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Genesis Emerging Markets sells expensive Chinese internet stocks

GSS : Genesis Emerging Markets sells expensive Chinese internet stocks

Genesis Emerging Markets has published its results for the year ended 30 June 2014. Over the period its net asset value rose from £5.61 to £5.78 – Sterling strength had an adverse impact on returns to UK investors. The 3% rise in the NAV came in ahead of the 1.7% return achieved by the MSCI Emerging Markets Index. Genesis Emerging’s share price rose by 9.6% as its discount closed (having spiked out at the end of the previous financial year).

The manager’s report gives little indication of the contribution of stocks towards the fund’s performance over the period but says that ” despite taking some profits in the strongly performing health care (Sun Pharmaceutical) and IT (Cognizant, Infosys) sectors, India became the country with the largest weight in the Fund as a result of market movements. In contrast, the largest market reduction in the Fund was in China, primarily due to the sales of richly valued internet stocks (Ctrip, Tencent, Baidu).”

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