Genesis speaks out on future of Emerging Markets fund ahead of of EGM to change manager and investment policy – Following the news in July that Genesis Emerging Markets would be appointing Fidelity as its new manager, implementing a new investment policy and other changes, the board has proposed a vote at an EGM, scheduled to take place on 1 October 2021.
Shareholders will also have the option to sell a portion of their holding subject to a cap of 25% of the fund as a whole and at a 2% discount to NAV. Depending on demand, sales could end up pro-rated between shareholders and therefore shareholders may only be able to sell 25% of their holdings.
By contrast, current manager, Genesis’ proposals for the future of the trust include a range of choices, including an opportunity for investors to exit their full positions at close to NAV, should they wish. The manager says this option is particularly important given the significant change in the investment policy.
Genesis says it has prioritised the wishes of shareholders ahead of protecting its assets under management and understands that its proposal of including an option for a full exit close to NAV is supported by a number of shareholders.
Arindam Bhattacharjee, managing partner at Genesis Investment Management, said: “In the interests of supporting transparency and serving the needs of all shareholders, Genesis wishes to make its position clear. The board’s proposal represents a major change in both investment policy and style of the fund. Ultimately, the company belongs to its shareholders, and Genesis believes that their wishes must remain paramount.”
“Genesis is proud to have delivered excess returns for shareholders for over three decades, while staying true to its long-term investment approach. The foundations of its long-term success remain in place. Genesis’ absolute focus on investment performance means resisting any external pressures to amend its approach in return for short term, transient gains. Its active investment strategy of undertaking deep fundamental research, using a team based approach to unearth long-term investments in quality businesses at attractive prices, remains as relevant today as ever in emerging markets.”
GSS : Genesis speaks out on future of Emerging Markets trust ahead of EGM to change manager and investment policy
I personnally agree the shareholders in this fund should be offered all stock be cashed in. We did not ask for for this change of manager i have no problem with Fidelity but we should able to decide who we want to manage.