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 2016
This announcement replaces the
announcement released on 26 August
2016 and the only change being the correction of the date of
approval from 25 August 2016 to
26 August 2016.
The financial information set out in this announcement does not
constitute the Company's statutory accounts for the six months
ended 30 June 2016. All figures are
based on the unaudited financial statements for the six months
ended 30 June 2016.
The financial information for the six months ended 30 June 2016 is derived from the financial
statements delivered to the UK Listing Authority.
The announcement is prepared on the same basis as will be set
out in the interim accounts.
The Interim Report and Unaudited Condensed Interim Financial
Statements for the six months ended 30 June
2016 will be available on the Company website:
www.agol.com.
Financial Highlights
|
|
30 June
2016 |
|
31
December 2015 |
|
|
|
|
|
Total Net Assets |
|
US$55,970,397 |
|
US$75,649,932 |
|
|
|
|
|
Net Asset Value per
Share |
|
|
|
|
US$ shares |
|
US$5.17 |
|
US$5.06 |
£ shares |
|
£5.03 |
|
£4.98 |
|
|
|
|
|
Closing-Trade Share
Price |
|
|
|
|
US$ shares |
|
US$3.43 |
|
US$3.86 |
£ shares |
|
£3.78 |
|
£3.82 |
|
|
|
|
|
Discount to Net Asset
Value |
|
|
|
|
US$ shares |
|
(33.66)% |
|
(23.72)% |
£ shares |
|
(24.85)% |
|
(23.29)% |
Chairman’s Statement
The Company’s Net Asset Values (“NAVs”) per share rose to
US$5.17 and £5.03 as at 30 June 2016, up from US$5.06 and £4.98 respectively as at 31 December 2015. The share prices stood at
US$3.43 and £3.78 as at 30 June 2016, decreases of 11.14% and 1.05%
respectively compared with 31 December
2015 levels. The main contributor to performance was a
mark-up in the value of AEI. Further details on the underlying
exposure of the Company are given in the Investment Manager’s
Report.
There were no new realisations during the reporting period,
although in April 2016 the Company
did receive a payment resulting from the April 2015 sale of Pacnet. The final payment
related to this transaction remains outstanding and is scheduled
for November 2016. The Investment
Manager is working towards the sale of the remaining assets, with a
particular focus on the three largest exposures of the Company,
namely; Bedfordbury, Microvast and AEI. Your Board receives regular
updates on progress with the sales. The recent development at
Bedfordbury, as detailed in the Investment Manager’s Report, is
likely to delay the realisation of this asset for some time. It now
seems unlikely that there will be any more significant realisations
in 2016 apart from the final payment for Pacnet. In spite of
that, the Board remains confident that other realisations are
likely to occur during 2017.
The Company paid distributions of US$16.2
million in January 2016 and
US$2.5 million in April 2016. The first was principally proceeds
from the sale of one of the two remaining AEI power plants, while
the second was a combination of the Pacnet payment and some
dividends received. With no further income received in Q2 2016,
there was no Q2 distribution. Below is an overview of the
distributions made since February
2013 when Shareholders voted to wind up the Company in an
orderly fashion.
Quarterly
Distributions |
|
|
|
|
|
|
|
Quarter End Date |
Distributions |
% of 31
December 2012 |
% of 31
December 2012 |
|
(US$) |
NAV |
Market
Capitalisation |
31 March 2013 |
92,500,000 |
19% |
28% |
30 June 2013 |
13,000,000 |
3% |
4% |
30 September 2013 |
26,000,000 |
5% |
8% |
31 December 2013 |
36,900,000 |
8% |
11% |
31 March 2014 |
- |
- |
- |
30 June 2014 |
7,250,000 |
2% |
2% |
30 September 2014 |
21,500,000 |
5% |
7% |
31 December 2014 |
40,500,000 |
8% |
12% |
31 March 2015 |
19,500,000 |
4% |
6% |
30 June 2015 |
27,250,000 |
6% |
8% |
30 September 2015 |
- |
- |
- |
31 December 2015 |
16,200,000 |
3% |
5% |
31 March 2016 |
2,500,000 |
0% |
1% |
30 June 2016 |
- |
- |
- |
|
|
|
|
Total |
300,600,000 |
63% |
92% |
As at 30 June 2016, the NAV of the
Company was US$56.0 million. The
Board continues to monitor the operating expenses of the Company.
In this light, the Board will carry out another review of the costs
and benefits of the Company’s London Stock Exchange listing later
this year.
I would like to thank everyone involved with AGOL for their hard
work.
Richard Hotchkis
26 August 2016
Investment Manager’s Report
Performance
As at 30 June 2016, the Net Asset
Values (“NAVs”) per share of the US$ and £ share classes stood at
US$5.17 and £5.03 respectively,
representing returns of 2.17% and 1.00% over the six months to
30 June 2016.
Portfolio Review
Following the payment of a US$16.2m distribution based on the 31 December 2015 NAV, Ashmore Global
Opportunities Limited (“AGOL”) returned a further US$2.5m to investors based on cash flows received
during the six months ended 30 June
2016. This distribution resulted from cash received as part
of the earlier sale of Pacnet. Although there were no new
realisations at the investee company level during the period,
performance was positive in the main driven by an uplift in the
value of AEI.
The three largest investee company exposures, namely;
Bedfordbury, AEI and Microvast, now account for around 70% of
AGOL’s NAV.
We have exchanged letters before action with Bedfordbury
Development Corporation’s partner in the land bank. Unless a
settlement can be reached we expect the process to go to
arbitration which will take approximately 18 months to finish but
the timing may change. This process is expected to push back the
realisation of this asset, until either a settlement is reached
allowing the Ashmore funds to exit or the arbitration process is
completed. The asset is valued at a discount to its market value to
reflect the uncertainties of legal processes. However given the
potential value of the asset this litigation strategy is important
to preserve value and help in the realisation process.
AEI achieved a significant premium over book value for its sale
of the Fenix power plant in Peru in December
2015. This had knock on effects on the revaluation of AEI
during the period and contributed to the uplift in valuation. AEI
is now working on the sales process for Jaguar, the coal fired
power plant in Guatemala.
Microvast continues to perform well, and operating cash flow has
been used to fund production capacity increases, with further
capacity increases planned. Follow-on battery orders continue to be
received for both pure e-bus and plug-in hybrid-electric vehicles.
Microvast’s audited revenues were US$174m for FY 2015, a 300% year-on-year
increase.
Kulon is the holding company for a warehouse and office complex
near the centre of Moscow. The strengthening Ruble means that
rental income has grown in US dollar terms but so have operating
expenses.
Numero Uno is one of India’s leading jeanswear brands with over
700 retail outlets throughout India. The company offers a
comprehensive portfolio of products including jeanswear, casual
wear, footwear & accessories for both men and women. Over the
past year, online sales of garments in India have grown
substantially, driven by discounts funded by venture capital firms
aggressively targeting market share for their e-commerce
businesses. This has made traditional brick and mortar retail more
challenging, but despite this, Numero Uno performed well during the
period and continued to grow both revenues and profit. It has also
expanded and consolidated its manufacturing unit and moved into a
new headquarters. The team continues to explore the most attractive
exit options.
ZIM Laboratories is engaged in the research and manufacture of a
wide range of off-patent (generic) pharmaceutical products, the
value of which is enhanced via new drug delivery mechanisms. ZIM
achieved a milestone by becoming EU-GMP (European Union Good
Manufacturing Practices) compliant; a certification that allows it
to sell its products in Europe and eases its entry into many other
markets. The company is registering its products in several new
markets to diversity its revenue base and is continuously
substituting its lower margin products with more attractive higher
margin products. ZIM is focussed on producing more of its own
branded drugs where its margins are significantly enhanced.
The backdrop for Largo remains challenging, although the price
for vanadium pentoxide rebounded to
US$
3.20-3.50/lb from a historic low of less than US$3/lb earlier in the year. The company
continued to ramp up production in Q2 2016.
GZI (the Nigerian aluminium can producer) progressed with its
African growth strategy during the period, and the second plant in
Nigeria is now operational. The macro backdrop in Nigeria remains
challenging following the FX devaluation, but volume sales at GZI
have hit record highs: It continued to deliver to customers
reliably during the period and clients built up stock prior to the
devaluation.
Outlook
The focus remains on realising AGOL's remaining investments in
an orderly manner.
Details on the Top 10 Underlying Holdings (on a look through
basis)
The table below shows the top 10 underlying investments as at
30 June 2016 excluding the cash
balance (cash was 4.05% as at 30 June
2016).
Investment
Name |
Holding |
|
|
Country |
Business
Description |
Bedfordbury |
35.66% |
|
|
Philippines |
Real estate
development company |
AEI |
19.68% |
|
|
Guatemala |
Power generation in
Latin America |
Microvast |
15.79% |
|
|
China |
Electric battery and
battery systems supplier |
Kulon |
6.97% |
|
|
Russia |
Real estate
development company |
Numero Uno |
4.66% |
|
|
India |
Branded apparel
manufacturers and retailers |
ZIM Laboratories
Ltd |
3.24% |
|
|
India |
Pharmaceutical
research and manufacturing |
Everbright |
2.54% |
|
|
China |
Real estate
development company |
Largo Resources |
1.93% |
|
|
Brazil |
Brazilian provider of
mining services |
GZ Industries Ltd |
1.67% |
|
|
Nigeria |
Aluminium can
manufacturer |
Seedinfo |
0.91% |
|
|
India |
Enterprise software
company |
The tables below show the country and industry allocations of
underlying investments over 1% at the end of June 2016:
Country |
% of
NAV |
|
Industry |
% of
NAV |
Philippines |
35.66% |
|
Real Estate |
43.91% |
Guatemala |
19.68% |
|
Electrical |
19.68% |
China |
18.60% |
|
Electrical Components
and Equipment |
15.79% |
India |
9.73% |
|
Retail |
4.66% |
Russia |
6.97% |
|
Pharmaceuticals |
3.24% |
Brazil |
1.93% |
|
Mining |
1.93% |
Nigeria |
1.67% |
|
Miscellaneous
Manufacturing |
1.67% |
|
|
|
|
|
Details on a Selection of the
Underlying Holdings
Bedfordbury
Industry: Real estate development company
Country: Philippines
Website: n/a
Company Status: Private
Investment Risk: Equity
Exit strategy and timing
- Ashmore and Bedfordbury Development Corporation staff are
continuing to develop exit ideas for the large scale ABC
development land bank in Manila Bay.
- We have initiated Singapore arbitration proceedings against
BDC’s partner in the land bank. We expect the process to take
approximately 18 months to finish but the timing may change.
Microvast
Industry: Electric battery and battery systems
supplier
Country: China
Website: www.microvast.com
Company Status: Private
Investment Risk: Equity
Operational update
- Microvast continues to supply batteries for both pure e-bus and
plug-in hybrid-electric vehicles (PHEV) to a large number of
Chinese original equipment manufacturers (OEMs), with these being
deployed in over 30 cities in China. Follow-on orders continue to
be received by Wright Bus for the London market and Microvast
expects more orders from the European bus market.
- Microvast is achieving gross margins of c. 37% and net margins
of c.18%, and its audited revenues were US$ 174m in
FY2015 (300% increase year-on-year) and net income of US$ 29m. The committed order backlog at the end
of June is supportive of full year 2016 forecasted revenues of c.
US$ 330m; with Chinese customers
accounting for 90% of this.
- Production capacity has been successfully increased to 1GWh per
annum with further increases planned, all fully funded from
operating cash flow.
- Microvast is working on Lithium-ion battery (Li-B) systems for
passenger vehicles with some of the leading Chinese auto OEMs. The
first order has been secured for 2000 units being delivered in
Q2/Q3 2016.
- The Company spun out its chemicals business, and the Ashmore
Funds subsequently sold their minority stake in this business for
US $2.3m. There was no change to the
Funds equity ownership percentage in Microvast, which is now a pure
Li-B business.
2016 operational
strategy/priorities
- Managing growth by adding new facilities, increasing production
capacity and hiring/training new employees
- Building large scale production of Li-B systems for passenger
vehicles, and growing its international business
- Meeting short order timeframes from Chinese bus OEMs and
ensuring customers can claim Chinese New Energy Vehicle (NEV)
subsidies
Key risks
- Overcapacity in Chinese and global battery companies
- Warranty claims arising from defective cells or modules
- Unfavourable changes to the Chinese government’s New Energy
Vehicle policy
Exit strategy
- Block sale pre or post IPO
AEI
Industry: Power generation in Latin America
Country: Guatemala
Website: www.aeienergy.com
Company Status: Private
Investment Risk: Equity
Operational update
- Jaguar: (Greenfield coal fired power plant in Guatemala) - The
plant turbines required repair work to be undertaken back in China.
The turbines have now been re-installed at the plant and
recommissioning has begun. The sale process was placed on hold
while this was taking place but will now be accelerated to start
end Q3/beginning Q4 2016.
- The HQ team has been reduced to 2 full-time equivalents.
- China Machine New Energy Corporation (CMNC) are appealing the
arbitration award.
Key risks
- CMNEC arbitration/appeal
- Ongoing operational issues with the plant turbines
2016 operational
strategy/priorities
- Disposal of Jaguar
- HQ cost reduction
Exit strategy
- Sale of the remaining asset and wind up of HQ
Kulon
Industry: Real estate development company
Country: Russia
Website: n/a
Company Status: Private
Investment Risk: Equity
Operational update
- Q2 2016 gross rental income was 6.53% higher than Q1 2016
primarily due to foreign exchange differences on Rouble denominated
base rental income and tenants’ reimbursements following the RUR
appreciation against the Euro.
- Expenses for Q2 2016 were also higher than Q1 2016 (by 18.41%),
again due to foreign exchange differences, all the major expense
items being Rouble denominated.
- Net rental income was 0.51% higher than Q1 2016.
Key risks
Exit strategy
- Exit the investment by selling the shares in the holding
company
Pacnet
Industry: Telecommunications
Country: Hong Kong and Singapore
Website: www.pacnet.com
Company Status: Private
Investment Risk: Equity
Exit strategy and timing
- The deal with Telstra completed in April
2015, with proceeds paid 85% in cash with deferrals for a
closing adjustment fund (US$ 20m) and
a warranty fund (US$ 32.5m
holdback).
- The first tranche of the warranty fund (US$ 17.5m) was paid out in full by Telstra in
April 2016, with no deductions for
any warranty claims. The total amount received by the Ashmore Funds
was US$ 8m.
- The second and final tranche from the warranty fund
(US$ 15m) is due to be paid out on
16 October 2016, and provided that
there are no deductions (as was the case with the first tranche)
the Ashmore Funds will receive circa US$
6.8m.
GZI
Industry: Aluminium cans manufacturer
Country: Nigeria
Website: www.gzican.com
Company Status: Private
Investment Risk: Equity
Operational update
- The business is progressing with its African growth strategy
and the second plant in Aba (Nigeria) is now operational.
- The Nigerian market has experienced difficult macro-economic
conditions and sales were down 5.3% year-on-year in H1 2016.
However, volume sales have hit record highs, increasing by 5.5%
from last year as GZI managed to deliver to customers reliably
during the period and also due to clients building stock prior to
the devaluation.
- The FX situation in Nigeria has impacted both the supply chain
and access to Dollars for debt repayments. Increased export sales
and a refinancing of the company’s US$ debt into Naira (which is
almost finalized) should help to mitigate this.
- Key market focus areas are: complete the greenfield projects,
grow export of cans to neighbouring African countries, lock in
customers in Kenya and expand the cans segment (versus glass
bottles) in Nigeria.
2016 operational
strategy/priorities
- Establish a plant in South Africa
- Continue to support the new CEO in stabilizing the
business
- Improve cost efficiencies
- Export cans in the region to expand sales and earn foreign
currency
Key risks
- Continued slowdown in African beverages markets
- Key competitor Nampak reducing prices in Nigeria, although the
company has managed to avoid major contract rebalancing so far
- Recruitment/talent sourcing
Exit strategy and timing
- 2018 exit through IPO or strategic sale
Ashmore Investment Advisors Limited
Investment Manager
26 August 2016
Board Members
As at 30 June 2016, 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 40 years of investment experience. Until
2006, he was an investment manager at the Co-operative Insurance
Society, where he started his career in 1976. He has a breadth of
investment experience in both UK and overseas equities, including
in emerging markets, and in particular, investment companies and
other closed-ended funds, offshore funds, hedge funds and private
equity funds. Richard is currently a director of a number of
funds, including Aberdeen Frontier Markets Company (formerly
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. Until 24 June 2016, he was Senior Independent Director
and chaired the Audit Committee at BH Macro Limited.
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
Aberdeen Frontier Markets
Company
AIM
Steve
Hicks
Nil
Nigel de la
Rue
Nil
Christopher Legge
Baring Vostok Investments PCC Limited (until 27 April
2016)
CISE
BH Macro Limited (until 24 June
2016)
London, Bermuda and Dubai
John Laing Environmental Assets Group
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:
- 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 2016;
and
- 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 2016
Richard
Hotchkis
Christopher Legge
Chairman
Chairman of the Audit Committee
Unaudited Schedule of Investments
As at 30 June 2016
Description of
investment |
Fair
value
US$ |
|
%
of
net assets |
|
|
|
|
Ashmore Global Special
Situations Fund 4 LP |
22,122,107 |
|
39.52 |
Ashmore Global Special
Situations Fund 5 LP |
8,816,332 |
|
15.75 |
AEI Inc - Equity |
6,881,503 |
|
12.30 |
AA Development Capital
India Fund 1, LLC |
5,781,736 |
|
10.33 |
Ashmore Asian Recovery
Fund |
4,421,158 |
|
7.90 |
VTBC Ashmore Real
Estate Partners 1 LP |
3,270,381 |
|
5.84 |
Ashmore Global Special
Situations Fund 3 LP |
1,654,818 |
|
2.96 |
Everbright Ashmore
China Real Estate Fund LP |
1,525,298 |
|
2.73 |
Ashmore SICAV 2 Global
Liquidity US$ Fund |
1,050,085 |
|
1.88 |
Ashmore Global Special
Situations Fund 2 Limited |
477,973 |
|
0.85 |
Ashmore Asian Special
Opportunities Fund Limited |
302,661 |
|
0.54 |
Ashmore Private Equity
Turkey Fund 1 LP |
16,267 |
|
0.03 |
Renovavel Investments
BV New PIK/PPN |
- |
|
0.00 |
|
|
|
|
Total investments
at fair value |
56,320,319 |
|
100.63 |
|
|
|
|
Net other current
assets |
(349,922) |
|
(0.63) |
|
|
|
|
Total net
assets |
55,970,397 |
|
100.00 |
Unaudited Condensed Statement of
Financial Position
As at 30 June 2016
|
|
30
June 2016 |
|
31
December 2015 |
|
Note |
US$ |
|
US$ |
Assets |
|
|
|
|
Cash and cash
equivalents |
|
2,383,636 |
|
16,505,657 |
Other financial
assets |
5a |
5,553 |
|
401,845 |
Financial assets at
fair value through profit or loss |
3 |
56,414,424 |
|
60,344,945 |
Total
assets |
|
58,803,613 |
|
77,252,447 |
|
|
|
|
|
Equity |
|
|
|
|
Capital and
reserves attributable to equity holders
of the Company |
|
|
|
|
Special reserve |
|
410,583,457 |
|
429,283,586 |
Retained earnings |
|
(354,613,060) |
|
(353,633,654) |
Total
equity |
|
55,970,397 |
|
75,649,932 |
|
|
|
|
|
Liabilities |
|
|
|
|
Current
liabilities |
|
|
|
|
Other financial
liabilities |
5b |
1,084,477 |
|
650,710 |
Financial liabilities
at fair value through profit or loss |
3 |
1,748,739 |
|
951,805 |
Total
liabilities |
|
2,833,216 |
|
1,602,515 |
Total equity and
liabilities |
|
58,803,613 |
|
77,252,447 |
|
|
|
|
|
Net asset
values |
|
|
|
|
Net assets per US$
share |
8 |
US$5.17 |
|
US$5.06 |
Net assets per £
share |
8 |
£5.03 |
|
£4.98 |
|
|
|
|
|
The unaudited condensed interim financial statements were
approved by the Board of Directors on 26
August 2016, and were signed on its behalf by:
Richard
Hotchkis
Christopher Legge
Chairman
Chairman of the Audit Committee
The accompanying notes form an integral part of these financial
statements.
Unaudited Condensed Statement of
Comprehensive Income
For the six months ended 30 June
2016
|
|
Six
months ended
30 June 2016 |
|
Six
months ended
30 June 2015 |
|
|
Note |
US$ |
|
US$ |
|
|
|
|
|
|
|
Interest income |
|
1,184 |
|
1,791 |
|
Dividend income |
|
1,969,306 |
|
33,746,388 |
|
Net foreign currency
gain/(loss) |
|
64,602 |
|
(295,318) |
|
Other net changes in
fair value on financial assets and liabilities at fair value
through profit or loss |
4 |
(2,343,760) |
|
(37,072,063) |
|
Total net
loss |
|
(308,668) |
|
(3,619,202) |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Investment management
fees |
|
(53,458) |
|
(360,451) |
|
Incentive fees |
|
(493,650) |
|
(163,381) |
|
Directors’
remuneration |
|
(44,728) |
|
(72,292) |
|
Fund administration
fees |
|
(5,713) |
|
(11,524) |
|
Custody fees |
|
(2,661) |
|
(6,126) |
|
Other operating
expenses |
|
(70,528) |
|
478,365 |
* |
Total operating
expenses |
|
(670,738) |
|
(135,409) |
|
|
|
|
|
|
|
Loss for the
period |
|
(979,406) |
|
(3,754,611) |
|
|
|
|
|
|
|
Other comprehensive
income |
|
- |
|
- |
|
Total comprehensive
loss for the period |
|
(979,406) |
|
(3,754,611) |
|
|
|
|
|
|
|
Earnings per
share |
|
|
|
|
|
Basic and diluted
gain/(loss) per US$ share |
9 |
US$0.14 |
|
US$(0.09) |
|
Basic and diluted
loss per £ share |
9 |
US$(0.53) |
|
US$(0.31) |
|
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
2016
|
|
|
Special |
|
Retained |
|
|
|
|
|
reserve |
|
earnings |
|
Total |
|
Note |
|
US$ |
|
US$ |
|
US$ |
|
|
|
|
|
|
|
|
Total equity as at
1 January 2016 |
|
|
429,283,586 |
|
(353,633,654) |
|
75,649,932 |
Total comprehensive
loss for the period |
|
|
- |
|
(979,406) |
|
(979,406) |
Capital
distribution |
7 |
|
(18,700,129) |
|
- |
|
(18,700,129) |
Total equity as at
30 June 2016 |
|
|
410,583,457 |
|
(354,613,060) |
|
55,970,397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity as at
1 January 2015 |
|
|
515,783,066 |
|
(345,351,728) |
|
170,431,338 |
Total comprehensive
loss for the period |
|
|
- |
|
(3,754,611) |
|
(3,754,611) |
Capital
distribution |
|
|
(59,106,924) |
|
- |
|
(59,106,924) |
Total equity as at
30 June 2015 |
|
|
456,676,142 |
|
(349,106,339) |
|
107,569,803 |
The accompanying notes form an integral part of these financial
statements.
Unaudited Condensed Statement of Cash
Flows
For the six months ended 30 June
2016
|
Six
months ended
30 June 2016 |
|
Six
months ended
30 June 2015 |
|
US$ |
|
US$ |
Cash flows from
operating activities |
|
|
|
Net bank interest
received |
1,184 |
|
1,791 |
Dividends
received |
1,969,306 |
|
50,921,982 |
Operating expenses
received/(paid) |
159,321 |
|
(647,256) |
Net cash from
operating activities |
2,129,811 |
|
50,276,517 |
|
|
|
|
Cash flows from
investment activities |
|
|
|
Sales of
investments |
6,510,958 |
|
76,424,671 |
Purchases of
investments in liquidity Funds |
(2,502,466) |
|
(78,001,780) |
Net cash flows on
derivative instruments and foreign exchange |
(1,560,195) |
|
(2,279,296) |
Net cash from/(used
in) investment activities |
2,448,297 |
|
(3,856,405) |
|
|
|
|
Cash flows from
financing activities |
|
|
|
Capital
distributions |
(18,700,129) |
|
(59,106,924) |
Net cash used in
financing activities |
(18,700,129) |
|
(59,106,924) |
|
|
|
|
Net decrease in
cash and cash equivalents |
(14,122,021) |
|
(12,686,812) |
|
|
|
|
Reconciliation of net cash flows to movement in cash and
cash equivalents |
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the period |
16,505,657 |
|
14,383,849 |
Decrease in cash and
cash equivalents |
(14,122,021) |
|
(12,686,812) |
Cash and cash
equivalents at the end of the period |
2,383,636 |
|
1,697,037 |
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 consider that the Company
has adequate resources to continue in operational existence for the
foreseeable future and believe that it is appropriate to adopt the
going concern basis despite the managed wind-down of the Company
over the next few years.
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 2015. 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 26 August 2016.
b) Judgements and Estimates
Preparing the unaudited condensed interim financial statements
requires judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ
from these estimates. The significant judgements made in applying
the Company’s accounting policies, and the key sources of
estimation uncertainty, were the same as those that applied to the
audited financial statements of the Company for the year ended
31 December 2015.
2. Summary of Significant
Accounting Policies
The Board has concluded that at present the managed wind-down of
the Company has no significant impact on the valuation of the
Company’s investments.
The accounting policies applied in these unaudited condensed
interim financial statements are the same as those applied in the
Company’s audited financial statements for the year ended
31 December 2015.
3. Financial Assets and
Liabilities at Fair Value through Profit or Loss
|
|
|
|
|
|
30 June
2016 |
31
December 2015 |
|
|
|
|
|
|
US$ |
US$ |
Financial
assets held for trading: |
|
|
|
-
Derivative financial assets |
|
94,105 |
10,540 |
Total
financial assets held for trading |
|
94,105 |
10,540 |
|
|
|
|
|
|
|
|
Designated
at fair value through profit or loss at inception: |
|
|
|
- Equity
investments |
|
56,320,319 |
60,334,405 |
Total
designated at fair value through profit or loss at
inception |
|
56,320,319 |
60,334,405 |
Total
financial assets at fair value through profit or loss |
|
56,414,424 |
60,344,945 |
There were no significant changes to the Company’s direct equity
other than valuation movements.
As at 30 June 2016, derivative
financial assets comprised forward foreign currency contracts as
follows:
Currency
Bought |
Amount
Bought |
|
Currency
Sold |
Amount
Sold |
|
Maturity
Date |
Unrealised
Gain |
US$ |
1,164,924 |
|
GBP |
800,810 |
|
12/08/2016 |
94,105 |
Derivative financial assets |
|
|
94,105 |
As at 31 December 2015, derivative
financial assets comprised forward foreign currency contracts as
follows:
Currency
Bought |
Amount
Bought |
|
Currency
Sold |
Amount
Sold |
|
Maturity
Date |
Unrealised
Gain |
US$ |
468,965 |
|
GBP |
311,000 |
|
12/02/2016 |
10,540 |
Derivative financial assets |
|
|
10,540 |
|
|
|
|
|
|
30 June
2016 |
31
December 2015 |
|
|
|
|
|
|
US$ |
US$ |
Financial
liabilities held for trading: |
|
|
|
-
Derivative financial liabilities |
|
(1,748,739) |
(951,805) |
Total
financial liabilities held for trading |
|
(1,748,739) |
(951,805) |
As at 30 June 2016, derivative
financial liabilities comprised forward foreign currency contracts
as follows:
Currency
Bought |
Amount
Bought |
|
Currency
Sold |
Amount
Sold |
|
Maturity
Date |
Unrealised
Loss |
GBP |
16,159,113 |
|
US$ |
23,356,221 |
|
12/08/2016 |
(1,748,739) |
Derivative financial liabilities |
|
|
(1,748,739) |
As at 31 December 2015, derivative
financial liabilities comprised forward foreign currency contracts
as follows:
Currency
Bought |
Amount
Bought |
|
Currency
Sold |
Amount
Sold |
|
Maturity
Date |
Unrealised
Loss |
GBP |
25,395,430 |
|
US$ |
38,385,574 |
|
12/02/2016 |
(951,805) |
Derivative financial liabilities |
|
|
(951,805) |
4. Net Gain/Loss from
Financial Assets and Liabilities at Fair Value through Profit or
Loss
|
|
|
|
|
|
30 June
2016 |
30 June
2015 |
|
|
|
|
|
|
US$ |
US$ |
Other net
changes in fair value through profit or loss: |
|
|
|
-
Realised |
|
(12,221,250) |
(6,014,127) |
- Change
in unrealised |
|
9,877,490 |
(31,057,936) |
Total
loss |
|
(2,343,760) |
(37,072,063) |
|
|
|
|
|
|
30 June
2016 |
30 June
2015 |
|
|
|
|
|
|
US$ |
US$ |
Other net
changes in fair value on derivative assets held for trading |
(2,338,166) |
(936,838) |
Other net
changes in fair value on assets designated at fair value through
profit or loss |
(5,594) |
(36,135,225) |
Total
net loss |
|
(2,343,760) |
(37,072,063) |
|
|
|
|
|
|
|
|
|
5. Other Financial Assets
and Liabilities
a) Other financial assets:
Other financial assets relate to accounts receivable and prepaid
expenses and comprised the following:
|
|
|
|
|
|
30 June
2016 |
31
December 2015 |
|
|
|
|
|
|
US$ |
US$ |
Prepaid
Directors’ insurance fees |
|
- |
9,112 |
Prepaid
regulatory fees |
|
- |
1,915 |
Other
receivables and prepaid expenses |
|
5,553 |
390,818 |
|
|
|
|
|
|
5,553 |
401,845 |
b) Other financial liabilities:
Other financial liabilities relate to accounts payable and
accrued expenses, and comprised the following:
|
|
|
|
|
|
30 June
2016 |
31
December 2015 |
|
|
|
|
|
|
US$ |
US$ |
Investment
management fee payable |
|
5,656 |
5,337 |
Incentive
fee payable |
|
1,017,077 |
523,426 |
Other
accruals |
|
61,744 |
121,947 |
|
|
|
|
|
|
1,084,477 |
650,710 |
6. Financial
Instruments
a) Financial risk management
The Company’s financial risk management objectives and policies
are consistent with those disclosed in the audited financial
statements of the Company for the year ended 31 December 2015.
b) Carrying amounts versus fair values
As at 30 June 2016, the carrying
values of financial assets and liabilities presented in the
Unaudited Condensed Statement of Financial Position approximate
their fair values.
The table below sets out the classifications of the carrying
amounts of the Company’s financial assets and financial liabilities
into categories of financial instruments as at 30 June 2016.
|
Held
for trading |
Designated at fair value |
Loans
and receivables |
Other
financial assets/
liabilities |
Total |
Cash and cash
equivalents |
- |
- |
2,383,636 |
- |
2,383,636 |
Non-pledged financial
assets at fair value through profit or loss |
94,105 |
56,320,319 |
- |
- |
56,414,424 |
Other receivables |
- |
- |
- |
5,553 |
5,553 |
Total |
94,105 |
56,320,319 |
2,383,636 |
5,553 |
58,803,613 |
|
|
|
|
|
|
Financial liabilities
at fair value through profit or loss |
1,748,739 |
- |
- |
- |
1,748,739 |
Other payables |
- |
- |
- |
1,084,477 |
1,084,477 |
Total |
1,748,739 |
- |
- |
1,084,477 |
2,833,216 |
The table below sets out the classifications of the carrying
amounts of the Company’s financial assets and financial liabilities
into categories of financial instruments as at 31 December 2015.
|
Held
for trading |
Designated at fair value |
Loans
and receivables |
Other
financial assets/
liabilities |
Total |
Cash and cash
equivalents |
- |
- |
16,505,657 |
- |
16,505,657 |
Non-pledged financial
assets at fair value through profit or loss |
10,540 |
60,334,405 |
- |
- |
60,344,945 |
Other receivables |
- |
- |
- |
401,845 |
401,845 |
Total |
10,540 |
60,334,405 |
16,505,657 |
401,845 |
77,252,447 |
|
|
|
|
|
|
Financial liabilities
at fair value through profit or loss |
951,805 |
- |
- |
- |
951,805 |
Other payables |
- |
- |
- |
650,710 |
650,710 |
Total |
951,805 |
- |
- |
650,710 |
1,602,515 |
c) Financial instruments carried at fair value - fair value
hierarchy
The fair values of financial assets and financial liabilities
that are traded in active markets are based on prices obtained
directly from an exchange on which the instruments are traded or
obtained from a broker that provides an unadjusted quoted price
from an active market for identical instruments. For all other
financial instruments, the Company determines fair values using
other valuation techniques.
For financial instruments that trade infrequently and have
little price transparency, fair value is less objective, and
requires varying degrees of judgement depending on liquidity,
uncertainty of market factors, pricing assumptions and other risks
affecting the specific instrument.
The Company measures fair values using the following fair value
hierarchy that reflects the significance of the inputs used in
making the measurements.
· Level 1: Inputs that are quoted market prices
(unadjusted) in active markets for identical instruments.
· Level 2: Inputs other than quoted prices included
within level 1 that are observable either directly (i.e. as prices)
or indirectly (i.e. derived from prices). This category includes
instruments valued using: quoted market 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 in which all significant inputs are
directly or indirectly observable from market data.
· Level 3: Inputs that are unobservable. This
category includes all instruments for which the valuation technique
includes inputs not based on observable data and the unobservable
inputs have a significant effect on the instruments’ valuation.
This category includes instruments that are valued based on quoted
prices for similar instruments but for which significant
unobservable adjustments or assumptions are required to reflect
differences between the instruments.
Valuation techniques include net present value and discounted
cash flow models, comparison with similar instruments for which
observable market prices exist and other valuation models.
Assumptions and inputs used in valuation techniques include
risk-free and benchmark interest rates, credit spreads and other
premia used in estimating discount rates, bond and equity prices,
foreign currency exchange rates, equity indices, EBITDA multiples
and revenue multiples and expected price volatilities and
correlations.
The objective of valuation techniques is to arrive at a fair
value measurement that reflects the price that would be received to
sell the asset or paid to transfer the liability in an orderly
transaction between market participants at the measurement
date.
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 between the three levels during the period
ended 30 June 2016 and the year ended
31 December 2015.
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 2016:
|
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 |
- |
94,105 |
- |
94,105 |
Financial assets
designated at fair value through profit or loss at inception: |
|
|
|
|
- Equity
investments |
1,050,085 |
- |
55,270,234 |
56,320,319 |
Total |
1,050,085 |
94,105 |
55,270,234 |
56,414,424 |
Financial
liabilities at fair value
through profit and loss |
|
|
|
|
Financial
liabilities held for trading: |
|
|
|
|
-
Derivative financial liabilities |
- |
1,748,739 |
- |
1,748,739 |
Total |
- |
1,748,739 |
- |
1,748,739 |
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 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 |
- |
10,540 |
- |
10,540 |
Financial assets
designated at fair value through profit or loss at inception: |
|
|
|
|
- Equity
investments |
4,674,087 |
- |
55,660,318 |
60,334,405 |
Total |
4,674,087 |
10,540 |
55,660,318 |
60,344,945 |
|
|
|
|
|
Financial
liabilities at fair value
through profit and loss |
|
|
|
|
Financial liabilities
held for trading: |
|
|
|
|
- Derivative financial
liabilities |
- |
951,805 |
- |
951,805 |
Total |
- |
951,805 |
- |
951,805 |
Level 1 assets include the Ashmore
SICAV 2 Global Liquidity US$ Fund (31
December 2015: 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
2016.
|
|
Equity investments |
Opening balance as at
1 January 2016 |
|
|
|
55,660,318 |
Sales |
|
|
|
(586,817) |
Gains and
losses recognised in profit and loss * |
|
|
196,733 |
Closing balance as
at 30 June 2016 |
|
|
|
55,270,234 |
* Gains and losses recognised in profit and loss include
unrealised results on existing assets as at 30 June 2016 of US$(389,908,073).
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’ type 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. Material investments are valued by experienced
personnel at an independent third-party valuation specialist. Such
valuations are subject to review, amendment if necessary, then
approval, firstly by the PMVC, and then by the Board of Directors
of the Company. Smaller investments may be valued directly by the
PMVC.
Valuation techniques used include the market approach, the
income approach or the cost approach depending on the availability
of reliable information. The market approach generally consists of
using comparable market transactions or EBITDA/EV multiples for
comparable listed companies, 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 in estimating the value of investments may include
the original transaction price, recent transactions in the same or
similar instruments, completed or pending third-party transactions
in the underlying investment or comparable issuers, subsequent
rounds of financing, recapitalisations and other transactions
across the capital structure, offerings in the equity or debt
capital markets and bids received from potential buyers.
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
30 June 2016 |
|
Valuation |
|
|
|
US$ |
|
methodology |
Unobservable
inputs |
Range |
Equity in private
companies |
6,881,503 |
|
Discounted Cash Flows
/ Comparable listed company EV/EBITDA multiples |
- Forecast annual
revenue growth rate
- Forecast EBITDA margin
- Risk adjusted discount rate
- Market multiples |
N/A |
Investments in
unlisted Funds |
48,388,731 |
|
Net Asset Value |
Inputs to Net Asset
Value* |
N/A |
|
|
|
|
|
|
|
Balance as at
31 December 2015 |
|
Valuation |
|
|
|
US$ |
|
methodology |
Unobservable
inputs |
Range |
Equity in private
companies |
4,413,248 |
|
Discounted Cash Flows
/ Comparable listed company EV/EBITDA multiples |
- Forecast annual
revenue growth rate
- Forecast EBITDA margin
- Risk adjusted discount rate
- Market multiples |
N/A |
Investments in
unlisted Funds |
51,247,070 |
|
Net Asset Value |
Inputs to Net Asset
Value* |
N/A |
* Management has assessed whether there are any discounts in
relation to lock-in periods that are impacting liquidity.
The Company believes that its estimates of fair value are
appropriate; however the use of different methodologies or
assumptions could lead to different measurements of fair value. For
fair value investments in level 3, changing one or more of the
assumptions used to alternative assumptions could result in an
increase or decrease in net assets attributable to investors. Due
to the numerous different factors affecting the assets, the impact
cannot be reliably quantified. It is reasonably possible on the
basis of existing knowledge, that outcomes within the next
financial period that are different from the assumptions used could
require a material adjustment to the carrying amounts of affected
assets.
7. Capital and
Reserves
Share Conversion
The following share conversions took place during the period
ended 30 June 2016:
Transfers from |
Transfers to |
Number
of shares
to switch out |
|
Number
of shares
to switch in |
£ shares |
US$ shares |
1,201,320 |
|
1,671,997 |
US$ shares |
£ shares |
293 |
|
204 |
Compulsory Partial 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 2016, the Company
announced partial returns of capital to shareholders by way of
compulsory partial redemptions of shares with the following
redemption dates:
· 29 January
2016, US$16.2 using the
31 December 2015 Net Asset Value;
and
· 29 April
2016, US$2.5 using the
31 March 2016 Net Asset Value.
The amounts applied to the partial redemptions of
shares comprised monies from dividends received and from
the realisation of the Company’s investments up to and
including the reference NAV calculation dates pursuant to the
wind-down of the Company.
During the period, the following shares were redeemed by way of
compulsory partial redemptions of shares (consideration in US$ has
been determined using the exchange rates at the date of the
official announcement):
|
|
Number of ordinary shares redeemed |
|
Consideration in US$ |
US$ shares |
|
1,943,923 |
|
9,940,243 |
£ shares |
|
1,185,832 |
|
8,759,886 |
|
|
|
|
18,700,129 |
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 |
£ 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.
8. Net Asset Value
The Net Asset Value of each US$ and £ share is determined by
dividing the total net assets of the Company attributable to the
US$ and £ share classes by the number of US$ and £ shares in issue
respectively at the period and year ends as follows:
As at 30 June
2016 |
Net
assets
attributable to each
share class in US$ |
Shares in issue |
Net
assets
per share
in US$ |
Net
assets
per share
in local currency |
US$ shares |
38,592,789 |
7,467,648 |
5.17 |
5.17 |
£ shares |
17,377,608 |
2,584,560 |
6.72 |
5.03 |
|
55,970,397 |
|
|
|
As at 31 December
2015 |
Net
assets
attributable to each
share class in US$ |
Shares in issue |
Net
assets
per share
in US$ |
Net
assets
per share
in local currency |
US$ shares |
39,168,725 |
7,739,867 |
5.06 |
5.06 |
£ shares |
36,481,207 |
4,971,508 |
7.34 |
4.98 |
|
75,649,932 |
|
|
|
The allocation of the Company’s Net Asset Value between share
classes is further described in the Company’s Prospectus.
9. Earnings per Share
(EPS)
The calculation of the earnings per US$ and £ share is based on
the gain/loss for the period attributable to US$ and £ shareholders
and the respective weighted average number of shares in issue for
each share class during the period.
The gain/(loss) attributable to each share class for the period
ended 30 June 2016 was as
follows:
|
|
|
US$
share |
|
£
share |
Issued shares at the
beginning of the period |
|
|
7,739,867 |
|
4,971,508 |
Effect on
the weighted average number of shares: |
|
|
|
|
- Conversion of
shares |
|
|
560,500 |
|
(408,816) |
- Compulsory partial
redemption of shares |
|
|
(1,468,832) |
|
(922,440) |
Weighted average
number of shares |
|
|
6,831,535 |
|
3,640,252 |
Gain/(loss) per
share class (US$) |
|
|
940,878 |
|
(1,920,284) |
EPS (US$) |
|
|
0.14 |
|
(0.53) |
There were no dilutive instruments in issue during the
period.
The loss attributable to each share class for the period ended
30 June 2015 was as follows:
|
|
|
US$
share |
|
£
share |
Issued shares at the
beginning of the period |
|
|
12,948,641 |
|
12,572,050 |
Effect on
the weighted average number of shares: |
|
|
|
|
- Conversion of
shares |
|
|
718,492 |
|
(470,522) |
- Compulsory partial
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.
10. 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.
11. Ultimate Controlling
Party
In the opinion of the Directors and on the basis of
shareholdings advised to them, the Company has no ultimate
controlling party.
12. Involvement with
Unconsolidated Structured Entities
The table below describes the types of structured entities that
the Company does not consolidate but in which it holds an
interest.
Type of structured
entity |
Nature and
purpose |
|
Interest held by the
Company |
Investment Funds |
To manage assets on
behalf of third party investors. These vehicles are financed
through the issue of units to investors. |
|
Investments in units
issued by the Funds |
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.
Investment in unlisted
investment Funds |
Number
of
investee Funds |
|
Total net
assets |
|
Carrying
amount included in "Financial assets at fair value through profit
or loss" |
|
% of net
assets of underlying Funds |
Special Situations
Private Equity Funds |
8 |
|
243,322,357 |
|
43,593,052 |
|
17.92 |
Real Estate Funds |
2 |
|
50,310,239 |
|
4,795,679 |
|
9.53 |
During the period, the Company did not provide financial support
to these unconsolidated structured entities and the Company has no
intention of providing financial or other support, except for the
outstanding commitments disclosed in note 14 to the financial
statements.
13. Related Party
Transactions
Parties are considered to be related if one party has the
ability to control the other party or to exercise significant
influence over the other party in making financial or operational
decisions.
The Directors are responsible for the determination of the
investment policy of the Company and have overall responsibility
for the Company’s activities. The Company’s investment portfolio is
managed by 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
2016, the Company had the following related party
transactions:
|
|
Expense |
Payable |
Related
Party |
Nature |
US$ |
US$ |
Ashmore Investment
Advisors Limited |
Investment management
fees |
(53,458) |
(5,656) |
Ashmore Investment
Advisors Limited |
Incentive fees |
(493,650) |
(1,017,077) |
Board of
Directors |
Directors’ fees |
(44,728) |
(924) |
|
|
|
Investment Activity |
|
|
|
US$ |
Related Funds |
Sales |
|
586,817 |
Related Funds |
Dividends |
|
1,893,933 |
Ashmore SICAV 2 Global
Liquidity US$ Fund |
Purchases |
|
(2,500,000) |
Ashmore SICAV 2 Global
Liquidity US$ Fund |
Sales |
|
4,256,007 |
Ashmore SICAV 2 Global
Liquidity US$ Fund |
Dividends |
|
2,466 |
During the period ended 30 June
2015, the Company engaged in the following related party
transactions:
|
|
Expense |
Payable |
Related
Party |
Nature |
US$ |
US$ |
Ashmore Investment
Advisors Limited |
Investment management
fees (net) |
(360,451) |
(79,721) |
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 |
Sales |
|
12,305,865 |
Related Funds |
Dividends |
|
33,090,908 |
Ashmore SICAV 2 Global
Liquidity US$ Fund |
Purchases |
|
(78,000,000) |
Ashmore SICAV 2 Global
Liquidity US$ Fund |
Sales |
|
53,500,000 |
Ashmore SICAV 2 Global
Liquidity US$ Fund |
Dividends |
|
1,780 |
Related Funds are other Funds managed by Ashmore Investment
Advisors Limited or its associates.
Purchases and sales of the Ashmore SICAV 2 Global Liquidity US$
Fund (“Global Liquidity Fund”) were solely related to the cash
management of US dollars on account. Funds are swept into the
S&P 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.
During the period ended 30 June
2016, Directors’ remuneration was as follows:
Chairman: |
|
£28,350 per annum |
Chairman of the Audit
Committee: |
|
£28,350 per annum |
Independent
Directors: |
|
£26,730 per annum |
Non-Independent
Director: |
|
waived |
The Directors agreed to reduce their Directors’ fees by 10% with
effect from 31 December 2015.
The Directors had the following beneficial interests in the
Company:
|
30 June
2016 |
31
December 2015 |
|
£
ordinary shares |
£
ordinary shares |
Nigel de la Rue |
785 |
1,040 |
Christopher Legge |
490 |
650 |
Richard Hotchkis |
295 |
391 |
14. 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 2016, the outstanding commitment was
US$529,455 (31
December 2015: 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 €11.4 million. As at
30 June 2016, the outstanding
commitment was €243,474 (31 December
2015: €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
2016, the outstanding commitment was US$6,261,340 (31 December
2015: US$6,261,340).
15. Subsequent Events
There were no significant events subsequent to the period-end
date that require adjustment to, or disclosure in, the financial
statements.
Corporate Information
Directors
Richard Hotchkis
Nigel de la Rue
Christopher Legge
Steve Hicks |
Custodian
Northern Trust (Guernsey) Limited
PO Box 71
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3DA
Channel Islands |
Registered Office
PO Box 255
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL
Channel Islands |
Auditor
KPMG Channel Islands Limited
Glategny Court
Glategny Esplanade
St Peter Port
Guernsey
GY1 1WR
Channel Islands |
Administrator, Secretary and Registrar
Northern Trust International Fund
Administration Services (Guernsey) Limited
PO Box 255
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL
Channel Islands |
Advocates to the Company
Carey Olsen
Carey House
Les Banques
St Peter Port
Guernsey
GY1 4BZ
Channel Islands |
Investment Manager
Ashmore Investment Advisors Limited
61 Aldwych
London
WC2B 4AE
United Kingdom |
UK
Solicitor to the Company
Slaughter and May
One Bunhill Row
London
EC1Y 8YY
United Kingdom |
Brokers
J.P. Morgan Cazenove
20 Moorgate
London
EC2R 6DA
United Kingdom
Jefferies International Limited
Vintners Place
68 Upper Thames Street
London
EC4V 3BJ
United Kingdom |
UK
Transfer Agent
Computershare Investor Services PLC
The Pavilions
Bridgewater Road
Bristol
BS13 8AE
United Kingdom
Website
Performance and portfolio information for shareholders can be found
at:
www.agol.com |