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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 | 0.00% | 1.52 | 1.42 | 1.62 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMAGOL TIDMAGOU 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 US Dollar and Sterling share classes on the Official List. Interim Results For the period ended 30 June 2015 The financial information set out in this announcement does not constitute the Company's statutory accounts for the period ended 30 June 2015. All figures are based on the unaudited financial statements for the period ended 30 June 2015. The financial information for the period ended 30 June 2015 is derived from the financial statements delivered to the UK Listing Authority. The unaudited interim report and financial statements for the period ended 30 June 2014 will shortly be posted to shareholders and will also be available on the company website: www.agol.com Financial Highlights 30 June 2015 31 December 2014 Total Net Assets US$107,569,803 US$170,431,338 Net Asset Value per Share US$ shares US$5.20 US$5.28 GBP shares GBP5.11 GBP5.21 Closing-Trade Share Price US$ shares US$3.85 US$4.05 GBP shares GBP3.70 GBP3.93 Discount to Net Asset Value US$ shares (25.96)% (23.30)% GBP shares (27.59)% (24.57)% Chairman's Statement The Company's Net Asset Values ("NAVs") per share have fallen slightly from US$5.28 and GBP5.21 at the end of 2014 to US$5.20 and GBP5.11 as at 30 June 2015. The US$ and GBP share prices stood at US$3.85 and GBP3.70 respectively as at 30 June 2015, decreases of 4.94% and 5.85% respectively against 31 December 2014 levels. As at 30 June 2015, the NAV of the Company was US$107.57 million and its market capitalisation was US$78.64 million, reflecting an average discount of 26.90% between the NAVs and the share prices. The discounts widened slightly over the period. The main contributors to negative performance were Asian Genco, Largo Resources and Bedfordbury (previously Alphaland). These detractors were substantially off-set by positive contributions from Microvast, AEI, the Everbright Ashmore China Real Estate Fund, and a further earn-out from GEMS/Utileco (which was sold during the previous financial year). Further details on these companies are given in the Investment Manager's Report. In terms of realisations during the period, AGOL sold its direct and indirect positions in MCX; indirect positions in Al-Noor Medical, Indostar and Pacnet; and most of its indirect position in ISM. Within Bedfordbury, the Alphaland Tower was sold, which was one of the three assets resulting from the Alphaland asset split. AGOL shareholders received proceeds from these realisations of US$46.75 million (including the distribution announced on 21 July 2015 with reference to the NAV as at 30 June 2015, and excluding the distribution paid in January 2015 with reference to the NAV as at 31 December 2014). Since the announcement of the managed wind-down of the Company, total distributions including the above have amounted to US$284.4 million. The Board continues to receive regular updates from the Investment Manager on the progress made towards further realisations. A number of exit discussions are at an advanced stage and are expected to be completed by the end of the year. The Board is confident that the target set in the 2014 Annual Report remains achievable, namely; to realise approximately half of the Company's remaining NAV as at 31 December 2014 after January's distribution of US$40.5 million, during 2015. This of course remains subject to market conditions being conducive to the sale of the Company's holdings by the Investment Manager. Richard Hotchkis 27 August 2015 Investment Manager's Report Performance As at 30 June 2015, the Net Asset Values ("NAVs") per share of the US$ and GBP share classes stood at US$5.20 and GBP5.11, returns of -1.52% and -1.92% over the six months to 30 June 2015. Portfolio In the first six months of the year, Ashmore Global Opportunities Limited ("AGOL") realised a number of underlying portfolio positions as detailed below. This enabled the declaration of a further US$46.75m of distributions (excluding the distribution announced in the annual report, which was based on the 31 December 2014 NAV, and including the distribution announced on 21 July 2015 with reference to the NAV at 30 June 2015). In April 2015, the Ashmore Funds realised their holdings in Pacnet, which was sold to Telstra, an Australian telecoms company. Investors received 85% of the sale price in cash with the remainder to be disbursed on the attainment of certain performance hurdles. An agreement was reached in 2014 between Alphaland Corporation and its local Filipino shareholder group to split the assets of the business. Bedfordbury Development Corporation ("BDC"), a Philippines company in which the Ashmore Funds are indirect shareholders, acquired the main commercial asset (the "Alphaland Tower") and the two main land banks (Alphaland Bay City and Boracay Gateway). BDC agreed the sale of the Alphaland Tower in early February 2015 with proceeds applied; to meet certain obligations of the 2014 asset split transaction, to pay down senior debt, and to provide working capital. BDC management is now discussing the potential sale of the remaining land bank assets. Also in February, the Ashmore Funds realised their investment in Indostar, the Indian non-bank finance company. Indostar was performing in line with expectations; both in terms of growth and profitability, and the final sale price was higher than its most recent mark which had been revalued upward by 22% in late 2014. A part realisation of ISM was made in the first quarter of 2015, when ISM used the proceeds of its sale of The Philippine Bank of Communications ("PBCom") to buy back shares from investors. AGOL realised its direct and indirect positions in MCX, the Mumbai Stock Exchange listed Multi Commodity Exchange, by selling its holdings on the stock exchange; a gradual process which started in November 2014 and was completed in early 2015. Following its June 2013 listing, the Ashmore Funds realised their holdings in Al Noor, the UAE healthcare business, via a joint placement of shares into the public market in April 2015. Aside from the realisations mentioned above, the result for the six months to 30 June 2015 was negatively affected by write downs, while some mark to market price movements contributed to performance. AEI continues to focus on its two remaining greenfield projects; "Fenix" in Peru and "Jaguar" in Guatemala, while further non-core assets have been sold off. Fenix is generating full cash flows through the transmission of power to the state grid and management have initiated a sale process which is expected to complete later this year. Jaguar achieved commercial operation in May 2015 and at the time of writing, is expected to be fully operational by August 2015. Once this has been achieved, management will begin the sale process which is expected to complete by summer 2016. AEI was marked up 5% during the period by the third party valuation agent. Microvast, which develops and manufactures fast-charge batteries for electric vehicles, performed strongly over the period. The company continues to supply batteries to the Chongqing region of China, and there are now over 1,000 Microvast powered buses in operation. With a steady flow of orders and signed contracts to supply batteries to bus companies in both London and Belgium, the business is now looking to expand further including into the USA and Germany. Far East Energy engages in the acquisition, exploration, development and production of coal bed methane gas assets in China. Demand for energy in China has been strong, and the company has continued to actively "spud" new wells across its fields. We see this domestic producer, which is backed by global investors and industry experts, as well placed to benefit from China's desire to reduce its dependence on imported energy. GZ Industries is an aluminium can manufacturer based in Nigeria. The Nigerian market has experienced difficult macro-economic conditions for the last 12-18 months but despite this, GZ has achieved 2014 results close to budget. Management is focussed on getting the new plants in Nigeria and Kenya fully contracted and on protecting the relatively flat Nigerian market from competitor Nampak, while exploring opportunities for further international diversification. Largo, the Brazilian metals and mining producer, was a detractor from performance over the period. Production is below capacity and vanadium is trading at a five year low. Largo recently agreed to settle arbitration with Global Tungsten & Powders ("GTP") for US$11m after an award in GTP's favour. A private placement and debt restructuring have resulted in the dilution of the Ashmore Funds to 5% of equity. Asian Genco agreed to a restructuring in which the Government of Sikkim, previously a 26% partner in the hydro project, increased its stake to 51% converting the project from private to a public venture. As a result the Ashmore Funds saw their positions diluted. Outlook
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August 27, 2015 08:22 ET (12:22 GMT)
The Investment Manager is focussed on the orderly realisation of the Company's remaining assets. Further realisations are expected before the end of the financial year. Details on the Top 10 Underlying Holdings (on a look through basis) The tables below show the top 10 underlying investments, along with country and industry exposures as at 30 June 2015. Investment Name Holding Country Business Description AEI 24.77% Cayman Developer of Latin American power generation Islands assets Bedfordbury 19.34% Philippines Real estate development Microvast 4.98% China Manufacturer of fast-charge batteries Far East Energy 3.26% China Gas exploration and production Bermuda GZ Industries 1.97% Nigeria Aluminium can manufacturing Largo Resources 1.85% Brazil Brazilian provider of mining services Pacnet 0.96% Singapore Asian telecoms infrastructure and service provider Emerald Plantation 0.56% China Forestry management Holdings Arcil 0.36% India Reconstruction of non-performing loans ISM 0.26% Philippines Telecommunications, multimedia and information technology Country % of NAV Industry % of NAV Cayman Islands 24.77% Electric Integration/ 24.77% Generation Philippines 19.61% Real Estate 23.86% China 14.62% Electrical Components/ 4.98% Equipment India 5.40% Diversified Financial Services 3.77% Russia 3.81% Oil and Gas 3.29% United Arab Emirates 3.10% Retail 2.62% South Korea 2.16% Miscellaneous Manufacturing 1.97% Nigeria 1.97% Mining 1.85% Brazil 1.85% Telecommunications 0.96% Qatar 1.08% Environmental Control 0.59% Details on a Selection of the Underlying Holdings AEI Industry: Power Generation Country: Regional Latin America Website: www.aeienergy.com Company Status: Private Deal Type: Private Equity Investment Risk: Equity To develop and sell the remaining assets by mid-2016 Operational update * The company now consists of two operating assets (San Felippe and Fenix) and one greenfield project (Jaguar). Management's focus is on selling the operating assets and completing the remaining greenfield project prior to its sale. * Fenix achieved its commercial operation date (COD) on January 15 and is now generating full cash flows through transmission of power to the state grid. Active financing and disposal processes are ongoing and expected to conclude this quarter. * At the time of writing Jaguar is undergoing commissioning, with certificates expected in August. Arbitration proceedings are ongoing with the previous EPC contractor, the final decision on which is also expected in August. Key risks * Jaguar project completion on budget/time * CMNC arbitration * Retention of key people to support the wind down 2015 operational strategy/priorities * Disposal planning for all assets * Closure on Jaguar arbitration * HQ cost reduction Exit strategy * Sale of assets individually Bedfordbury Development Corporation Industry: Real Estate Development Country: Philippines Website: N/A Company Status: Private Deal Type: Private Equity Investment Risk: Equity Sale of the individual assets Exit strategy * Proceeds of US$37m from the sale of the Ayala Avenue Tower were used to pay down the senior debt which had been raised at the time of the Alphaland separation and to provide working capital. A further US$25m of senior debt remains outstanding. * Ashmore and BDC staff are now discussing the potential sale of the two remaining undeveloped assets: a 50% interest in the Bay City JV and a 60% interest in the Boracay Gateway JV. Microvast Industry: Technology/Clean-tech Country: China Website: www.microvast.com Company Status: Private Deal Type: Private Equity Investment Risk: Equity China EV market in fast growth mode Operational update * Microvast continues to supply batteries for both pure e-buses and plug-in hybrid electric vehicles (PHEV) to a large number of Chinese original equipment manufacturers (OEMs). The resulting buses have been deployed in 19 cities in China. Wright Bus has received follow-on orders for the London market and VDL recently deployed 4 pure e-bus systems in Munster. * The Company is achieving gross margins of c. 37% and net margins of c.16%. It is on track to grow year-on-year revenues by 300%. * Production capacity has been successfully increased to 384MW per annum with further capacity increases planned, all fully funded from operating cash flow. * The Company is also working on Li-B systems for passenger vehicles with some of the leading Chinese auto OEMs. 2015 operational priorities * Managing fast growth by adding new facilities, increasing production capacity and hiring/training new employees * Large scale production of Li-B systems for passenger vehicles * Meeting short order timeframes from Chinese bus OEMs * IPO planning Key risks * Potential over-capacity from battery production volumes both in China and globally * Warranty claims arising from defective cells or modules * The Chinese government making unfavourable changes to its New Energy Vehicle policy Exit strategy * Block sale pre- or post-IPO GZ Industries Limited Industry: Aluminium Can Manufacturing Country: Nigeria Website: www.gzican.com Company Status: Active Deal Type: Private Equity Investment Risk: Underlying Equity Tough trading in Nigeria; pan-African growth being pursued Operational update * The African growth strategy is progressing with two new plants being built in Nigeria and Kenya. GZ has signed a technical partnership with Rexam Plc to support the construction of new plants. * Macro conditions in Nigeria have been tough for 12-18 months which has adversely impacted growth forecasts. Mitigation plans include diversification by exploring opportunities in South Africa and Israel and exporting cans to neighbouring countries. * Results for 2014 were close to budget. Management is focussed on getting the new plants fully contracted and protecting the relatively flat Nigerian market from competitor Nampak. Operational cost cutting measures are in place to deliver budget. * The company is pursuing an acquisition of Frigoglass, Nigeria's largest glass bottles business, subject to finance and shareholder approval. 2015 operational strategy/priorities * Commission and contract new plants * Launch 500ml can size in Nigeria to grow can segment and maintain premium pricing * Replace CEO (candidate already selected) * Establish one additional plant with US$15-US$20m EBITDA potential Key risks * Slowdown in African beverages markets * Nampak reducing prices in Nigeria * Commissioning delays * Talent sourcing Exit strategy and timing * 2017 exit through IPO or strategic sale Largo Resources Industry: Metals and Mining Country: Brazil Website: www.largoresources.com Company Status: Public Deal Type: Private Equity Investment Risk: Equity Ramping up production Operational update * Production proper commenced in August 2014. Certain days in July delivered 90-100% of nameplate capacity with capacity near 80% for the remainder. * Vanadium pricing is currently at circa US$5 per pound, a five year low and 15% down on prior year. Largo's cash cost is somewhat misleading, but is currently less than US$5 and should decline as production increases. * Largo completed a CAD 75m private placement and debt restructuring, extending two thirds of its BRL 461m bank debt by three years and agreeing a one year deferral on amortisation. As a result of the equity raise, Ashmore Funds have been diluted to 5%. * Largo reached a US$11m settlement with Global Tungsten & Powders concerning a contract for the supply of tungsten from Currais Novos. Largo is due to start making repayments on this in 2016. 2015 operational priorities * Ramp up production to the design capacity of 9,600 tonnes of V2O5 concentrate by Q3 2015 * Raise equity to restructure the bank loans, including; amortisation rescheduling, extension of maturities, repayment of the CAD 12m bridging loan received in March 2015 and provision of working capital needs for 2015. (Completed in H1) Key risks * Vanadium pricing remains low in the commodity cycle * Price shocks and commissioning delays would cause funding gaps and negatively impact investor sentiment. At current share prices funding gaps would likely result in further dilution Exit strategy and timing * Re-listing on main TSX exchange in 2015, and/or strategic sale in 2016 Pacnet Industry: Telecommunications Country: Hong Kong and Singapore Website: www.pacnet.com Company Status: Private Deal Type: Private Equity Investment Risk: Equity
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Deferred consideration from Telstra - final payment due 2016 Exit strategy and timing * The deal with Telstra completed in April 2015 with sale proceeds of $350m. 85% in cash, a deferred closing adjustment fund of US$20m and a warranty fund of US$32.5m. * The adjustment fund was received in June 2015; once the Closing Statement was agreed the final figure was US$19.2m of which the Ashmore Funds received US$8.9m. * Provided that no warranty claims are made by Telstra, the latter will be returned in 2 tranches - US$17.5m in April 2016 and US$15m in November 2016. ISM Industry: Telecom/Banking Country: Philippines Website: www.ismcorp.com.ph Company Status: Public Deal Type: Private Equity Investment Risk: Equity Deferred sale process is due to complete in May 2016 ISM Holdco * ISM used proceeds from its sale of The Philippine Bank Of Communications (PBCom) to buy back shares from investors in Q1 2015. * Besides the proceeds from the sale of PBCom, ISM holds a 32.5% equity stake in Acentic (a provider of hotel-based interactive multimedia) and has a claim for contingent consideration on its sale of Eastern Telecom. Exit strategy and timing * Ashmore Funds now hold 185m shares in ISM (circa 14% of the original position), and have agreed a price for a deferred sale transaction which is scheduled to complete in May 2016. Ashmore Investment Advisors Limited Investment Manager 27 August 2015 Board Members As at 30 June 2015, the Board consisted of four non-executive Directors. The Directors are responsible for the determination of the investment policy of Ashmore Global Opportunities Limited (the "Company" or "AGOL") and have overall responsibility for the Company's activities. As required by the AIC Code on Corporate Governance (the "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, (Guernsey resident) appointed 18 April 2011 Richard Hotchkis has 39 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. Richard is currently a director of a number of funds, including Advance Frontier Markets Fund Limited. 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, including at BH Macro Limited where he is Senior Independent Director and chairs the Audit Committee. 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 Advance Frontier Markets Fund Limited AIM and CISE Steve Hicks Nil Nigel de la Rue Nil Christopher Legge Baring Vostok Investments PCC Limited CISE BH Macro Limited London, Bermuda and Dubai John Laing Environmental Assets Group Limited London Schroder Global Real Estate Securities Limited London Sherborne Investors (Guernsey) B Limited London Third Point Offshore Investors Limited London TwentyFour Select Monthly Income Fund Limited London Directors' Responsibility Statement We confirm that to the best of our 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 2015; and a. 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 27 August 2015 Richard Hotchkis Christopher Legge Chairman Chairman of the Audit Committee Unaudited Schedule of Investments As at 30 June 2015 Fair value % of Description of investment US$ net assets Ashmore SICAV 2 Global Liquidity US$ Fund 28,501,780 26.50 Ashmore Global Special Situations Fund 4 LP 24,471,288 22.75 AEI Inc - Equity 15,942,888 14.82 Ashmore Global Special Situations Fund 5 LP 15,076,589 14.01 AA Development Capital India Fund 1, LLC 6,509,781 6.05 Ashmore Asian Recovery Fund 5,527,891 5.14 VTBC Ashmore Real Estate Partners 1 LP 4,020,481 3.74 Ashmore Global Special Situations Fund 3 LP 2,572,949 2.39 Aginyx Ordinary Shares 1,944,187 1.81 Everbright Ashmore China Real Estate Fund LP 1,803,148 1.68 Ashmore Global Special Situations Fund 2 Limited 726,652 0.67 Ashmore Asian Special Opportunities Fund Limited 336,362 0.31 Ashmore Private Equity Turkey Fund 1 LP 469 0.00 Renovavel Investments BV New PIK/PPN - 0.00 Aginyx Enterprises Ltd Redeemable Preference Shares - 0.00 Total investments at fair value 107,434,465 99.87 Net other current assets 135,338 0.13 Total net assets 107,569,803 100.00 Unaudited Condensed Statement of Financial Position As at 30 June 2015 30 June 2015 31 December 2014 Note US$ US$ Assets Cash and cash equivalents 1,697,037 14,383,849 Other financial assets 5a 24,512 24,730,545 Financial assets at fair value through 3 107,959,164 134,464,226 profit or loss Total assets 109,680,713 173,578,620 Equity Capital and reserves attributable to equity holders of the Company Special reserve 456,676,142 515,783,066 Retained earnings (349,106,339) (345,351,728) Total equity 107,569,803 170,431,338 Liabilities Current liabilities Other financial liabilities 5b 2,110,910 2,608,411 Financial liabilities at fair value 3 - 538,871 through profit or loss Total liabilities 2,110,910 3,147,282
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August 27, 2015 08:22 ET (12:22 GMT)
Total equity and liabilities 109,680,713 173,578,620 Net asset values Net assets per US$ share 8 US$5.20 US$5.28 Net assets per GBP share 8 GBP5.11 GBP5.21 The unaudited condensed interim financial statements were approved by the Board of Directors on 27 August 2015, and were signed on its behalf by: Richard Hotchkis Christopher Legge Chairman Chairman of the Audit Committee The accompanying notes form an integral part of these financial statements. Unaudited Condensed Statement of Comprehensive Income For the six months ended 30 June 2015 Six months ended Six months ended 30 June 2015 30 June 2014 Note US$ US$ Interest income 1,791 65 Dividend income 33,746,388 1,227,097 Net foreign currency loss (295,318) (189,997) Other net changes in fair value on financial assets and liabilities at fair 4 (37,072,063) (6,925,485) value through profit or loss Total net loss (3,619,202) (5,888,320) Expenses Net investment management fees (360,451) (1,900,316) Incentive fees (163,381) 138,519 Directors' remuneration (72,292) (113,583) Fund administration fees (11,524) (21,102) Custody fees (6,126) (10,551) Other operating expenses 478,365* (355,073) Total operating expenses (135,409) (2,262,106) Operating loss for the period (3,754,611) (8,150,426) Other comprehensive income - - Total comprehensive loss for the period (3,754,611) (8,150,426) Earnings per share Basic and diluted loss per US$ share 9 US$(0.09) US$(0.34) Basic and diluted loss per GBP share 9 US$(0.31) US$(0.22) All items derive from continuing activities. * The credit to other expenses represents the reversal of accruals as a result of a reduction in expenses as the Company continues to wind down. The accompanying notes form an integral part of these financial statements. Unaudited Condensed Statement of Changes in Equity For the six months ended 30 June 2015 Special Retained reserve earnings Total Note US$ US$ US$ Total equity as at 1 January 2015 515,783,066 (345,351,728) 170,431,338 Total comprehensive loss for the - (3,754,611) (3,754,611) period Capital distribution 7 (59,106,924) - (59,106,924) Total equity as at 30 June 2015 456,676,142 (349,106,339) 107,569,803 Total equity as at 1 January 2014 579,014,573 (300,822,334) 278,192,239 Total comprehensive loss for the - (8,150,426) (8,150,426) period Capital distribution 7 (35,245,636) - (35,245,636) Total equity as at 30 June 2014 543,768,937 (308,972,760) 234,796,177 The accompanying notes form an integral part of these financial statements. Unaudited Condensed Statement of Cash Flows For the six months ended 30 June 2015 Six months ended Six months ended 30 June 2015 30 June 2014 US$ US$ Cash flows from operating activities Net bank interest received 1,791 65 Dividends received 50,921,982 1,227,097 Operating expenses paid (647,256) (2,986,720) Net cash from/(used in) operating activities 50,276,517 (1,759,558) Cash flows from investing activities Sales of investments and returns of capital 76,424,671 - Purchases of investments in liquidity funds (78,001,780) - Net cash flows on derivative instruments and (2,279,296) 6,224,390 foreign exchange Net cash (used in)/from investing activities (3,856,405) 6,224,390 Cash flows from financing activities Capital distributions (59,106,924) (35,245,636) Net cash used in financing activities (59,106,924) (35,245,636) Net decrease in cash and cash equivalents (12,686,812) (30,780,804) Reconciliation of net cash flows to movement in cash and cash equivalents Cash and cash equivalents at the beginning of 14,383,849 41,013,703 the period Decrease in cash and cash equivalents (12,686,812) (30,780,804) Cash and cash equivalents at the end of the 1,697,037 10,232,899 period The accompanying notes form an integral part of these financial statements. 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 therefore consider that the Company has adequate resources to continue in operational existence for the foreseeable future and after due consideration believe that it is appropriate to adopt the going concern basis despite the managed wind-down of the Company over the next few years. 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 2014. 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 27 August 2015. b) Judgements and Estimates Preparing the unaudited condensed interim financial statements requires management to make 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 by management 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 2014. 1. 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 2014. 1. Financial Assets and Liabilities at Fair Value through Profit or Loss 30 June 2015 31 December 2014 US$ US$ Financial assets held for trading: - Derivative financial assets 524,699 16,430 Total financial assets held for trading 524,699 16,430 Designated at fair value through profit or loss at inception: - Equity investments 107,434,465 134,447,796 Total designated at fair value through profit or loss 107,434,465 134,447,796 at inception Total financial assets at fair value through profit or 107,959,164 134,464,226 loss There were no significant changes to the Company's direct equity other than valuation movements. As at 30 June 2015, derivative financial assets comprised forward foreign currency contracts as follows: Currency Amount Currency Amount Maturity Unrealised Bought Bought Sold Sold Date Gain GBP 36,842,698 US$ 57,400,555 14/08/2015 524,699 Derivative financial assets 524,699 As at 31 December 2014, derivative financial assets comprised forward foreign currency contracts as follows:
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August 27, 2015 08:22 ET (12:22 GMT)
Currency Amount Currency Amount Maturity Unrealised Bought Bought Sold Sold Date Gain US$ 3,198,215 GBP 2,041,330 17/02/2015 16,430 Derivative financial assets 16,430 30 June 2015 31 December 2014 US$ US$ Financial liabilities held for trading: - Derivative financial liabilities - (538,871) Total financial liabilities held for trading - (538,871) As at 30 June 2015, there were no derivative financial liabilities held by the Company. As at 31 December 2014, derivative financial liabilities comprised forward foreign currency contracts as follows: Currency Amount Currency Amount Maturity Unrealised Bought Bought Sold Sold Date Loss GBP 67,358,975 US$ 105,530,125 17/02/2015 (538,871) Derivative financial liabilities (538,871) 1. Net Gain/Loss from Financial Assets and Liabilities at Fair Value through Profit or Loss 30 June 2015 31 December 2014 US$ US$ Other net changes in fair value through profit or loss: - Realised (6,014,127) (20,853,104) - Change in unrealised (31,057,936) (71,233,323) Total loss (37,072,063) (92,086,427) Other net changes in fair value on derivative assets held (936,838) (6,576,846) for trading Other net changes in fair value on assets designated at (36,135,225) (85,509,581) fair value through profit or loss Total net loss (37,072,063) (92,086,427) 1. Other Financial Assets and Liabilities a. Other financial assets: Other financial assets relate to prepaid expenses and comprised the following: 30 June 2015 31 December 2014 US$ US$ Dividends receivable - 17,175,594 Due from brokers - 7,544,785 Prepaid Directors' insurance 24,364 10,166 Prepaid regulatory fees 148 - 24,512 24,730,545 a. Other financial liabilities: Other financial liabilities relate to accounts payable and accrued expenses, and comprised the following: 30 June 2015 31 December 2014 US$ US$ Management fee payable (net) 79,721 117,712 Incentive fee payable 1,890,098 1,726,717 Other accruals 141,091 763,982 2,110,910 2,608,411 The net management fee payable includes a rebate of US$16,323 (31 December 2014: US$102,437) due from the Investment Manager in accordance with the Investment Management Agreement. 1. 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 2014. b) Carrying amounts versus fair values As at 30 June 2015, the carrying values of financial assets and liabilities presented in the Unaudited Condensed Statement of Financial Position approximate their fair values. c) Financial instruments carried at fair value - fair value hierarchy The Company classifies fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: * Level 1: Quoted prices (unadjusted) in an active market for identical instruments. * Level 2: Valuation techniques based on observable inputs, either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using: quoted prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques for which all significant inputs are directly or indirectly observable from market data. * Level 3: Valuation techniques using significant unobservable inputs. This category includes all instruments for which the valuation technique includes inputs not based on observable market data and the unobservable inputs have a significant effect on the instrument's valuation. This category includes instruments that are valued based on quoted prices for similar instruments for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments. The level in the fair value hierarchy within which the fair value measurement is categorised is determined on the basis of the lowest level input that is significant to the fair value measurement. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability. The Company considers observable market 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 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 to or from level 3 during the period. The following table analyses within the fair value hierarchy the Company's financial assets and liabilities at fair value through profit and loss (by class) measured at fair value as at 30 June 2015: Level 1 Level 2 Level 3 Total balance Financial assets at fair value through profit and loss Financial assets held for trading: - Derivative financial assets - 524,699 - 524,699 Financial assets designated at fair value through profit or loss at inception: - Equity investments 30,445,967 - 76,988,498 107,434,465 Total 30,445,967 524,699 76,988,498 107,959,164 The following table analyses within the fair value hierarchy the Company's financial assets and liabilities at fair value through profit and loss (by class) measured at fair value as at 31 December 2014: Level 1 Level 2 Level 3 Total balance Financial assets at fair value through profit and loss Financial assets held for trading: - Derivative financial assets - 16,430 - 16,430 Financial assets designated at fair value through profit or loss at inception: - Equity investments 8,779,524 - 125,668,272 134,447,796 Total 8,779,524 16,430 125,668,272 134,464,226 Financial liabilities at fair value through profit and loss Financial liabilities held for trading: - Derivative financial liabilities - 538,871 - 538,871 Total - 538,871 - 538,871 Level 1 assets include Aginyx Ordinary Shares (MCX) and the Ashmore SICAV 2 Global Liquidity US$ Fund. Level 2 assets and liabilities include forward foreign currency contracts that are calculated internally using observable market data. Level 3 assets include all unquoted funds, limited partnerships and unquoted investments. Investments in unquoted funds and limited partnerships are valued on the basis of the latest Net Asset Value, 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 2015.
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Equity securities Opening balance as at 1 January 125,668,272 2015 Sales and returns of capital (20,151,086) Gains and losses recognised in profit and (28,528,688) loss * Closing balance as at 30 June 76,988,498 2015 * Gains and losses recognised in profit and loss include unrealised results of US$(389,498,518) on existing level 3 instruments as at 30 June 2015. Total gains and losses included in the Unaudited Condensed Statement of Comprehensive Income are presented in "Other net changes in fair value on financial assets and liabilities at fair value through profit or loss". Valuation methodology of level 3 assets held directly by the Company and indirectly by the Company through its investments in the underlying Ashmore Funds The Pricing Methodology and Valuation Committee (PMVC) which has been authorised as an Approved Person to provide valuations to the Administrator, operates and meets to consider the methods for pricing hard-to-value investments where a reliable pricing source is not available, if an asset does not trade regularly, or in the case of a significant event (such as a major economic event or market volatility outside of local market hours). These assets, which are classified within level 3, may include all asset types but are frequently 'Special Situations' style investments, typically incorporating distressed, illiquid or private equity assets. 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 by experienced personnel at an independent third-party valuation specialist. The valuation is then subject to review, amendment if necessary, then approval, firstly by the PMVC, and then by the Board of Directors of the Company. Valuation techniques used by the third-party valuation specialists include the market approach, the income approach or the cost approach for which sufficient and reliable data is available. Within level 3, the use of the market approach generally consists of using comparable market transactions, while 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 by the third-party valuation specialist in estimating the value of level 3 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 changes in financial ratios or cash flows. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability. 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 Unobservable inputs Range 30 June 2015 methodology US$ Equity in private 15,942,888 Comparable and - Forecast annual N/A companies revenue growth rate Discounted - Forecast EBITDA margin Cashflows - Risk adjusted discount rate - Market multiples Investments in 61,045,610 Net Asset Value Inputs to Net Asset N/A unlisted Funds Value Balance as at Valuation 31 December methodology Unobservable inputs Range 2014 US$ Equity in private 15,125,986 Comparable and - Forecast annual N/A companies revenue growth rate Discounted - Forecast EBITDA margin Cashflows - Risk adjusted discount rate - Market multiples Investments in 110,542,286 Net Asset Value Inputs to Net Asset N/A unlisted Funds 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 would 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. 1. Capital and Reserves Share Conversion The following share conversions took place during the period ended 30 June 2015: Transfers from Transfers to Number of shares Number of shares to switch out to switch in GBP shares US$ shares 1,046,982 1,594,254 Compulsory Redemptions Following the approval by the Company's shareholders of the wind-down proposal as described in the circular published on 20 February 2013, during the period ended 30 June 2015, the Company announced partial returns of capital to shareholders by way of compulsory partial redemptions of shares with the following redemption dates: * 30 January 2015, using the 31 December 2014 Net Asset Value; and * 1 May 2015, using the 31 March 2015 Net Asset Value. The amounts applied to the partial redemptions of shares comprised monies from the realisation of the Company's investments up to and including the reference NAV calculation dates pursuant to the wind-down of the Company. During the period, the following shares were redeemed by way of compulsory partial redemptions of shares: Number of ordinary Consideration in US$ shares redeemed US$ shares 4,882,690 25,373,355 GBP shares 4,394,592 33,733,569 59,106,924 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 GBP shares: 2.0288 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. 1. Net Asset Value The Net Asset Value 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 end as follows: Net assets Net assets Net assets As at 30 June 2015 attributable to Shares in issue per share per share each in US$ in local share class in US$ currency US$ shares 50,249,255 9,660,205 5.20 5.20 GBP shares 57,320,548 7,130,476 8.04 5.11 107,569,803 Net assets Net assets Net assets As at 31 December attributable to Shares in issue per share per share 2014 each in US$ in local share class in US$ currency US$ shares 68,325,380 12,948,641 5.28 5.28 GBP shares 102,105,958 12,572,050 8.12 5.21 170,431,338 The allocation of the Company's Net Asset Value between share classes is further described in the Company's Prospectus. 1. 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 2015 was as follows: US$ share GBP share Issued shares at the beginning of 12,948,641 12,572,050
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the period Effect on the weighted average number of shares: - Conversion of shares 718,492 (470,522) - Compulsory redemption of shares (3,161,872) (2,955,678) Weighted average number of shares 10,505,261 9,145,850 Loss per share class (US$) (900,731) (2,853,880) EPS (US$) (0.09) (0.31) There were no dilutive instruments in issue during the period. The loss attributable to each share class for the period ended 30 June 2014 was as follows: US$ share GBP share Issued shares at the beginning of 15,462,002 17,690,012 the period Effect on the weighted average number of shares: - Conversion of shares 266,330 (160,485) - Compulsory redemption of shares (1,646,498) (1,883,715) Weighted average number of shares 14,081,834 15,645,812 Loss per share class (US$) (4,746,356) (3,404,069) EPS (US$) (0.34) (0.22) There were no dilutive instruments in issue during the period. 1. Segmental Reporting Although the Company has two share classes and 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. 1. 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. 1. 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 To manage assets on behalf of third party investors. Investments in units issued Investment funds These vehicles are financed by the Funds through the issue of units to investors. The table below sets out interests held by the Company in unconsolidated structured entities. The maximum exposure to loss is the carrying amount of the financial assets held. Carrying amount Investment in unlisted Number of Total net included in "Financial investment funds investee assets assets at fair value funds through profit or loss" Special Situations Private 8 319,196,850 55,221,981 Equity Funds Real Estate Funds 2 60,739,310 5,823,629 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. 1. 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 Ashmore Investment Advisors Limited*. 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 2015, the Company had the following related party transactions: Income/ Receivable/ (Expense) (Payable) Related Party Nature US$ US$ Ashmore Investment Advisors Limited* Management fees (360,451) (79,721) (net) Ashmore Investment Advisors Limited* Incentive fees (163,381) (1,890,098) Board of Directors Directors' fees (72,292) (14,208) Investment Activity US$ Related funds Purchases (78,000,000) Related funds Sales 65,805,865 Related funds Dividends 33,092,688 * Ashmore Investment Management Limited until 18 July 2014. During the period ended 30 June 2014, the Company engaged in the following related party transactions: Income/ Receivable/ (Expense) (Payable) Related Party Nature US$ US$ Ashmore Investment Management Management fees (1,900,316) (144,647) Limited (net) Ashmore Investment Management Incentive fees 138,519 (1,779,391) Limited Ashmore Investment Management Promotional fees (79,430) (172,334) Limited Board of Directors Directors' fees (113,583) (56,108) Investment Activity US$ Related funds Dividends 1,227,097 Related funds are other funds managed by Ashmore Investment Advisors Limited or its associates. During the period ended 30 June 2015, Directors' remuneration was as follows: Chairman: GBP31,500 per annum Chairman of the Audit Committee: GBP31,500 per annum Independent Directors: GBP29,700 per annum Non-Independent Director: waived The Directors had the following beneficial interests in the Company: 30 June 2015 31 December 2014 GBP ordinary shares GBP ordinary shares Nigel de la Rue 1,390 2,177 Christopher Legge 870 1,360 Richard Hotchkis 524 818 Purchases and sales of the Ashmore SICAV 2 Global Liquidity Fund ("Global Liquidity Fund") were solely related to the cash management of US dollars on account. Funds are swept into the S&P AAAm 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. 1. Commitments During the year ended 31 December 2010, the Company entered into a subscription agreement with Everbright Ashmore China Real Estate Fund LP for a total commitment of US$10 million. As at 30 June 2015, the outstanding commitment was US$529,455 (31 December 2014: US$529,455). During the year ended 31 December 2011, the Company increased its commitment to VTBC Ashmore Real Estate Partners 1 LP to a total of EUR11.4 million. As at 30 June 2015, the outstanding commitment was EUR243,474 (31 December 2014: EUR 243,474). 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 2015, the outstanding commitment was US$6,261,340 (31 December 2014: US$6,261,340). 1. Subsequent Events Compulsory Redemption of Shares The following compulsory redemption of shares occurred on 31 July 2015 with reference to the 30 June 2015 Net Asset Value:
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