19、fell by 3.3%to 7.18(adjusted for dividends paid)over the same period.These have obviously been extraordinary times,not least for financial markets.In response to the disruption brought about by the COVID-19 crisis,the Funds liquid and well diversified portfolio has stood up well to the challenges po

20、sed.The Investment Manager quickly implemented effective Business Continuity Plan(BCP)arrangements,allowing them to operate as normal.Key service providers to the Fund similarly moved swiftly to invoke BCP planning in delivering appropriate levels of support.A full impact assessment of COVID-19 on t

21、he Funds ability to operate as a going concern has been satisfactorily executed,and this has been documented on page 39.Against a backdrop of strong absolute and relative performance explained in this Statement last year,the impact of the COVID-19 crisis on the Fund has resulted in weaker performanc

22、e this year.As discussed further in the Investment Managers Review,the Fund added value relative to the Index before the global pandemic impacted markets from February,led by stock selection in South Korea,South Africa and Brazil.However,the Fund suffered during the height of the crisis due to under

23、weight positions in markets that handled the pandemic well,such as China,South Korea and Taiwan.Although the average holding period in the Fund is in excess of five years,the Investment Manager has shown decisiveness when markets present compelling valuation opportunities.This was the case in recent

24、 months as volatility created by the pandemic presented opportunities to increase the quality of the portfolio at relatively attractive prices.As ever,the Investment Manager continues to focus fully on long-term investment performance.This is produced by working as a team in making investments in qu

25、ality businesses at attractive prices,supported by deep fundamental research,constructive challenge and support.A more detailed explanation of the years performance and changes to positioning is provided in the Investment Managers Review on pages 18 to 21.The Board is pleased to report that the Inve

26、stment Manager continues to meet Environmental,Social and Governance(ESG)related requirements in fulfilling its duties.More information on Genesis approach to ESG can be found on page 9.The Fund held its Annual General Meeting(AGM)on 4 November 2019,and as ever,we appreciate shareholders support and

27、 thank them for their approval of all resolutions presented at the meeting.The subsequent Shareholder Information Meeting on 5 November 2019 provided shareholders an opportunity to hear from,and ask questions of,representatives of the Investment Manager.A dividend of 14.78p(19.0)per Participating Pr

28、eference Share was paid to shareholders on 13 December 2019.As discussed in the 2019 Annual Report,the Board considers that this level of dividend represents an appropriate balance between the various differing interests,and opinions,held across the shareholder base while maintaining the fundamental

29、 focus on capital growth as the Funds primary investment objective.For the year ended 30 June 2020 a final dividend of 17.0 per Participating Preference Share has been proposed and is subject to approval by shareholders at the AGM.The reduction from 19.0 to 17.0 follows the fall in income during the

30、 year caused largely by the reduction or cancellation of dividends by a number of our investments affected by COVID-19.Hopefully this will not be permanent.In addition,there has been a long term shift in Emerging Markets towards technology and internet companies which are low income investments.The

31、payment of a 17.0 dividend will require withdrawal of$20.6m of which$3.1m will be funded from the Funds brought forward revenue reserves.A new Investment Management Agreement was entered into between Genesis Investment Management,LLP and the Fund effective from 30 June 2019 and the management fee pa

32、yable was reduced slightly to 0.90%of net asset value(NAV)of the Fund per annum.The Board continue to monitor the appropriateness of the fee paid to the Investment Manager and considers that such a fee level in relation to the peer group of similar closed end funds is currently appropriate.DiscountT

33、he discount of the share price to NAV per Participating Preference Share at the end of the period was 12.8%.The average level of the discount over the 12 months was 11.5%and has fluctuated between 8.5%and 18.5%.The Board continue to consider carefully such statistics,their relevance in comparison wi

34、th an appropriate peer group,and potential options for active management of the discount which continues to move broadly in line with the associated peer group.Marketing activity continues to be stepped up in Chairmans StatementI have pleasure in presenting the thirty-first annual report of the Gene

35、sis Emerging Markets Fund Limited,for the year ended 30 June 2020.Hlne PloixChairmanGovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsAnnual Report 2020Genesis Emerging Markets Fund Limited05support of widening the Funds shareholder base,following the appoin

36、tment of an external agency,Edison,to raise exposure to both the wholesale and retail sectors.Despite lockdown constraints,the Investment Manager has continued to meet with existing and potential shareholders in a virtual fashion.In addition,a series of video interviews with portfolio managers was i

37、nitiated towards the end of the Funds financial year.These interviews will give shareholders an opportunity to learn more about the Investment Managers approach to portfolio management and the asset class.As previously announced,the Board intends that if the Funds NAV Total Return over 5 years endin

38、g 30 June 2021 does not exceed the Funds benchmark NAV Total Return,the Fund will undertake a tender offer for up to a further 25%of the Funds issued share capital(excluding any shares held in treasury).The BoardAt a Board meeting in June 2020,Torsten Koster was appointed as an independent Non-Execu

39、tive Director with effect from 1 July 2020.Mr Koster has over 30 years experience working for large multi-national companies,including several positions as Chief Financial Officer among which Nestle Russia and Eurasia and Nestle Nespresso.The retirement of Saffet Karpat at the forthcoming AGM is not

40、ed,with the Board thanking him for nine years of excellent service.Shareholders will have the opportunity to approve Mr Kosters appointment at the AGM,at which,the remaining five Directors will stand for re-election in accordance with the requirements of the AIC Code of Corporate Governance and the

41、UK Corporate Governance Code.As ever,we continue to review how best the Board can provide the appropriate mix of skill,expertise,diversity and experience necessary in representing the interests of all shareholders.I still feel that we have such a combination and will continue to ensure that we remai

42、n current with best market practice.AGM,Shareholder Meeting and Shareholder CommunicationThis years AGM will be held on Monday,2 November 2020 at 10:30 a.m.at the registered office of the Fund.However,in consideration of the wellbeing of the Funds shareholders and in light of Government guidance aro

43、und social distancing and travel restrictions,the Board,in conjunction with the Company Secretary,have made the decision that shareholders will not be permitted to attend this years AGM in person.In advance of the AGM a short presentation by the Investment Manager on the performance of the Fund over

44、 the past year will be made available on the Funds website at www.genesisemf.co.uk.Electronic proxy voting is now available and shareholders are encouraged to submit voting instructions using the web-based voting facility at and www.proxymity.io for institutional shareholders.In order to use electro

45、nic proxy voting,shareholders will require their shareholder registration number,control number and pin.If you do not have access to these details please contact the Companys Registrar,Computershare,their contact details can be found on page 75 of this report.At the end of the Annual Report is the n

46、otice convening the AGM,along with the schedule of resolutions for consideration.As ever,we encourage all shareholders to avail themselves of the opportunity to vote on the resolutions.The Board wishes to ensure that shareholders have access to a range of up-to-date information about the Fund.As wel

47、l as releasing announcements to the London Stock Exchange and issuing the Annual and Half-Yearly Reports,we encourage all shareholders to refer to the information on investment performance and portfolio activity contained in the Funds monthly factsheets.These and other Fund literature can be found o

48、n the Funds website:.Shareholders will also be invited to the Funds annual Shareholder Information Meeting which this year will take place remotely on Tuesday,3 November 2020.We hope that as many shareholders as possible will take this opportunity to hear directly from representatives of the Investm

49、ent Manager.In general,the Investment Manager will usually be best placed to address queries from shareholders.Clearly,however,it is important for shareholders to be able to communicate directly with the Board when necessary.I have continued to be available to major shareholders over the year but in

50、vite any shareholders to contact me or Russell Edey(as Senior Independent Director),or indeed any of the Board,with comments and feedback.We can be reached via either the Investment Manager or the Company Secretary at the addresses on page 75 of this Report.OutlookGiven the magnitude of the global p

51、andemic,the Investment Manager expects continued challenges over the short to medium term.The impact on economies and businesses will vary considerably across emerging markets.We are reminded by the Investment Manager of its bottom-up and long-term approach to investing,applying a rigorous investmen

52、t process to populate the portfolio with quality businesses at attractive prices.While the pandemic has resulted in short-term relative underperformance,the resultant volatility has allowed the Investment Manager to upgrade the quality of the portfolio.We continue to share the Investment Managers co

53、nfidence in the high quality of the companies invested in by the Fund,and its potential to generate returns for shareholders over the next several years.As we have noted on previous occasions,the challenging global environment provides an excellent opportunity for good businesses to outperform their

54、 peers and gain market share.Stock selection remains a key skill in such an environment,and the Board believes that the Investment Managers team approach and challenging process will generate the long-term returns that our shareholders expect.Hlne PloixChairman5 October 2020GovernanceReportOther Inf

55、ormationStrategic ReportFinancial StatementsPortfolioReportContentsGenesis Emerging Markets Fund LimitedAnnual Report 202006Investment ObjectiveThe investment objective of the Fund is to achieve long-term capital growth,primarily through investment in listed equity markets of low-and middle-income c

56、ountries.Investment StrategyThe core element of our investment strategy is to appoint and retain a high-quality manager whose investment philosophy best matches the Funds objective,and carefully monitor the Funds performance.The Board believes that the Funds Investment Manager can best deliver excel

57、lent long-term performance by working as a team to make investments in quality businesses at attractive prices as explained below.Business and StatusThe Fund is a closed-ended investment scheme authorised by the Guernsey Financial Services Commission and is listed on the London Stock Exchange.The Fu

58、nd was incorporated in Guernsey on 7 June 1989 and commenced business on 19 September 1989.Reviews of the Funds activities are included in the Chairmans Statement on pages 4 to 5 and Investment Managers Review on pages 18 to 21.There has been no significant change in the activities of the Fund durin

59、g the year to 30 June 2020 and the Directors anticipate that the Fund will continue to operate in the same manner during the current financial year.Business Model and Investment ProcessThe Fund has no employees or premises and the Board is comprised of non-executive Directors.The day-to-day operatio

60、ns and functions of the Fund have been delegated to third-party service providers who are subject to the oversight of the Board.There are therefore no disclosures to be made in respect of employees.During the year under review Genesis Investment Management,LLP provided investment and risk management

61、 services,JP Morgan Chase Bank was the Custodian and JP Morgan Administration Services(Guernsey)Limited was the Administrator and Company Secretary.The Board regularly reviews the performance and risks of its primary service providers and checks that they have appropriate frameworks in place for the

62、 oversight of their internal controls,monitoring and reporting.In line with the stated investment philosophy,the Investment Manager employs a bottom-up investment approach with individual members of its investment team taking responsibility for analysis on individual companies.The investment process

63、 is founded on proprietary internal research,with the Investment Managers structure designed to allow a cohesive team of investors to generate fundamental research insights and,subject to rigorous challenge,express those insights in the portfolio.The Funds portfolio is diversified across countries a

64、nd industries and comprises 96 holdings(currently representing some 30 different countries),to give a range of 7-9 per team member.The Investment Manager believes that when its team concentrates on a smaller number of ideas,the research can be deeper and insights more valuable.The portfolio comprise

65、s holdings in predominantly high-quality,sustainable businesses,both large and small.As part of their analysis the Investment Managers team determines quality ratings for each company,which primarily measure a business ability to generate sustainable excess returns on capital and US$intrinsic value

66、stability.Many factors are incorporated into this analysis:as well as company-specific elements,the team considers the political and macroeconomic framework in which the company operates.ESG considerations are included in the analysis of sustainability,and the team takes ESG factors into account whe

67、n determining the quality rating of a business.The Investment Manager recognises that governance issues in particular are relevant to all companies and has laid out the key principles that it expects companies to follow from a corporate governance perspective.Given that the average holding period of

68、 investments in client portfolios has consistently been more than five years and that this characteristic is expected to persist,the Investment Manager is comfortable buying into relatively illiquid situations and building positions gradually.In the Investment Managers experience the trading liquidi

69、ty of a stock improves as its underlying merits are gradually appreciated by a wider domestic and international investor base.Turnover is correspondingly low;typically of the order of 20-25%per annum(although for the 12 months ended 30 June 2019 and 2020,it was slightly higher).There is no specific

70、company market capitalisation range in which the Investment Manager invests,and it is prepared to take positions in smaller-capitalisation stocks where compelling investment cases are found,in the belief that these can be a source of particularly attractive long-term investment opportunities.The Fun

71、d invests in a large number of emerging markets and companies,many of which are not represented in the standard indices.The Investment Manager aims to retain as much flexibility as possible with respect to portfolio constraints.Because the Investment Manager aims to invest in companies that can comp

72、ound shareholders capital,but also aims to invest at a discount to intrinsic value,the portfolio tends to have both growth and value characteristics.Strategy,Business Model and Principal RisksGovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsAnnual Report 20

73、20Genesis Emerging Markets Fund Limited07The portfolios investments are primarily listed equity securities.However,the Fund will also hold positions in Genesis related investment companies,Participatory notes and Investee Funds,where appropriate.Details of the Funds portfolio are shown on pages 28 t

74、o 32.The Fund does not engage in any active management of foreign currency risk and the portfolio is currently unleveraged(refer to notes 14(b)and 14(e)respectively).The Fund has participated in securities lending activities with JP Morgan Chase Bank N.A.since April 2016(refer to note 2(m).Benchmark

75、 IndexThe Funds benchmark is the MSCI Emerging Markets(Total Return)Index.Principal&Emerging Risks and Risk ManagementThe Board has carried out a robust assessment of the Funds principal and emerging risks.The main risks to the value of its assets arising from the Funds investment in financial instr

76、uments(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 Investment Manager policies for managing each of these risks and they are summarised below.These policies have

77、 remained unchanged since the beginning of the period to which these financial statements relate.Volatility of Emerging Markets and market riskThe economies,currencies and the financial markets of a number of developing countries in which the Fund invests may be extremely volatile.To manage the risk

78、s posed by adverse price fluctuations the Funds investments are geographically diversified,and will continue to be so.The exposure to any one company or group(other than an investment company,unit trust or mutual fund)is unlikely to exceed 5%of the Funds net assets at the time the investment is made

79、.The Articles of Incorporation place a limit of 10%for securities issued by one company but the Board use 5%for monitoring purposes.Foreign currency exposureThe Funds assets will be invested in securities of companies in various countries and income will be received by the Fund in a variety of curre

80、ncies.However,the Fund will compute its net asset value and distributions in US dollars.The value of the assets of the Fund as measured in US dollars may be affected favourably or unfavourably by fluctuations in currency rates and exchange control regulations.Further,the Fund may incur costs in conn

81、ection with conversions between various currencies.The Fund has opted not to engage in any active management of foreign currency risk,and therefore all its open foreign exchange positions are typically unhedged.Lack of liquidityTrading volumes on the stock exchanges of developing countries can be su

82、bstantially less than in the leading stockmarkets of the developed world and trading may even be temporarily suspended during certain periods.Liquidity can also be negatively impacted by temporary capital controls in certain markets.A lower level of liquidity can exaggerate the fluctuations in the v

83、alue 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.COVID-19 pandem

84、icThe COVID-19 pandemic poses additional risks to the Fund beyond those risks described above.They include liquidity risks to markets,risks associated with the maintenance of the current dividend policy and business continuity risks for the Investment Manager and the Funds key service providers.The

85、day-to-day management and monitoring of these risks is carried out by the Investment Manager.Custody risk and cyber securityThe Fund is exposed to operational risks such as custody risk and cyber security breaches.Custody risk is the risk of loss of securities held in custody occasioned by the insol

86、vency 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 manag

87、ement of these risks is carried out by the Investment Manager under policies approved by the Board.The risk represented by breaches in cyber security is carefully monitored by the Investment Manager,Custodian and Administrator with appropriately designed and tested controls.Investment policy and pro

88、cessInappropriate investment policies and processes may result in under performance against the Funds peer group.The Board manages these risks by ensuring a diversification of investments and regularly reviewing the portfolio asset allocation and investment process.In addition,certain investment res

89、trictions have been set and these are monitored as appropriate.GovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsGenesis Emerging Markets Fund LimitedAnnual Report 202008Strategy,Business Model and Principal RiskscontinuedInvestment strategy and share price

90、movementsThe objective of the Fund is to achieve long-term capital growth and it is exposed to the effect of variations in the price of its investments.A fall in the value of its portfolio will have an adverse effect on shareholders funds.The Board reviews the Funds investment strategy and the risk

91、of adverse share price movements at its Board meetings taking into account the economic climate,market conditions and other factors that may have an effect on the sectors in which the Fund invests.There can be no assurances that depreciation in the value of the Funds investments will not occur but t

92、he Board seeks to reduce this risk.Discount to net asset valueA discount in the price at which the Funds shares trade to net asset value would mean that shareholders would be unable to realise the true underlying value of their investment.As a means of controlling the discount to net asset value the

93、 Board has the ability to buy back shares.The Board reviews the Funds discount to net asset value on a regular basis.Credit and counterparty riskThe failure of the counterparty to a transaction to discharge its obligations under that transaction could result in the Fund suffering a loss.OperationalF

94、ailure of the core accounting systems,or a disastrous disruption to the Administrators or Investment Managers business,could lead to an inability to provide accurate reporting and monitoring.Loss of key personnelThe day-to-day management of the Fund has been delegated to the Investment Manager.Loss

95、of the Investment Managers key employees could affect investment returns.The Board is aware that Genesis recognises the importance of its employees to the success of its business.Its remuneration policy is designed to be market competitive in order to motivate and retain staff and succession plannin

96、g is regularly reviewed.Other MattersViability StatementIn accordance with Provision 36 of the Code of Corporate Governance as issued by the Association of Investment Companies in February 2019(the AIC Code),the Board has conducted a robust assessment of the viability of the Fund over the next three

97、 years to 30 June 2023 this is beyond the twelve month period from the date of approval of the financial statements as required by the going concern basis of accounting.The Board considers that a three year period is appropriate to assess the viability of the Fund given the inherent uncertainty in g

98、lobal emerging markets and the Funds investment cycle.As part of its assessment,the Board has considered the Funds business model including its investment objective and investment policy as well as the principal&emerging risks that may affect the Fund,details of which can be found above.In addition,

99、the Board has discussed and considered the ongoing impact that the COVID-19 pandemic may have on equity markets and the resultant effect on the valuation of the Fund,income receipts and the liquidity of the portfolio.The Board has noted that:The Funds investment objective is to achieve capital growt

100、h over the long term and the Board believes shareholders should regard the Fund as a long-term investment.The average holding period for companies in the Funds portfolio is currently over five years,with turnover at around 37%over the last twelve months.These attributes reflect the Investment Manage

101、rs long-term fundamental approach.The Funds portfolio consists of a diversified group of companies from a large number of Emerging Market countries.The majority of these are traded on major international stock exchanges.In the opinion of the Investment Manager,the portfolio is sufficiently liquid to

102、 meet all ongoing and future liabilities arising from the Funds day-to-day business.No significant increases to ongoing charges or operational expenses are anticipated.The Investment Manager and the Funds other key service providers have the required controls in place to ensure that they can continu

103、e to provide their services to the Fund.No operational issues have arisen as a result of the COVID-19 pandemic with the Investment Manager and all key service providers are continuing to service the Fund in line with service level agreements.A potential Tender Offer of 25%of the Funds shares,to be i

104、mplemented in 2021 if performance over the five years to June 2021 is not ahead of the Index.The Board has therefore concluded that there is a reasonable expectation that the Fund will be able to continue in operation and meet its liabilities as they fall due over the next three years.Key Performanc

105、e IndicatorsAt their Board meetings the Directors consider a number of performance indicators to help assess the Funds success in achieving its objectives.GovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsAnnual Report 2020Genesis Emerging Markets Fund Limit

106、ed09The key performance indicators used to measure the performance of the Fund over time are as follows:Net asset value changes over time;Participating Preference Share price movement;A comparison of Participating Preference Share price and net asset value against its peer group;Discount/premium to

107、net asset value.Information on some of the above key performance indicators and how the Fund has performed against them can be found on pages 2 and 3.DiversityThe Funds policy on board diversity is included in the Nomination Committees Report on page 43.Environmental,Social and Governance Factors As

108、 a bottom-up investor,Genesis investment approach lends itself naturally to the integration of ESG factors at the company level,as part of the ongoing qualitative judgement of a companys sustainable competitive advantage and persistent capacity to generate sustainable excess returns.Genesis believes

109、 the evaluation of ESG factors contributes to a broader and deeper understanding of the strategic direction of a company and allows for a more accurate assessment of the risks and future costs.Genesis pays particular attention to the quality of company management including their alignment of interes

110、ts with minority investors.The Genesis investment team assesses ESG factors,including climate-related risks and opportunities,in the context of materiality,mindful of the Sustainability Accounting Standards Board framework.Sector Specialists are responsible for assessing the materiality and relevanc

111、e of ESG factors in their respective sectors and providing an ESG framework to the team.Each Portfolio Manager(PM)is individually responsible for the integration of the relevant ESG factors into their investment analysis of a company,before investing in a company and throughout the investment period

112、.Genesis released its first annual ESG report earlier this year and it can be found on their website,www.giml.co.uk.The ESG report contains more information on ESG integration in the portfolio as well as the Investment Managers approach to stewardship and a qualitative review of the top ten portfoli

113、o positions including the company-level ESG metrics.Duty to promote the success of the FundUnder section 172 of the UK Companies Act 2006,a director of a company must act in a way he/she considers,in good faith,would be most likely to promote the success of the company for the benefit of its members

114、 as a whole,and in doing so have regard(amongst other things)to:the likely consequences of their decisions in the long term;the interests of the companys employees;the need to foster the companys business relationships with suppliers,customers and others;the impact of the companys operations on the

115、community and the environment;the desirability of the company maintaining a reputation for high standards of business conduct;and the need to act fairly as between members of the company.As an externally managed investment company,the Fund has no employees or physical assets.The key stakeholders in

116、the Fund are its shareholders,the Investment Manager and third party service providers.The Board is responsible for promoting the long-term success of the Fund for the benefit of all stakeholders and in particular its shareholders.Although the majority of the day-to-day activities of the Fund are de

117、legated to the Investment Manager and third party service providers,the responsibilities of the Board are set out in the schedule of matters reserved for the Board and the relevant terms of reference of its committees,all of which are reviewed regularly by the Board.To ensure that the Board is able

118、to discharge this duty,both the Investment Manager and key third party service providers are required to provide the Board with regular updates.In addition,Directors,or the Board as a whole,have the authority to seek advice from professional advisers including the Company Secretary and independent e

119、xternal advisers as well as attend any relevant training seminars.The investment management function is critical to the long-term success of the Fund.The Board monitors the performance of the Investment Manager against key performance indicators.The Board receives updates from the Investment Manager

120、 on the performance of the Fund at each Board meeting with additional performance updates being provided on a monthly basis.In addition to performance updates,the Board receives regular updates on the marketing of the Fund from both the Investment Manager and the Funds brokers.As part of these updat

121、es the Board receives and considers feedback from its shareholders.The Investment Manager and the Funds corporate brokers hold periodic meetings with the Funds major shareholders to discuss aspects of the Funds positioning,performance and outlook.Members of the Board are always available to attend m

122、eetings with shareholders upon request.GovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsGenesis Emerging Markets Fund LimitedAnnual Report 202010The Board also receives updates from its key third party service providers at each Board meeting,the main purpos

123、e of which is to ensure that the services provided to the Fund remain in line with expectations and are to the benefit of its shareholders.The Board also considers the impact of the Funds decisions on the environment and the community.The Board receives updates on ESG matters from the Investment Man

124、ager and discusses how ESG factors are taken into account by the Investment Manager as part of its selection process of investee companies.The Board recognises the need for good communications with its shareholders and is committed to listening to their views.The primary medium through which the Fun

125、d communicates with shareholders is through its Annual and Half Year Financial Reports.The Investment Manager also produces monthly factsheets and quarterly shareholder letters.Fund related announcements are released via the Regulatory News Service(RNS)to the London Stock Exchange.All of the aforeme

126、ntioned information is available on the Funds website,www.genesisemf.co.uk.In addition to the annual general meeting,all shareholders are invited to attend the Funds annual information meeting.This provides shareholders with the opportunity to interact directly with the Board.The Board always welcom

127、es questions from shareholders;we can be reached via either the Investment Manager or the Company Secretary at the addresses on page 75 of this report.During the year under review the following material decisions have been made:The Board undertook a review of the potential use of gearing to ascertai

128、n whether it would be beneficial to shareholders to utilise gearing in order to increase investment performance.After due discussion and having considered various financing options and back testing of returns,the Board was in agreement that the risk associated with utilising gearing outweighed the p

129、otential additional returns that could be achieved;Marketing has continued in support of widening the Funds shareholder base,following the appointment of an external agency,Edison,to raise exposure to both the wholesale and retail sectors;Appointment of Jefferies International Limited as joint corpo

130、rate broker;and The Board undertook a review of the composition of the Board and its committees to ensure that there was the necessary combination of skills,experience and knowledge.The Board was also mindful of the need to refresh the Board in compliance with the AIC Code.As a result of the review

131、Mr Torsten Koster was appointed as a Director of the Fund with effect from 1 July 2020 and,it was agreed that Mr Karpat,having served as a Director of the Fund for nine years will retire from his position following the conclusion of the 2020 AGM.COVID-19 related:The Investment Manager was requested

132、to keep the Board appraised of any potential issues affecting the investee companies of the portfolio;The Investment Manager was requested to review dividend receipts to ascertain whether there would be any impact on the Funds income for the year ended 30 June 2020,which could potentially affect the

133、 Funds dividend policy and the proposed final dividend;and The Investment Manager was requested to increase the frequency of its monitoring of the Funds third party service providers to ensure continuity of operational functions.The Board is committed to the long term success of the Fund for the ben

134、efit of its shareholders,however in doing so it also has regard to the impact of its actions on all of its stakeholders.The Board takes into account section 172 considerations in all material decisions of the Fund.Signed on behalf of the BoardHlne Ploix5 October 2020Strategy,Business Model and Princ

135、ipal RiskscontinuedGovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsAnnual Report 2020Genesis Emerging Markets Fund Limited11Portfolio ReportGovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsGenesis Emerging Markets

136、 Fund LimitedAnnual Report 202012Genesis was founded in 1989 and is currently owner-managed by ten individual Partners and Affiliated Managers Group,Inc.Located in a single office in London,Genesis has 66 permanent members of staff including the Partners.As a boutique asset manager,Genesis has focus

137、ed on global Emerging Markets(EM)equities for over 30 years.We have a single investment strategy,and the resulting portfolio is managed by ten PMs.Nine of the Partners are PMs;the remaining Partner is the managing director responsible for non-investment matters.As of 30 June 2020,Genesis had US$17.3

138、 billion in assets under management(AUM),all managed with the same strategy and accessed through five commingled vehicles,ten segregated mandates and GEMF,the UK-listed Investment Trust.Over the last 30 years,we have generated 3%alpha per annum over the MSCI EM(TR)Index.We believe that we can best d

139、eliver excellent investment performance by working as a team making long-term investments in quality businesses at attractive prices.Our competitive edge is the unique combination of the four pillars of our business:our aligned client base,our non-hierarchical partnership structure,our investment ph

140、ilosophy and collaborative investment process,and our diverse and experienced team.Investment ManagerWe aim to generate excellent long-term investment performance in Emerging Markets equities.PARTNERSHIP STRUCTURE Owner-managed.Single investment strategy.Culture of excellence,teamwork,openness and h

141、umility.CLIENTS Sophis?cated asset owners.Long-term rela?onships.Prudent AUM managementPHILOSOPHY&PROCESS Long-term investments in quality businesses at arac?ve prices.Collabora?ve process with individual accountability.Deep fundamental research.PEOPLE Diverse group of skilled&experienced investors.

142、Enduring personal interest in EMs.Well-resourced organisa?on.OUTPERFORMANCEc.300bps per annum over 30 years(1)(1)BasedonGenesisGlobalEmergingMarketsEquityComposite(grossofannualfees)vs.MSCIEM(TR)Index.GovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsAnnual

143、Report 2020Genesis Emerging Markets Fund Limited13Our values are the backbone of everything we do as an organisation,reflecting our culture and fundamental beliefs.We aim to generate excellent long-term investment performance in Emerging Market equities.In doing so,we will uphold our values and cons

144、ider the interests of all stakeholders.EXCELLENCETEAMWORKOPENNESS&HUMILITYOur Values We strive for excellence in everything we do.We put our clients interests first.We seek constant improvement.We work collaboratively to accomplish more than we can alone.We share knowledge,expertise and relationship

145、s with our colleagues.We support each other to develop and learn.We continually question our views and welcome constructive challenge.We are honest with ourselves and each other.We embrace diverse thinking styles,experience and skills.GovernanceReportOther InformationStrategic ReportFinancial Statem

146、entsPortfolioReportContentsGenesis Emerging Markets Fund LimitedAnnual Report 202014We believe we can best deliver excellent long-term investment performance by working as a team to make investments in quality businesses at attractive prices.We believe investing in emerging markets can capture the f

147、ast growth potential of the economic development process.We include in our opportunity set companies domiciled in low-and middle-income countries as defined by the World Bank as well as the high income but still developing economies in the major EM benchmark indices.We also include companies based i

148、n major markets that generate a significant proportion of their revenues,profits or cash flow from emerging markets when we feel we have an edge in understanding them.We believe our fundamental,research-led process allows us to identify these interesting areas of growth and benefit from the misprici

149、ng that can arise when companies are not well understood.As long-term investors,we think that understanding a companys business practices and impact on all stakeholders is integral to assessing the quality and value of a company.By stakeholders we mean the environment,society,a companys employees an

150、d its shareholders.Investment Process Our investment process is structured to enable an experienced team of PMs to generate fundamental research insights and,subject to rigorous challenge from each other,express those insights in the Portfolio.Our stock selection and portfolio construction processes

151、 are bottom-up.Each stock in the Portfolio has a Lead PM and a Back-up PM that work on an investment together.The Back-up PM,country team members,and Sector Specialist are usually the primary challengers of the Lead PM during the initial investment analysis,while the rest of the Investment Team form

152、ally contributes when the stock is proposed for inclusion in the Portfolio.Thereafter comment and collaboration are encouraged from all team members throughout the life of an investment.The PMs are coordinated by the Portfolio Coordination Team(PCT),which comprises three PMs(one rotating and two per

153、manent members)as well as an Independent Investment Risk Manager.One of the permanent PM members is the Chair,and the other is one of our Managing Partners.The non-permanent member rotates on a 12-18 months basis amongst the PMs.The independent Investment Risk Manager provides an unbiased perspectiv

154、e on the risk profile of the Portfolio,advising the PCT but reporting separately to the Managing Director and Genesis Risk Committee.The PCT coordinates the team and the portfolio holdings by:Ensuring the investment process is followed as PCT approval is required for all buy/sell orders;Analysing th

155、e portfolio risk/return characteristics and providing insight to the PMs to help them decide position weights;Organising portfolio-level discussions,including quarterly portfolio weeks,process improvement offsites,sector research and macro discussions.Although any position changes in the Portfolio r

156、equire PCT approval,the investment decision for each position is made by the Lead PM.The research process and decision-making are collaborative,but we are not aiming for a consensus.Disagreements and challenges are discussed in smaller groups or within the team and recorded;PMs are expected to addre

157、ss all challenges prior to portfolio action.When a Lead PM builds conviction on a new investment idea,an Investment Case including a Quality Rating and a Valuation Model are shared with the entire Investment Team.The team is expected to revert with constructive challenge and feedback.An Investment C

158、ase includes a short description of the business,the investment thesis and risks,a quality rating with explanation,an analysis of valuation and dispersion of returns and a record of the discussion generated by challenge from the team and continually updated throughout the life of the investment.The

159、Quality Rating(A,B,or C)is a blended measure that incorporates the companys sustainable excess returns on capital,i.e.its moat,the risk of negative net present value revisions in US dollars including the impact of macro and political risks,management quality,and the impact of material ESG factors on

160、 the sustainability of the business.The Quality Rating informs the position weighting decision.The Valuation Model is based on our 5-year cashflow forecast for a business(or dividends for a bank)and discounts the cashflows using a risk-adjusted discount rate to calculate the net present value and ex

161、pected return in US dollars;and includes a dispersion of outcomes in base,bull and bear case scenarios.We compare the base case and dispersion around it with the current stock price to determine the relative attractiveness of the investment.Investment Philosophy and Process Portfolio refers to the r

162、epresentative portfolio,which may be adjusted for relevant investment restrictions per commingled vehicle or segregated mandate.GovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsAnnual Report 2020Genesis Emerging Markets Fund Limited15A key stage of the inve

163、stment process is the constructive challenge from the Investment Team.The Sector Specialists give an industry-specific global context,which not only informs the investment work but also helps calibrate quality ratings across companies in the same sector globally.Sector Specialists also develop the f

164、ramework for assessing the relevant ESG factors in their industry,which informs the discussion on the sustainability of returns.PMs consider five factors in their position sizing decisions,including the quality rating of the company,expected return in US dollars,conviction,investability(i.e.liquidit

165、y)of the stock,and the correlated risks at the portfolio level.The quality of a company is likely to be a significant determinant of its long-term performance,and to properly reflect this we have codified the linkage between quality and position sizing,limiting the weighting of a lower quality compa

166、ny in the Portfolio.Investment decisions are based on fundamental research and quantitative valuation models,so the process is bottom-up and benchmark agnostic.Relative positioning is therefore an outcome of the process,not an input into the process.We also use external research to inform our assess

167、ment of the quality of the companies and our understanding of the environment they operate in.Understanding the operating environment is crucial for any company anywhere,but in the EM,macroeconomic issues and changes in the political economy may show up in exchange rate volatility,which would impact

168、 our US dollar-based expected returns.Therefore,while we are not macro analysts,we regularly discuss underlying macro currents led by our Joined-up Thinking(JUT)group,which is the forum for sharing and co-ordinating macro information that keeps our investment views consistent and balanced.PORTFOLIO

169、WEIGHTING FACTORS0%Weigh?ngper holding0.25%0.50%1.00%1.50%2.00%3.00%4.00%5.00%C qualityA qualityB quality Quality rating Expected return Conviction Investability Correlated holdingsGovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsGenesis Emerging Markets Fu

170、nd LimitedAnnual Report 202016The Genesis investment team is non-hierarchical.Each team member is primarily an analyst,and most are also PMs,responsible for the stock positions in the Portfolio.Arindam BhattacharjeeManaging Partner,PM&Permanent Member of the PCTJoined Genesis in 200829 years investm

171、ent experience Previously,Partner at Emerging Markets Management in Washington,DC Bachelors in Economics from Davidson College,NC,and an MBA from The American University,Washington,DC.CFA CharterholderCatherine VlastoManaging Partner&PMJoined Genesis in 199531 years investment experience Previously,

172、Investment Analyst at Robert Fleming Bachelors in English Language and Literature from the University of BristolAndrew ElderPartner&Chair of the Genesis Operating BoardJoined Genesis in 2002 27 years investment experience Previously,Head of Europe,Middle East&Africa Equities at Aberdeen Asset Manage

173、ment Bachelors in Economics from the University of Cape Town Rufus FrazierPartner,PM&Chair of the PCTJoined Genesis in 201315 years investment experience Previously,Portfolio Manager at Fidelity International in Hong Kong and London Bachelors in International Relations from Pomona College,CA,a postg

174、raduate certificate in Chinese and American studies from Johns Hopkins University,and an MBA from Columbia Business School.CFA CharterholderXing HuAssociate Partner&PMJoined Genesis in 201810 years investment experience Previously,Portfolio Manager at Fidelity International,based in Hong Kong and Lo

175、ndon Bachelors in Finance and Actuarial Science from the University of New South Wales,and an MBA from the University of Chicago Booth School of Business.CFA CharterholderRichard MatherPartner,PM&Member of the PCTJoined Genesis in 20137 years investment experience Previously,at SABMiller in strategy

176、 and financial analysis,based in South Africa,India and Hong Kong Bachelors in Business Science from the University of Cape Town,a Masters in Finance from EDHEC Business School,and an Executive MBA from Cambridge UniversityInvestment TeamNote:Investment Experience as at 30 June 2020GovernanceReportO

177、ther InformationStrategic ReportFinancial StatementsPortfolioReportContentsAnnual Report 2020Genesis Emerging Markets Fund Limited17Note:Investment Experience as at 30 June 2020Sebastian PetersPartner&PMJoined Genesis in 201610 years investment experience Previously,Research Analyst at Praesidium In

178、vestment Management in New York Bachelors in Mechanical Engineering from Vanderbilt University,and an MBA from Columbia Business SchoolKaren RoydonPartner&PMJoined Genesis in 200618 years investment experience Previously,Analyst at Merrill Lynch Investment Managers Bachelors in Politics,Philosophy a

179、nd Economics from St Annes College,Oxford University,and a Masters in Economics from Brasenose College,Oxford University.CFA CharterholderMario SolariPartner&PMJoined Genesis in 201416 years investment experience Previously,Portfolio Manager at Moneda Asset Management in New York and Santiago Bachel

180、ors in Finance and Economics from the Pontificia Universidad Catlica de Chile,and an MBA from Columbia Business SchoolYiyong YangPartner&PMJoined Genesis in 200417 years investment experience Previously,at the Bank of China in the Global Capital Markets Department Bachelors from Nanjing University a

181、nd a Masters in Finance from London Business SchoolMichael ChiAnalystJoined Genesis in 20173 years investment experience Previously,at Deutsche Bank in corporate strategy and M&A Bachelors in Materials Science and Engineering from Imperial College,London,and a Masters in Finance from Cambridge Unive

182、rsity Yash SidanaAnalystJoined Genesis in 20184 years investment experience Previously,Investment Analyst at Westbridge Capital Partners in India,and Associate at the Boston Consulting Group also in India Bachelors and Masters in Technology from the Indian Institute of Technology,and an MBA from Lon

183、don Business SchoolGovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsGenesis Emerging Markets Fund LimitedAnnual Report 202018Investment EnvironmentThe Funds financial year was characterised by two distinct periods:the period before the emergence of the COVI

184、D-19 global pandemic,and after,when the gravity of the situation dawned on investors.During the first,lasting until February,the asset class edged close to the all-time highs of January 2018,buoyed by the easing of trade tensions and reduced fears of a global recession.Unsurprisingly,the second saw

185、volatility increase markedly as the asset class gyrated on good and bad news related to both the pandemic and trade tensions between the US and China.In the first,more benign period,the Fund performed well relative to the MSCI EM(TR)Index,adding value through security selection in markets such as So

186、uth Korea,South Africa and Brazil.The Fund is a well-diversified portfolio of quality businesses.Overall,they have very little debt,and we have also been careful to limit the exposure to financially precarious countries.While we would generally expect the Fund to fare better than a steeply declining

187、 market,that was not the case during the second period noted above.The main reason is that we have relatively fewer investments in the countries that have so far managed the COVID-19 threat best:China,South Korea and Taiwan.It is not an outcome we would have predicted but these three countries have

188、been more proactive in testing and contact tracing than those in other EM or indeed most of the world.That said,a key next question is the degree to which falling global demand for manufactured exports will undermine hopes for a rapid economic rebound in China,South Korea and Taiwan.A further questi

189、on is whether domestic demand within China can be maintained.In this turbulent and highly unusual environment,the Funds NAV marginally underperformed the Index in sterling terms over the 12-month period,losing 0.8%versus a flat return for the Index.PerformanceContributors MarketsThe leading contribu

190、tor to relative performance over the period was Brazil.As a market with pre-existing macroeconomic vulnerabilities thereby making it harder to call on fiscal or monetary policy for support Brazil had been hit hard by the impact from the COVID-19 pandemic.The Fund benefitted from having half the expo

191、sure compared to the index,while the Funds holdings also fared slightly better,largely due to the performance of software company Totvs(+66%until it was sold in February)and health care provider Intermdica(+22%).Significant value was also added from the performance of South Korean search engine Nave

192、r.It has been the stellar performer over the period with its share price more than doubling following continued positive sentiment both within its sector,as digital businesses reaped the rewards of people staying at home in lockdown,and on its link up with Yahoo Japan.Stock selection was also the ma

193、jor factor in the weak South African market where our position in global internet company Naspers(+16%)was a notable performer.Contributors SectorsSubstantial gains came from Funds underweight to the weak energy sector.COVID-19 has meant that oil markets have seen a shock to both demand and supply.O

194、n the demand side,slower activity and environmental concerns reduces the global need for energy and transportation,while on the supply side Russia and Saudi Arabia were pursuing a price war initiated in early March.The Fund added further value from stock selection in financials and communication ser

195、vices.In the latter,internet company Yandex(+36%),a non-index position,announced it was buying out Sberbanks stake from its increasingly difficult ecommerce joint venture,complementing returns achieved by Naver and NetEase(+79%).Detractors MarketsSizeable value was lost in the strong Taiwanese marke

196、t,which managed the COVID-19 pandemic relatively well due to its high levels of testing and contact tracing,and benefits from a comparatively more robust economy.The Fund was hurt by its underweight position in a market where the tech hardware companies outperformed,even though the large holding in

197、TSMC gained 47%.It was a similar story in China where value was also lost from the significant underweight position.China,the epicentre of the COVID-19 outbreak,was perhaps surprisingly the least impacted in terms of market performance.Digital businesses have been strong performers due to a boost in

198、 user engagement during the periods of lockdown.Large holdings such as Tencent and Alibaba have risen by 47%and 31%respectively,but the Fund is underweight in these positions relative to the index.It should be noted that in aggregate the Funds holdings in China outperformed the MSCI country benchmar

199、k with the large active positions of baijiu producer Wuliangye(+47%),private tutoring company New Oriental Education(+39%)and gaming company NetEase,all strong performers.The Funds holding in LatAm telco LiLAC has also been a notable underperformer as its operating markets were hit hard by COVID-19.

200、Investment Managers ReviewGovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsAnnual Report 2020Genesis Emerging Markets Fund Limited19Detractors SectorsThe sector contributors noted previously were offset by losses from the Funds underweight in the strong IT

201、sector,with the performance of the Taiwanese tech hardware companies a major factor.The Fund also suffered sizeable losses in the health care sector:Brazilian dental care service provider OdontoPrev fell 43%;Thai health care provider Bangkok Dusit lost 9%;and in China the Funds holdings in CSPC Phar

202、maceutical(-13%)and 3SBio(-24%)underperformed the Chinese health care index constituents,which rose by 65%.Relative Performance Attribution in GBP 12 months to 30 June 2020GEMF vs.MSCI EM(TR)IndexTop 10 Stock Contributors%Top 10 Stock Detractors%Naver(South Korea)1.21Tencent(China)(0.83)Wuliangye Yi

203、bin(China)0.89Sberbank(Russia)(0.77)New Oriental Education(China)0.63Axis Bank(India)(0.74)Yandex(Russia)0.58LiLAC(Latin America)(0.65)NetEase(China)0.48TSMC(Taiwan)(0.44)BancoBradesco(Brazil)0.46Credicorp(Peru)(0.43)Petrobras(Brazil)0.44JD.com(China)(0.41)Sunny Optical(China)0.33Kangwon Land(South

204、Korea)(0.36)Hikma Pharmaceuticals(Jordan)0.30MeituanDianping(China)(0.33)Delivery Hero(Germany)0.27BB Seguridade(Brazil)(0.31)StocksinitalicsarenotheldintheportfoliobutarepartoftheIndexatperiodendSector%Top 5 Country Contributors%Top 5 Country Detractors%Energy1.58Brazil1.78Taiwan(1.68)Financials0.4

205、6South Africa1.10China(1.51)Communication Services0.44South Korea1.06Peru(0.40)Utilities0.42Saudi Arabia0.58India(0.38)Consumer Staples0.39United Arab Emirates0.33Nigeria(0.35)Industrials0.38Materials0.35Real Estate0.20Investment Companies0.03Consumer Discretionary(0.59)Health Care(1.29)IT(1.67)Sour

206、ce:CalculatedbyFactSetGovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsGenesis Emerging Markets Fund LimitedAnnual Report 202020Portfolio ActivityAlthough volatility can be alarming to asset owners in the short term,it provides a great opportunity to Manage

207、rs such as us who invest with a long-term horizon.The heightened volatility during the pandemic allowed us to upgrade the quality of the portfolio at relatively attractive prices.Purchases and sales were dominated by China,with a small addition the net result.Purchase activity saw the addition of si

208、x new holdings,including domestic sportswear company Anta,pharmaceutical company CSPC,property management service provider Country Garden Services and school tutoring provider TAL Education.The majority of purchases came from building the position in Tencent as the switch from Naspers a South Africa

209、n internet group that derives most of its value from its investment in Tencent continued as the relative discount remained attractive.An additional investment in Tencent was made following the reduction of Prosus,a Naspers spin-off which consists of its internet interests outside South Africa.There

210、were also additions to food producer WH Group,which benefitted from the outbreak of African Swine Fever among Chinas pig population.The largest reduction came from insurer AIA due to concerns over the impact of pro-democracy protests in Hong Kong and rising tensions with China.The positions in New O

211、riental Education and baijiu producer Wuliangye were notably trimmed following their strong performance.The position in ,Chinas largest online marketplace for classifieds,also saw a notable reduction as a privatisation offer was finalised and its share price climbed close to the offer price.The bidd

212、ing group,which includes the CEO,controls 44%of the vote.We believe this action is opportunistic and the offer price is insufficient.In August the Fund elected to dissent against the transaction with a view to achieving a more favourable outcome for shareholders.In China,five positions were sold,inc

213、luding internet company Momo which was sold following increased regulation surrounding mobile apps in China.AAC Technologies also exited the portfolio along with Fuyao Glass,Midea and Weibo.India saw significant purchase activity as the position in Infosys was increased as a whistleblowers allegatio

214、ns against management were rebuffed.Infosys IT services counterpart Tata Consultancy Services was also added to,as was the position in electrical goods company Crompton Greaves.As an example of opportunistically increasing the quality of the portfolio,there was some switching amongst the banks as th

215、e high quality HDFC Bank saw an increase as Axis Bank was reduced towards the end of the period.The position in Sun Pharmaceutical was also substantially reduced following strong share price performance in April.South Korea saw the largest net reductions over the period as positions were reduced fol

216、lowing strong share price performance,most notably Naver and tech hardware behemoth Samsung Electronics,while Shinhan Financial and GS Retail exited the Fund.Elsewhere,a number of higher quality positions from the consumer sector saw increases,including Bid Corp(South Africa),Richemont and Heineken.

217、For the latter two,emerging market consumers are the source of the majority of sales but these companies are not represented in the MSCI EM Index.A few bank holdings were topped up,notably Credicorp(Peru)and OTP Bank(Hungary),while TSMC(Taiwan)and Kangwon Land(South Korea)were also added to.Other ne

218、w holdings introduced during the period included Mexican toll road operator Pinfra,Russian fintech company TCS Group and Opera,a browser and online advertising company.Operas digital content platform,Opera News,now has 200 million users in Africa and Southeast Asia,a 28%increase year-on-year.Deliver

219、y Hero was reintroduced to the portfolio as concerns surrounding its Korean acquisition were addressed.Turning to sales,there was notable activity in Brazil as the positions in BTG Pactual and Totvs were reduced following strong performance.Lojas Americanas exited the Fund,having significantly under

220、delivered on its guidance.In Turkey,the position in Garanti Bank was sold,with the majority of the holding reduced during the third quarter following a 6-week 50%share price recovery,due to increased political uncertainty and continuing macroeconomic risks.A number of smaller Turkish positions were

221、sold later in the period largely due to continued concerns on the markets macro vulnerabilities.Other positions to exit the portfolio included retailer Jeronimo Martins(Poland)which exited the Fund following reduced conviction in its Colombia operation and Commercial International Bank due to uncert

222、ainty over the macro environment in Egypt.Central Pattana,the Thai shopping mall operator was sold after 14 years in the Fund as the switch to online retail accelerated during the pandemic.Investment Managers ReviewcontinuedGovernanceReportOther InformationStrategic ReportFinancial StatementsPortfol

223、ioReportContentsAnnual Report 2020Genesis Emerging Markets Fund Limited21At the end of the period there were 96 holdings in the Fund,with 14 new positions and 30 sold.At 30 June 2020,Active Share(1)a measure of how different the portfolio is to the benchmark was 73%.OutlookWith the current ongoing p

224、andemic we expect continued challenges into 2021,and a relatively weak recovery as health concerns linger.As we review our EM companies,this is the global environment we are assuming as a base case.The effects on economies and individual businesses will vary greatly.We are continuing our active inve

225、stment strategy of undertaking deep fundamental research to unearth long-term investments in quality businesses at attractive prices.Across Genesis 30 year history,we have experienced other big crises(in addition to this crisis)but we remain bullish on the long-term opportunity in EM.The long-term g

226、rowth outlook is compelling considering the demographics and income convergence opportunities,and our markets are often inefficiently priced and we believe this is particularly the case today.We seek to identify a diverse group of quality companies and combine them into an attractive portfolio offer

227、ing good long-term returns.Genesis Investment Management,LLPOctober 2020(1)AlternativePerformanceMeasurerefertoGlossaryofTermsonpage76GovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsGenesis Emerging Markets Fund LimitedAnnual Report 202022Geographical Dive

228、rsificationas at 30 June 2020$1,235.8mNet Assets96Holdings10Portfolio Managers30CountriesLatin America9.5%Mexico4.1%Brazil2.9%Peru1.1%Other*0.8%Colombia0.5%Middle East&Africa8.8%South Africa5.6%Nigeria1.4%Jordan0.8%Saudi Arabia0.5%Mauritius0.3%Egypt0.1%Morocco0.0%*Includes US-listed LiLAC Governance

229、ReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsAnnual Report 2020Genesis Emerging Markets Fund Limited23Geographical Diversificationas at 30 June 2020Central&Eastern Europe15.7%Russia6.7%Netherlands2.0%Switzerland1.7%Hungary1.6%Greece1.1%Romania1.1%Turkey0.9%German

230、y0.6%Asia63.5%China30.1%India10.5%South Korea8.2%Taiwan4.3%Thailand3.9%Indonesia2.6%Vietnam2.0%Philippines1.5%Malaysia0.5%GovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsGenesis Emerging Markets Fund LimitedAnnual Report 202024COUNTRY EXPOSUREChinaIndiaSou

231、th KoreaRussiaSouth AfricaTaiwanMexicoThailandBrazilIndonesiaVietnamHungaryDM-Listed30.1%(10.9%)10.5%2.5%8.2%(3.4%)6.7%3.5%5.6%1.8%4.3%(8.0%)4.1%2.3%3.9%1.6%2.9%(2.3%)2.6%1.1%2.0%2.0%1.6%1.4%5.1%5.1%CountryRela?ve to benchmark(1)(1)Companieslistedondevelopedmarketstockexchangeswithnodistinctindividu

232、alEMcountryexposureCountry and Sector Exposure of the Portfolioas at 30 June 2020GovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsAnnual Report 2020Genesis Emerging Markets Fund Limited25SECTOR EXPOSURE Consumer StaplesFinancialsConsumer Discre?onaryCommuni

233、ca?on ServicesInforma?on TechnologyHealth CareMaterialsIndustrialsInvestment CompaniesEnergyReal EstateU?li?esCash23.3%16.9%18.8%(0.3%)17.0%(0.4%)13.6%0.1%13.31%(3.6%)6.3%2.0%2.2%(4.6%)2.2%(2.5%)0.8%0.8%(6.0%)(2.6%)(2.3%)2.5%2.5%SectorRela?ve to benchmarkGovernanceReportOther InformationStrategic Re

234、portFinancial StatementsPortfolioReportContentsGenesis Emerging Markets Fund LimitedAnnual Report 202026ALIBABA GROUP(China)4.78%of portfolioConsumer Discretionary The worlds largest e-commerce company by gross merchandise volume,also operating a financial services business(including the largest onl

235、ine payments mechanism in China),and a cloud computing business.TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY(Taiwan)4.27%of portfolioInformation Technology The worlds largest dedicated semiconductor foundry,manufacturing integrated circuits for computer,communications and consumer electronics applicat

236、ions.TENCENT(China)4.14%of portfolioCommunication Services The leading internet services provider in China,offering services including mobile gaming,social networks,e-commerce and payment systems.SBERBANK(Russia)3.46%of portfolioFinancials The largest bank in Russia,accounting for one third of its b

237、anking system.SAMSUNG ELECTRONICS(South Korea)2.97%of portfolioInformation Technology A global leader in the IT hardware industry,producing handsets,semiconductors(mostly memory),LCD panels and a wide range of consumer electronics and digital appliances.WULIANGYE YIBIN(China)2.49%of portfolioConsume

238、r Staples A leading producer and seller of baijiu,the traditional Chinese fermented spirit.It has products across a range of price levels but its main product is the eponymous Wuliangye,a premium spirit made from five grains which accounts for 70%of revenue.NASPERS(South Africa)2.32%of portfolioCons

239、umer Discretionary A South African internet and entertainment group,with the majority of its value derived from the companys indirect investment in Tencent,through Prosus.AIA GROUP(China)2.23%of portfolioFinancials The company writes life insurance for individuals and businesses,accident and health

240、insurance,retirement planning,and wealth management services.NEW ORIENTAL EDUCATION(China)2.08%of portfolioConsumer Discretionary The largest provider of private educational services in China,encompassing pre-school education,general courses for students of various ages,online education,overseas stu

241、dy and textbook publishing.HEINEKEN(Netherlands)1.96%of portfolioConsumer Staples A leading international brewer with emerging markets accounting for approximately 70%of earnings.It has significant market positions in Central&Eastern Europe,Mexico,Africa and Asia.Twenty Largest Holdingsas at 30 June

242、 2020GovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsAnnual Report 2020Genesis Emerging Markets Fund Limited27YANDEX(Russia)1.94%of portfolioCommunication Services The largest internet business in Russia.Its primary assets are the leading Russian internet

243、search engine and ad auction network,but they have many other interests including joint ventures with Uber and Sberbank in taxi and e-commerce businesses respectively.JIANGSU YANGHE BREWERY(China)1.89%of portfolioConsumer Staples A Chinese spirits producer,focusing primarily on the mid-end range of

244、the clear liquor known as baijiu.BANGKOK DUSIT MEDICAL SERVICES(Thailand)1.83%of portfolioHealth Care The largest private hospital operator in Thailand,and second largest in Asia,operating 48 hospitals serving patients from all income segments and geographical regions.BID CORP(South Africa)1.80%of p

245、ortfolioConsumer Staples An international broadline foodservice group specialising in the distribution of food products to the hospitality,institutional,catering and retail sectors.RICHEMONT(Switzerland)1.72%of portfolioConsumer Discretionary Swiss-based luxury goods holding company.It engages in th

246、e design,manufacture and distribution through various subsidiaries with particular strengths in jewellery,watches and writing instruments.INFOSYS(India)1.72%of portfolioInformation Technology Indian multinational corporation that provides business consulting,information technology and outsourcing se

247、rvices.It is the second-largest IT company in India by revenue and has a presence in 46 countries.NAVER(South Korea)1.70%of portfolioCommunication Services Owns the leading search engine in South Korea,which has 75%market share,and the dominant instant messenger in Japan,Taiwan and Thailand.VIETNAM

248、DAIRY PRODUCTS(Vietnam)1.66%of portfolioConsumer Staples Also known as Vinamilk,it is a branded dairy company in Vietnam with a 50%market share.OTP BANK(Hungary)1.64%of portfolioFinancials The dominant retail bank in Hungary and one of the largest independent financial services providers in the Cent

249、ral and Eastern Europe region with a presence in 12 countries.HDFC BANK(India)1.53%of portfolioFinancials A subsidiary of HDFC,it is one of Indias largest banks and private sector lenders,offering a wide range of financial and banking services.GovernanceReportOther InformationStrategic ReportFinanci

250、al StatementsPortfolioReportContentsGenesis Emerging Markets Fund LimitedAnnual Report 202028SectorFair Value($000)Proportion ofFund(%)Brazil(2019 5.23%)Banco BTG PactualFinancials3,7580.30BB SeguridadeFinancials11,0990.90Itau Unibanco Holding ADRFinancials2,5790.21Itasa Investimentos Ita(Preferred)

251、Financials4,1810.34LinxInformation Technology3,9130.32Notre Dame IntermedicaHealth Care5,1670.42OdontoPrevHealth Care4,8810.3935,5782.88China(2019 24.38%)3Sbio Health Care3, ADRCommunication Services17,6291.43AIA GroupFinancials27,5222.23Alibaba Group ADRConsumer Discretionary59,0974.78Anta Sports P

252、roductsConsumer Discretionary12,4171.00China Mengniu DairyConsumer Staples18,7711.51Country Garden Services HoldingsIndustrials10,5350.84CSPC Pharmaceutical GroupHealth Care14,0581.14Focus Media Information Technology ACommunication Services14,7091.19Greentown Service GroupIndustrials4,9850.40Haidil

253、ao International HoldingConsumer Discretionary1,6790.14Jiangsu Yanghe Brewery AConsumer Staples23,3471.89NetEaseCommunication Services16,7991.36New Oriental Education and Tech ADRConsumer Discretionary25,6982.08Sina CorpCommunication Services2,8860.23Sunny Optical Technology GroupInformation Technol

254、ogy11,4590.93TAL Education Group ADRConsumer Discretionary8,4880.69TencentCommunication Services51,1054.14WH GroupConsumer Staples15,6651.27Wuliangye Yibin AConsumer Staples30,7422.49371,52730.06Colombia(2019 1.13%)BancolombiaFinancials1,9870.16Bancolombia ADRFinancials4,7700.396,7570.55Egypt(2019 1

255、.21%)Edita Food IndustriesConsumer Staples1,3400.111,3400.11The Portfolioas at 30 June 2020GovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsAnnual Report 2020Genesis Emerging Markets Fund Limited29SectorFair Value($000)Proportion ofFund(%)Germany(2019 0.00%

256、)Delivery Hero Consumer Discretionary7,8090.637,8090.63Greece(2019 1.07%)OPAPConsumer Discretionary14,0131.1314,0131.13Hungary(2019 1.10%)OTP BankFinancials20,3041.6420,3041.64India(2019 10.30%)Axis BankFinancials4,7390.38Cognizant Technology SolutionsInformation Technology14,4381.17Crompton Greaves

257、 Consumer ElectricalsConsumer Discretionary6,0990.49Godrej Consumer ProductsConsumer Staples10,8040.87HDFC Bank Financials18,9341.53Housing Development Finance CorporationFinancials15,0281.22InfosysInformation Technology5,0260.41Infosys ADRInformation Technology16,1641.31Kotak Mahindra BankFinancial

258、s15,8831.29Pidilite IndustriesMaterials7,7250.63Sun Pharmaceutical IndustriesHealth Care3,1110.25Tata Consultancy ServicesInformation Technology11,9900.97129,94110.52Indonesia(2019 2.64%)Bank Central AsiaFinancials12,9391.05Indocement Materials3,0630.25Semen Indonesia Materials15,8301.2831,8322.58Jo

259、rdan(2019 0.65%)Hikma PharmaceuticalsHealth Care10,4970.8510,4970.85Luxembourg(2019 0.01%)Genesis Smaller Companies SICAV(1)Investment Companies4830.044830.04Malaysia(2019 0.37%)7-Eleven MalaysiaConsumer Staples1,0410.08Malaysia Airports Industrials5,1720.426,2130.50GovernanceReportOther Information

260、Strategic ReportFinancial StatementsPortfolioReportContentsGenesis Emerging Markets Fund LimitedAnnual Report 202030The PortfoliocontinuedSectorFair Value($000)Proportion ofFund(%)Mauritius(2019 0.35%)ECP Africa Fund II(2)(3)Investment Companies3,7050.303,7050.30Mexico(2019 3.57%)Amrica Mvil ADRComm

261、unication Services1,5950.13GrumaConsumer Staples18,5751.50Grupo Financiero lnbursa SAB de CVFinancials1,8630.15Kimberly-Clark de MexicoConsumer Staples14,0251.13Megacable HoldingsCommunication Services7,6340.62Promotora y Operadora de InfraestructuraIndustrials6,6220.5450,3144.07Morocco(2019 0.44%)A

262、ttijariwafa BankFinancials1810.011810.01Netherlands(2019 1.44%)HeinekenConsumer Staples13,2081.07Heineken HoldingConsumer Staples11,0580.8924,2661.96Nigeria(2019 1.51%)Dangote CementMaterials8480.07Guaranty Trust BankFinancials3,4990.28Nestle NigeriaConsumer Staples6,1230.50Nigerian Breweries PLCCon

263、sumer Staples3,2280.26Opera ADRInformation Technology3,9650.3217,6631.43Peru(2019 0.76%)CredicorpFinancials14,1631.1514,1631.15Philippines(2019 1.52%)Puregold Price ClubConsumer Staples9,0770.73Universal RobinaConsumer Staples9,7270.7918,8041.52Romania(2019 1.01%)Banca TransilvaniaFinancials7,6270.6

264、2New Century Holdings Balkan(2)(3)Investment Companies5,7950.4713,4221.09GovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsAnnual Report 2020Genesis Emerging Markets Fund Limited31SectorFair Value($000)Proportion ofFund(%)Russia(2019 6.26%)MagnitConsumer Sta

265、ples8,3690.68Moscow ExchangeFinancials3,9430.32SberbankFinancials42,7713.46TCS Group Holding GDRFinancials3,4830.28YandexCommunication Services24,0181.9482,5846.68Saudi Arabia(2019 0.46%)AlmaraiConsumer Staples5,6260.465,6260.46South Africa(2019 7.28%)Bid CorpConsumer Staples22,2551.80Mediclinic Int

266、ernationalHealth Care12,9961.05NaspersConsumer Discretionary28,6832.32SanlamFinancials5,1840.4269,1185.59South Korea(2019 10.06%)Amorepacific CorpConsumer Staples6,4590.52Amorepacific Group Consumer Staples2,3430.19Hanon SystemsConsumer Discretionary7,9350.65Kangwon Land Consumer Discretionary13,134

267、1.06NaverCommunication Services20,9951.70Samsung Electronics(Ordinary)Information Technology12,8541.04Samsung Electronics(Preferred)Information Technology23,9021.93Samsung Fire&Marine InsuranceFinancials5,7440.46Samsung Fire&Marine Insurance(Preferred)Financials2610.02Sk HynixInformation Technology8

268、,0670.65101,6948.22Switzerland(2019 1.24%)RichemontConsumer Discretionary21,2351.7221,2351.72Taiwan(2019 2.15%)Taiwan Semiconductor Manufacturing CompanyInformation Technology52,7254.2752,7254.27GovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsGenesis Emerg

269、ing Markets Fund LimitedAnnual Report 202032The PortfoliocontinuedSectorFair Value($000)Proportion ofFund(%)Thailand(2019 4.10%)Bangkok Dusit Medical ServicesHealth Care22,6281.83CP AllConsumer Staples16,6311.35Thai BeverageConsumer Staples8,7230.7047,9823.88Turkey(2019 2.65%)Anadolu Efes BiraclkCon

270、sumer Staples8,1330.66lker Biskvi SanayiConsumer Staples2,4330.2010,5660.86United States(2019 1.52%)Liberty Global LiLAC A(4)Communication Services3,1920.26Liberty Global LiLAC C(4)Communication Services7,1840.5810,3760.84Vietnam(2019 2.16%)Mobile World InvestmentConsumer Discretionary4,0250.33Vietn

271、am Dairy Products(Vinamilk)Consumer Staples20,5441.6624,5691.99Total Investments1,205,28797.53Net Current Assets30,4672.47TOTAL NET ASSETS1,235,754100.00(1)TreatingGenesisSmallerCompaniesSICAVonanon-look-throughbasis.(2)InvesteeFunds.TheFundsinvestmentsinnon-relatedinvestmentcompanies.(3)Unquotedsec

272、urities,nottradedonanofficialStockExchangeorotherRegulatedMarket.(4)LibertyGlobalLiLACoperatesalloverLatinAmericawithnosinglespecificcountryexposure.HenceithasbeencategorisedunderUnitedStatesasitislistedontheUSstockexchange.ADR AmericanDepositaryReceipt.AnegotiablecertificateissuedbyaU.S.bankreprese

273、ntingaspecificnumberofsharesofaforeignstocktradedonaUSstockexchange.GDR GlobalDepositaryReceipt.Anegotiablecertificateheldinthebankofonecountryrepresentingaspecificnumberofsharesofastocktradedonanexchangeofanothercountry.GovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioR

274、eportContentsAnnual Report 2020Genesis Emerging Markets Fund Limited33Governance ReportGovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsGenesis Emerging Markets Fund LimitedAnnual Report 202034Hlne PloixChairman,Member of the Audit and Risk Committee,Chairm

275、an of the Nomination CommitteeAppointed 2 November 2012Hlne Ploix(French)is a Partner and former chairman of Paris-based private equity firm Pechel Industries.She has had an extensive career in finance and investment in the public and private sectors,both in France(primarily at the French state-owne

276、d Caisse des Dpts et Consignations)and internationally(notably as an Executive Director at the IMF,World Bank and as a Member of the Investments Committee of the UN Joint Staff Pension Fund).She is currently a Non-Executive Director of Ferring(Switzerland)and SES-imagotag,Non-Executive Chairman of S

277、ogama Crdit Associatif and was previously at a number of other companies,including Sofina,The Boots Company PLC,BNP Paribas and Publicis.Mrs Ploix was educated at the Institut dEtudes Politiques,the University of California at Berkeley and INSEAD.She is based in France.Meeting AttendanceBoard:3/3,Au

278、dit and Risk Committee:3/3,Nomination Committee:3/3Sujit BanerjiDirectorAppointed 31 October 2013Sujit Banerji(Indian)is an independent advisor on corporate strategy to a number of companies in the finance and finance-related technology sectors globally.In 2009 he completed a 33 year career at Citig

279、roup where he had been a Managing Director since 1996,latterly serving as Head of Strategy and Institutional M&A for Europe,the Middle East and Africa(MENA).His career at Citi covered a number of regional roles including strategy and corporate finance,and relationships with multinational clients acr

280、oss the MENA region.He has also served as the country and region head for Citi in India,and as the head of the corporate business in Thailand.Over the course of his career he has been based in India,Bangladesh and Thailand as well as in Europe,and is currently based in Singapore.He was educated at t

281、he University of Poona(Pune)and the University of Bombay(Mumbai).Meeting AttendanceBoard:3/3,Audit and Risk Committee:n/a,Nomination Committee:3/3Russell EdeyDirector,Chairman of the Audit and Risk Committee,Senior Independent DirectorAppointed 1 January 2015Russell Edey(British)spent the majority o

282、f his career at NM Rothschild&Sons,where he held a number of positions over his 35 years at the bank,including Head of Corporate Finance and subsequently Non-Executive Deputy Chairman.He is a Non-Executive Director of Blackrock World Mining Trust plc.He previously spent 12 years as Chairman of Anglo

283、Gold Ashanti in South Africa,and in recent years he has also served as a Non-Executive Director of Old Mutual plc,Associated British Ports plc,FKI plc,and Paris Orleans SA.He qualified as a Chartered Accountant and began his career in finance at Anglo American in South Africa.He is based in the UK.M

284、eeting AttendanceBoard:3/3,Audit and Risk Committee:3/3,Nomination Committee:3/3Saffet KarpatDirector,Member of the Audit and Risk CommitteeAppointed 1 October 2011Saffet Karpat(Swiss/Turkish)is a consultant on strategy to management teams of organisations based in Turkey.He is a Board member of Ecz

285、acba group,a Turkish conglomerate with businesses in construction materials,consumer goods,mining and medical services.Previously he worked for Procter&Gamble(P&G)for 30 years in various financial and senior management roles across a number of emerging markets;prior to retiring from P&G in 2013 he w

286、as Vice President and General Manager of the Central and Eastern Europe and Middle East and Africa Division,responsible for Turkey,Central Asia,Israel and the Caucasian region.From 2013 to 2016 he was a member of the Board and the Executive Committee of Sta Dairy Company,and he has been an investor

287、in agriculture in the Aegean region of Turkey since 2011.He studied Business Administration at Istanbul University and received an MBA from Lausanne University.He is based in Switzerland.Meeting AttendanceBoard:3/3,Audit and Risk Committee:3/3,Nomination Committee:3/3Board of DirectorsGovernanceRepo

288、rtOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsAnnual Report 2020Genesis Emerging Markets Fund Limited35Katherine TsangDirectorAppointed 19 July 2017Katherine Tsang(Canadian)spent 22 years with Standard Chartered Bank,latterly in the role of Chairperson of Greater Chin

289、a,before retiring in 2014.Following her retirement,Ms Tsang founded Max Giant that trades in different markets as well as making direct investments in Asia.Ms Tsang is currently an independent Non Executive Director on the Board of China CITIC Bank International Limited and Budweiser Brewing Company

290、 APAC Limited.She also serves as a member of the Advisory Council for China of the City of London,and is an honorary Board member of Shanghai Jiao Tong University.She has previously served as an independent Non-Executive Director of Gap Inc.,and Baoshan Iron&Steel Co.Limited,a member of the World Ec

291、onomic Forums Global Agenda Council on China,and a member of Sothebys Advisory Board.She is based in Hong Kong.Meeting AttendanceBoard:3/3,Audit and Risk Committee:n/a,Nomination Committee:3/3Torsten Koster(1)DirectorAppointed 1 July 2020 Torsten Kosters biography can be found on page 44 of this rep

292、ort.Dr Simon ColsonDirectorAppointed 1 July 2019Dr Simon Colson(British)has over 30 years experience in financial markets,working in investment banking,investment management and financial consulting.From 1995-2001 he was Managing Director,Deutsche Bank AG London,in charge of closed-end fund originat

293、ion and distribution,and in previous roles was responsible for the launch,restructuring and repurposing of a significant number of investment companies.From 2002-2005 he was a non-executive director of The Association of Investment Companies.In 2002 he started his own FCA regulated consulting and di

294、stribution business which raised assets for emerging managers across a range of traditional and alternative asset classes(including closed-end funds).In 2017 he relinquished his FCA licence to concentrate on unregulated advisory and non-executive work.He is currently a non-executive director of the

295、Childrens Liver Disease Foundation.He is a qualified medical doctor and holds an MBA in Finance&Investment from Cass Business School(University of London).Dr Colson is based in the UK.Meeting AttendanceBoard:3/3,Audit and Risk Committee:n/a,Nomination Committee:3/3(1)MrKosterwasnotaDirectoroftheFund

296、duringthefinancialperiodunderreviewGovernanceReportOther InformationStrategic ReportFinancial StatementsPortfolioReportContentsGenesis Emerging Markets Fund LimitedAnnual Report 202036The Directors are pleased to present their thirty-first Annual Financial Report of the Fund,covering the year ended

297、30 June 2020.Financial PerformanceThe results and reserve movements for the year are set out in the Statement of Financial Position and Statement of Comprehensive Income on pages 51 and 52 and the Notes to the Financial Statements on pages 55 to 72.Results and DividendsThe loss for the year for the

298、Fund amounted to$46,427,000 compared to a total profit of$47,931,000 in the previous year.Refer to the Investment Managers Review on pages 18 to 21 for an explanation of the Funds performance.The Directors propose a dividend of 17.0 per Participating Preference Share in respect of the year ended 30

299、June 2020(2019:19.0).If approved by shareholders at the AGM on 2 November 2020,the dividend will be payable on 11 December 2020 to shareholders on the register at close of business on 13 November 2020.Capital ValuesAt 30 June 2020,the value of Equity Shareholders Funds was$1,235,754,000(2019:$1,305,

300、260,000)a decrease of$69,506,000.The Net Asset Value per Participating Preference Share was$10.17(2019:$10.75).Key Performance IndicatorsThe Financial Highlights and Performance section on pages 2 and 3 show the Funds Key Performance Indicators including its performance and discount to its NAV over

301、the last five years.ShareholdersNotifiable Interests in the Funds Voting RightsDuring the financial year,the following shareholders declared a notifiable interest in the Funds voting rights:ShareholderParticipating PreferenceShares Held%Shares in IssueDate of NotificationCity of London Investment Ma

302、nagement 33,992,31428.05 November 2019Wells Capital Management12,164,05610.224 June 2020The following updates to notifiable interests in the Funds voting rights have been declared post the financial year-end:ShareholderParticipating PreferenceShares Held%Shares in IssueDate of NotificationCity of Lo

303、ndon Investment Management 34,123,08928.1 15 September 2020As at 31 August 2020,the Board is also aware of the following significant shareholdings in the Fund:ShareholderParticipating PreferenceShares Held%Shares in IssueStrathclyde Pension Fund26,992,04022.22Lazard Asset Management LLC Group14,722,

304、45912.121607 Capital Partners4,176,9863.44Website:The Annual Financial Report is published on the Funds website,which is maintained by Genesis.The maintenance and integrity of the website is,so far as relates to the Fund,the responsibility of the Investment Manager.The work carried out by the audito

305、rs does not involve consideration of these matters and,accordingly,the auditors accept no responsibility for any changes that may have occurred to the Annual Financial Report since they were initially presented on the website.Legislation in Guernsey governing the preparation and dissemination of fin

306、ancial statements may differ from legislation in other jurisdictions.Corporate GovernanceThe Board is accountable to shareholders for the governance of the Funds affairs.The Directors use this Report to detail the Funds corporate governance statement.Directors ReportGovernanceReportOther Information

307、Strategic ReportFinancial StatementsPortfolioReportContentsAnnual Report 2020Genesis Emerging Markets Fund Limited37The Fund is a member of the Association of Investment Companies(AIC)and the Board has considered the Principles and Provisions of the 2019 AIC Code of Corporate Governance(AIC Code).Th

308、e AIC Code addresses the Principles and Provisions set out in the 2018 UK Corporate Governance Code(UK Code),as well as setting out additional Provisions on issues that are of specific relevance to the Fund.The Board considers that reporting against the Principles and Provisions of the AIC Code,whic

309、h has been endorsed by the Financial Reporting Council and the Guernsey Financial Services Commission provides more relevant information to shareholders.The Fund is an Authorised Closed Ended Investment Scheme regulated by the Guernsey Financial Services Commission(GFSC).The GFSC requires compliance

310、 with the principles set out in the Finance Sector Code of Corporate Governance(Guernsey Code),or alternative codes accepted by the GFSC,in the context of the nature,scale and complexity of the business.As a Guernsey incorporated company with a premium listing on the London Stock Exchange within the

311、 FTSE 250,the Fund is required to comply with Listing Rule 9.8.7(for overseas incorporated companies).This requires the Fund to state how it has applied the main principles set out in the 2018 UK Corporate Governance Code(the UK Code)and whether it has complied with these provisions throughout the a

312、ccounting period.Statement of ComplianceThe Board confirms that during the year under review,the Fund has complied with the provisions of the AIC Code and therefore,insofar as they apply to the Funds business,with the provisions of the 2018 UK Code and Guernsey Code except as noted below.The role of

313、 Chief ExecutiveSince all Directors are non executive and day-to-day management responsibilities are sub contracted to the Investment Manager,the Fund does not have a Chief Executive.Executive Directors remunerationAs the Board has no Executive Directors,it is not required to comply with the princip

314、les of the UK Code in respect of Executive Directors remuneration and does not have a Remuneration Committee.Nomination CommitteeAll Directors are members of the Nomination Committee.Given the size of the Board,the Board believes that it is important that all Directors are involved in the evaluation

315、 and appointment of new directors from an early stage.Internal audit functionAs the Fund has no employees and delegates its day-to-day operations to third party service providers,the Board has determined that there is no requirement for an internal audit function.The Directors annually review whethe

316、r a function equivalent to internal audit is needed and will continue to monitor the Funds systems of internal controls in order to provide assurance that they operate as intended.In particular,the Directors review the processes and controls managed by relevant specialist staff at the Investment Man

317、ager.Workforce policies and practicesAs the Fund has no employees and delegates its day-to-day operations to third party service providers,it is not required to comply with this this provision.The Board is committed to the continuing compliance with the AIC Code.Regulatory DisclosuresThe Alternative

318、 Investment Fund Managers Directive(AIFMD)The Investment Manager is a limited liability partnership organised under the laws of England and Wales and qualifies as an EU alternative investment fund manager(AIFM).Article 22 of AIFMD requires certain qualitative and quantitative disclosures on remunera

319、tion to assist the understanding of the risk profile of the Fund.Details of the Remuneration Policy of the Investment Manager and amounts attributable to the Fund are available on page 74.UK Listing Authority Listing Rules(LR)compliance with rule 9.8.4None of the disclosures required under LR 9.8.4

320、are applicable to the Fund.Annual General MeetingThis years AGM will be held on Monday,2 November 2020 at 10:30 a.m.at the offices of J.P.Morgan Administration Services(Guernsey)Limited,1st Floor,Les Echelons Court,Les Echelons,South Esplanade,St Peter Port,Guernsey GY1 6JB.GovernanceReportOther Inf

321、ormationStrategic ReportFinancial StatementsPortfolioReportContentsGenesis Emerging Markets Fund LimitedAnnual Report 202038Directors ReportcontinuedIn consideration of the wellbeing of the Funds shareholders and in light of Government guidance around social distancing and travel restrictions,shareh

322、olders will not be permitted to attend this years AGM in person.Please refer to the Notice on page 78 for full details on how to vote and how to communicate any questions that would usually be raised at the meeting.In addition to the ordinary business to be conducted at the meeting,the following res

323、olution will be proposed.Resolution 12:Authority to purchase own shares(special resolution)Resolution 12 is seeking to renew authority to purchase through the London Stock Exchange Participating Preference Shares representing 14.99%of the issued share capital of the Fund.The decision as to whether t

324、he Fund purchases any such shares will be at the discretion of the Board.Purchases of Participating Preference Shares will be made within the guidelines permitted by the UK Listing Authority.Any Participating Preference Shares which are repurchased may be held in treasury.If held in treasury,these s

325、hares may subsequently be cancelled or sold for cash at above their net asset value at the time of sale.RecommendationThe Board considers that the passing of all resolutions being put to the Funds AGM would be in the best interest of the Fund and its shareholders as a whole.It therefore recommends t

326、hat shareholders vote in favour of resolutions 1 to 12,as set out in the Notice of Annual General Meeting.The BoardThe Board,chaired by Hlne Ploix,consists of six non-executive Directors,all of whom are considered to be independent of the Investment Manager.Hlne Ploix was considered independent on a

327、ppointment.The biographies of the Directors are shown on pages 34 and 35.The Board has consisted of no more than six Directors during the year and the Directors feel that given the fact that they do not have executive roles,it is not necessary to establish a separate Remuneration Committee.There is

328、also no separate Management Engagement Committee as the Board,as a whole,regularly meet with the Investment Manager,the Administrator and the Company Secretary to discuss their performance.Russell Edey is the Senior Independent Director.The Audit and Risk Committee and the Nomination Committee both

329、have separate reports on pages 41 and 43 respectively.The Board regularly reviews both the performance of,and the contractual arrangements with the Investment Manager,and is satisfied that the continuing appointment of the Investment Manager is in the best interests of shareholders.The management ag

330、reement sets out matters over which the Investment Manager has authority and includes management of the Funds assets and the provision of administrative duties.The agreement further permits the Investment Manager to delegate its administrative duties,subject to the Boards prior consent.All other mat

331、ters are reserved for the approval of the Board.Under this agreement,the Investment Manager was entitled to receive a management fee from the Fund,payable monthly,equal to 0.90%per annum,calculated and accrued on the Net Asset Value of the Fund as at each Valuation Day.This fee was reduced from 0.95

332、%per annum prior to 1 July 2019.The Investment Managers appointment is under a rolling contract which may be terminated by three months written notice given by the Fund,and twelve months written notice given by the Investment Manager.As noted on page 42,the Audit and Risk Committee reviews the perfo

333、rmance of,and the contractual arrangements with the Administrator and the Custodian.The Board is satisfied that the continuing appointment of the Administrator and the Custodian is in the best interests of shareholders.The Board meets at least three times during the year and between these meetings there is regular contact with the Investment Manager who provides the Board with appropriate and tim