GENESIS MALAYSIA MAJU FUND LIMITED
UNAUDITED HALF YEAR RESULTS
6 MONTHS TO 30TH JUNE 2008
To the Members of Genesis Malaysia Maju Fund Limited (the "Company")
These unaudited Half Year Results have been produced by the Company to provide
additional information to shareholders as a body to meet the relevant
requirements of the UK Listing Authority's Disclosure and Transparency Rules.
It should not be relied upon by any other party or for any other purpose. These
unaudited Half Year Results relate to the period from 1st January 2008 to 30th
June 2008, and contain information that covers this period and up to the date of
publication of these Half Year Results, unless otherwise specified.
The full Half Yearly Report is available at www.giml.co.uk under the relevant
fund links: Jun 2008
Investment Objective
To achieve long-term capital growth, primarily through investment in equity
securities of small and medium-sized Malaysian companies.
Benchmark
Kuala Lumpur Composite Index
Material Events
In the first half of 2008 the Malaysian capital markets turned down sharply, and
the NAV of the fund fell 25.3% in US dollars. It seems two main forces were at
work. In the newly cautious investment climate around the world, smaller
companies have been sold more aggressively than larger ones. In Malaysia the
performance differential has been stark. This has affected the Fund, whose focus
is on under-researched smaller companies, such that performance was below that
of the Kuala Lumpur Composite Index (KLCI) in the first half. The KLCI Index
fell by 16.9% in US dollars during this period.
A second, and more indigenous, explanation for investors' caution lies in the
outcome of the general election in March 2008. Contrary to most expectations
(including ours) the ruling coalition lost its two-thirds majority and four key
states. A two-thirds majority is required to alter the constitution and while
the power to do so may be largely symbolic, losing it represents a significant
shift in Malaysian politics. It seems voters were registering their disillusion
with a government that has dominated domestic politics for many years, and which
is labouring under increasing accusations of graft. It is ironic that the Prime
Minister - who presided over the opening up of public life that enabled these
accusations - will probably lose his job because of it. From a longer-term
perspective, having a proper parliamentary democracy represents a coming-of-age
for Malaysia, which should be hugely positive for governance and economic
efficiency. However in the short term the prospect of more political noise
frightened investors so much that the index fell 10% in a day.
The economy seems to have had a mixed first half, starting with a surprisingly
strong 7.1% year-on-year growth in GDP in the first quarter. At this point the
economy was firing on all cylinders, with both private and public consumption
rising in double digits and exports, notably of electronic and electrical
equipment, growing strongly. Then a cold wind blew in March on two sides, from
the global credit crunch on one hand and the general election shock on the
other. A number of companies from different industries have commented that they
noticed a sudden change in their operating environment in March.
In the weeks that followed, as the international oil price climbed to an
unprecedented level, it was only a matter of time before the government would be
forced to reform its oil subsidies. Without reform the budget deficit would have
grown unsustainably. The announcement duly came in June, when the government
laid out its longer term intention to move the economy towards greater reliance
on market prices - an inevitable conclusion if Malaysia's subsidy mentality is
to be rescinded. Until this point the country had been protected from rising
food and fuel prices, resulting in fuel smuggling and inefficient resource use
(many Malaysian offices are kept uncomfortably chilly, noticeably cooler than
those in, say, China). The 40% or so increase in the local petrol price has
inflationary implications, yet it seems the central bank is on the lookout for
negative fallout from the petrol price shock and remains more concerned about
growth than inflation.
30th June 31st December 30th June
2008 2007 2007
Net Asset Value $57.63 $77.15 $70.38
per Participating Preference
Share
Total (Deficit)/Return over $(19.52) $6.77 $17.93
previous six months per
Participating Preference
Share
Outlook for the Company
Elsewhere, niche exporters in areas such as oil services, specialised
manufacturing and construction (particularly infrastructure in India and the
Middle East) are reporting brisk business. In addition, the price of palm oil
rose in tandem with petroleum in the early part of the year and, while it has
also fallen in tandem, it remains far higher than usual. Indeed, commodities in
general have given a major boost to the rural economy, which partly helps to
explain Malaysia's economic resilience. We look forward to steady progress in
the second half and trust that share prices - particularly of smaller companies
- will be able to lift themselves out of the single digit price-earnings ratios
to better reflect the investment opportunities that are available in this
increasingly efficient economy.
For latest NAV and share price information please refer to the Investment
Adviser's website www.giml.co.uk.
Interim Management Report
The Company is required to make the following disclosures in its half year
report.
Principal Risks and Uncertainties
The principal risks and uncertainties faced by the Company fall into five broad
categories: investment and strategy; accounting, legal and regulatory; corporate
governance and shareholder relations; operational and financial. Information on
each of these areas is given in the Business Review within the Annual Report and
Accounts for the year ended 30th September 2007.
Related Parties Transactions
During the first six months of the current financial year, no transactions with
related parties have taken place, which have materially affected the financial
position or the performance of the Company during the period.
Interim Management Report (continued)
Directors' Responsibilities
The Board of Directors confirms that, to the best of its knowledge:
(i) the condensed set of financial statements contained within the half yearly
report has been prepared in accordance with the Accounting Standards
Board's Statement 'Half-Yearly Financial Reports'; and
(ii) the interim management report includes a fair review of the information
required by 4.2.7R and 4.2.8R of the UK Listing Authority Disclosure and
Transparency Rules.
Portfolio Profile
As at 30th June 2008
Ten Largest Holdings % By Sector %
Batu Kawan 8.4 Financials 23.6
Wilmar International7.1 Materials 19.8
Muhibbah Engineering6.8 Industrials 18.2
Aeon 6.0 Consumer Staples 16.6
Bumiputra Commerce 5.9 Consumer Discretionary13.5
IOI Properties 5.0 Other 3.6
Wah Seong 5.0 Health Care 1.6
YTL Cement 4.2 Utilities 1.3
Manulife Insurance 4.1 Information Technology1.3
Hap Seng Plantations3.9 Energy 0.6
Total 56.4% of Portfolio
Number of holdings: 32
Performance
To 30th June 2008
Annualised (%p.a.)
% Returns - US$ June 1 Year 3 5 Since
Years Years Incepti
on
Maju Fund (net of annual (11.8) (18.1) 15.7 13.4 10.0
Fees)
KLCI Index (7.8) (7.4) 15.8 14.8 2.6
Statistical Sources:
Fund Performance - Genesis' own records. NAV to NAV. Net of all expenses,
including management fees and tax suffered. Net income reinvested.
Index Performance - Calculated by Genesis based upon index values supplied by
KLCI.
Past performance should not be relied upon as a guide to future performance,
which is not guaranteed. The value of investments can go down as well as up and
there is no guarantee that you will get back the amount originally invested.
Genesis invests in emerging markets which tend to be more volatile than more
established stock markets and therefore your investment is at greater risk.
UNAUDITED
BALANCE SHEET
as at 30th June 2008
(Audited)
30th June 31st December
2008 2007
$ $
ASSETS
Financial assets at 84,547,484 116,882,779
fair value through
profit or loss
Amounts due from - 1,366,338
brokers
Dividends and interest 177,820 120,715
receivable
Prepaid expenses 3,460 3,651
Other debtors 10,790 10,790
Cash and cash 3,161,951 572,793
equivalents
TOTAL ASSETS 87,901,505 118,957,066
LIABILITIES
Amounts due to brokers - 1,235,665
Bank overdraft - 21,140
Creditors and accrued 227,863 341,600
expenses
TOTAL LIABILITIES 227,863 1,598,405
TOTAL NET ASSETS $87,673,642 $117,358,661
EQUITY
Called-up share 26,000 26,000
capital
Share premium 13,736,332 13,736,332
Capital reserve 61,401,154 92,245,448
Revenue account 12,510,156 11,350,881
TOTAL EQUITY $87,673,642 $117,358,661
EQUITY PER
PARTICIPATING
PREFERENCE SHARE $57.63 $77.15
UNAUDITED
INCOME STATEMENT
for the six months ended 30th June 2008
2008 2007
$ $
INCOME
Net realised gains on 4,992,247 4,219,294
investments sold
Net unrealised (losses)/gains (35,107,846) 22,935,328
on investments
Net exchange (losses)/gains (33,086) 8,374
Dividend income 1,992,762 1,460,363
Deposit interest 3,116 24,887
$(28,152,807) $28,648,246
EXPENSES
Management fees (761,339) (728,653)
Administration fees (45,517) (34,056)
Custodian fees (65,024) (64,728)
Transaction costs (68,791) (73,335)
Directors' fees and expenses (74,419) (63,144)
Other expenses (45,704) (75,885)
TOTAL OPERATING EXPENSES $(1,060,794) $(1,039,801)
OPERATING (LOSS)/PROFIT (29,213,601) 27,608,445
FINANCE COSTS
Bank charges - (58)
Interest expense (6,008) -
TOTAL FINANCE COSTS (6,008) (58)
Withholding taxes (465,410) (338,921)
(LOSS)/PROFIT FOR THE PERIOD (29,685,019) 27,269,466
(DEFICIT)/RETURN PER $(19.516) $17.928
PARTICIPATING PREFERENCE SHARE *
* Calculated on an average number of 1,521,022
Participating Preference Shares
outstanding (2007 - 1,521,022)
UNAUDITED STATEMENT
OF CASH FLOWS
for the six months ended 30th June 2008
2008 2007
$ $
OPERATING ACTIVITIES
Investment income received 1,926,842 1,093,527
Withholding taxes paid (465,410) (338,921)
Interest received 11,931 29,361
Operating expenses paid (1,180,348) (744,188)
Purchase of investments (8,797,174) (10,089,886)
Proceeds from sale of investments 11,147,543 15,120,914
Exchange (losses)/gains (33,086) 8,374
NET CASH INFLOW FROM OPERATING $2,610,298 $5,079,181
ACTIVITIES
NET INCREASE IN CASH AND CASH 2,610,298 5,079,181
EQUIVALENTS
Cash and cash equivalents at the 551,653 758,030
beginning of the period
CASH AND CASH EQUIVALENTS AT THE $3,161,951 $5,837,211
END OF THE PERIOD
RECONCILIATION OF PUBLISHED NET ASSET VALUE
ATTRIBUTABLE TO PARTICIPATING PREFERENCE SHAREHOLDERS
TO THE IFRS EQUIVALENT
30th June, 2008
Total Per
$ Participat-
ing
Preference
Share
$
Published Net Asset Value 87,662,852 57.63
Equity Share Capital 10,790
Net Asset Value under IFRS $87,673,642
31st December 2007
Total Per
$ Participat-
ing
Preference
Share $
Published Net Asset Value 117,347,871 77.15
Equity Share Capital 10,790
Net Asset Value under IFRS
$117,358,661
For Genesis Malaysia Maju Fund Limited
HSBC Securities Services (Guernsey) Limited, Secretary
28th August 2008
Grafico Azioni Genesis Maly.Pf (LSE:BB40)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Genesis Maly.Pf (LSE:BB40)
Storico
Da Lug 2023 a Lug 2024
