ADMF Adv.Dev.Mkt Tst

 

TIDMADMF 
 
RNS Number : 9825S 
Advance Developing Markets Fund Ltd 
20 September 2010 
 

Advance Developing Markets Fund Limited  ("the Company") 
 
Interim Management Statement 
 
For the period from 1 May 2010 to 31 August 2010 
 
This interim statement covers the period from 1 May 2010 to 31 August 2010. It 
is the second interim management statement issued by the Company in its 
financial year to 31 October 2010, as required by the UK Listing Authority's 
Disclosure and Transparency Rule 4.3. 
 
Investment objective and policy 
 
The Company's objective is to achieve consistent returns for shareholders in 
excess of the S&P/IFCI Emerging Markets Composite Index in Sterling terms (the 
"Benchmark"). Advance Emerging Capital Limited (the "Manager") invests in a 
portfolio of funds and products which give diversified exposure to global 
emerging markets. The Company's geographic asset allocation is derived from the 
Investment Manager's analysis of the prospects for regions and countries and of 
the underlying opportunities for investment. Individual investments are selected 
for their potential to outperform as a result of one or more of the following 
criteria: the performance of the region, market or asset class in which they 
invest; the skill of the underlying fund manager; and, in the case of closed end 
funds, through the narrowing of discounts at which their shares trade to net 
asset value. The Manager may employ hedging mechanisms where it believes that 
this would protect the performance of the Company's investment portfolio in a 
cost effective manner. 
 
Benchmark 
 
S&P/IFCI Emerging Markets Composite Index (GBP Price Return) 
 
Highlights 
 
During the period from 1 May 2010 to 31 August 2010: 
 
*       Undiluted Net Asset Value per share fell by 2.6% 
 
*       Share price fell by 0.9% 
 
*       S&P/IFC Composite Index (sterling adjusted) fell by 5.2% 
 
*       Undiluted NAV per share 505.2p as at 31 August 2010 
 
*       Diluted NAV per share 471.8p as at 31 August 2010 
 
*       Share price 422.0p as at 31 August 2010 
 
*       Net assets GBP333.7m as at 31 August 2010 
 
Gearing 
 
Gearing is not used as a tool to enhance performance but short term borrowing is 
permitted to assist in the management of liquidity. 
 
Material transactions and events 
 
The Board of Directors is not aware of any other significant events or 
transactions that have occurred between 1 May 2010 and the date of this interim 
management statement that would have a material impact on the financial position 
or performance of the Company. 
 
Manager's Comment 
 
Global emerging markets fell by close to 10% in May and spent most of the 
remainder of the period slowly recouping those losses to finish it down 5.2%. 
The Company fared somewhat better than the benchmark index recording an NAV 
return of -2.6%. 
 
The outperformance of Company's NAV over the benchmark during the period came 
largely from manager selection, with selected funds in Brazil, India, Russia and 
Thailand performing particularly well. Asset allocation was neutral and discount 
movements made a small positive contribution to relative performance. 
 
While emerging markets have been largely range-bound thus far in 2010, we are 
encouraged that economic and corporate fundamentals within emerging markets 
remain strong and valuations are not excessive. 
 
+-------------------------------------------+-----------+ 
| Top 10 Holdings at 31 August 2010         | % of NAV  | 
+-------------------------------------------+-----------+ 
| Atlantis China Fund                       | 7.6%      | 
+-------------------------------------------+-----------+ 
| BlackRock Latin American Investment Trust | 5.3%      | 
+-------------------------------------------+-----------+ 
| JP Morgan Russian Investment Trust        | 5.0%      | 
+-------------------------------------------+-----------+ 
| Taiwan Fund Inc                           | 4.8%      | 
+-------------------------------------------+-----------+ 
| Henderson TR Pacific Investment Trust     | 4.8%      | 
+-------------------------------------------+-----------+ 
| Aberdeen Latin America Equity             | 4.3%      | 
+-------------------------------------------+-----------+ 
| Baring Emerging Europe Investment Trust   | 4.0%      | 
+-------------------------------------------+-----------+ 
| Tarpon All Equities Fund                  | 3.9%      | 
+-------------------------------------------+-----------+ 
| Advance Brazil Leblon Equity Fund         | 3.5%      | 
+-------------------------------------------+-----------+ 
| Edinburgh Dragon Trust                    | 3.4%      | 
+-------------------------------------------+-----------+ 
 
20 September 2010 
 
Enquiries: 
 
Advance Emerging Capital Limited (Investment Manager to Advance Developing 
Markets Fund Limited) 
Roger Allen 
Tel:  +44 (0)20 7016 0030 
Email: rallen@advance-emerging.com 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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