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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 |
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RNS Number : 1578Y
Ashmore Global Opportunities Ltd
28 August 2009
ASHMORE GLOBAL OPPORTUNITIES LIMITED
Interim Report and Unaudited Condensed Interim Financial Statements
For the six months ended 30 June 2009
Contact:
Gay Collins/Clare Milton
020 7786 4882 / 07798626282 / 020 7786 4874
ashmore@penrose.co.uk
Financial Highlights
+------------------------------+---------+----------------+----------------+
| | | 30 June | 31 December |
| | | 2009 | 2008 |
+------------------------------+---------+----------------+----------------+
| | | | |
+------------------------------+---------+----------------+----------------+
| Total Net Assets | | US$544,974,469 | US$524,058,172 |
+------------------------------+---------+----------------+----------------+
| | | | |
+------------------------------+---------+----------------+----------------+
| Net Asset Value per Share | | | |
+------------------------------+---------+----------------+----------------+
| US$ Shares | | US$8.46 | US$8.58 |
+------------------------------+---------+----------------+----------------+
| EUR Shares | | EUR8.27 | EUR8.45 |
+------------------------------+---------+----------------+----------------+
| GBP Shares | | GBP8.40 | GBP8.53 |
+------------------------------+---------+----------------+----------------+
| | | | |
+------------------------------+---------+----------------+----------------+
| Closing-Trade Share Price | | | |
+------------------------------+---------+----------------+----------------+
| US$ Shares | | US$5.85 | US$6.65 |
+------------------------------+---------+----------------+----------------+
| EUR Shares | | EUR5.65 | EUR7.15 |
+------------------------------+---------+----------------+----------------+
| GBP Shares | | GBP5.80 | GBP7.20 |
+------------------------------+---------+----------------+----------------+
| | | | |
+------------------------------+---------+----------------+----------------+
| Discount to Net Asset Value | | | |
+------------------------------+---------+----------------+----------------+
| US$ Shares | | (30.85%) | (22.49%) |
+------------------------------+---------+----------------+----------------+
| EUR Shares | | (31.68%) | (15.38%) |
+------------------------------+---------+----------------+----------------+
| GBP Shares | | (30.95%) | (15.59%) |
+------------------------------+---------+----------------+----------------+
Chairman's Statement
Your board is pleased to report to shareholders at the end of the six month
interim reporting period to 30 June 2009, a period during which Ashmore Global
Opportunities Limited ("AGOL" or the "Company") has continued to weather
significant market volatility and the recession in the global economy. Despite
this uncertain backdrop, investment performance over this six month period has
remained resilient with the NAVs of the US dollar, Sterling and Euro classes
standing at US$8.46, GBP8.40 and EUR8.27 respectively.
The Company's investment objective is to deploy capital in a diversified
portfolio of global emerging market strategies which are actively managed in
order to maximise total returns. This is achieved by dynamically allocating the
Company's assets into funds managed by Ashmore Investment Management Limited
("Ashmore") across a range of investment themes (currently, Special Situations,
External Debt, Local Currency, Equity and Corporate High Yield) with the
principal focus being on Special Situations.
The Company's assets are fully invested across a range of Ashmore managed funds
and, consistent with its stated objective at the time of listing and Ashmore's
positive view of the opportunities set within Special Situations, the Company's
focus on Special Situations has been maintained, and stood at 84.21% of the
total portfolio of investments as at 30 June 2009, compared with 86.92% as at 31
December 2008. The Company's most significant exposure is its investment in
Ashmore's Global Special Situations Fund 4 which accounted for 42.62% of the
total portfolio of investments as at 30 June 2009. During the period, the
Company made a commitment of US$50 million to the latest fund in Ashmore's
Global Special Situations range, Global Special Situations Fund 5, of which
US$25 million had been drawn down by 30 June 2009.
Shareholders have continued to be able to switch between share currency classes
at each quarter end. In line with this capability, the Directors approved the
conversion of 949,382 Euro and 400,572 US dollar shares to 1,142,278 Sterling
shares, 750,000 Euro and 350 Sterling shares to 974,053 US Dollar shares and
76,594 US Dollar shares to 59,007 US Dollar shares in April and 1,312,352 Euro
and 82,000 US dollar shares to 1,150,602 Sterling shares in July.
The share prices of the three currency classes of the Company's shares continue
to trade at substantial discounts to their NAVs. This situation is not limited
to AGOL as investment companies in a range of sectors and asset classes have
continued to trade at similarly wide discounts following the significant market
sell off in the final quarter of 2008 and investors' continued risk aversion.
Private equity focused investment companies in particular have experienced
substantial discounts.
Having repurchased a number of shares in 2008, initially with positive results,
your Board determined it appropriate to recommence share repurchase activity
early in 2009. However, due in part to the continuing liquidity demands of
investors, these actions appeared to have a limited, if any, beneficial impact
on the level of the discount. As of April 2009, the Company had repurchased
491,480 US dollar shares, 331,346 Euro shares and 277,916 Sterling shares
representing 2.02%, 4.44% and 1.45% of the shares in issue in each class at a
cost of US$3,718,984, EUR2,337,560 and GBP2,021,337 respectively. These shares are
currently being held in treasury.
Over the 365 day period to 16 February 2009, AGOL's shares representing greater
than 75% of the NAV of the Company traded at an average discount of greater than
10%. Therefore, in line with the Company's Articles, the Board convened an
Extraordinary General Meeting ("EGM") at which a resolution to wind-up the
Company was put to shareholders.
At the EGM held on 5 May 2009, shareholders, in line with the Board's
recommendation, voted overwhelmingly against the resolution to wind up the
Company underlining their support for AGOL's investment proposition. 80% of the
votes cast at the EGM were against winding up the Company.
In the EGM circular the Board proposed that, in order to further enhance the
Company's appeal to existing and potential investors, and to assist in reducing
the discount to NAV at which the Company's shares are trading, arrangements
should be established for an annual partial capital return. Any such capital
return will be determined by the Board prior to the announcement of the full
year's results to 31 December 2009. In reaching its decision, the Board will
consider a number of factors including current market conditions and the
availability of liquid resources. The amount of capital returned may represent
up to 50% of the positive NAV performance of the Company for the financial year.
We the Board believe that AGOL continues to represent an innovative structure
which provides the opportunity for investors to gain exposure to a broad range
of diversified Special Situations throughout the emerging markets. The
opportunities set in Special Situations have increased as a result of the events
in global financial markets over the course of the past eighteen months and
therefore, despite the challenges that have been faced, your Board believes the
AGOL is well positioned to take advantage of them.
Over the course of June and July 2009, both Ashmore Group plc and its Chief
Executive, Mark Coombs have acquired shares in the Company which have resulted
in them both disclosing interests of greater than 3% in the Company which the
Board welcomes.
I look forward to writing to you again in early 2010 when AGOL reports its full
year results.
Jonathan Agnew
26 August 2009
Investment Manager's Report
Global view
The trough in the global economic growth took place in Q4 08 and Q1 09, and
Ashmore Investment Management Limited ("Ashmore") believes that we are embarked
on a path of recovery from the violent economic and financial disruptions
triggered by the sub-prime crisis and the collapse of Lehman Brothers. Ashmore
believe most emerging markets and the US economy are likely to return to
positive growth this year and all the world's regions ought to experience
substantial positive real GDP growth rates in 2010. The global recovery began to
take root in the past 6 months in emerging markets, notably in regions without
serious de-leveraging issues, such as Asia, Latin America, and Africa. Growth in
the US, Japan, Europe, and Eastern Europe has lagged Emerging Markets due to
de-leveraging by consumers in the US and lingering unemployment in the Eurozone,
thus making the global recovery gentler than in previous downturns, and avoiding
the much touted V-shaped recovery. That said individual regions within Emerging
Markets are currently recovering in a fashion consistent with V-shaped
recoveries.
In our view, a gentle global recovery is beneficial to emerging markets by
avoiding unplanned inflationary surprises, the need for rapid disruptive policy
reversals, and sharp rises in the prices of key commodities, such as oil, which
in turn could scupper confidence among still fragile consumers in wealthy
countries.
The other main risk to recovery remains double dip recessions in the next year
or two. So far, US fiscal policy appears to have been aimed at limiting the rise
in unemployment, while US monetary and exchange rate policies - a steep yield
curve and a stable USD exchange rate with oil producers and China - have helped
nurse banks back to health. Ashmore thinks the basic objective of US economic
policy is to achieve stronger banks and more confident consumers such that the
US government can begin to withdraw fiscal stimulus in 2011 without risking
plunging the US economy into a double dip recession. In the first 6 months of
the year, this policy appears to have been working.
The combination of economic recovery and persistent global imbalances has also
been supportive for asset prices. Reserves accumulation in the surplus economies
has continued at pace despite a smaller current account deficit in the US, and
has ensured a strong demand for USD denominated assets at a time when the supply
of such instruments has declined sharply, including mortgage related paper, ABS,
structured products, and investment opportunities in the real economy.
Generally, this imbalance between supply and demand has been supportive for
equities, Emerging Markets assets, and commodities. Emerging Markets assets have
also benefited from still pervasive supply-side constraints in commodity space,
which have put a floor under prices. Since these constraints have not gone away
and may in fact have intensified due to the credit crunch, Ashmore believes that
commodity prices may remain well supported as global demand recovers.
Emerging Markets assets in a global recovery
Emerging Markets assets staged a strong recovery in the first half of 2009.
Emerging Markets external debt spreads to US treasuries nearly halved from
670bps to 350bps. MSCI Emerging Markets equities rallied 56% from the start of
2009. Emerging Markets currencies such as Brazil, Korea, and Turkey are stronger
now than at the start of the year. Moreover, the combination of global economic
recovery, a squeeze on financial assets, and the strong backdrop for commodities
constitute a still very bullish environment for emerging markets going forward.
While the spread compression for lower beta credits in Emerging Markets space
has already gone a long way, we still have not normalized for high beta credits,
quasi-sovereigns, and especially corporates. Gradual normalization of market
conditions in developed countries has been supportive. For example, the
restoration of bond repo for Emerging Markets investors has enabled leveraged
players to begin to re-enter. Positioning in Emerging Markets equities and local
currency markets is also helpful, because these markets are still being traded
mainly on a tactical basis due to lingering risk aversion, though continuing
spread compression should in our opinion result in a shift of exposure away from
USD paper towards local currency and equities against a backdrop of a weaker
USD.
Regional outlook
Latam and Asia are generally well positioned to take advantage of the global
recovery, and are already now set to be the two first regions to emerge from the
slump and to need to implement monetary policy tightening. This applies
especially to countries with strong domestic demand, such as India and Malaysia,
and to a lesser extent Brazil. Africa is also well-placed to benefit from the
global recovery. The region was never very exposed to global capital markets and
the IMF expects the region to grow 4.1% in 2010. Currencies and domestic demand
adjusted quickly and sharply to the collapse in trade finance, which means that
both ought to have upside potential in the ongoing recovery phase. Inflation is
declining sharply, which is strongly supportive for domestic demand, and the
region does not suffer from the same scepticism of markets as we see in other
regions such as parts of Latin America. A multi-strategy approach to investing
in the small illiquid African markets seems sensible with a growing emphasis on
equity exposure, since Africa ought to emerge from this crisis with its
promising growth potential entirely intact. By contrast, Eastern Europe and the
Middle East are, uniquely, within Emerging Markets, experiencing weak domestic
demand and high unemployment on account of very large debt excesses, which
should keep policy rates low throughout the period, in our view. We believe
selective exposure to corporates in countries such as Ukraine, Kazakhstan,
Russia, and Georgia should offer good returns over the medium term.
Selected countries
China's early and decisive response to the global downturn through extensive
fiscal and credit stimulus was supportive for commodity markets as well as
China's domestic growth momentum during H1 2009. The risk facing the Chinese
authorities is increasingly becoming one of dealing with isolated bubbles in
equity and property markets rather than conventional inflation. One solution to
this problem could be that China lets its domestic institutions invest more
abroad though the QDII program, which could prove supportive for Emerging
Markets, in our view.
Brazil weathered the global downturn better than most countries in the world on
account of a strong external position, moderate economic policies, and stable
politics. Domestic demand held up well during the downturn, supported by strong
credit extension from The Brazilian Development Bank and rate cuts from the
Central Bank. As a result, spreads on Brazilian external debt has narrowed
sharply during H1 2009 and the currency remained extremely well bid in the
context of a weak global environment. Ashmore think that Brazil is likely to
emerge from the global crisis as one of the least affected economies and
therefore well placed to benefit from the upturn.
Russia's external balances stabilised following the lengthy devaluation process
in the second half of 2008. Russia's reserve position remains very sound and oil
prices should support the credit going forward if they hold up. Russia faces
important ongoing fiscal challenges, competitiveness issues, and deleveraging
problems, but from the perspective of ability and willingness to pay it has been
solid throughout and still looks attractive from a spread perspective, despite
expectations of considerable sovereign issuance over the next 12 months.
Like Brazil, Turkey weathered the global downturn better than expected. Banks
and corporates were able to roll significant dollar financing requirements with
relative ease despite the lingering uncertainty surrounding the government's
discussions with the IMF about a new standby program. Turkey has been keen as
far as possible to avoid a formal program with the IMF, which it perceives as
stigmatising, but its ability to do so depends on the outturn of the global
economy as well as the domestic business cycle and its impact on the public
finances. In a sign of strength, however, Turkey has demonstrated that it has
the ability to tap external markets in the current climate.
Venezuela has predictably had a tough time adjusting to lower oil prices. The
combination of market unfriendly policies and excessive public spending has
created a dependence on imports, which may eventually force the government to
devalue the Bolivar in order to balance the books. So far in 2009, President
Chavez has resisted the temptation to devalue on account of the inflationary
consequences on his core voters. Instead, the government has sought to soak up
excess liquidity in the domestic economy by issuing dollar bonds to locals, with
adverse implications for the sovereign curve. A devaluation will be very
supportive for the credit, but pending that the credit trades heavy on fear of
new supply.
The medium term outlook in Argentina improved sharply during H1 2009 and
especially following the larger than expected defeat of the Kirchners in the
recent mid-term elections in June. Having lost their majorities in both houses
of parliament, the Kirchner administration has become more constrained in its
ability to implement radical policies, while the Peronist party, which is keen
to remain in power after the next Presidential election in 2011, is pushing the
Kirchners to pursue policies which ensure stability. Argentina has faced a tough
bout of Swine Flu, drought, and a deep recession, but the government has enough
finances to meet its near-term debt service obligations and is now actively
working on restoring relations with financial markets.
Mexico's PAN led government lost influence in the legislature to the PRI party
in the latest mid-term elections. This situation does not make it easy to pass
much needed structural and fiscal reforms, though Ashmore believes some modest
reform seems likely in the coming semester, which may or may not be enough to
avoid a downgrade from ratings agencies. The government's fiscal situation and
the relatively weak transmission mechanism for monetary policy mean that the
official sector's ability to stimulate the economy out of the current deep
recession is limited. Oil production has remained sluggish, and Mexico's growth
from here hinges increasingly on a US recovery.
In Indonesia, SBY's convincing re-election as President has ushered in period of
political stability, which is strongly supportive for the credit. The government
handled the credit crunch professionally, securing foreign credit lines and
avoiding the stigma of having to engage formally with the IMF. Indonesia's large
population and strong domestic demand were important stabilizing factors in the
recent turbulent period.
Special situations investments
Special Situations is the largest exposure by investment theme as per the
investment objective of the company. The stresses experienced in global
financial markets over the last 12 months have created many opportunities in
Emerging Market assets. Investors who may have purchased assets at inflated
prices or relied on leverage as a key driver of performance, have come to the
market in search of liquidity. For our part, investee companies continue to be
well and prudently managed, and the investments have not suffered from any
mismanagement of derivatives, excessive leverage and/or refinancing risks. The
financing situation in local markets appears to have improved (with the
exception of Russia), and countries in which the funds have invested in have a
better economic and financial outlook compared to western markets. In February
2009, Ashmore launched its fifth special situations fund, Ashmore Global Special
Situations Fund 5("GSSF5"). AGOL committed $50m to GSSF5 of which 50% of has
been drawn down at 30 June 2009.
The largest investment continues to be AEI (www.aeienergy.co m). AGOL holds a
stake in AEI both directly and indirectly through Ashmore funds. AEI is a
company that manages essential energy infrastructure assets in the emerging
world. AEI is unique in that it is a global multi line business and, over time
is expected to grow in Asia and Eastern Europe so that its portfolio better
reflects the relative economic weights of different regions. AEI begun the year
in line with its 2009 budget and is in negotiations for new gas supply contracts
with several parties. AEI also aqcuired a Nicaraguan wind farm and purchased a
stake in an Argentine electricity distribution company. The Company has filed
with the SEC to become a public reporting company.
Another investment in the energy sector is Petron Corporation (www.petron.com).
Petron is located in the Philippines, and as well as being the countries largest
oil refiner also has the country's largest network of service stations. Ashmore
entered into option arrangements with San Miguel Corporation such that San
Miguel has an interest in purchasing a majority stake in the company. Petron has
been evaluating expansion opportunities and discussing growth options with
potential strategic partners. Management are also looking at developing a number
of concepts to increase the coverage of fuel and non fuel consumption at the
service stations.
Rubicon (www.rubicon-offshore.com) serves the Asian oil production industry by
providing vessels which work in deep water on the fields, and manage production.
The company distinguishes itself by converting bespoke vessels at a lower cost
than competitors and its willingness to work with smaller operators on shorter
contracts that pay higher contract rates. Operations have been satisfactory but
the company is in dispute over one of its contracts in Australia. The management
are optimistic of resolving this issue.
Jasper (www.jasperinvests.com) is a Singapore-listed company which owns a
majority of shares in Neptune Marine, an offshore drilling company. Management
believe that the offshore mid-water and deepwater drilling industry will remain
very profitable in the medium term, with high ROE's. The lack of available
capital is curtailing the number of new build rigs and renovations. This,
together with a scaling back of exploration budgets and a move from onshore to
offshore deep and mid water has thus far been a positive for daily rates charged
by Jasper. However, oil price volatility will have a continued impact on the
company.
The most interesting opportunities continue to exist in telecoms markets. Pacnet
(www.pacnet.com) has built a genuine pan-Asian services business for corporate
customers in addition to its wholesale broadband sales. Headquartered in Hong
Kong and Singapore, the business is now located in 13 countries across Asia and
North America. Pacnet is in the process of implementing projects that will
increase capacity on some networks as well as expanding into new markets such as
Vietnam. Pacnet was also named Best Wholesale Carrier at the Telecom Asia Awards
2009 for its extensive and robust network, broad product range, continued
expansion through the region and double-digit sales growth.
Investment Performance
As at 30 June 2009, annualised performance since inception for the Sterling,
Euro and USD shares was -10.6%, -11.5% and -10.2% respectively, compared with
-14.0%, -14.8% and -13.5% at 31 December 2008.
The NAV for the Sterling, Euro and USD shares was GBP8.40, EUR8.27 and US$8.46
respectively compared with GBP8.53, EUR8.45 and US$8.58 at 31 December 2008.
Ashmore Investment Management Limited
26 August 2009
Schedule of Investments as at 30 June 2009
a) Investments
+-----------------------------------------------------------+-------------+-----------+
| | Valuation | % of |
| | in | |
+-----------------------------------------------------------+-------------+-----------+
| | US$ | NAV |
+-----------------------------------------------------------+-------------+-----------+
| Ashmore Global Special Situations Fund 4 LP | 218,577,090 | 40.11 |
+-----------------------------------------------------------+-------------+-----------+
| Ashmore Asian Recovery Fund | 115,461,617 | 21.19 |
+-----------------------------------------------------------+-------------+-----------+
| Ashmore Multistrategy Fund | 64,034,209 | 11.75 |
+-----------------------------------------------------------+-------------+-----------+
| AEI Limited (Equity) | 62,370,383 | 11.44 |
+-----------------------------------------------------------+-------------+-----------+
| Ashmore Global Special Situations Fund 5 LP | 25,160,231 | 4.62 |
+-----------------------------------------------------------+-------------+-----------+
| Ashmore Emerging Markets Corporate High Yield Fund | 23,205,986 | 4.26 |
+-----------------------------------------------------------+-------------+-----------+
| Ashmore SICAV 2 Global Liquidity US$ Fund | 4,039,482 | 0.74 |
+-----------------------------------------------------------+-------------+-----------+
| Total investments at fair value | 512,848,998 | 94.11 |
+-----------------------------------------------------------+-------------+-----------+
| | | |
+-----------------------------------------------------------+-------------+-----------+
| Net other current assets | 32,125,471 | 5.89 |
+-----------------------------------------------------------+-------------+-----------+
| | | |
+-----------------------------------------------------------+-------------+-----------+
| Total net assets | 544,974,469 | 100.00 |
+-----------------------------------------------------------+-------------+-----------+
b) Underlying Investment Themes
The breakdown of investments by investment theme as at 30 June 2009 is as
follows:
+-----------------------------------------------------------+-------------+-----------+
| | Valuation | % of |
| | in | |
+-----------------------------------------------------------+-------------+-----------+
| | US$ | NAV |
+-----------------------------------------------------------+-------------+-----------+
| Special Situations | 431,870,141 | 79.25 |
+-----------------------------------------------------------+-------------+-----------+
| External Debt | 27,796,416 | 5.10 |
+-----------------------------------------------------------+-------------+-----------+
| Cash and equivalent | 25,539,880 | 4.69 |
+-----------------------------------------------------------+-------------+-----------+
| Corporate High Yield | 23,539,769 | 4.32 |
+-----------------------------------------------------------+-------------+-----------+
| Local Currency | 4,102,792 | 0.75 |
+-----------------------------------------------------------+-------------+-----------+
| | 512,848,998 | 94.11 |
+-----------------------------------------------------------+-------------+-----------+
Board Members
The Directors are responsible for the determination of the investment policy of
Ashmore Global Opportunities Limited (the "Company\") and have overall
responsibility for the Company's activities. The Directors, all of whom are
non-executive, are listed below:
Jonathan Agnew (UK resident) appointed to the Board on 16 October 2007
Graeme Dell (UK resident) appointed to the Board on 5 March 2008
Nigel de la Rue (Guernsey resident) appointed to the Board on 16 October 2007
George Grunebaum (US resident) appointed to the Board on 16 October 2007
John Roper (Guernsey resident) appointed to the Board on 16 October 2007
Directors' Report
The Directors present their Interim Report and the Unaudited Financial
Statements of the Company for the six months ended 30 June 2009 which have been
prepared properly, in accordance with IAS 34 "Interim Financial Reporting".
The Company
The Company was incorporated with limited liability in Guernsey, Channel Islands
as a closed-ended investment company on 21 June 2007. The Company was launched
on 7 December 2007 and the Company's shares were admitted to the Official
Listing of the London Stock Exchange on 12 December 2007, pursuant to Chapter 14
of the Listing Rules.
Investment Policy
The Company's investment objective is to deploy capital in a diversified
portfolio of global emerging market strategies which will be actively managed
with a view to maximising total returns. This will be achieved by investing
across investment themes, including special situations, external debt, local
currency, equity and corporate high yield with a principal focus on special
situations.
Results and Dividends
The results for the period are set out in the Unaudited Condensed Statement of
Comprehensive Income. The Directors do not recommend the payment of a dividend
in accordance with the distribution policy.
Association of Investment Companies (AIC)
The Company became a member of the AIC on 18 March 2008.
Discount/Premium to Net Asset Value
The level of the share price discount/premium to the Net Asset Value is
monitored. The Board has a number of discount control mechanisms at its
disposal, which are set out in Note 4.
Derivatives and Hedging
The shares in the Company are denominated in US dollars, Euros and Sterling. The
base currency is the US dollar, and therefore non-US dollar subscription monies
for shares will be converted to US dollars for operational purposes. The costs
and any benefit of hedging the foreign currency exposure of the assets
attributable to the shares denominated in Euros and Sterling from the US dollar
will be allocated solely to the relevant class of shares. This may result in
variations in the Net Asset Value of the three classes of shares.
Shareholder Information
The Company announces its Net Asset Value on a monthly basis to the London Stock
Exchange. A monthly report on investment performance is published on the
Company's website www.agol.com.
Share Capital
The number of shares in issue at the period end is disclosed in Note 5 to the
financial statements.
Directors' Shareholding
Jonathan Agnew has a beneficial interest in 10,000 Sterling shares.
Nigel de la Rue has a beneficial interest in 2,000 Sterling shares.
Directors' Interest
Graeme Dell is Group Finance Director of Ashmore Group plc. He also sits on the
Board of Ashmore Investment Management Limited
John Roper is a non-executive director on a number of Guernsey registered
Ashmore funds and fund management company subsidiaries including Asset Holder
PCC No.2 Limited and Ashmore Emerging Market Corporate High Yield Fund.
George Grunebaum is a Managing Partner of Dolomite Capital Management which is a
subsidiary of Ashmore Investments (UK) Limited.
Signed on behalf of the Board of Directors on 26 August 2009.
Jonathan Agnew
Director
George Grunebaum
Director
Directors' Responsibility Statement
We confirm that to the best of our knowledge:
· the condensed set of financial statements has been prepared in accordance with
IAS 34 Interim Financial Reporting;
· the interim management 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 financial statements;
and a description of the principal risks and uncertainties for the remaining six
months of the year; 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 26 August 2009.
Jonathan Agnew
Director
George Grunebaum
Director
Independent Review Report to Ashmore Global Opportunities Limited
Introduction
We have been engaged by the Ashmore Global Opportunities Limited (the "Company")
to review the condensed set of financial statements in the half-yearly financial
report for the six months ended 30 June 2009 which comprises the Unaudited
Condensed Statement of Financial Position, the Unaudited Condensed Statement of
Comprehensive Income, the Unaudited Condensed Statement of Changes in Equity,
the Unaudited Condensed Statement of Cash Flows and the related explanatory
notes. We have read the other information contained in the half-yearly financial
report and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the Disclosure
and Transparency Rules ("the DTR") of the UK's Financial Services Authority
("the UK FSA").
Our review has been undertaken so that we might state to the Company those
matters we are required to state to it in this report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company for our review work, for this
report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the Directors. The Directors are responsible for preparing the half-yearly
financial report in accordance with the DTR of the UK FSA.
The annual financial statements of the Company are prepared in accordance with
IFRSs. The condensed set of financial statements included in this half-yearly
financial report has been prepared in accordance with IAS 34 Interim Financial
Reporting.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK and Ireland) and consequently does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 30 June 2009 is not prepared, in all material
respects, in accordance with IAS 34 and the DTR of the UK FSA.
KPMG Channel Island Limited
Chartered Accountants
26 August 2009
Unaudited Condensed Statement of Financial Position
As at 30 June 2009
+----------------------------------------------------+---------+-------------+-------------+
| | | 30 Jun | 31 Dec |
| | | 2009 | 2008 |
+----------------------------------------------------+---------+-------------+-------------+
| | Notes | US$ | US$ |
+----------------------------------------------------+---------+-------------+-------------+
| Current assets | | | |
+----------------------------------------------------+---------+-------------+-------------+
| Financial assets at fair value through profit or | 3 | 522,370,793 | 546,059,026 |
| loss | | | |
+----------------------------------------------------+---------+-------------+-------------+
| Cash and cash equivalents | | 24,661,399 | 20,541,728 |
+----------------------------------------------------+---------+-------------+-------------+
| Other receivables | | - | 294,688 |
+----------------------------------------------------+---------+-------------+-------------+
| Total assets | | 547,032,192 | 566,895,442 |
+----------------------------------------------------+---------+-------------+-------------+
| | | | |
+----------------------------------------------------+---------+-------------+-------------+
| Current liabilities | | | |
+----------------------------------------------------+---------+-------------+-------------+
| Financial liabilities at fair value through profit | 3 | - | 28,694,903 |
| or loss | | | |
+----------------------------------------------------+---------+-------------+-------------+
| Accounts payable and accrued expenses | | 2,057,723 | 14,142,367 |
+----------------------------------------------------+---------+-------------+-------------+
| Total liabilities | | 2,057,723 | 42,837,270 |
+----------------------------------------------------+---------+-------------+-------------+
| | | | |
+----------------------------------------------------+---------+-------------+-------------+
| Net assets | | 544,974,469 | 524,058,172 |
+----------------------------------------------------+---------+-------------+-------------+
| | | | |
+----------------------------------------------------+---------+-------------+-------------+
| Represented by: | | | |
+----------------------------------------------------+---------+-------------+-------------+
| Shareholders' equity | | | |
+----------------------------------------------------+---------+-------------+-------------+
| Share capital | | - | - |
+----------------------------------------------------+---------+-------------+-------------+
| Reserves | | 544,974,469 | 524,058,172 |
+----------------------------------------------------+---------+-------------+-------------+
| Total Equity | 5 | 544,974,469 | 524,058,172 |
+----------------------------------------------------+---------+-------------+-------------+
| | | | |
+----------------------------------------------------+---------+-------------+-------------+
| Net asset values | | | |
+----------------------------------------------------+---------+-------------+-------------+
| Net assets per US$ share | 5 | US$8.46 | US$8.58 |
+----------------------------------------------------+---------+-------------+-------------+
| Net assets per EUR share | 5 | EUR8.27 | EUR8.45 |
+----------------------------------------------------+---------+-------------+-------------+
| Net assets per GBP share | 5 | GBP8.40 | GBP8.53 |
+----------------------------------------------------+---------+-------------+-------------+
The unaudited condensed interim financial statements were approved by the Board
of Directors on 26 August 2009, and were signed on its behalf by:
Jonathan Agnew George Grunebaum
Director Director
The notes form an integral part of these financial statements
Unaudited Condensed Statement of Comprehensive Income
For the six months ended 30 June 2009
+-----------------------------------------------------+---------+-------------+-------------+
| | | 30 Jun | 30 Jun |
| | | 2009 | 2008* |
+-----------------------------------------------------+---------+-------------+-------------+
| | Notes | US$ | US$ |
+-----------------------------------------------------+---------+-------------+-------------+
| Revenue | | | |
+-----------------------------------------------------+---------+-------------+-------------+
| Interest income | | 976,758 | 1,060,009 |
+-----------------------------------------------------+---------+-------------+-------------+
| Dividend income | | 5,369 | 767,013 |
+-----------------------------------------------------+---------+-------------+-------------+
| Net realised gain on financial assets and | | | |
| liabilities at | | | |
+-----------------------------------------------------+---------+-------------+-------------+
| fair value through profit or loss | 6 | 7,794,740 | 4,566,669 |
+-----------------------------------------------------+---------+-------------+-------------+
| Net unrealised gain on financial assets and | | | |
| liabilities at | | | |
+-----------------------------------------------------+---------+-------------+-------------+
| fair value through profit or loss | 6 | 17,389,189 | 3,336,167 |
+-----------------------------------------------------+---------+-------------+-------------+
| Other net loss on foreign exchange | | (10,938) | 2,049 |
+-----------------------------------------------------+---------+-------------+-------------+
| Net investment expense | | 26,155,118 | 9,731,907 |
+-----------------------------------------------------+---------+-------------+-------------+
| | | | |
+-----------------------------------------------------+---------+-------------+-------------+
| Expenses | | | |
+-----------------------------------------------------+---------+-------------+-------------+
| Net investment management fee | | (842,192) | 565,867 |
+-----------------------------------------------------+---------+-------------+-------------+
| Incentive fee | | (1,190,123) | - |
+-----------------------------------------------------+---------+-------------+-------------+
| Directors' remuneration | | (157,552) | (266,691) |
+-----------------------------------------------------+---------+-------------+-------------+
| Fund administration fee | | (128,139) | (194,749) |
+-----------------------------------------------------+---------+-------------+-------------+
| Custodian fee | | (51,250) | (77,893) |
+-----------------------------------------------------+---------+-------------+-------------+
| Legal services | | (49,355) | (112,346) |
+-----------------------------------------------------+---------+-------------+-------------+
| Other expenses | | (255,606) | (939,489) |
+-----------------------------------------------------+---------+-------------+-------------+
| Total operating expenses before finance costs | | (2,674,217) | (1,025,301) |
+-----------------------------------------------------+---------+-------------+-------------+
| | | | |
+-----------------------------------------------------+---------+-------------+-------------+
| Gain for the period | | 23,480,901 | 8,706,606 |
+-----------------------------------------------------+---------+-------------+-------------+
| | | | |
+-----------------------------------------------------+---------+-------------+-------------+
| Other comprehensive income for the period | | - | - |
+-----------------------------------------------------+---------+-------------+-------------+
| | | | |
+-----------------------------------------------------+---------+-------------+-------------+
| Total comprehensive income for the period | | 23,480,901 | 8,706,606 |
+-----------------------------------------------------+---------+-------------+-------------+
| | | | |
+-----------------------------------------------------+---------+-------------+-------------+
| Earnings per share | | | |
+-----------------------------------------------------+---------+-------------+-------------+
| Basic and diluted earnings per US$ per share | 7 | US$ | US$ |
| | | (0.13) | (0.01) |
+-----------------------------------------------------+---------+-------------+-------------+
| Basic and diluted earnings per EUR share | 7 | US$ | US $0.75 |
| | | (0.33) | |
+-----------------------------------------------------+---------+-------------+-------------+
| Basic and diluted earnings per GBP per share | 7 | US$ 1.63 | US$ |
| | | | (0.16) |
+-----------------------------------------------------+---------+-------------+-------------+
All items derive from continuing activities.
* The comparative figures are for the period from 21 June 2007 (date of
incorporation) to 30 June 2008.
The notes form an integral part of these financial statements.
Unaudited Condensed Statement of Changes in Equity
For the six months ended 30 June 2009
+---------------------------------+----------+-------------+-------------+---------------+-------------+
| | Share | Special | Reserve | Retained | |
| | | | for | | |
+---------------------------------+----------+-------------+-------------+---------------+-------------+
| | premium | reserve | own | earnings | Total |
| | | | shares | | |
+---------------------------------+----------+-------------+-------------+---------------+-------------+
| | US$ | US$ | US$ | US$ | US$ |
+---------------------------------+----------+-------------+-------------+---------------+-------------+
| | | | | | |
+---------------------------------+----------+-------------+-------------+---------------+-------------+
| Balance at 1 Jan 2009 | - | 734,848,391 | (7,247,687) | (203,542,532) | 524,058,172 |
+---------------------------------+----------+-------------+-------------+---------------+-------------+
| Gain for the period | - | - | - | 23,480,901 | 23,480,901 |
+---------------------------------+----------+-------------+-------------+---------------+-------------+
| Other comprehensive income | - | - | - | - | - |
+---------------------------------+----------+-------------+-------------+---------------+-------------+
| Total comprehensive income | | | | | |
+---------------------------------+----------+-------------+-------------+---------------+-------------+
| for the period | - | - | - | 23,480,901 | 23,480,901 |
+---------------------------------+----------+-------------+-------------+---------------+-------------+
| | | | | | |
+---------------------------------+----------+-------------+-------------+---------------+-------------+
| Transactions with owners, | | | | | |
+---------------------------------+----------+-------------+-------------+---------------+-------------+
| recorded directly in equity | | | | | |
+---------------------------------+----------+-------------+-------------+---------------+-------------+
| Repurchase of own shares | - | - | (2,564,604) | - | (2,564,604) |
+---------------------------------+----------+-------------+-------------+---------------+-------------+
| Total transactions with owners | - | - | (2,564,604) | - | (2,564,604) |
+---------------------------------+----------+-------------+-------------+---------------+-------------+
| | | | | | |
+---------------------------------+----------+-------------+-------------+---------------+-------------+
| Balance at 30 Jun 2009 | - | 734,848,391 | (9,812,291) | (180,061,631) | 544,974,469 |
+---------------------------------+----------+-------------+-------------+---------------+-------------+
Unaudited Condensed Statement of Changes in Equity
For the period from 21 June 2007 (date of incorporation) to 30 June 2008
+---------------------------------+---------------+-------------+----------+-----------+-------------+
| | Share | Special | Reserve | Retained | |
| | | | for | | |
+---------------------------------+---------------+-------------+----------+-----------+-------------+
| | premium | reserve | own | earnings | Total |
| | | | shares | | |
+---------------------------------+---------------+-------------+----------+-----------+-------------+
| | US$ | US$ | US$ | US$ | US$ |
+---------------------------------+---------------+-------------+----------+-----------+-------------+
| | | | | | |
+---------------------------------+---------------+-------------+----------+-----------+-------------+
| Gain for the period | - | - | - | 8,706,606 | 8,706,606 |
+---------------------------------+---------------+-------------+----------+-----------+-------------+
| Other comprehensive income | - | - | - | - | - |
+---------------------------------+---------------+-------------+----------+-----------+-------------+
| Total comprehensive income | | | | | |
+---------------------------------+---------------+-------------+----------+-----------+-------------+
| for the period | - | - | - | 8,706,606 | 8,706,606 |
+---------------------------------+---------------+-------------+----------+-----------+-------------+
| | | | | | |
+---------------------------------+---------------+-------------+----------+-----------+-------------+
| Transactions with owners, | | | | | |
+---------------------------------+---------------+-------------+----------+-----------+-------------+
| recorded directly in equity | | | | | |
+---------------------------------+---------------+-------------+----------+-----------+-------------+
| Issue of ordinary shares | 734,848,352 | - | - | - | 734,848,352 |
+---------------------------------+---------------+-------------+----------+-----------+-------------+
| Transfer to special reserve | (734,848,352) | 734,848,352 | - | - | - |
+---------------------------------+---------------+-------------+----------+-----------+-------------+
| Total transactions with owners | - | 734,848,352 | - | - | 734,848,352 |
+---------------------------------+---------------+-------------+----------+-----------+-------------+
| | | | | | |
+---------------------------------+---------------+-------------+----------+-----------+-------------+
| Balance at 30 Jun 2008 | - | 734,848,352 | - | 8,706,606 | 743,554,958 |
+---------------------------------+---------------+-------------+----------+-----------+-------------+
The notes form an integral part of these financial statements.
Unaudited Condensed Statement of Cash Flows
For the six months ended 30 June 2009
+--------------------------------------------------------------+--------------+---------------+
| | 30 Jun | 30 Jun |
| | 2009 | 2008* |
+--------------------------------------------------------------+--------------+---------------+
| | US$ | US$ |
+--------------------------------------------------------------+--------------+---------------+
| Operating activities | | |
+--------------------------------------------------------------+--------------+---------------+
| Gain for the period | 23,480,901 | 8,706,606 |
+--------------------------------------------------------------+--------------+---------------+
| | | |
+--------------------------------------------------------------+--------------+---------------+
| Adjustments for: | | |
+--------------------------------------------------------------+--------------+---------------+
| Interest income | (976,758) | (1,060,009) |
+--------------------------------------------------------------+--------------+---------------+
| Dividend income | (5,369) | (767,013) |
+--------------------------------------------------------------+--------------+---------------+
| | | |
+--------------------------------------------------------------+--------------+---------------+
| Changes in operating assets and liabilities | | |
+--------------------------------------------------------------+--------------+---------------+
| Net (decrease)/increase in accounts payable and accrued | (12,084,644) | 223,831 |
| expenses | | |
+--------------------------------------------------------------+--------------+---------------+
| Net (increase)/decrease in financial assets at fair value | | |
| through profit and | | |
+--------------------------------------------------------------+--------------+---------------+
| loss, excluding derivatives (see note below) | 11,317,100 | (735,643,240) |
+--------------------------------------------------------------+--------------+---------------+
| Net increase in derivative financial instruments | (16,323,770) | (7,141,770) |
+--------------------------------------------------------------+--------------+---------------+
| Cash used in operations | 5,407,460 | (735,681,595) |
+--------------------------------------------------------------+--------------+---------------+
| | | |
+--------------------------------------------------------------+--------------+---------------+
| Interest received | 1,271,446 | 1,058,692 |
+--------------------------------------------------------------+--------------+---------------+
| Dividend received | 5,369 | 767,013 |
+--------------------------------------------------------------+--------------+---------------+
| Cash flows from operating activities | 6,684,275 | (733,855,890) |
+--------------------------------------------------------------+--------------+---------------+
| | | |
+--------------------------------------------------------------+--------------+---------------+
| Financing activities | | |
+--------------------------------------------------------------+--------------+---------------+
| Issue of shares | - | 734,848,352 |
+--------------------------------------------------------------+--------------+---------------+
| Repurchase of own shares | (2,564,604) | - |
+--------------------------------------------------------------+--------------+---------------+
| Cash flows from financing activities | (2,564,604) | 734,848,352 |
+--------------------------------------------------------------+--------------+---------------+
| | | |
+--------------------------------------------------------------+--------------+---------------+
| Net increase in cash and cash equivalents | 4,119,671 | 992,462 |
+--------------------------------------------------------------+--------------+---------------+
| Cash and cash equivalents at beginning of the period | 20,541,728 | - |
+--------------------------------------------------------------+--------------+---------------+
| Cash and cash equivalents at end of the period | 24,661,399 | 992,462 |
+--------------------------------------------------------------+--------------+---------------+
Note: Cash flows from the purchase of these financial assets during the period
amounted to US$38,885,183 (30 June 2008: US$1,351,682,125) and proceeds from the
sale of these financial assets during the period amounted to US$43,500,000 (30
June 2008: US$614,674,522).
* The comparative figures are for the period from 21 June 2007 (date of
incorporation) to 30 June 2008.
The notes form an integral part of these financial statements.
Notes to the Unaudited Condensed Interim Financial Statements
1. Statement of compliance
These unaudited condensed interim financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting. They do not include all of
the information required for full annual financial statements, and should be
read in conjunction with the audited financial statements of the Company as at
and for the year ended 31 December 2008.
These unaudited condensed interim financial statements were approved by the
Board of Directors on 26 August 2009.
2. Significant Accounting Policies
Except for the adoption of new standards and interpretations as of 1 January
2009 as described below, the accounting policies applied by the Company in these
unaudited condensed interim financial statements are the same as those applied
by the Company in its financial statements as at and for the year ended 31
December 2008.
IAS 1 Revised Presentation of Financial Statements
The Company applies revised IAS 1 Presentation of Financial Statements (2007),
which became effective as of 1 January 2009. As a result, the Company presents
in the statement of changes in equity all owner changes in equity, whereas all
non-owner changes in equity are presented in the statement of comprehensive
income. The Company has elected to present the comprehensive income in one
statement. The presentation has been applied in these unaudited condensed
interim financial statements as of and for the six months period ended 30 June
2009.
Comparative information has been re-presented so that it also is in conformity
with the revised standard. Since the change in accounting policy only impacts
presentation aspects, there is no impact on earnings per share.
IFRS 7 Financial Instruments: Disclosures
The amended standard requires additional disclosure about fair value measurement
and liquidity risk. Fair value measurements are to be disclosed by source of
inputs using a three level hierarchy for each class of financial instrument. In
addition, reconciliation between the beginning and ending balance for Level 3
fair value measurements is now required, as well as significant transfers
between Level 1 and Level 2 fair value measurements. The fair value measurement
disclosures are presented in note 9 and the liquidity risk disclosures are not
significantly impacted by the amendments. The amendments also clarify that the
requirements for liquidity risk disclosures are not significantly impacted by
these amendments.
An entity shall classify fair value measurements using a fair value hierarchy
that reflects the significance of the inputs used in making the measurements.
The fair value hierarchy shall have the following levels:
* Level 1: quoted prices (unadjusted) in active markets for identical assets or
liabilities;
* Level 2: inputs other than quoted prices included within Level 1 that are
observable for theasset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices); and
* Level 3: inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
The level in the fair value hierarchy within which the fair value measurement is
categorised in its entirety shall be determined on the basis of the lowest level
input that is significant to the fair value measurement in its entirety. 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.
IFRS 8 Operating Segments
This standard requires disclosure of information about the Company's operating
segments and replaces the requirement to determine primary and secondary
reporting segments of the Company. Adoption of this standard did not have any
affect on the financial position or performance of the Company. The Company is
organised and operates as one segment as the principal focus is on emerging
market strategies, mainly achieved via investments in funds domiciled in Europe.
Consequently, the management deems that segment reporting is not meaningful.
Other new standards, amendments to standards and interpretations that are not
relevant to the Company's operations have not been presented.
3. Financial Assets and Liabilities at fair Value Through Profit or Loss
+------------------------------------------------------+----------------+-------------+
| | 30 Jun | 31 Dec |
| | 2009 | 2008 |
+------------------------------------------------------+----------------+-------------+
| | US$ | US$ |
+------------------------------------------------------+----------------+-------------+
| Financial assets at fair value though profit or | | |
| loss: | | |
+------------------------------------------------------+----------------+-------------+
| Designated as at fair value through profit or loss | | |
| upon initial recognition | | |
+------------------------------------------------------+----------------+-------------+
| Equity investments | 512,848,998 | 482,634,960 |
+------------------------------------------------------+----------------+-------------+
| Debt investments | - | 41,531,138 |
+------------------------------------------------------+----------------+-------------+
| | 512,848,998 | 524,166,098 |
+------------------------------------------------------+----------------+-------------+
| Held for trading | | |
+------------------------------------------------------+----------------+-------------+
| Derivative financial instruments | 9,521,795 | 21,892,928 |
+------------------------------------------------------+----------------+-------------+
| Total financial assets at fair value through profit | 522,370,793 | 546,059,026 |
| or loss | | |
+------------------------------------------------------+----------------+-------------+
| | | |
+------------------------------------------------------+----------------+-------------+
| Financial liabilities at fair value though profit or | | |
| loss: | | |
+------------------------------------------------------+----------------+-------------+
| Held for trading | | |
+------------------------------------------------------+----------------+-------------+
| Derivative financial instruments | - | 28,694,903 |
+------------------------------------------------------+----------------+-------------+
| Total financial liabilities at fair value through | - | 28,694,903 |
| profit or loss | | |
+------------------------------------------------------+----------------+-------------+
Derivative financial instruments comprise forward foreign currency contracts
entered into mainly for the purpose of managing currency risks arising on the EUR
share class and the GBP share class.
4. Capital and Reserves
Following an average negative daily net asset value variance by greater than 10%
over a rolling 365 day period to 16 February 2009, an extraordinary general
meeting of shareholders was held on 5 May 2009 to consider the resolution for
the voluntary wind up of the Company, with 80% of the votes cast against the
winding up of the Company.
In addition to the obligation to consider voluntary wind up upon occurrence of
average negative net asset value variance of greater than 10% of discount over
365 days, existing discount control measures include share repurchases. The
following share repurchases were made for the six months ended 30 June 2009:
+----------------------+-------------+-------------------+-------+---------------+
| | | Number of shares | | Consideration |
| | | repurchased | | in US$ |
+----------------------+-------------+-------------------+-------+---------------+
| US$ share class | | 74,749 | | 433,060 |
+----------------------+-------------+-------------------+-------+---------------+
| EUR share class | | 160,000 | | 1,298,275 |
+----------------------+-------------+-------------------+-------+---------------+
| GBP share class | | 96,355 | | 833,269 |
+----------------------+-------------+-------------------+-------+---------------+
| | | | | 2,564,604 |
+----------------------+-------------+-------------------+-------+---------------+
A total of 1,100,742 shares were held in Treasury by the Company as at 30 June
2009 (31 December 2008: 769,638 shares).
An additional discount control measure of making an annual capital return to
shareholders is expected to be proposed at the Company's 2009 annual general
meeting. Any such capital return will be determined by the Board prior to the
announcement of the full year's results to 31 December 2009. The Board will
consider a number of factors including current market conditions and the
availability of liquid resources. The amount of capital returned may represent
up to 50% of the positive NAV performance of the Company for the financial year.
Net Asset Value
The net asset value of each US$, EUR and GBP share is determined by dividing the
net assets of the Company attributed to the US$, EUR and GBP share classes by the
number of US$, EUR, and GBP shares in issue at the period end as follows:
+--------------+---------------------+--------------+-------------+--------------+
| As at 30 Jun | Net assets | | Net assets | Net assets |
| 2009 | attributable to | | per share | per share |
| | each | | | |
+--------------+---------------------+--------------+-------------+--------------+
| | share class in US$ | Shares in | in US$ | in local |
| | | issue | | currency |
+--------------+---------------------+--------------+-------------+--------------+
| US$ Share | 201,371,564 | 23,807,656 | 8.46 | 8.46 |
+--------------+---------------------+--------------+-------------+--------------+
| EUR Share | 82,749,820 | 7,134,964 | 11.60 | 8.27 |
+--------------+---------------------+--------------+-------------+--------------+
| GBP Share | 260,853,085 | 18,864,638 | 13.83 | 8.40 |
+--------------+---------------------+--------------+-------------+--------------+
| | 544,974,469 | 49,807,258 | | |
+--------------+---------------------+--------------+-------------+--------------+
| | | | | |
+--------------+---------------------+--------------+-------------+--------------+
| | | | | |
+--------------+---------------------+--------------+-------------+--------------+
| As at 31 Dec | Net assets | | Net assets | Net assets |
| 2008 | attributable to | | per share | per share |
| | each | | | |
+--------------+---------------------+--------------+-------------+--------------+
| | share class in US$ | Shares in | in US$ | in local |
| | | issue | | currency |
+--------------+---------------------+--------------+-------------+--------------+
| US$ Share | 193,096,358 | 22,498,352 | 8.58 | 8.58 |
+--------------+---------------------+--------------+-------------+--------------+
| EUR Share | 118,382,229 | 10,082,531 | 11.74 | 8.45 |
+--------------+---------------------+--------------+-------------+--------------+
| GBP Share | 212,579,585 | 17,340,023 | 12.26 | 8.53 |
+--------------+---------------------+--------------+-------------+--------------+
| | 524,058,172 | 49,920,906 | | |
+--------------+---------------------+--------------+-------------+--------------+
| | | | | |
+--------------+---------------------+--------------+-------------+--------------+
| | | | | |
+--------------+---------------------+--------------+-------------+--------------+
6. Gains and Losses from Financial Assets and Liabilities
The following table details the gains and losses from financial assets and
liabilities at fair value through profit or loss:
+--------------------------------------------------------+-------------+-------------+
| | 30 Jun | 30 Jun |
| | 2009 | 2008 |
+--------------------------------------------------------+-------------+-------------+
| Net realised gain/(loss) | US$ | US$ |
+--------------------------------------------------------+-------------+-------------+
| Designated at fair value through profit or loss: | | |
+--------------------------------------------------------+-------------+-------------+
| -Equity investments | (7,767,707) | 2,441,241 |
+--------------------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------------------+-------------+-------------+
| Held for trading: | | |
+--------------------------------------------------------+-------------+-------------+
| -Derivative financial instruments | 15,562,447 | 2,125,428 |
+--------------------------------------------------------+-------------+-------------+
| Net realised gain on financial assets and liabilities | | |
| at fair | | |
+--------------------------------------------------------+-------------+-------------+
| value through profit or loss | 7,794,740 | 4,566,669 |
+--------------------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------------------+-------------+-------------+
| Net change in unrealised gain/(loss) | | |
+--------------------------------------------------------+-------------+-------------+
| Designated at fair value through profit or loss: | | |
+--------------------------------------------------------+-------------+-------------+
| -Equity investments | 1,065,424 | (3,805,604) |
+--------------------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------------------+-------------+-------------+
| Held for trading: | | |
+--------------------------------------------------------+-------------+-------------+
| -Derivative financial instruments | 16,323,765 | 7,141,771 |
+--------------------------------------------------------+-------------+-------------+
| Net unrealised gain on financial assets and | | |
| liabilities at fair | | |
+--------------------------------------------------------+-------------+-------------+
| value through profit or loss | 17,389,189 | 3,336,167 |
+--------------------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------------------+-------------+-------------+
7. Earnings Per Share (EPS)
The calculation of the earnings per GBP, EUR and US$ share is based on the loss
for the period attributable to GBP, EUR and US$ shareholders and the respective
weighted average number of shares in issue for each share class during the
period.
Gain/(loss) attributable to each share class as at 30 June 2009:
+---------------------------------------------+-------------+-------------+------------+
| | US$ Share | EUR Share | GBP Share |
+---------------------------------------------+-------------+-------------+------------+
| Gain/(loss) per share class (US$) | (3,132,124) | (2,738,959) | 29,351,984 |
+---------------------------------------------+-------------+-------------+------------+
| Weighted average number of shares | 23,342,055 | 8,424,234 | 18,044,137 |
+---------------------------------------------+-------------+-------------+------------+
| EPS per share class | (0.13) | (0.33) | 1.63 |
+---------------------------------------------+-------------+-------------+------------+
| | | | |
+---------------------------------------------+-------------+-------------+------------+
| | | | |
+---------------------------------------------+-------------+-------------+------------+
| Weighted average number of shares: | | | |
+---------------------------------------------+-------------+-------------+------------+
| Issued shares at the beginning of period | 22,498,352 | 10,082,531 | 17,340,023 |
+---------------------------------------------+-------------+-------------+------------+
| Effect of own shares held | (61,592) | (148,400) | (81,262) |
+---------------------------------------------+-------------+-------------+------------+
| Effect of share conversion | 905,295 | (1,509,897) | 785,376 |
+---------------------------------------------+-------------+-------------+------------+
| Weighted average number of shares at end of | 23,342,055 | 8,424,234 | 18,044,137 |
| period: | | | |
+---------------------------------------------+-------------+-------------+------------+
Gain/(loss) attributable to each share class as at 30 June 2008:
+---------------------------------------------+------------+------------+-------------+
| | US$ Share | EUR Share | GBP Share |
+---------------------------------------------+------------+------------+-------------+
| Gain/(loss) per share class (US$) | (315,047) | 9,162,529 | (2,524,593) |
+---------------------------------------------+------------+------------+-------------+
| Weighted average number of shares | 23,437,371 | 12,182,889 | 15,735,059 |
+---------------------------------------------+------------+------------+-------------+
| EPS per share class | (0.01) | 0.75 | (0.16) |
+---------------------------------------------+------------+------------+-------------+
| | | | |
+---------------------------------------------+------------+------------+-------------+
| | | | |
+---------------------------------------------+------------+------------+-------------+
| Weighted average number of shares: | | | |
+---------------------------------------------+------------+------------+-------------+
| Issued shares at the beginning of period | 23,437,371 | 12,182,889 | 15,735,059 |
+---------------------------------------------+------------+------------+-------------+
| Effect of own shares held | - | - | - |
+---------------------------------------------+------------+------------+-------------+
| Effect of share conversion | - | - | - |
+---------------------------------------------+------------+------------+-------------+
| Weighted average number of shares at end of | 23,437,371 | 12,182,889 | 15,735,059 |
| period: | | | |
+---------------------------------------------+------------+------------+-------------+
There were no dilutive instruments in issue during both periods under review.
8. Financial Instruments and Associated Risks
The Company's investing activities may expose it to various types of risk that
are associated with the financial instruments and markets in which it invests.
In general, financial risks to which the Company is exposed are market risk,
credit risk and liquidity risk. Market risk includes price risks, interest rate
risk and currency risk.
The nature and extent of the financial instruments outstanding at the balance
sheet date and the risk management policies employed by the Company are
discussed below.
Market risks
The majority of the Company's financial instruments are recognised at fair
value, and changes in market conditions may directly affect net investment
income. Price risk is the risk that the value of these securities will fluctuate
as a result of changes in interest rates, foreign currency exchange rates,
investment risks, general economic conditions and equities risks.
The Company's strategy on the management of investment risk is driven by the
Company's investment objective. The Company intends primarily to invest in funds
managed by the Investment Manager ("Ashmore Funds") with a principal focus on
special situations. The Company may also invest (or co-invest alongside Ashmore
Funds and/or others when appropriate) in direct investments and, on a limited
basis, third party funds. Accordingly, in order to achieve a principal focus on
special situations over time, a significant proportion of the net proceeds may
be invested in Ashmore Global Special Situations Funds.
The Company's market risk is managed on a daily basis by the Investment Manager
in accordance with policies and procedures in place. The Company is managed in
accordance with the investment restrictions described in the prospectus. These
restrictions are intended to ensure that the investments of the Company are
appropriately diversified.
Details of the Company's investment portfolio at the balance sheet date are
disclosed in the Schedule of Investments.
Currency risk
Although the majority of the Company's investments are denominated in US$, the
Company may invest in financial instruments denominated in currencies other than
its functional currency. Consequently, the Company is exposed to risks that the
exchange rate of its currency relative to other foreign currencies may change in
a manner that has an adverse effect on the value of that portion of the
Company's assets or liabilities denominated in currencies other than the US$.
When appropriate, currency exposures are hedged by the Investment Manager by
reference to the most recent Net Asset Value of the underlying investment funds
via the use of forward foreign currency contracts.
As at the balance sheet date, the Company is not exposed to any significant
currency risk arising on the financial assets and liabilities. However, the
Company has put in place hedging mechanisms to hedge the currency risk arising
on the EUR share class and GBP share class.
The shares in the Company are denominated in US$, EUR and GBP. The base currency
is the US dollar, and therefore non-US dollar subscription monies for shares
will be converted to US dollars for operational purposes. The costs and any
benefit of hedging the foreign currency exposure of the assets attributable to
the shares denominated in Euros and Sterling from the US dollar will be
allocated solely to the relevant class of shares. This may result in variations
in the net asset value of the three classes of shares as expressed in US dollar.
As at 30 June 2009 the effect of the Company's hedge on the EUR share class and
GBP share class is as follows (in US$):
+-----------------------------------------------------+-------------+-------------+
| | EUR share | GBP share |
+-----------------------------------------------------+-------------+-------------+
| Currency exposure of non-US$ share class | 82,749,820 | 260,853,085 |
+-----------------------------------------------------+-------------+-------------+
| Effect of currency hedge | 83,156,776 | 256,620,530 |
+-----------------------------------------------------+-------------+-------------+
| Net foreign currency exposure | (406,956) | 4,232,555 |
+-----------------------------------------------------+-------------+-------------+
As at 31 December 2008 the effect of the Company's hedge on the EUR share class
and GBP share class is as follows (in US$):
+-----------------------------------------------------+-------------+--------------+
| | EUR share | GBP share |
+-----------------------------------------------------+-------------+--------------+
| Currency exposure of non-US$ share class | 118,382,229 | 212,579,585 |
+-----------------------------------------------------+-------------+--------------+
| Effect of currency hedge | 110,154,384 | 232,794,008 |
+-----------------------------------------------------+-------------+--------------+
| Net foreign currency exposure | 8,227,845 | (20,214,423) |
+-----------------------------------------------------+-------------+--------------+
A sensitivity analysis of currency risk is not meaningful as the significant
currency exposure arises from non-US$ denominated share classes, for which
appropriate hedging mechanisms have been put in place.
Interest rate risk
As at 30 June 2009, the Company's exposure to interest rate risk is limited to
cash and cash equivalents as the Company's investment portfolio is composed only
of non-interest bearing assets and none of the liabilities are interest-bearing.
Credit risk
Credit risk is the risk that the counterparty to a financial instrument will
fail to discharge an obligation or commitment that it has entered into with the
Company. Credit risk is generally higher when a non exchange-traded financial
instrument is involved, because the counterparty is not backed by an exchange
clearing house.
The carrying amounts of financial assets best represent the maximum credit risk
exposure at the balance sheet date.
At the reporting date, the Company's financial assets exposed to credit risk
amounted to the following:
+------------------------------------------------+--------------+--------------+
| | 30 Jun 2009 | 31 Dec 2008 |
+------------------------------------------------+--------------+--------------+
| | US$ | US$ |
+------------------------------------------------+--------------+--------------+
| Debt investment | - | 41,531,138 |
+------------------------------------------------+--------------+--------------+
| Cash and cash equivalents | 24,661,399 | 20,541,728 |
+------------------------------------------------+--------------+--------------+
| Other receivables | - | 294,688 |
+------------------------------------------------+--------------+--------------+
| | 24,661,399 | 62,367,554 |
+------------------------------------------------+--------------+--------------+
Credit risk arising on transactions with brokers relates to transactions
awaiting settlement. Risk relating to unsettled transactions is considered small
due to the short settlement period involved and since these are typically
delivered versus payment. In addition, the Company monitors the credit rating
and the financial positions of the brokers used to further mitigate this risk.
Substantially all of the assets, including cash, of the Company are held by
Northern Trust (Guernsey) Limited. Bankruptcy or insolvency of the Custodian may
cause the Company's rights with respect to securities held by the Custodian to
be delayed or limited. The Company monitors its risk by monitoring the credit
quality and financial positions of the Custodian that the Company uses.
The Company analyses credit concentration based on the counterparties of the
financial assets that the Company holds.
Liquidity risk
The Company is not exposed to liquidity risk arising from redemptions at
shareholders' discretion as the shares issued are non-redeemable.
In accordance with the investment objective, a significant proportion of the
Company's investments are focused on special situations via investments in
unlisted funds and other equity instruments. As a result, in certain
circumstances, the Company may not be able to quickly liquidate its investments
in these instruments.
Residual maturities of financial liabilities in US$ is as follows:
+------------------------------------------------+--------------+--------------+
| | Less than 3 | Less than 3 |
| | months | months |
+------------------------------------------------+--------------+--------------+
| | 30 Jun 2009 | 31 Dec 2008 |
+------------------------------------------------+--------------+--------------+
| | US$ | US$ |
+------------------------------------------------+--------------+--------------+
| Derivative financial instruments | - | 28,694,903 |
+------------------------------------------------+--------------+--------------+
| Due to brokers | - | 13,327,067 |
+------------------------------------------------+--------------+--------------+
| Accrued expenses | 2,057,723 | 815,300 |
+------------------------------------------------+--------------+--------------+
| | 2,057,723 | 42,837,270 |
+------------------------------------------------+--------------+--------------+
9.Fair Value Disclosures
The following tables present the assets and liabilities that are measured at
fair value on a recurring basis as at 30 June 2009 and 31 December 2008.
+----------------------+-----------+--------------+-----------------+-------------+
| | Assets and Liabilities at Fair value as at 30 June 2009 |
+----------------------+----------------------------------------------------------+
| | Level 1 | Level 2 | Level 3 | Total |
+----------------------+-----------+--------------+-----------------+-------------+
| Equity investments | - | 4,039,482* | 508,809,516 | 512,848,998 |
| designated at fair | | | | |
| value through profit | | | | |
| or loss | | | | |
+----------------------+-----------+--------------+-----------------+-------------+
| Derivative assets | - | 9,521,795 | - | 9,521,795 |
| held for trading | | | | |
+----------------------+-----------+--------------+-----------------+-------------+
| | - | 13,561,277 | 508,809,516 | 522,370,793 |
+----------------------+-----------+--------------+-----------------+-------------+
| | | | | |
+----------------------+-----------+--------------+-----------------+-------------+
+----------------------+-----------+--------------+-----------------+--------------+
| | Assets and Liabilities at Fair value as at 31 December |
| | 2008 |
+----------------------+-----------------------------------------------------------+
| | Level 1 | Level 2 | Level 3 | Total |
+----------------------+-----------+--------------+-----------------+--------------+
| Equity investments | - | 34,112* | 482,600,848 | 482,634,960 |
| designated at fair | | | | |
| value through profit | | | | |
| or loss | | | | |
+----------------------+-----------+--------------+-----------------+--------------+
| Debt investments | - | - | 41,531,138 | 41,531,138 |
| designated at fair | | | | |
| value through profit | | | | |
| or loss | | | | |
+----------------------+-----------+--------------+-----------------+--------------+
| Derivative assets | - | 21,892,928 | - | 21,892,928 |
| held for trading | | | | |
+----------------------+-----------+--------------+-----------------+--------------+
| Derivatives | - | (28,694,903) | - | (28,694,903) |
| liabilities held for | | | | |
| trading | | | | |
+----------------------+-----------+--------------+-----------------+--------------+
| | - | (6,767,863) | 524,131,986 | 517,364,123 |
+----------------------+-----------+--------------+-----------------+--------------+
| | | | | |
+----------------------+-----------+--------------+-----------------+--------------+
* Level 2 Investment includes Ashmore Sicav 2 Global Liquidity US$ Fund, which
is a money market fund with daily NAV of US$1.
The following table includes a roll forward of the amounts for the period ended
30 June 2009 for assets measured at fair value on a recurring basis classified
within Level 3.
+------------------------------+-----------------+
| Fair Value Measurements using Level 3 inputs |
+------------------------------------------------+
| | Investments |
+------------------------------+-----------------+
| Balance as at 31 December | 524,131,986 |
| 2008 | |
+------------------------------+-----------------+
| Net Purchases and Sales | (8,620,187) |
+------------------------------+-----------------+
| Gain/(Losses): | |
+------------------------------+-----------------+
| Realised | (7,767,707) |
+------------------------------+-----------------+
| Unrealised | 1,065,424 |
+------------------------------+-----------------+
| | |
+------------------------------+-----------------+
| Balance as at 30 June 2009 | 508,809,516 |
+------------------------------+-----------------+
During the six month period ended 30 June 2009, there were no transfers between
Level 1 and Level 2 fair value measurements, and no transfer into and out of
Level 3 for fair value measurements. Gains and losses for the period are
presented as net realised/unrealised gains on financial assets and liabilities
at fair value through profit or loss in the condensed statement of comprehensive
income.
10. Related party
Ultimate controlling party
In the opinion of the Directors on the basis of shareholdings advised to them,
the Company has no ultimate controlling party.
Related party transactions
During the period, the Company engaged in the following related party
transactions:
+------------------------------+----------------------+-------------+-------------+
| 30 June 2009 | | Income | Receivable/ |
+------------------------------+----------------------+-------------+-------------+
| | | (Expense) | (Payable) |
+------------------------------+----------------------+-------------+-------------+
| Related Party | Nature | US$ | US$ |
+------------------------------+----------------------+-------------+-------------+
| Ashmore Investment | Management fees | (842,192) | (226,301) |
| Management Limited | (net) | | |
+------------------------------+----------------------+-------------+-------------+
| | Incentive fees | (1,190,123) | (1,435,270) |
+------------------------------+----------------------+-------------+-------------+
| | Promotional fees | (98,712) | (97,694) |
+------------------------------+----------------------+-------------+-------------+
| | | | |
+------------------------------+----------------------+-------------+-------------+
| Board of directors | Directors' fees | (157,552) | (43,350) |
+------------------------------+----------------------+-------------+-------------+
| | | | |
+------------------------------+----------------------+-------------+-------------+
| | | | |
+------------------------------+----------------------+-------------+-------------+
| | | Income | Receivable/ |
+------------------------------+----------------------+-------------+-------------+
| 30 June 2008 | | (Expense) | (Payable) |
+------------------------------+----------------------+-------------+-------------+
| | Nature | US$ | US$ |
+------------------------------+----------------------+-------------+-------------+
| Related Party | | | |
+------------------------------+----------------------+-------------+-------------+
| Ashmore Investment | Management fees | 565,867 | 67,127 |
| Management Limited | (net) | | |
+------------------------------+----------------------+-------------+-------------+
| | Incentive fees | - | - |
+------------------------------+----------------------+-------------+-------------+
| | Promotional fees | (112,346) | (61,904) |
+------------------------------+----------------------+-------------+-------------+
| | | | |
+------------------------------+----------------------+-------------+-------------+
| Board of directors | Directors' fees | (266,691) | (31,422) |
+------------------------------+----------------------+-------------+-------------+
| | | | |
+------------------------------+----------------------+-------------+-------------+
The annual Directors' fees comprise GBP70,000 per annum to Mr. Agnew, the
Chairman, GBP30,000 each per annum to Mr. Grunebaum, Mr. de la Rue, Mr. Dell and
Mr. Roper. Mr. Dell's fee is paid to Ashmore Investment Management Limited.
11. Commitment
The Company has committed to invest US$ 50,000,000 in Ashmore Global Special
Situations Fund 5 LP, of which US$25,000,000 is outstanding as at 30 June 2009.
12. Subsequent Events
Share Conversions
The Company's Articles incorporate provisions to enable Shareholders of any one
class of Shares to convert all or part of their holding into any other class of
Shares on a quarterly basis after the relevant "NAV Calculation Date". This
provision was taken up after the June "NAV Calculation Date" following Board
approval which resulted in a decrease in the number of US$ Class shares and EUR
Class shares of 82,000 and 1,312,352 shares respectively, and an increase of
1,150,602 GBP Class shares of no par value. The EUR Class and US$ Class shares (of
no par value) were cancelled and the GBP Class shares were issued with effect 20
July 2009.
Ashmore Global Special Situations Fund 5 - Drawdown
A further drawdown was called of $12,500,000 on 05 August 2009, with a value
date of 19 August 2009, bringing the total amount drawndown to 75% of the
US$50,000,000 committed amount.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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