![]() With a market cap of £1036.1m (at 27 November 2020), it is also one of the largest investment trusts within the EM peer group of eight funds. Launched in July 1989, GSS was one of the first UK-listed funds focused on EM equities. Higher numbers in emerging markets are underpinned by multi-decade secular growth trends, including rising incomes, urbanisation and growing working-age populations. In its October 2020 update, the International Monetary Fund (IMF) forecast emerging markets’ GDP to contract 3.3% in 2020 and grow 6.0% in 2021, ahead of the world’s contraction of 4.4% and growth of 5.2%, respectively. Emerging markets and developing economies have grown at a significantly faster pace than advanced economies and this accelerated growth is set to continue. Although the forward P/E multiple has expanded to 16x from 10x in April 2020, it is still below the world P/E of 18x. Nevertheless, EM equities currently trade on close to an 18% discount to global equities (Exhibit 2). ![]() Market outlook: Emerging markets still undervaluedĪfter selling off sharply in March, EM equities have strongly recovered to a level that almost evens out their five-year performance versus the global market (Exhibit 3, (Datastream global index is used for global markets). Portfolio exposure by geography, adjusted for cash (as at 30 Sept 2020) A further tender offer will take place in June 2021 if NAV lags the benchmark performance in the preceding five years. In August 2018, the company conducted its first tender offer for 10% of issued capital. GSS’s principal objective is to achieve capital growth, and the board will review the appropriateness of dividend payments on an annual basis. ![]() Share buyback policy and history (financial years) Peter Port, Guernsey, GY1 6JBĭividend policy and history (financial years) 1st Floor, Les Echelons Court, Les Echelons, South Esplanade, St.
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