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Share Name Share Symbol Market Type Share ISIN Share Description
Ashmore Global Opportunities Limited LSE:AGOL London Ordinary Share GG00BJJMSL63 ORD NPV (GBP)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 1.52 1.42 1.62 0.00 00:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 0.0 -5.0 -53.3 - 55

Ashmore Global Op Ld Half-year Report

21/08/2020 5:34pm

UK Regulatory (RNS & others)


 
TIDMAGOU TIDMAGOL 
 
NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, 
CANADA, AUSTRALIA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD 
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION 
 
 
        Ashmore Global Opportunities Limited ("AGOL", or the "Company") 
     a Guernsey incorporated and registered limited liability closed-ended 
 investment company with a Premium Listing of its shares on the Official List. 
                           LEI 549300D6OJOCNPBJ0R33. 
 
                                Interim Results 
                       For the period ended 30 June 2020 
 
      (Classified Regulated Information, under DTR 6 Annex 1 section 1.2) 
 
The financial information set out in this announcement does not constitute the 
Company's statutory accounts for the six months ended 30 June 2020. All figures 
are based on the unaudited financial statements for the six months ended 30 
June 2020. 
 
The financial information for the six months ended 30 June 2020 is derived from 
the financial statements delivered to the UK Listing Authority. 
 
The announcement is prepared on the same basis as will be set out in the 
interim accounts. 
 
The Interim Report and Unaudited Condensed Interim Financial Statements for the 
six months ended 30 June 2020 will be available on the Company website: 
www.agol.com. 
 
Financial Highlights 
 
                                                         30 June 2020     31 December 2019 
 
Total Net Assets                                        US$11,914,971        US$14,170,771 
 
Net Asset Value per Share 
 
US$ shares                                                    US$2.73              US$2.89 
 
GBP shares*                                                           -                GBP2.63 
 
Closing-Trade Share Price 
 
US$ shares                                                    US$1.43              US$2.54 
 
GBP shares*                                                           -                GBP1.52 
 
Discount to Net Asset Value 
 
US$ shares                                                   (47.62)%             (12.11)% 
 
GBP shares*                                                           -             (42.21)% 
 
* From 31 March 2020, all remaining GBP share class shares were converted to the 
US$ share class. 
 
Chairman's Statement 
 
As at 30 June 2020, the Net Asset Value ("NAV") of Ashmore Global Opportunities 
Limited (the "Company" or "AGOL") was US$11.9m compared to US$14.2m at 31 
December 2019. The NAV per share was US$2.73 as at 30 June 2020, down from 
US$2.89 at the end of 2019. The share price stood at US$1.43 as at 30 June 
2020. The GBP share class was closed in March 2020 because hedging no longer 
made sense given the much reduced size of the Company and it simplified 
operating procedures. 
 
The main detractor from performance during the period was a mark-down in the 
value of ZIM Laboratories. ZIM Laboratories is listed on the BSE in India and 
its falling share price in H2 2019 was only recognised in the semi-annual 
valuation as at 31 December 2019 of the AADCI Fund through which AGOL has 
exposure to this company. Covid-19 led to a mark-down in GZI in Nigeria/South 
Africa, but otherwise valuations were not significantly affected. 
 
There were no realisations during the reporting period but AEI paid another 
dividend in April. The Board approved a distribution to Shareholders of US$1.4m 
on 19 May 2020, with a payment date of 12 June 2020. 
 
The Investment Manager is working towards the sale of the remaining assets, 
with a particular focus on the largest exposure of the Company, namely AEI. 
Your Board receives regular updates on the operating performance and on 
progress with the sales processes. 
 
Below is an overview of the distributions made since February 2013 when 
Shareholders voted to wind up the Company in an orderly fashion. 
 
Distributions 
 
Date                        Distributions    % of 31 December 2012 % of 31 December 2012 
 
                                    (US$)                      NAV Market Capitalisation 
 
31 March 2013                  92,500,000                      19%                   28% 
 
30 June 2013                   13,000,000                       3%                    4% 
 
30 September                   26,000,000                       5%                    8% 
2013 
 
31 December 2013               36,900,000                       8%                   11% 
 
30 June 2014                    7,250,000                       2%                    2% 
 
30 September                   21,500,000                       5%                    7% 
2014 
 
31 December 2014               40,500,000                       8%                   12% 
 
31 March 2015                  19,500,000                       4%                    6% 
 
30 June 2015                   27,250,000                       6%                    8% 
 
31 December 2015               16,200,000                       3%                    5% 
 
31 March 2016                   2,500,000                       0%                    1% 
 
30 September                    3,000,000                       1%                    1% 
2017 
 
30 June 2018                   25,500,000                       5%                    8% 
 
31 December 2018                1,500,000  *                    0%                    0% 
 
30 June 2019                    4,725,000                       1%                    1% 
 
30 June 2020                    1,375,000                       0%                    0% 
 
Total                         339,200,000                      70%                  102% 
 
* was declared in January 2019 and paid in April 2019. 
 
Post reporting date, the Board issued a Circular to Shareholders to propose the 
de-listing of the Company from the London Stock Exchange. The principal 
motivation for the de-listing proposal is to reduce operating costs as a 
percentage of the remaining NAV of the Company. An AGM to decide on this 
proposal is scheduled for 22 September 2020. Full details are given in the 
Circular. 
 
I would like to thank everyone involved with AGOL for their hard work. 
 
Richard Hotchkis 
21 August 2020 
 
Investment Manager's Report 
 
Performance 
 
As at 30 June 2020, the NAV per share stood at US$2.73, representing a return 
of -5.54% over the last six months. A distribution of USD 1.4m was made to 
Shareholders in June 2020. 
 
Portfolio Review 
The principal detractor from performance in the first half of 2020 was the 
mark-down in the value of ZIM Laboratories. This was due to the falling share 
price in H2 2019, which was only reflected in the semi-annual NAV as at 31 
December 2019 of the AADCI Fund through which AGOL has exposure to this 
company. The small exposure to GZI was marked down in Q2 2020 due to lower 
trading volumes as a result of the effects of the economic measures in Nigeria 
and South Africa to fight Covid-19. AEI won the final appeal by the original 
Chinese contractor, and this meant the end of their litigation process. 
 
AEI paid another dividend from its ongoing operations. The proceeds of this 
dividend were distributed to Shareholders in June 2020. 
 
The largest investee company exposure, AEI, now accounts for around 88% of 
AGOL's NAV as at 30 June 2020. 
 
Further details on the smaller holdings of the Company are given later in this 
Investment Manager's report. 
 
Outlook 
 
As described above, the focus remains on realising AGOL's remaining investments 
in an orderly manner, and while Covid-19 interrupted some sale processes, we 
expect to make further progress on this in the next 12-18 months. The general 
sentiment towards Emerging Markets (EM) has suffered under the strains of 
Covid-19 and resulting measures to fight the spread of the virus. Nevertheless, 
in spite of alarming headlines, most emerging countries are coping relatively 
well with lower rates of fatalities per million people than in many of the 
developed countries. We believe that is at least partially due to younger 
populations and less urbanisation, making social distancing easier. The IMF 
predicts shallower recessions and steeper economic recoveries in emerging 
countries compared to developed countries. That said, realisations of the 
remaining assets in AGOL are very much influenced by the attraction and 
circumstances of each individual asset. 
 
Details on the Top 4 Underlying Holdings (on a look through basis) 
 
The table below shows the top 4 underlying investments as at 30 June 2020 
excluding the cash balance (cash was 4.23% as at 30 June 2020). 
 
Investment Name   Holding            Country      Business Description 
 
AEI               88.09%            Guatemala    Power generation in Latin America 
 
ZIM Laboratories  7.34%             India        Pharmaceutical research and manufacturing 
Ltd 
 
Numero Uno        4.62%             India        Branded apparel manufacturers and 
                                                 retailers 
 
GZ Industries     4.07%             Nigeria      Aluminium can manufacturing 
Limited 
 
The tables below show the country and industry allocations of underlying 
investments over 1% at the end of June 2020: 
 
Country                          % of NAV     Industry                          % of NAV 
 
Guatemala                          87.77%     Electrical                          87.77% 
 
India                              11.90%     Pharmaceuticals                      7.31% 
 
Nigeria                             4.05%     Retail                               4.60% 
 
                                              Miscellaneous manufacturing          4.05% 
 
 
These tables form an integral part of the financial statements. 
 
Details on a Selection of the Underlying Holdings 
 
AEI 
 
Industry: Power generation 
Country: Guatemala 
Company Status: Private 
Investment Risk: Equity 
 
Operational update 
 
  * The only operating entity remaining in AEI is Jaguar, a coal-fired power 
    plant in Guatemala. 
  * The final appeal by China Machine New Energy Corporation (CMNC) against the 
    arbitration award was heard in Singapore in November 2019 - this was 
    unsuccessful and the arbitration award stands. 
  * Jaguar has commenced enforcement proceedings in China against CNMC in 
    respect of the award. CNMC has no further right of appeal. 
 
Key risks 
 
  * Final exit process. 
 
Exit strategy 
 
  * Resume realisation of the asset once markets improve. 
  * Wind up of AEI post the Jaguar exit. 
 
ZIM Laboratories 
 
Industry: Pharmaceuticals 
Country: India 
Website: zimlab.in 
Company Status: Private 
Investment Risk: Equity 
 
Operational update and priorities 
 
  * ZIM reported lower revenues primarily because of supply chain issues due to 
    Covid-19 in terms of raw materials coming from China. 
  * ZIM was not shut down during the lockdown in India and the company is 
    "protected". 
  * In response to Covid-19, ZIM has launched a sanitiser product and also 
    produces Hydroxy-Chloroquine. 
  * The share price has improved somewhat from the end of 2019 but liquidity 
    remains low. 
 
Exit strategy and timing 
 
  * The company is now listed on the BSE, but liquidity is low. 
  * Any block sale talks have been put on hold, pending clarity on the impact 
    of Covid-19 in India. 
 
Numero Uno 
 
Industry: Retail 
Country: India 
Website: www.numerounojeanswear.com 
Company Status: Private 
Investment Risk: Equity 
 
Operational update and priorities 
 
  * Covid-19 and the resulting lockdown in India are having a material 
    detrimental effect on the company's operating performance. 
  * Margins had started to improve and further improvements are targeted in the 
    next two years. 
 
 Key risks 
 
  * Cash payments remain important to the company and any new tightening of 
    liquidity conditions could impact revenues. 
  * E-commerce strategy and competition will be important to realise margin 
    improvement. 
 
Exit strategy and timing 
 
  * The discussions with the promotor about realising our investment have 
    stalled in the current economic environment. 
  * We will seek to re-start such discussions later in 2020. 
 
GZI 
 
Industry: Aluminium can manufacturing 
Country: Nigeria 
Website: www.gzican.com 
Company Status: Private 
Investment Risk: Equity 
 
Operational update 
 
  * In Nigeria, a stable macro environment and growth in the canned beverage 
    market resulted in the business running 15% ahead of plan in Q1 2020 and 
    attaining record sales volumes. With the onset of Covid-19, however, and 
    the ensuing lockdowns and movement restrictions, demand for cans decreased 
    as hotels and restaurants were closed, and the company is currently running 
    at approximately 50% utilisation rate. 
  * In South Africa, GZI ramped up operations on schedule, reaching peak 
    production in February 2020, with two major contracts securing 50% of 
    capacity. However with lockdowns and movement restrictions due to Covid-19, 
    sales have not matched production to date and the business is running at 
    30% utilisation. 
  * We expect continued subdued demand and pressure on both businesses until 
    the pandemic abates. 
 
2020 operational strategy/priorities 
 
  * Ramp up production of the plant in South Africa. 
  * Sell land in Kenya. 
  * Leverage larger presence for global contracts with beverage contracts up 
    for renewal. 
  * Manage foreign exchange exposures/requirements. 
  * Conserve cash and liquidity as a buffer for a potential second round of 
    lockdowns. 
 
Key risks 
 
  * Slowdown in the African beverages markets. 
  * Clients opting for cheaper competitors or alternatives. 
  * Access to USD / local currency depreciation. 
  * Lockdowns and movement restrictions. 
 
Exit strategy and timing 
 
  * Mandated two banks to initiate the sales process in February 2020 but the 
    process has been shelved until the business can run normalised operations 
    for 6 months and markets are more conducive to a sale. 
 
Microvast 
 
Industry: Technology/Clean-tech 
Country: China 
Website: www.microvast.com 
Company Status: Private 
Investment Risk: Equity 
 
Operational update 
 
  * Revenues continued to fall in H1 2020, after more than halving in 2019, 
    partially due to Covid-19 and a temporary lock-down of the plant. As 
    described further in the audited financial statements of the Company for 
    the year ended 31 December 2019, the independent valuation agent wrote down 
    the equity valuation of Microvast to zero. 
 
2020/21 operational strategy/priorities 
 
  * Securing further long term contracts for commercial vehicle and automobile 
    customers. 
  * Securing new financing and extending existing financing facilities both for 
    existing operations and for capex and R&D. 
  * Hire and retain high quality staff. 
 
Key risks 
 
  * Financing problems and possible default on outstanding debts. 
  * Not winning new orders and gaining new revenues. 
  * Better capitalised competitors who can grow capacity and improve battery 
    technology quicker and thus achieve more favourable economies of scale. 
  * Warranty claims arising from defective cells or modules. 
 
Ashmore Investment Advisors Limited 
Investment Manager 
21 August 2020 
 
 
Board Members 
 
As at 30 June 2020, the Board consisted of four non-executive Directors. The 
Directors are responsible for the determination of the Company's investment 
policy and have overall responsibility for its activities. As required by the 
Association of Investment Companies Code on Corporate Governance (the "AIC 
Code"), the majority of the Board of Directors are independent of the 
Investment Manager. In preparing this interim report, the independence of each 
Director has been considered. 
 
Richard Hotchkis, Independent Chairman, (UK resident) appointed 18 April 2011 
Richard Hotchkis has over 40 years of investment experience. Until 2006, he was 
an investment manager at the Co-operative Insurance Society, where he started 
his career in 1976. He has a breadth of investment experience in both UK and 
overseas equities, including in emerging markets, and in particular, investment 
companies and other closed-ended funds, offshore funds, hedge funds and private 
equity funds. 
 
Steve Hicks, Non-Independent Director (connected to the Investment Manager), 
(UK resident) appointed 16 January 2014 
Steve Hicks, who is a qualified UK lawyer, has held a number of legal and 
compliance roles over a period of more than 25 years. From June 2010 until 
January 2014, he was the Ashmore Group Head of Compliance. Prior thereto he was 
Director, Group Compliance at the London listed private equity company 3i Group 
plc. 
 
Nigel de la Rue, Independent Director, (Guernsey resident) appointed 16 October 
2007 
Nigel de la Rue graduated in 1978 from Pembroke College, Cambridge with a 
degree in Social and Political Sciences. He is qualified as an Associate of the 
Chartered Institute of Bankers, as a Member of the Society of Trust and Estate 
Practitioners ("STEP") and as a Member of the Institute of Directors. He was 
employed for 23 years by Baring Asset Management's Financial Services Division, 
where he was responsible for the group's Fiduciary Division and sat on the 
Executive Committee. He left Baring in December 2005, one year after that 
Division was acquired by Northern Trust. He has served on the Guernsey 
Committees of the Chartered Institute of Bankers and STEP, and on the Guernsey 
Association of Trustees, and currently holds a number of directorships in the 
financial services sector. 
 
Christopher Legge, Independent Director, (Guernsey resident) appointed 27 
August 2010 
Christopher Legge has over 25 years' experience in financial services. He 
qualified as a Chartered Accountant in London in 1980 and spent the majority of 
his career based in Guernsey with Ernst & Young, including being the Senior 
Partner of Ernst & Young in the Channel Islands. Christopher retired from Ernst 
& Young in 2003 and currently holds a number of directorships in the financial 
sector. 
 
 
Disclosure of Directorships in Public Companies Listed on Recognised Stock 
Exchanges 
 
The following summarises the Directors' directorships in other public 
companies: 
 
Company Name           Exchange 
 
Richard Hotchkis       Nil 
 
Steve Hicks            Nil 
 
Nigel de la Rue        Nil 
 
 
 
Christopher Legge 
 
NB Distressed Debt Investment Fund Limited      London 
Sherborne Investors (Guernsey) B Limited        London 
Sherborne Investors (Guernsey) C Limited        London 
Third Point Offshore Investors Limited (retired London 
30 June 2020)                                   London 
TwentyFour Select Monthly Income Fund Limited 
 
Directors' Responsibility Statement 
 
The Directors are responsible for preparing the Interim Report and Unaudited 
Condensed Interim Financial Statements, which have not been audited by an 
independent auditor, and confirm that to the best of their knowledge: 
 
  * the condensed set of financial statements in the interim financial report 
    has been prepared in accordance with IAS 34 Interim Financial Reporting; 
    and 
  * the interim financial report includes a fair view of the information 
    required by: 
 
(a)   DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication 
of the important events that have occurred during the first six months of the 
financial year and their impact on the condensed set of interim financial 
statements; and a description of the principal risks and uncertainties for the 
remaining six months of the year ending 31 December 2019; and 
 
(b)   DTR 4.2.8R of the Disclosure and Transparency Rules, being related party 
transactions that have taken place in the first six months of the current 
financial year and that have materially affected the financial position or 
performance of the entity during that period, and any changes in the related 
party transactions described in the last annual report that could do so. 
 
Signed on behalf of the Board of Directors on 21 August 2020 
 
Richard Hotchkis 
Christopher Legge 
Chairman 
 Chairman of the Audit Committee 
 
 
Unaudited Condensed Statement of Financial Position 
As at 30 June 2020 
 
                                                      30 June 2020    31 December 2019 
 
                                           Note                US$                 US$ 
 
Assets 
 
Cash and cash equivalents                                  548,750             691,726 
 
Other financial assets                      5a              15,248                   - 
 
Financial assets at fair value through       3          12,406,209          14,713,255 
profit or loss ("FVTPL") 
                                                                                      Total assets                                            12,970,207          15,404,981 
 
Equity 
 
Capital and reserves attributable to 
equity holders 
of the Company 
 
Special reserve                                        374,334,833         375,709,891 
 
Retained earnings                                    (362,419,862)       (361,539,120) 
 
Total equity                                            11,914,971          14,170,771 
 
Liabilities 
 
Current liabilities 
 
Financial liabilities at FVTPL               3                   -              12,409 
 
Other financial liabilities                 5b           1,055,236           1,221,801 
 
Total liabilities                                        1,055,236           1,234,210 
 
Total equity and liabilities                            12,970,207          15,404,981 
 
Net asset values 
 
Net assets per US$ share                     8             US$2.73             US$2.89 
 
Net assets per GBP share *                     8                   -               GBP2.63 
 
* From 31 March 2020, all remaining GBP share class shares were converted to the 
US$ share class. 
 
The unaudited condensed interim financial statements were approved by the Board 
of Directors on 21 August 2020, and were signed on its behalf by: 
 
Richard Hotchkis 
Christopher Legge 
Chairman 
Chairman of the Audit Committee 
 
 
Unaudited Condensed Statement of Comprehensive Income 
For the six months ended 30 June 2020 
 
                                                           Six months        Six months 
                                                                ended             ended 
                                                         30 June 2020      30 June 2019 
 
                                                Note              US$               US$ 
 
Interest income calculated using the effective                  1,373            13,139 
interest method 
 
Net foreign currency gain                                       1,203            45,111 
 
Net loss from financial instruments at FVTPL      4         (743,396)       (4,086,738) 
 
Total net loss                                              (740,820)       (4,028,488) 
 
Expenses 
 
Directors' remuneration                                      (40,446)          (55,205) 
 
Investment management fees                                   (33,215)          (33,403) 
 
Fund administration fees                                      (1,422)           (2,865) 
 
Custody fees                                                    (831)           (1,792) 
 
Incentive fees                                                  1,302 *       (179,473) 
 
Other operating expenses                                     (65,310)          (72,180) 
 
Total operating expenses                                    (139,922)         (344,918) 
 
Loss for the period                                         (880,742)       (4,373,406) 
 
Total loss for the period                                   (880,742)       (4,373,406) 
 
Earnings per share 
 
Basic and diluted loss per US$ share              9         US$(0.16)         US$(0.73) 
 
Basic and diluted loss per GBP share                9         US$(0.39)         US$(0.92) 
 
 
 
*    Incentive fees were positive for the six months ended 30 June 2020 due to a 
     reversal of the prior year accrual. 
 
All items derive from continuing activities. 
 
 
Unaudited Condensed Statement of Changes in Equity 
For the six months ended 30 June 2020 
 
                                                     Special        Retained 
 
                                                     reserve        earnings         Total 
 
                                         Note            US$             US$           US$ 
 
Total equity as at 1 January 2020                375,709,891   (361,539,120)    14,170,771 
 
Total comprehensive loss for the period                    -       (880,742)     (880,742) 
 
Capital distribution                       7     (1,375,058)               -   (1,375,058) 
 
Total equity as at 30 June 2020                  374,334,833   (362,419,862)    11,914,971 
 
Total equity as at 1 January 2019                381,934,791   (351,416,351)    30,518,440 
 
Total comprehensive loss for the period                    -     (4,373,406)   (4,373,406) 
 
Capital distribution                             (6,224,900)               -   (6,224,900) 
 
Total equity as at 30 June 2019                  375,709,891   (355,789,757)    19,920,134 
 
Unaudited Condensed Statement of Cash Flows 
For the six months ended 30 June 2020 
 
                                                   Six months ended    Six months ended 
                                                       30 June 2020        30 June 2019 
 
                                              Note              US$                 US$ 
 
Cash flows from operating activities 
 
Net bank interest received                                    1,373              13,139 
 
Dividends received                                        1,389,950           1,083,816 
 
Net operating expenses paid                               (321,734)           (167,631) 
 
Net cash from operating activities                        1,069,589             929,324 
 
Cash flows from investment activities 
 
Sales of investments                                        302,295          13,133,633 
 
Purchases of investments                                          -         (7,499,907)   * 
 
   Net cash flows on derivative instruments and           (139,802)            (55,919) 
                 foreign exchange 
 
Net cash from investment activities                         162,493           5,577,807 
 
Cash flows from financing activities 
 
Capital distributions                          7        (1,375,058)         (6,224,900) 
 
Net cash used in financing activities                   (1,375,058)         (6,224,900) 
 
Net (decrease)/increase in cash and cash                  (142,976)             282,231 
equivalents 
 
Reconciliation of net cash flows to movement in cash and cash 
equivalents 
 
Cash and cash equivalents at the beginning of the           691,726             413,401 
period 
 
Net (decrease)/increase in cash and cash                  (142,976)             282,231 
equivalents 
 
Cash and cash equivalents at the end of the                 548,750             695,632 
period 
 
 
 
*  This amount represents a purchase of shares in the Ashmore SICAV 2 Global 
   Liquidity US$ Fund, which is solely related to the cash management of US$ on 
   account. This is not the purchase of a new investment. 
 
Notes to the Unaudited Condensed Interim Financial Statements - Schedule of 
Investments 
As at 30 June 2020 
 
Description of investments                                      Fair value        % of 
                                                                       US$  net assets 
 
AEI Inc - Equity                                                 6,329,025       53.12 
 
Ashmore Global Special Situations Fund 4 LP                      2,482,605       20.84 
 
AA Development Capital India Fund 1, LLC                         1,420,471       11.92 
 
Ashmore Global Special Situations Fund 5 LP                      1,123,042        9.43 
 
Ashmore Global Special Situations Fund 3 LP                        628,499        5.26 
 
Ashmore Global Special Situations Fund 2 Limited                   422,567        3.55 
 
Total investments at fair value                                 12,406,209      104.12 
 
Net other current liabilities                                    (491,238)      (4.12) 
 
Total net assets                                                11,914,971      100.00 
 
 
 
Notes to the Unaudited Condensed Interim Financial Statements 
 
1.    Basis of Preparation 
 
a) Statement of Compliance 
 
These unaudited condensed interim financial statements have been prepared in 
accordance with IAS 34 Interim Financial Reporting and on a going concern 
basis, despite the managed wind-down of the Company approved by the 
Shareholders on 13 March 2013. The Directors have examined significant areas of 
possible financial going concern risk and are satisfied that no material 
exposures exist. The Directors consider that the Company has adequate resources 
to continue in operational existence for the foreseeable future and believe 
that it is appropriate to adopt the going concern basis despite the managed 
wind-down of the Company over the next few years. The principal risk affecting 
the Company is market price risk, although the Covid-19 pandemic may also 
affect the timing of disposals, as it seeks to realise its remaining portfolio. 
 
These unaudited condensed interim financial statements do not include as much 
information as the annual financial statements, and should be read in 
conjunction with the audited financial statements of the Company for the year 
ended 31 December 2019. Selected explanatory notes are included to explain 
events and transactions that are relevant to understanding the changes in 
financial position and performance of the Company since the last annual 
financial statements. 
 
These unaudited condensed interim financial statements were authorised for 
issue by the Board of Directors on 
21 August 2020. 
 
The Directors have assessed the impact of the Alternative Investment Fund 
Managers Directive ("AIFMD") on the financial statements of the Company and 
have concluded that the Company is exempt from following Chapter V, Section 1, 
Articles 103 - 111 of the European Commission's Level 2 Delegated Regulation on 
the basis of the operations of the Company: it being (i) a Non-EEA AIF, and 
(ii) not being marketed in the European Union, as defined by the Directive. 
 
b) Judgements and Estimates 
 
Preparing the unaudited condensed interim financial statements requires 
judgements, estimates and assumptions that affect the application of accounting 
policies and the reported amounts of assets, liabilities, income and expenses. 
Actual results may differ from these estimates. The significant judgements made 
in applying the Company's accounting policies, and the key sources of 
estimation uncertainty, were the same as those that applied to the audited 
financial statements of the Company for the year ended 31 December 2019. 
 
2.    Summary of Significant Accounting Policies 
 
The Board has concluded that at present the managed wind-down of the Company 
has no significant impact on the valuation of the Company's investments. 
 
The accounting policies applied in these unaudited condensed interim financial 
statements are the same as those applied in the Company's audited financial 
statements for the year ended 31 December 2019. As disclosed in those Annual 
Financial Statements, IFRS 9, 'Financial Instruments' was applicable for 
financial reporting periods starting 1 January 2018. As such, these standards 
have been adopted by the Company, but have not materially affected the Company. 
There were no other new standards, interpretations or amendments to standards 
issued and effective for the period which materially impacted the Company. 
 
3.    Financial Assets and Liabilities at Fair Value through Profit or Loss 
 
                                                            30 June 2020     31 December 
                                                                                    2019 
 
                                                                     US$             US$ 
 
Equity investments                                            12,406,209      14,597,833 
 
Derivative financial assets                                            -         115,422 
 
Total financial assets at FVTPL                               12,406,209      14,713,255 
 
There were no significant changes to the Company's direct equity investments 
other than valuation movements. 
 
As at 30 June 2020, there were no derivative financial assets. As at 31 
December 2019, derivative financial assets comprised forward foreign currency 
contracts as follows: 
 
Currency           Amount     Currency           Amount        Maturity      Unrealised 
Bought             Bought     Sold                 Sold            Date            Gain 
 
GBP               3,876,657     US$             5,024,360      31/01/2020         115,422 
 
Derivative financial assets                                                     115,422 
 
 
 
                                                            30 June 2020     31 December 
                                                                                    2019 
 
                                                                     US$             US$ 
 
Derivative financial liabilities                                       -        (12,409) 
 
Total financial liabilities at FVTPL                                   -        (12,409) 
 
As at 30 June 2020, there were no derivative financial liabilities. As at 31 
December 2019, derivative financial liabilities comprised forward foreign 
currency contracts as follows: 
 
Currency           Amount     Currency           Amount        Maturity      Unrealised 
Bought             Bought     Sold                 Sold            Date            Loss 
 
US$             1,144,714     GBP                 872,755      31/01/2020        (12,409) 
 
Derivative financial liabilities                                               (12,409) 
 
4.    Net (Loss)/Income from Financial Instruments at FVTPL 
 
                                                            30 June 2020    30 June 2019 
 
                                                                     US$             US$ 
 
Derivative financial instruments                               (244,018)        (48,765) 
 
Total derivative financial instruments                         (244,018)        (48,765) 
 
Financial assets mandatorily measured at 
FVTPL: 
 
- Equity investments                                           (499,378)     (4,037,973) 
 
Total financial assets mandatorily measured at FVTPL           (499,378)     (4,037,973) 
 
Net loss from financial instruments at FVTPL                   (743,396)     (4,086,738) 
 
 
 
Net loss from financial instruments at FVTPL: 
 
- Dividend income                                            1,389,950       1,099,409 
 
- Realised gains on investments                                200,567               - 
 
- Realised losses on investments                                     -       (780,516) 
 
- Realised gains on forward foreign currency contracts          93,028         632,731 
 
- Realised losses on forward foreign currency                (234,033)       (733,762) 
contracts 
 
- Change in unrealised gains on investments                          -       2,406,435 
 
- Change in unrealised losses on investments               (2,089,895)     (6,763,301) 
 
- Change in unrealised gains on forward foreign                 12,409          70,234 
currency contracts 
 
- Change in unrealised losses on forward foreign             (115,422)        (17,968) 
currency contracts 
 
Net loss from financial instruments at FVTPL                 (743,396)     (4,086,738) 
 
5.    Other Financial Assets and Liabilities 
 
a)    Other financial assets: 
 
Other financial assets relate to accounts receivable and prepaid expenses, and 
comprise the following: 
 
                                                            30 June 2020     31 December 
                                                                                    2019 
 
                                                                     US$             US$ 
 
Prepaid Directors' insurance fees                                     94               - 
 
Prepaid regulatory fees                                            2,979               - 
 
Prepaid expenses                                                  12,175               - 
 
                                                                  15,248               - 
 
b)    Other financial liabilities: 
 
Other financial liabilities relate to accounts payable and accrued expenses, 
and comprise the following: 
 
                                                            30 June 2020     31 December 
                                                                                    2019 
 
                                                                     US$             US$ 
 
Incentive fees payable                                         (996,932)     (1,145,642) 
 
Investment management fees payable                              (10,548)         (6,059) 
 
Other accruals                                                  (47,756)        (70,100) 
 
                                                             (1,055,236)     (1,221,801) 
 
6.    Financial Instruments 
 
a) Financial risk management 
 
The Company's financial risk management objectives and policies are consistent 
with those disclosed in the audited financial statements of the Company for the 
year ended 31 December 2019. However, in light of the current developing global 
Coronavirus (Covid-19) outbreak they have also been included for reference in 
these unaudited condensed interim financial statements. 
 
The Company's activities expose it to a variety of financial and operational 
risks which include: market risk (including currency risk, interest rate risk 
and price risk), credit risk and liquidity risk. 
 
The Company is also exposed to certain risk factors peculiar to investing in 
Emerging Markets. These require the consideration of matters not usually 
associated with investing in the securities of issuers in the developed capital 
markets of North America, Japan or Western Europe. The economic and political 
conditions in Emerging Markets differ from those in developed markets, and 
offer less social, political and economic stability. The value of investments 
in Emerging Markets may be affected by changes in exchange regulations, tax 
laws, withholding taxes or economic and monetary policies. The absence, in many 
cases until relatively recently, of any move towards capital markets structures 
or to a free market economy means investing in Emerging Markets may be 
considered more risky than investing in developed markets. 
 
The Company puts policies and processes in place to measure and manage the 
various types of risk to which it is exposed; these are explained below. 
 
Market Risk 
All of the Company's investments are recognised at fair value, and changes in 
market conditions directly affect net investment income. 
 
i) Currency Risk 
The Company's principal exposure to currency risk arises from underlying 
investments denominated in currencies other than US$ and from the exposure of 
its underlying portfolio companies to local currencies in their countries of 
operation. The value of such investments may be affected favourably or 
unfavourably by fluctuations in exchange rates, notwithstanding any efforts 
made to hedge such exposures. 
 
The Investment Manager may hedge currency exposures by reference to the most 
recent NAV of the Company's underlying investments via the use of forward 
foreign currency contracts or similar instruments. 
 
As at the reporting date, the Company is not exposed to any significant direct 
currency risk arising on its financial assets and liabilities, as all direct 
investments of the Company are denominated in US$, and a sensitivity analysis 
of currency risk is not meaningful at this time. However, the Company had 
previously put in place hedging mechanisms to hedge the currency risk arising 
on the GBP share class. 
 
Shares in the Company are denominated in US$. From 31 March 2020, all remaining 
GBP share class shares were converted to the US$ share class. The base currency 
is the US$, and therefore non-US$ subscription monies for shares were typically 
converted into US$ for operational purposes. The costs and any benefit of 
hedging the foreign currency exposure of the assets attributable to shares 
denominated in Pound Sterling against the US$ were allocated solely to the GBP 
share class. This may have resulted in variations in the NAVs of the two 
classes of shares as expressed in US$. 
 
As at 30 June 2020, there was no foreign currency exposure. 
 
As at 30 June 2019, the net foreign currency exposure on the GBP share class was 
as follows: 
 
                                                                     US$         % of net 
                                                                                   assets 
 
Currency exposure of GBP share class                             5,169,643            25.95 
 
Nominal value of currency hedges                             (7,080,143)          (35.54) 
 
Net foreign currency exposure                                (1,910,500)           (9.59) 
 
ii) Interest Rate Risk 
The majority of the Company's financial assets and liabilities are non-interest 
bearing (30 June 2020: 95.39%, 30 June 2019: 96.51%). As at 30 June 2020, 
interest-bearing financial assets comprised cash and cash equivalents of 
US$548,750 (30 June 2019: US$695,632). The Company's investment portfolio is 
composed entirely of non-interest bearing assets as at 30 June 2020 (30 June 
2019: 100%). As a result, the Company is subject to limited direct exposure to 
interest rate risk through fluctuations in the prevailing levels of market 
interest rates and a sensitivity analysis of interest rate risk is not 
meaningful at this time. 
 
iii) Other Price Risk 
Other price risk is the risk that the value of financial instruments will 
fluctuate as a result of changes in market prices (other than those arising 
from interest rate risk or currency risk), whether caused by factors specific 
to an individual investment, its issuer or any other relevant factors. 
 
The Company's strategy for the management of price risk is to seek to maximise 
the exit prices that it obtains for its direct and indirect investments. 
 
The table below summarises the sensitivity of the Company's net assets 
attributable to equity holders to investment price movements as at the 
reporting date. The analysis is based on the assumption that the prices of the 
investments increase by 5% (30 June 2019: 5%), with all other variables held 
constant. 
 
                                                            30 June 2020     30 June 2019 
 
                                                                     US$              US$ 
 
Equity investments                                               620,310        1,021,187 
 
                                                                 620,310        1,021,187 
 
A 5% decrease in prices of the investments would result in an equal but 
opposite effect on the net assets attributable to equity holders, on the basis 
that all other variables remain constant. The price risk sensitivity analysis 
provided is a relative estimate of risk rather than a precise and accurate 
number. 
 
Credit Risk 
The Company is exposed to credit risk, which is the risk that a counterparty to 
a financial instrument will fail to discharge an obligation or commitment that 
it has entered into with the Company. 
 
The Company's financial instruments include non-exchange traded financial 
instruments. Credit risk for non-exchange traded financial instruments is 
generally higher because the counterparty for the instrument is not backed by 
an exchange clearing house. 
 
The Company's financial instruments include direct and indirect holdings of 
securities and other obligations of companies that are experiencing significant 
financial or business distress, including companies involved in 
bankruptcy or other reorganisation and liquidation proceedings. Although such 
holdings may result in significant returns, they involve a substantial degree 
of risk. The level of analytical sophistication, both financial and legal, 
necessary for successful investment in companies experiencing significant 
business and financial distress is unusually high. There is no assurance that 
the Investment Manager will correctly evaluate the nature and magnitude of the 
various factors that could affect the prospects for a successful reorganisation 
or similar action. The completion of debt and/or equity exchange offers, 
restructurings, reorganisations, mergers, takeover offers and other 
transactions can be prevented or delayed, or the terms changed, by a variety of 
factors. If a proposed transaction appears likely not to be completed or in 
fact is not completed or is delayed, the market price of the investments held 
by the Company may decline sharply and result in losses which could have a 
material adverse effect on the performance of the Company and returns to 
Shareholders. 
 
The administrative costs in connection with a bankruptcy or restructuring 
proceeding are frequently high and will be paid out of the debtor's assets 
prior to any return to creditors (other than out of assets or proceeds thereof, 
which may be subject to valid and enforceable liens and other security 
interests) and equity holders. In addition, certain claims that have priority 
by law over the claims of other creditors (for example, claims for taxes) may 
reduce any entitlement of the Company. In any reorganisation or liquidation 
proceeding relating to a company or sovereign issuance in which the Company 
invests, the Company may lose its entire investment or may be required to 
accept cash or securities with a value less than its original investment. Under 
such circumstances, the returns generated from such investments may not 
compensate investors adequately for the risks assumed, which could have a 
material adverse effect on the performance of the Company and returns to 
Shareholders. 
 
It is frequently difficult to obtain accurate information as to the condition 
of distressed entities. Such investments may be adversely affected by laws 
relating to, among other things, fraudulent transfers and other voidable 
transfers or payments, lender liability and the bankruptcy court's power to 
disallow, reduce, subordinate or disenfranchise particular claims. The market 
prices of such securities are subject to abrupt and erratic market movements 
and above-average price volatility, and the spread between the bid and offer 
prices of such securities may be greater than those prevailing in other 
securities markets. 
 
Securities issued by distressed companies may have a limited trading market, 
resulting in limited liquidity. As a result, the Company may have difficulties 
in valuing or liquidating positions, which could have a material adverse effect 
on the performance of the Company and returns to Shareholders. 
 
As at the reporting date, the maximum exposure to direct credit risk before any 
credit enhancements is the carrying amount of the financial assets, as set out 
below. This excludes credit risk relating to underlying debt instruments held 
by the Funds. 
 
                                                            30 June 2020     30 June 2019 
 
                                                                     US$              US$ 
 
Cash and cash equivalents*                                       548,750          695,632 
 
                                                                 548,750          695,632 
 
* Held with Northern Trust (Guernsey) Limited. 
 
None of these assets are impaired nor past due but not impaired. 
 
The Investment Manager monitors the credit ratings of the Company's 
counterparties, maintains an approved counterparty list and periodically 
reviews all counterparty limits. 
 
The credit risk arising on transactions with brokers relates to transactions 
awaiting settlement. The risk relating to unsettled transactions is considered 
small due to the short settlement period involved. 
 
Substantially all of the assets of the Company are held with the Custodian; 
Northern Trust (Guernsey) Limited, which is an indirect wholly-owned subsidiary 
of the Northern Trust Corporation. Bankruptcy or insolvency of the Custodian 
may cause the Company's rights with respect to cash and securities held by the 
Custodian to be delayed or limited. This risk is managed by monitoring the 
credit quality and financial positions of the Custodian. The credit rating 
assigned by S&P to the Northern Trust Corporation as at the period-end date was 
A+ (30 June 2019: A+). Depending on the requirements of the jurisdictions in 
which the investments of the Company are issued, the Custodian may use the 
services of one or more sub-custodians. 
 
Concentration Risk 
Due to the managed wind-down, the Company is in the process of reducing the 
number and diversification of assets held and as such is considered to have 
exposure to concentration risk. The concentration of underlying assets is set 
out in the "Details on Top 4 Underlying Holdings". Country and industry 
concentrations are also set out in the "Details on Top 4 Underlying Holdings". 
 
Liquidity Risk 
Liquidity risk is the risk that the Company may not be able to generate 
sufficient cash resources to settle its obligations in full as they fall due or 
can only do so on terms that are materially disadvantageous. 
 
The Company is not exposed to any significant liquidity risk arising from 
redemptions because Shareholders do not have the right to redeem. 
 
Most of the investments of the Company are traded only on over the counter 
markets and there may not be an organised public market for such securities. 
The effect of this is to increase the difficulty of valuing the investments and 
certain investments may generally be illiquid. There may be no established 
secondary market for certain of the investments made by the Company. Reduced 
secondary market liquidity may adversely affect the market price of the 
investments and the Company's ability to dispose of particular investments. Due 
to the lack of adequate secondary market liquidity for certain securities, it 
may be more difficult to obtain accurate security valuations for the purposes 
of valuing the Company. Valuations may only be available from a limited number 
of sources and may not represent firm bids for actual sales. In addition, the 
current or future regulatory regime may adversely affect liquidity. 
 
All residual maturities of the financial liabilities of the Company in US$ as 
at 30 June 2020 and 30 June 2019 are less than three months, except for 
incentive fees payable to the Investment Manager on realisation of investments. 
 
Liquidity risk is primarily related to outstanding commitments and recallable 
distributions from investments in limited partnerships. The outstanding 
investment commitments of the Company are disclosed in note 14. 
 
Operational Risk 
Operational risk is the risk of direct or indirect loss arising from a wide 
variety of causes associated with the Company's processes and infrastructure, 
or from external factors other than market, credit, or liquidity issues, such 
as those arising from legal or regulatory requirements and generally accepted 
standards of corporate behaviour. Operational risks arise from all of the 
Company's operations. 
 
Capital Management 
The Company is not subject to externally imposed capital requirements. The 
shares issued by the Company provide an investor with the right to require 
redemption for cash at a value proportionate to the investor's share in the 
Company's net assets at redemption date and are classified as equity. See note 
7 for a description of the terms of the shares issued by the Company. The 
Company's objective is to realise the assets in orderly manner to return cash 
to Shareholders. The Articles of Incorporation of the Company were amended to 
facilitate regular returns of cash to Shareholders. 
 
b) Carrying amounts versus fair values 
As at 30 June 2020, the carrying values of financial assets and liabilities 
presented in the Unaudited Condensed Statement of Financial Position 
approximate their fair values. 
 
The table below sets out the classifications of the carrying amounts of the 
Company's financial assets and financial liabilities into categories of 
financial instruments as at 30 June 2020. 
 
                                    Mandatorily     Financial     Financial         Total 
                                       at FVTPL     assets at   liabilities 
                                                    amortised  at amortised 
                                                         cost          cost 
 
Cash and cash equivalents                     -       548,750             -       548,750 
 
Non-pledged financial assets at      12,406,209             -             -    12,406,209 
FVTPL 
 
Other receivables                             -        15,248             -        15,248 
 
Total                                12,406,209       563,998             -    12,970,207 
 
Financial liabilities at FVTPL                -             -             -             - 
 
Other payables                                -             -   (1,055,236)   (1,055,236) 
 
Total                                         -             -   (1,055,236)   (1,055,236) 
 
The table below sets out the classifications of the carrying amounts of the 
Company's financial assets and financial liabilities into categories of 
financial instruments as at 31 December 2019. 
 
                                    Mandatorily     Financial     Financial         Total 
                                       at FVTPL     assets at   liabilities 
                                                    amortised  at amortised 
                                                         cost          cost 
 
Cash and cash equivalents                     -       691,726             -       691,726 
 
Non-pledged financial assets at      14,713,255             -             -    14,713,255 
FVTPL 
 
Total                                14,713,255       691,726             -    15,404,981 
 
Financial liabilities at FVTPL         (12,409)             -             -      (12,409) 
 
Other payables                                -             -   (1,221,801)   (1,221,801) 
 
Total                                  (12,409)             -   (1,221,801)   (1,234,210) 
 
c) Financial instruments carried at fair value - fair value hierarchy 
 
Fair value is defined as the price that would be received to sell an asset or 
paid to transfer a liability (i.e. the exit price) in an orderly transaction 
between market participants at the measurement date. 
 
For certain of the Company's financial instruments including cash and cash 
equivalents, prepaid/accrued expenses and other creditors, their carrying 
amounts approximate fair value due to the immediate or short-term nature of 
these financial instruments. The Company's investments and financial derivative 
instruments are carried at market value, which approximates fair value. 
 
The Company classifies financial instruments within a fair value hierarchy that 
prioritises the inputs to valuation techniques used to measure fair value. The 
hierarchy gives the highest priority to unadjusted quoted prices in active 
markets for identical assets or liabilities (Level 1 measurements) and the 
lowest priority to unobservable inputs (Level 3 measurements). The three levels 
of the fair value hierarchy are as follows: 
 
Level 1 inputs are unadjusted quoted prices in active markets for identical 
assets or liabilities that the reporting entity has the ability to access at 
the measurement date. 
 
Level 2 inputs are observable inputs other than quoted prices included within 
Level 1 that are observable for the asset or liability, either directly or 
indirectly, including: 
 
- quoted prices for similar assets or liabilities in active markets; 
- quoted prices for identical or similar assets or liabilities in markets that 
are not active; 
- inputs other than quoted prices that are observable for the asset or 
liability; 
- inputs that are derived principally from or corroborated by an observable 
market. 
 
Level 3 inputs are unobservable inputs for the asset or liability. 
 
Inputs are used in applying various valuation techniques and broadly refer to 
the assumptions that market participants use to make valuation decisions, 
including assumptions about risk. Inputs may include price information, 
volatility statistics, specific and broad credit data, liquidity statistics, 
and other factors. A financial instrument's level within the fair value 
hierarchy is based on the lowest level of any input that is significant to the 
fair value measurement. However, the determination of what constitutes 
"observable" requires significant judgement. The Company considers observable 
data to be that market data which is readily available, regularly distributed 
or updated, reliable and verifiable, not proprietary, and provided by 
independent sources that are actively involved in the relevant market. 
 
The categorisation of a financial instrument within the hierarchy is based upon 
the pricing transparency of the instrument and does not necessarily correspond 
to the Company's perceived risk of that instrument. 
 
Investments: Investments whose values are based on quoted market prices in 
active markets, and are therefore classified within Level 1, include active 
listed equities, certain U.S. government and sovereign obligations, and certain 
money market securities. The Company does not generally adjust the quoted price 
for such instruments, even in situations where it holds a large position and a 
sale could reasonably impact the quoted price. 
 
Investments that trade in markets that are not considered to be active, but are 
valued based on quoted market prices, dealer quotations or alternative pricing 
sources supported by observable inputs are classified within Level 2. These may 
include government and sovereign obligations, government agency securities, 
corporate bonds, and municipal and provincial obligations. 
 
Investments classified within Level 3 have significant unobservable inputs, as 
they trade infrequently or not at all. Level 3 instruments may include private 
equity investments, certain loan agreements, less-liquid corporate debt 
securities (including distressed debt instruments) and collateralised debt 
obligations. Also included in this category are government and sovereign 
obligations, government agency securities and corporate bonds for which 
independent broker prices are used and information relating to the inputs of 
the price models is not observable. 
 
When observable prices are not available; e.g. if an asset does not trade 
regularly, the Company may rely on information provided by any person, firm or 
entity including any professional person whom the Directors consider to be 
suitably qualified to provide information in respect of the valuation of 
investments and who is approved by the Custodian (an "Approved Person"). 
Approved Persons may include certain brokers and the Pricing Methodology and 
Valuation Committee ("PMVC") of the Investment Manager. 
 
The PMVC may provide assistance to the Administrator in determining the 
valuation of assets where the Administrator cannot determine a valuation from 
another source. These assets, which are classified within Level 3, may include 
all asset types but are frequently 'Special Situations' type investments, 
typically incorporating distressed, illiquid or private investments. 
 
For these hard-to-value investments, the methodology and models used to 
determine fair value are created in accordance with the International Private 
Equity and Venture Capital Valuation ("IPEV") guidelines. Smaller investments 
may be valued directly by the PMVC but material investments are valued by 
experienced personnel at an independent third-party valuation specialist. Such 
valuations are subject to review, amendment if necessary, then approval by the 
PMVC. The valuations are ultimately approved by the Directors and the auditors 
to a material extent in so far as they make up part of the NAV in the financial 
statements. 
 
Valuation techniques used include the market approach, the income approach or 
the cost approach depending on the availability of reliable information. The 
market approach generally consists of using; comparable transactions, earnings 
before interest, tax, depreciation and amortisation ("EBITDA") multiples; or 
enterprise value ("EV") multiples (based on comparable public company 
information). The use of the income approach generally consists of the net 
present value of estimated future cash flows, adjusted as deemed appropriate 
for liquidity, credit, market and/or other risk factors. 
 
Inputs used in estimating the value of investments may include the original 
transaction price, recent transactions in the same or similar instruments, 
completed or pending third-party transactions in the underlying investment or 
comparable issuers, subsequent rounds of financing, recapitalisations and other 
transactions across the capital structure, offerings in the equity or debt 
capital markets and bids received from potential buyers. 
 
For the determination of the NAV, Level 3 investments may be adjusted to 
reflect illiquidity and/or non-transferability. However, any such adjustments 
are typically reversed in the financial statements where it is determined that 
this is required by the accounting standards. 
 
The Company believes that its estimates of fair value are appropriate, however 
estimates and assumptions concerning the future, by definition, seldom equal 
the actual results and the estimated value may not be realised in a current 
sale or immediate settlement of the asset or liability. The use of different 
methodologies, assumptions or inputs would lead to different measurements of 
fair value and given the number of different factors affecting the estimate, 
specific sensitivity analysis cannot be reliably quantified. 
 
Financial Derivative Instruments: Financial derivative instruments can be 
exchange-traded or privately negotiated over-the-counter ("OTC"). 
Exchange-traded derivatives, such as futures contracts and exchange-traded 
option contracts, are typically classified within Level 1 or Level 2 of the 
fair value hierarchy depending on whether or not they are deemed to be actively 
traded. 
 
OTC derivatives, including forwards, credit default swaps, interest rate swaps 
and currency swaps, are valued by the Company using observable inputs, such as 
quotations received from the counterparty, dealers or brokers, whenever these 
are available and considered reliable. In instances where models are used, the 
value of an OTC derivative depends upon the contractual terms of, and specific 
risks inherent in, the instrument as well as the availability and reliability 
of observable inputs. Such inputs include market prices for reference 
securities, yield curves, credit curves, measures of volatility, prepayment 
rates and correlations of such inputs. Certain OTC derivatives, such as generic 
forwards, swaps and options, have inputs which can generally be corroborated by 
market data and are therefore classified within Level 2. 
 
Those OTC derivatives that have less liquidity or for which inputs are 
unobservable are classified within Level 3. While the valuations of these less 
liquid OTC derivatives may utilise some Level 1 and/or Level 2 inputs, they 
also include other unobservable inputs which are considered significant to the 
fair value determination. 
 
The Company recognises transfers between Levels 1, 2 and 3 based on the date of 
the event or change in circumstances that caused the transfer. This policy on 
the timing of recognising transfers is the same for transfers into a level as 
for transfers out of a level. There were no transfers between the three levels 
during the period ended 30 June 2020 and the year ended 31 December 2019. 
 
The following table analyses within the fair value hierarchy the Company's 
financial assets at FVTPL (by class) measured at fair value as at 30 June 2020: 
 
                                       Level 1      Level 2      Level 3         Total 
 
Non-pledged financial assets at 
FVTPL 
 
Equity investments                           -            -   12,406,209    12,406,209 
 
Total                                        -            -   12,406,209    12,406,209 
 
There were no financial liabilities at FVTPL as at 30 June 2020. 
 
The following table analyses within the fair value hierarchy the Company's 
financial assets and liabilities at FVTPL (by class) measured at fair value as 
at 31 December 2019: 
 
                                       Level 1      Level 2      Level 3         Total 
 
Non-pledged financial assets at 
FVTPL 
 
Equity investments                           -            -   14,597,833    14,597,833 
 
Derivative financial assets                  -      115,422            -       115,422 
 
Total                                        -      115,422   14,597,833    14,713,255 
 
 
 
Financial liabilities at FVTPL 
 
Derivative financial liabilities             -     (12,409)            -      (12,409) 
 
Total                                        -     (12,409)            -      (12,409) 
 
Level 2 assets and liabilities include forward foreign currency contracts that 
are calculated internally using observable market data. 
 
Level 3 assets include all unquoted Ashmore Funds ("Funds"), limited 
partnerships and unquoted investments. Investments in unquoted Funds and 
limited partnerships are valued on the basis of the latest NAV, which 
represents the fair value, as provided by the administrator of the unquoted 
Fund at the close of business on the relevant valuation day. Unquoted Funds 
have been classified as Level 3 assets after consideration of their underlying 
investments, lock-up periods and liquidity. 
 
The following table presents the movement in Level 3 instruments for the period 
ended 30 June 2020: 
 
                                                                     Equity investments 
 
Opening balance as at 1 January                                              14,597,833 
2020 
 
Sales and returns of capital                                                  (302,295) 
 
Gains and losses recognised in profit and loss                              (1,889,329) 
* 
 
Closing balance as at 30 June 2020                                           12,406,209 
 
* The change in unrealised losses for the period recognised in profit or loss 
relating to Level 3 instruments held as at 30 June 2020, amounted to 
US$1,880,266. 
 
Total gains and losses included in the Unaudited Condensed Statement of 
Comprehensive Income are presented in "Net (loss)/income from financial 
instruments at FVTPL". 
 
The following tables show the valuation techniques and the key unobservable 
inputs used in the determination of the fair value of Level 3 direct 
investments: 
 
          Balance as at     Valuation    Significant    Range of   Sensitivity to changes 
           30 June 2020     technique    unobservable  estimates   in significant 
                    US$                     inputs        for      unobservable inputs 
                                                      unobservable 
                                                         inputs 
 
Equity in a 6,329,025       Discounted    Liquidity       - **     The estimated fair 
private                     Cash Flows   discount at               value would increase 
company                                    adjusted                if: 
                                         equity level              - the liquidity 
                                                                   discount were lower 
                              Market        Listed        - **     - the EV/EBITDA 
                          approach using company EV/               multiples were higher 
                            comparable      EBITDA 
                              traded       multiple 
                            multiples 
 
Investments 6,077,184     Unadjusted NAV  Inputs to    US$0.01 to  The estimated fair 
in unlisted                                  NAV*       US$7.12    value would increase if 
Funds                                                              the NAV was higher 
 
          Balance as at     Valuation    Significant    Range of   Sensitivity to changes 
       31 December 2019     technique    unobservable  estimates   in significant 
                    US$                     inputs        for      unobservable inputs 
                                                      unobservable 
                                                         inputs 
 
Equity in a 7,271,092       Discounted    Liquidity       - **     The estimated fair 
private                     Cash Flows   discount at               value would increase 
company                                    adjusted                if: 
                                         equity level              - the liquidity 
                                                                   discount were lower 
                              Market        Listed        - **     - the EV/EBITDA 
                          approach using company EV/               multiples were higher 
                            comparable      EBITDA 
                              traded       multiple 
                            multiples 
 
Investments 7,326,741     Unadjusted NAV  Inputs to    US$0.01 to  The estimated fair 
in unlisted                                  NAV*       US$7.95    value would increase if 
Funds                                                              the NAV was higher 
 
* The Company has assessed whether there are any discounts in relation to 
lock-in periods that are impacting liquidity. There were no discounts in 
relation to lock-in periods as at 30 June 2020 or at 31 December 2019. 
 
** Information has not been included as these are commercially sensitive. 
 
Unobservable inputs are developed as follows: 
 
  * EBITDA and revenue multiples represent amounts that market participants 
    would use when pricing an investment. These multiples are selected from 
    comparable publicly listed companies based on geographic location, industry 
    size, target markets and other factors that are considered to be 
    reasonable. The traded multiples for the comparable companies are 
    determined by dividing its respective enterprise value by its EBITDA or 
    revenue. 
  * The Company used a combination of market multiples and discounted cash 
    flows methodologies to derive the fair value. 
 
The Company believes that its estimates of fair value are appropriate; however 
the use of different methodologies or assumptions could lead to different 
measurements of fair value. For fair value investments in Level 3, changing one 
or more of the assumptions used to alternative assumptions could result in an 
increase or decrease in net assets attributable to investors. Due to the 
numerous different factors affecting the assets, the impact cannot be reliably 
quantified. It is reasonably possible on the basis of existing knowledge, that 
outcomes within the next financial period that are different from the 
assumptions used could require a material adjustment to the carrying amounts of 
affected assets. 
 
7.    Capital and Reserves 
 
Ordinary Shares 
The following table presents a summary of changes in the number of shares 
issued and fully paid during the period ended 30 June 2020: 
 
                                                 US$ shares                    GBP shares 
 
Shares outstanding as at 1 January                3,617,068                   1,065,051 
2020 
 
Share                                             1,229,807                 (1,065,051) 
conversions 
 
Compulsory partial redemptions                    (488,311)                           - 
 
Shares outstanding as at 30 June 2020             4,358,564                           - 
 
Share Conversion 
The following share conversions took place during the period ended 30 June 
2020: 
 
Transfers from   Transfers to              Number of shares            Number of shares 
                                              to switch out                to switch in 
 
GBP shares         US$ shares                       1,065,656                   1,230,563 
 
US$ shares       GBP shares                               756                         605 
 
Compulsory Partial Redemptions 
 
During the period ended 30 June 2020, management announced partial returns of 
capital to Shareholders by way of compulsory partial redemptions of shares with 
the following redemption dates: 
 
*             19 May 2020, US$1,375,000 using the 30 April 2020 NAV. 
 
Voting rights 
 
The voting rights each share is entitled to in a poll at any general meeting of 
the Company (applying the Weighted Voting Calculation as described in the 
Prospectus published by the Company on 6 November 2007) are as follows: 
 
US$ shares:  1.0000 
 
The above figures may be used by Shareholders as the denominator for 
calculations to determine if they are required to notify their interest in, or 
a change to their interest in the Company under the FCA's Disclosure and 
Transparency Rules. 
 
8.    Net Asset Value 
 
The NAV of each US$ and GBP share is determined by dividing the total net assets 
of the Company attributable to the US$ and GBP share classes by the number of US$ 
and GBP shares in issue respectively at the period and year end as follows: 
 
As at 30 June 2020           Net assets  Shares in issue    Net assets       Net assets 
                        attributable to                      per share        per share 
                                   each                         in US$         in local 
                     share class in US$                                        currency 
 
US$ shares                   11,914,971        4,358,564          2.73             2.73 
 
                             11,914,971 
 
 
 
As at 31 December            Net assets  Shares in issue    Net assets       Net assets 
2019                    attributable to                      per share        per share 
                                   each                         in US$         in local 
                     share class in US$                                        currency 
 
US$ shares                   10,466,558        3,617,068          2.89             2.89 
 
GBP shares                      3,704,213        1,065,051          3.48             2.63 
 
                             14,170,771 
 
The allocation of the Company's NAV between share classes is further described 
in the Company's Prospectus. 
 
9.    Earnings per Share ("EPS") 
 
The calculation of the earnings per US$ and GBP share is based on the gain/loss 
for the period attributable to US$ and GBP Shareholders and the respective 
weighted average number of shares in issue for each share class during the 
period. 
 
The loss attributable to each share class for the period ended 30 June 2020 was 
as follows: 
 
                                                             US$ share          GBP share 
 
Issued shares at the beginning of the                        3,617,068        1,065,051 
period 
 
Effect on the weighted average number of shares: 
 
- Conversion of shares                                         614,670        (532,326) 
 
Weighted average number of shares                            4,231,738          532,725 
 
Loss for the period attributable to each class of            (672,274)        (208,468) 
shareholders (US$) 
 
EPS (US$)                                                       (0.16)           (0.39) 
 
There were no dilutive instruments in issue during the period ended 30 June 
2020. 
 
The loss attributable to each share class for the period ended 30 June 2019 was 
as follows: 
 
                                                             US$ share          GBP share 
 
Issued shares at the beginning of the                        4,449,792        1,334,501 
period 
 
Effect on the weighted average number of shares: 
 
- Compulsory partial redemption of                           (116,188)         (34,823) 
shares 
 
Weighted average number of shares                            4,333,604        1,299,678 
 
Loss for the period attributable to each class of          (3,171,946)      (1,201,460) 
shareholders (US$) 
 
EPS (US$)                                                       (0.73)           (0.92) 
 
There were no dilutive instruments in issue during the period ended 30 June 
2019. 
 
10.  Segmental Reporting 
 
Although the Company invests in various investment themes, it is organised and 
operates as one business and one geographical segment, as the principal focus 
is on emerging market strategies, mainly achieved via investments in funds 
domiciled in Europe but investing globally. Accordingly, all significant 
operating decisions are based upon analysis of the Company as one segment. The 
financial results from this segment are equivalent to the financial statements 
of the Company as a whole. Additionally, the Company's performance is evaluated 
on an overall basis. The Company's management receives financial information 
prepared under IFRS and, as a result, the disclosure of separate segmental 
information is not required. 
 
11.  Ultimate Controlling Party 
 
In the opinion of the Directors and on the basis of shareholdings advised to 
them, the Company has no ultimate controlling party. 
 
12.  Involvement with Unconsolidated Structured Entities 
 
The table below describes the types of structured entities that the Company 
does not consolidate but in which it holds an interest. 
 
Type of structured       Nature and purpose              Interest held by the Company 
entity 
 
Investment Funds         To manage assets on behalf      Investments in units issued 
                         of third party investors.       by the Funds 
                         These vehicles are financed 
                         through the issue of units 
                         to investors. 
 
The table below sets out interests held by the Company in unconsolidated 
structured entities as at 30 June 2020. 
 
Investment in unlisted           Number of      Total net    Carrying amount     % of net 
investment Funds                  investee         assets        included in    assets of 
                                     Funds                 "Financial assets  underlying 
                                                                   at FVTPL"        Funds 
 
Special Situations Private               5     55,164,677          6,077,184        11.02 
Equity Funds 
 
The maximum exposure to loss is the carrying amount of the financial assets 
held. 
 
During the period, the Company did not provide financial support to these 
unconsolidated structured entities and the Company has no intention of 
providing financial or other support, except for the outstanding commitments 
disclosed in note 14 to the financial statements. 
 
13.  Related Party Transactions 
 
Parties are considered to be related if one party has the ability to control 
the other party or to exercise significant influence over the other party in 
making financial or operational decisions. 
 
The Directors are responsible for the determination of the investment policy of 
the Company and have overall responsibility for the Company's activities. The 
Company's investment portfolio is managed by AIAL. 
 
The Company and the Investment Manager entered into an Investment Management 
Agreement under which the Investment Manager has been given responsibility for 
the day-to-day discretionary management of the Company's assets (including 
uninvested cash) in accordance with the Company's investment objectives and 
policies, subject to the overall supervision of the Directors and in accordance 
with the investment restrictions in the Investment Management Agreement and the 
Articles of Incorporation. 
 
During the period ended 30 June 2020, the Company had the following related 
party transactions: 
 
                                                                   Expense     Payable 
 
Related Party                                 Nature                   US$         US$ 
 
AIAL                                          Investment          (33,215)    (10,548) 
                                              management fees 
 
AIAL                                          Incentive fees         1,302 * (996,932) 
 
Board of Directors                            Directors'          (40,446)           - 
                                              remuneration 
 
                                                                            Investment 
                                                                              Activity 
 
Related Party                                 Nature                               US$ 
 
Related Funds                                 Sales                            302,295 
 
Related Funds                                 Dividends                        454,394 
 
* Incentive fees were positive due to a reversal of the prior year accrual. 
 
During the period ended 30 June 2019, the Company engaged in the following 
related party transactions: 
 
                                                                    Expense       Payable 
 
Related Party                                 Nature                    US$           US$ 
 
AIAL                                          Investment           (33,403)       (5,816) 
                                              management fees 
 
AIAL                                          Incentive fees      (179,473)   (1,087,369) 
 
Board of Directors                            Directors'           (55,205)             - 
                                              remuneration 
 
                                                                               Investment 
                                                                                 Activity 
 
                                                                                      US$ 
 
Related Funds                                 Sales                             3,622,979 
 
Related Funds                                 Dividends                         1,083,816 
 
Ashmore SICAV 2 Global Liquidity US$ Fund     Purchases                       (7,499,907) 
 
Ashmore SICAV 2 Global Liquidity US$ Fund     Sales                             9,510,654 
 
Ashmore SICAV 2 Global Liquidity US$ Fund     Dividends                            15,593 
 
Related Funds are other Funds managed by Ashmore Investment Advisors Limited or 
its associates. 
 
Purchases and sales of the Ashmore SICAV 2 Global Liquidity US$ Fund ("Global 
Liquidity Fund") were solely related to the cash management of US dollars on 
account. Funds are swept into the S&P AAA rated Global Liquidity Fund and 
returned as and when required for asset purchases or distributions. The Global 
Liquidity Fund is managed under the dual objectives of the preservation of 
capital and the provision of daily liquidity, investing exclusively in very 
highly rated short-term liquid money market securities. 
 
During the period ended 30 June 2020, Directors' remuneration was as follows: 
 
Chairman:                                                            GBP21,240 per annum 
 
Chairman of the Audit Committee:                                     GBP21,240 per annum 
 
Independent Directors:                                               GBP20,040 per annum 
 
Non-Independent Director:                                                       waived 
 
During the period ended 30 June 2019, Directors' remuneration was as follows: 
 
Chairman:                                                            GBP21,240 per annum 
 
Chairman of the Audit Committee:                                     GBP21,240 per annum 
 
Independent Directors:                                               GBP20,040 per annum 
 
Non-Independent Director:                                                       waived 
 
The Directors had the following beneficial interests in the Company: 
 
                                                 30 June 2020       31 December 2019 
 
                                               GBP ordinary shares   GBP ordinary shares 
 
Nigel de la Rue                                        -                  373 
 
Christopher Legge                                      -                  232 
 
Richard Hotchkis                                       -                  139 
 
14.  Commitments 
 
During the year ended 31 December 2011, the Company entered into a subscription 
agreement with AA Development Capital India Fund LP for an initial commitment 
of US$4,327,064, which was subsequently increased to US$23,581,027. AA 
Development Capital India Fund LP was dissolved by its General Partner on 
28 June 2013 with all outstanding commitments transferred to AA Development 
Capital India Fund 1 LLC. As at 30 June 2020, the outstanding commitment was 
US$5,959,809 (31 December 2019: US$5,959,809). 
 
15.  Contingent Assets 
 
The Company has submitted a claim in connection with the settlement of a 
securities class action lawsuit preliminarily approved by the US District Court 
for the Southern District of New York captioned In Re Foreign Exchange 
Benchmark Rates Antitrust Litigation. The inflow of economic benefits from the 
settlement fund is deemed to be probable, but not virtually certain. As the 
value of the settlement fund cannot be determined in advance, it is not 
possible to estimate the settlement amount of the Company. 
 
16.  Subsequent Events 
 
Since the period end we have seen the continued development of the Coronavirus 
(Covid-19) outbreak initially in China and now having reached most continents. 
At present, it is not possible to assess the detailed impact of the current 
risk on the investments in the Company, but there is a continuing concern about 
the impact on the world economy. There has been a significant change in the 
financial markets in the last few months. The Board and the Investment Manager 
continue to watch the efforts of governments to contain the spread of the virus 
and monitor the economic impact, if any, on the investments in the Company. 
 
In relation to the underlying investments of the Company, given the inherent 
uncertainties and relatively early stage in terms of the COVID-19 impact to 
companies and the broader economies, it is not practical to determine the 
impact of COVID-19 or to provide a quantitative estimate of the impact at this 
time. The Investment Manager continues to adopt a proactive approach in 
engaging with the investee companies in managing potential issues. 
 
These include, among other things, cashflow planning, cost reductions where 
appropriate, negotiations with various third parties from government 
authorities to creditors. The eventual outcome and timing is also very 
dependent on how successful authorities are at containing the outbreak and the 
potential impact. 
 
The Directors do not believe that any adjustments to the unaudited condensed 
interim financial statements as at 30 June 2020 are required as a result of 
this subsequent event. 
 
Post reporting date, the Board issued a Circular to Shareholders to propose the 
de-listing of the Company from the London Stock Exchange. The principal 
motivation for the de-listing proposal is to reduce operating costs as a 
percentage of the remaining NAV of the Company. An AGM to decide on this 
proposal is scheduled for 22 September 2020. Full details are given in the 
Circular. Should the resolution pass, it is anticipated that the effective date 
of delisting will be 21 October 2020. 
 
There were no other significant events subsequent to the period-end date that 
require adjustment to, or disclosure in, the financial statements. 
 
Corporate Information 
 
Directors                               Custodian 
Richard Hotchkis                        Northern Trust (Guernsey) Limited 
Nigel de la Rue                         P.O. Box 71 
Christopher Legge                       Trafalgar Court 
Steve Hicks                             Les Banques 
                                        St Peter Port 
                                        Guernsey 
                                        GY1 3DA 
                                        Channel Islands 
 
Registered Office                       Auditor 
P.O. Box 255                            KPMG Channel Islands Limited 
Trafalgar Court                         Glategny Court 
Les Banques                             Glategny Esplanade 
St Peter Port                           St Peter Port 
Guernsey                                Guernsey 
GY1 3QL                                 GY1 1WR 
Channel Islands                         Channel Islands 
 
Administrator, Secretary and Registrar  Advocates to the Company 
Northern Trust International Fund       Carey Olsen 
Administration Services (Guernsey)      Carey House 
Limited                                 Les Banques 
P.O. Box 255                            St Peter Port 
Trafalgar Court                         Guernsey 
Les Banques                             GY1 4BZ 
St Peter Port                           Channel Islands 
Guernsey 
GY1 3QL 
Channel Islands 
 
Alternative Investment Fund Manager     UK Solicitor to the Company 
Ashmore Investment Advisors Limited     Slaughter and May 
61 Aldwych                              One Bunhill Row 
London                                  London 
WC2B 4AE                                EC1Y 8YY 
United Kingdom                          United Kingdom 
 
Brokers                                 UK Transfer Agent 
J.P. Morgan Cazenove                    Computershare Investor Services PLC 
20 Moorgate                             The Pavilions 
London                                  Bridgewater Road 
EC2R 6DA                                Bristol 
United Kingdom                          BS13 8AE 
                                        United Kingdom 
Jefferies International Limited 
Vintners Place                          Website 
68 Upper Thames Street                  Performance and portfolio 
London                                  information for Shareholders can be 
EC4V 3BJ                                found at: 
United Kingdom                          www.agol.com 
 
 
 
END 
 

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