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.
LEI 549300D6OJOCNPBJ0R33.
Interim
Results
For the period ended 30 June 2017
(Classified
Regulated Information, under DTR 6 Annex 1 section 1.2)
The financial information set out in this announcement does not
constitute the Company's statutory accounts for the six months
ended 30 June 2017. All figures are
based on the unaudited financial statements for the six months
ended 30 June 2017.
The financial information for the six months ended 30 June 2017 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
2017 will be available on the Company website:
www.agol.com.
Share Price Information
|
|
30 June
2017 |
|
31
December 2016 |
|
|
|
|
|
Total Net Assets |
|
US$61,875,840 |
|
US$53,604,913 |
|
|
|
|
|
Net Asset Value per
Share |
|
|
|
|
US$ shares |
|
US$5.79 |
|
US$5.08 |
£ shares |
|
£5.57 |
|
£4.91 |
|
|
|
|
|
Closing-Trade Share
Price |
|
|
|
|
US$ shares |
|
US$3.39 |
|
US$3.73 |
£ shares |
|
£3.77 |
|
£3.88 |
|
|
|
|
|
Discount to Net Asset
Value |
|
|
|
|
US$ shares |
|
(41.45)% |
|
(26.57)% |
£ shares |
|
(32.32)% |
|
(20.98)% |
Chairman’s Statement
As at 30 June 2017, the Net Asset
Value (“NAV”) of the Company was US$61.9m. The NAVs per share increased to
US$5.79 and £5.57 as at 30 June 2017, up from US$5.08 and £4.91 respectively at the end of
2016. The share prices stood at US$3.39 and £3.77 as at 30
June 2017, decreases of 9.12% and 2.84% respectively
compared with 31 December 2016
levels.
The main contributors to performance were mark-ups in the values
of AEI and Microvast. Further details on the underlying exposures
of the Company are given in the Investment Manager’s Report.
There were no distributions to shareholders during the period.
There were, however, partial realisations of the investment in
Microvast in June and July 2017, the
proceeds of which will be received by AGOL after the reporting
period. The Board will then consider making a distribution to
shareholders on receipt of cash. The Investment Manager is working
towards the sale of the remaining assets, with a particular focus
on the three largest exposures of the Company, namely; Bedfordbury,
Microvast and AEI. Your Board receives regular updates on progress
with the sales and remains confident that further realisations are
likely to occur in the next six months.
Below is an overview of the distributions made since
February 2013 when shareholders voted
to wind up the Company in an orderly fashion.
|
Quarterly
Distributions |
|
|
|
|
|
|
|
|
Quarter End Date |
Distributions |
% of 31
December 2012 |
% of 31
December 2012 |
|
|
(US$) |
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% |
|
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% |
|
31 December 2015 |
16,200,000 |
3% |
5% |
|
31 March 2016 |
2,500,000 |
0% |
1% |
|
Total |
303,100,000 |
63% |
92% |
|
|
|
|
|
The Board continues to be in active dialogue with the Investment
Manager on completion of the asset sales, and subsequent winding up
of the Company. As further sales are realised, the Board will
review again the benefits and costs of the listing of the Company
on the London Stock Exchange.
I would like to thank everyone involved with AGOL for their hard
work.
Richard Hotchkis
25 August 2017
Investment Manager’s Report
Performance
As at 30 June 2017, the NAVs per
share of the US$ and £ classes stood at US$5.79 and £5.57 respectively, representing
returns of 13.98% and 13.44% over the last six months.
Portfolio Review
Strong operating performance, in particular by AEI and
Microvast, led to upward revisions in valuations and thus of the
NAV of the Company.
There was a partial realisation of the investment in Microvast
in June and July 2017, the proceeds
of which will be received by AGOL after the reporting period.
Consequently, there were no distributions to shareholders during
the reporting period, and the Board will consider making a
distribution to shareholders on receipt of cash from the partial
realisation of Microvast. We expect to sell the last asset in AEI,
a power plant in Guatemala, later
this calendar year which should allow for a significant
distribution to shareholders.
The three largest investee company exposures, Bedfordbury,
Microvast and AEI now account for around 75% of AGOL’s NAV.
For Bedfordbury, attempts to settle the dispute with the partner
in the land bank in Manila have so
far been unsuccessful, and the arbitration case is still expected
to be heard in Singapore by late
2017/early 2018. This process is expected to push back the
realisation of this asset, until either a settlement is reached or
the arbitration process is completed. The asset is valued
conservatively at a discount to a third party valuation of the land
bank.
Microvast continues to grow strongly. New capital was raised in
February from a third party investor in China at a significantly higher valuation. Our
valuation of this asset was increased in March, and again in June,
due to strong operating performance, and the availability of new
capital to finance further expansion. A partial exit in the
secondary market was executed in June and July 2017, the proceeds of which will be received
by AGOL post the reporting period. A full exit of this asset will
probably be through an IPO in 2018 or 2019.
Jaguar, the power plant in Guatemala, is operating at slightly above its
listed capacity. The sale process is progressing to plan, and we
expect to realise this asset later this year. Once sold the
intention is to wind up AEI.
Further details on the smaller holdings in the Company are given
later in this Investment Manager’s report.
Outlook
As described above, the focus remains on realising AGOL's
remaining investments in an orderly manner, and we expect to make
progress on this later this year. The general sentiment towards
Emerging Markets (“EM”) is improving, thus providing a more
positive backdrop to realisations. Nevertheless, realisations are
very much influenced by the attraction and circumstances of each
individual asset.
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 2017 excluding the cash
balance (cash was 3.84% as at 30 June
2017).
Investment
Name |
Holding |
|
|
Country |
Business
Description |
Bedfordbury |
32.98% |
|
|
Philippines |
Real estate
development company |
Microvast |
24.47% |
|
|
China |
Electric battery and
battery systems supplier |
AEI |
17.76% |
|
|
Guatemala |
Power generation in
Latin America |
Kulon |
6.19% |
|
|
Russia |
Real estate
development company |
Numero Uno |
4.20% |
|
|
India |
Branded apparel
manufacturers and retailers |
Everbright |
3.81% |
|
|
China |
Real estate
development company |
ZIM Laboratories
Ltd |
2.71% |
|
|
India |
Pharmaceutical
research and manufacturing |
Largo Resources |
1.58% |
|
|
Brazil |
Brazilian provider of
mining services |
GZ Industries Ltd |
0.91% |
|
|
Nigeria |
Aluminium can
manufacturer |
Seedinfo |
0.84% |
|
|
India |
Enterprise software
company |
The tables below show the country and industry allocations of
underlying investments over 1% at the end of June 2017:
Country |
% of
NAV |
|
Industry |
% of
NAV |
Philippines |
32.98% |
|
Real Estate |
42.98% |
China |
28.33% |
|
Electrical Components
and Equipment |
24.47% |
Guatemala |
17.76% |
|
Electrical |
17.76% |
India |
8.68% |
|
Retail |
4.20% |
Russia |
6.19% |
|
Pharmaceuticals |
2.71% |
Brazil |
1.58% |
|
Mining |
1.58% |
These tables form an integral part of the financial
statements.
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
- We initiated Singapore
arbitration proceedings against BDC’s partner in the land bank in
Q4 2016. Given a backlog of cases in Singapore, the procedural timeline envisages
the hearing will take place in late 2017/early 2018
- Exit is likely to be delayed until after the proceedings have
concluded
Microvast
Industry: Technology/Clean-tech
Country: China
Website: www.microvast.com
Company Status: Private
Investment Risk: Equity
Operational update
- Microvast supplies both pure e-bus and plug-in hybrid-electric
vehicles (“PHEV”) batteries to a large number of Chinese original
equipment manufacturers (“OEMs”), with the resultant buses being
deployed in over 30 cities in China. Follow-on orders continue to be
received via Wright Bus for the London market and Microvast expects further
orders from the European bus market
- Microvast is achieving gross margins of c. 35% and net margins
of c.16%, and its unaudited FY2016 revenues were US$210m yielding net income of US$25m. There may well be margin pressure in 2017
as a result of the Chinese Government lowering its e-bus
subsidies
- Production capacity has been successfully increased to 2GWh per
annum. Any further increases will require external financing. The
Company recently raised US$400m in
primary equity capital from a Citic Securities led group of
investors which will be used to fund the capacity expansions over
the next three years
- Microvast is working on Lithium-ion battery (“Li-B”) systems
for passenger vehicles with some of the leading Chinese auto OEMs.
A leading European car company is also in testing
2017 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, growing the international business and innovating battery
safety and energy density
- Meeting short order timeframes from Chinese bus OEMs and
ensuring customers can claim Chinese New Energy Vehicle (“NEV”)
subsidies
Key risks
- Overcapacity in both 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
- All shareholders sold pro rata in a US$140m secondary sale of a 10.77% minority stake
in Microvast to a Chinese PE Fund. Proceeds of this sale will be
received by AGOL post the reporting period, and on receipt of cash,
the Board will consider distributing this to shareholders.
- Block sale pre or post IPO
AEI
Industry: Power generation
Country: Guatemala
Website: www.aeienergy.com
Company Status: Private
Investment Risk: Equity
Operational update
- The only operating entity remaining in AEI is Jaguar, in
Guatemala, which is now being
prepared for sale
- Jefferies have been appointed as the investment bank to lead
the sale process which is ongoing
- China Machine New Energy Corporation (“CMNC”) continues to
appeal against Jaguar’s successful arbitration results
Key risks
- CMNC arbitration appeal
- The sale process
Exit strategy
- Sale of Jaguar with a target closure date during 2017
- Wind up of AEI post the Jaguar sale
Kulon
Industry: Real estate
Country: Russia
Website: n/a
Company Status: Private
Investment Risk: Equity
Operational update
- The Office and Warehouse spaces are almost fully leased. The
Moscow market remains competitive
and rents are under pressure
- Inflation is being brought under control by Russian Central
Bank policies which should lead to a reduction in interest rates,
which in turn should support the values of Ruble-denominated fixed
income assets such as this one
Key risks
- Pressure on rental yields
- Retention of tenants
Exit strategy
- Trade sale by selling the shares in the holding company.
Current market liquidity is limited in Moscow
GZI
Industry: Aluminium can manufacturing
Country: Nigeria
Website: www.gzican.com
Company Status: Private
Investment Risk: Equity
Operational update
- H1 2017 sales volume is 8% ahead of plan as we see signs of
improvement in the Nigerian market
- GZI increased its market share lead due to its superior supply
chain
- Going forward the outlook is brighter than was initially
forecast for the year, but we remain cautiously optimistic
2017 operational
strategy/priorities
- Establish a plant in South
Africa or Kenya
- Manage foreign exchange exposures/requirements
- Export cans in the region to expand sales and earn foreign
currency
Key risks
- Continued slowdown in the African beverages markets
- Clients opting for cheaper alternatives
- Access to US$ / local currency depreciation
- Recruitment / talent sourcing
Exit strategy and timing
- 2018 exit through IPO or strategic sale
Largo
Industry: Materials and mining
Country: Brazil
Website: www.largoresources.com
Company Status: Public
Investment Risk: Equity
Operational update
- Vanadium prices continue to rebound nicely and costs are
levelling out due to operational leverage
- Vanadium demand has outstripped supply and is putting upward
pressure on price
- Largo’s vanadium production has qualified as aviation
grade
- Monthly average production at 840T per month, which is 5% above
nameplate capacity.
2017 operational
strategy/priorities
- To continue consistent production at nameplate capacity
- Restructure the company’s debt obligations to provide further
liquidity
- Renegotiate and seek out richer offtake agreements
Key risks
- A decrease in vanadium pricing
- A drop in production or a decrease in the quality of
vanadium
- Upcoming debt maturities which need to be termed out
Exit strategy and timing
- Block sale and/or strategic sale
Numero Uno
Industry: Retail
Country: India
Website: www.numerounojeanswear.com
Company Status: Private
Investment Risk: Equity
Operational update and priorities
- EBITDA has grown 30% year on year (“yoy”) for several years.
This halted during the financial year
to 31
March 2017 due to the de-monetisation policy implemented by the
Indian Government, but revenues have improved again in the last two
quarters and the company is back on track with its original plan
(with a one year delay)
Key risks
- Cash payments remain important to the company and any new
tightening of liquidity conditions could impact revenues
Exit strategy and timing
- Previous exit discussions ceased as the temporary drop in
revenues as described above affected valuations of the company
- The company will seek to achieve a few quarters of new growth
post the completion of the de-monetisation policy, in order to
drive up the value of the company, before re-embarking on the sales
process.
ZIM Laboratories
Industry: Pharmaceuticals
Country: India
Website: zimlab.in
Company Status: Private
Investment Risk: Equity
Operational update and priorities
- The company continues to perform well in its existing
pharmaceutical lines
- It is expanding its global presence and introducing new
products such as oral dispensing strips
Exit strategy and timing
- We are seeking an exit through a trade sale later this calendar
year, prior to the listing of the company on the Bombay Stock
Exchange
Ashmore Investment Advisors Limited
Investment Manager
25 August 2017
Board Members
As at 30 June 2017, 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 Association of Investment Companies Code on
Corporate Governance (the “AIC Code”), the majority of the Board of
Directors are independent of the Investment Manager. In preparing
this interim report, the independence of each Director has been
considered.
Richard Hotchkis,
Independent Chairman, (French resident) appointed
18 April 2011
Richard Hotchkis has over 40 years
of investment experience. Until 2006, he was an investment manager
at the Co-operative Insurance Society, where he started his career
in 1976. He has a breadth of investment experience in both UK and
overseas equities, including in emerging markets, and in
particular, investment companies and other closed-ended funds,
offshore funds, hedge funds and private equity funds. Richard
is currently a director of a number of funds and has been a
director of Aberdeen Frontier Markets Company (formerly Advance
Frontier Markets Fund Limited) until the end of March 2017.
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. He was appointed to the
Board of Sherborne Investors (Guernsey) C Limited on 25 May 2017.
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 (formerly Advance Frontier Markets Fund Limited)
(until end of March 2017) |
AIM |
|
|
Steve Hicks |
Nil |
|
|
Nigel de la Rue |
Nil |
|
|
Christopher Legge |
|
John Laing Environmental Assets
Group Limited |
London |
Sherborne Investors (Guernsey) B
Limited |
London |
Sherborne Investors (Guernsey) C
Limited (from 25 May 2017) (from 12 July 2017) |
London |
Third Point Offshore Investors
Limited |
London |
TwentyFour Select Monthly Income
Fund Limited |
London |
Directors’ Responsibility
Statement
We confirm that to the best of our knowledge:
- the condensed set of financial statements in the interim
financial report has been prepared in accordance with IAS 34
Interim Financial Reporting; and
- the interim financial report includes a fair view of the
information required by:
(a) DTR 4.2.7R of the Disclosure and
Transparency Rules, being an indication of the important events
that have occurred during the first six months of the financial
year and their impact on the condensed set of interim financial
statements; and a description of the principal risks and
uncertainties for the remaining six months of the year ending
31 December 2017; 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 25 August 2017
Richard
Hotchkis
Christopher Legge
Chairman
Chairman of the Audit Committee
Unaudited Schedule of Investments
As at 30 June 2017
Description of
investments |
Fair
value
US$ |
|
%
of
net assets |
|
|
|
|
Ashmore Global Special
Situations Fund 4 LP |
27,879,905 |
|
45.06 |
Ashmore Global Special
Situations Fund 5 LP |
9,646,235 |
|
15.59 |
AEI Inc - Equity |
6,526,325 |
|
10.55 |
AA Development Capital
India Fund 1, LLC |
5,245,637 |
|
8.48 |
VTBC Ashmore Real
Estate Partners 1 LP |
3,995,023 |
|
6.46 |
Ashmore Asian Recovery
Fund |
3,651,318 |
|
5.90 |
Everbright Ashmore
China Real Estate Fund LP |
2,318,636 |
|
3.75 |
Ashmore Global Special
Situations Fund 3 LP |
1,591,684 |
|
2.57 |
Ashmore Global Special
Situations Fund 2 Limited |
441,327 |
|
0.71 |
Ashmore Asian Special
Opportunities Fund Limited |
191,860 |
|
0.31 |
Ashmore SICAV 2 Global
Liquidity US$ Fund |
933 |
|
- |
|
|
|
|
Total investments
at fair value |
61,488,883 |
|
99.38 |
|
|
|
|
Net other current
assets |
386,957 |
|
0.62 |
|
|
|
|
Total net
assets |
61,875,840 |
|
100.00 |
Unaudited Condensed Statement of
Financial Position
As at 30 June 2017
|
|
30
June 2017 |
|
31
December 2016 |
|
Note |
US$ |
|
US$ |
Assets |
|
|
|
|
Cash and cash
equivalents |
|
1,364,915 |
|
956,920 |
Other financial
assets |
5a |
14,546 |
|
8,181 |
Financial assets at
fair value through profit or loss |
3 |
61,539,995 |
|
53,653,286 |
Total
assets |
|
62,919,456 |
|
54,618,387 |
|
|
|
|
|
Equity |
|
|
|
|
Capital and
reserves attributable to equity holders
of the Company |
|
|
|
|
Special reserve |
|
410,583,457 |
|
410,583,457 |
Retained earnings |
|
(348,707,617) |
|
(356,978,544) |
Total
equity |
|
61,875,840 |
|
53,604,913 |
|
|
|
|
|
Liabilities |
|
|
|
|
Current
liabilities |
|
|
|
|
Other financial
liabilities |
5b |
1,043,616 |
|
914,223 |
Financial liabilities
at fair value through profit or loss |
3 |
- |
|
99,251 |
Total
liabilities |
|
1,043,616 |
|
1,013,474 |
Total equity and
liabilities |
|
62,919,456 |
|
54,618,387 |
|
|
|
|
|
Net asset
values |
|
|
|
|
Net assets per US$
share |
8 |
US$5.79 |
|
US$5.08 |
Net assets per £
share |
8 |
£5.57 |
|
£4.91 |
The unaudited condensed interim financial statements were
approved by the Board of Directors on 25
August 2017, and were signed on its behalf by:
Richard Hotchkis
Christopher
Legge
Chairman
Chairman of the Audit Committee
Unaudited Condensed Statement of
Comprehensive Income
For the six months ended 30 June
2017
|
|
Six
months ended
30 June 2017 |
|
Six
months ended
30 June 2016 |
|
Note |
US$ |
|
US$ |
|
|
|
|
|
Interest income |
|
1,778 |
|
1,184 |
Dividend income |
|
1,110 |
|
1,969,306 |
Net foreign currency
(loss)/gain |
|
(1,710) |
|
64,602 |
Other net changes in
fair value on financial assets and liabilities at fair value
through profit or loss |
4 |
8,574,961 |
|
(2,343,760) |
Total net
gain/(loss) |
|
8,576,139 |
|
(308,668) |
|
|
|
|
|
Expenses |
|
|
|
|
Investment management
fees |
|
(31,301) |
|
(53,458) |
Incentive fees |
|
(150,949) |
|
(493,650) |
Directors’
remuneration |
|
(35,307) |
|
(44,728) |
Fund administration
fees |
|
(6,117) |
|
(5,713) |
Custody fees |
|
(3,349) |
|
(2,661) |
Other operating
expenses |
|
(78,189) |
|
(70,528) |
Total operating
expenses |
|
(305,212) |
|
(670,738) |
|
|
|
|
|
Gain/(loss) for the
period |
|
8,270,927 |
|
(979,406) |
|
|
|
|
|
Total comprehensive
gain/(loss) for the period |
|
8,270,927 |
|
(979,406) |
|
|
|
|
|
Earnings per
share |
|
|
|
|
Basic and diluted
gain per US$ share |
9 |
US$0.72 |
|
US$0.14 |
Basic and diluted
gain/(loss) per £ share |
9 |
US$1.13 |
|
US$(0.53) |
All items derive from continuing activities.
Unaudited Condensed Statement of
Changes in Equity
For the six months ended 30 June
2017
|
|
|
Special |
|
Retained |
|
|
|
|
|
reserve |
|
earnings |
|
Total |
|
|
|
US$ |
|
US$ |
|
US$ |
|
|
|
|
|
|
|
|
Total equity as at
1 January 2017 |
|
|
410,583,457 |
|
(356,978,544) |
|
53,604,913 |
Total comprehensive
loss for the period |
|
|
- |
|
8,270,927 |
|
8,270,927 |
Total equity as at
30 June 2017 |
|
|
410,583,457 |
|
(348,707,617) |
|
61,875,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
(18,700,129) |
|
- |
|
(18,700,129) |
Total equity as at
30 June 2016 |
|
|
410,583,457 |
|
(354,613,060) |
|
55,970,397 |
Unaudited Condensed Statement of Cash
Flows
For the six months ended 30 June
2017
|
Six
months ended
30 June 2017 |
|
Six
months ended
30 June 2016 |
|
US$ |
|
US$ |
Cash flows from
operating activities |
|
|
|
Net bank interest
received |
1,778 |
|
1,184 |
Dividends
received |
1,110 |
|
1,969,306 |
Net operating expenses
(charged)/received |
(182,184) |
|
159,321 |
Net cash (used
in)/from operating activities |
(179,296) |
|
2,129,811 |
|
|
|
|
Cash flows from
investment activities |
|
|
|
Sales of
investments |
- |
|
6,510,958 |
Purchases of
investments |
- |
|
(2,502,466) |
Net cash flows on
derivative instruments and foreign exchange |
587,291 |
|
(1,560,195) |
Net cash from
investment activities |
587,291 |
|
2,448,297 |
|
|
|
|
Cash flows from
financing activities |
|
|
|
Capital
distributions |
- |
|
(18,700,129) |
Net cash used in
financing activities |
- |
|
(18,700,129) |
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents |
407,995 |
|
(14,122,021) |
|
|
|
|
Reconciliation of net cash flows to movement in cash and cash
equivalents |
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the period |
956,920 |
|
16,505,657 |
Net
increase/(decrease) in cash and cash equivalents |
407,995 |
|
(14,122,021) |
Cash and cash
equivalents at the end of the period |
1,364,915 |
|
2,383,636 |
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 2016. 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 25 August 2017.
The Directors have assessed the impact of the AIFMD on the
financial statements of the Company and have concluded that the
Company is exempt from following Chapter V, Section 1, Articles 103
– 111 of the European Commission’s Level 2 Delegated Regulation on
the basis of the operations of the Company: it being (i) a Non-EEA
AIF, and (ii) not being marketed in the European Union, as defined
by the Directive.
b) Judgements and Estimates
Preparing the unaudited condensed interim financial statements
requires judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ
from these estimates. The significant judgements made in applying
the Company’s accounting policies, and the key sources of
estimation uncertainty, were the same as those that applied to the
audited financial statements of the Company for the year ended
31 December 2016.
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 2016.
3. Financial Assets
and Liabilities at Fair Value through Profit or Loss
|
|
|
|
|
|
30 June
2017 |
31
December 2016 |
|
|
|
|
|
|
US$ |
US$ |
Financial
assets held for trading: |
|
|
|
-
Derivative financial assets |
|
51,112 |
5,536 |
Total
financial assets held for trading |
|
51,112 |
5,536 |
|
|
|
|
|
|
|
|
Designated
at fair value through profit or loss at inception: |
|
|
|
- Equity
investments |
|
61,488,883 |
53,647,750 |
Total
designated at fair value through profit or loss at
inception |
|
61,488,883 |
53,647,750 |
Total
financial assets at fair value through profit or loss |
|
61,539,995 |
53,653,286 |
There were no significant changes to the Company’s direct equity
other than valuation movements.
As at 30 June 2017, derivative
financial assets comprised forward foreign currency contracts as
follows:
Currency
Bought |
Amount
Bought |
|
Currency
Sold |
Amount
Sold |
|
Maturity
Date |
Unrealised
Gain |
£ |
12,861,307 |
|
US$ |
16,675,640 |
|
11/08/2017 |
51,112 |
Derivative financial assets |
|
|
51,112 |
As at 31 December 2016, derivative
financial assets comprised forward foreign currency contracts as
follows:
Currency
Bought |
Amount
Bought |
|
Currency
Sold |
Amount
Sold |
|
Maturity
Date |
Unrealised
Gain |
US$ |
473,013 |
|
£ |
377,880 |
|
17/02/2017 |
5,536 |
Derivative financial assets |
|
|
5,536 |
|
|
|
|
|
|
30 June
2017 |
31
December 2016 |
|
|
|
|
|
|
US$ |
US$ |
Financial
liabilities held for trading: |
|
|
|
-
Derivative financial liabilities |
|
- |
(99,251) |
Total
financial liabilities held for trading |
|
- |
(99,251) |
As at 30 June 2017, there were no
derivative financial liabilities.
As at 31 December 2016, derivative
financial liabilities comprised forward foreign currency contracts
as follows:
Currency
Bought |
Amount
Bought |
|
Currency
Sold |
Amount
Sold |
|
Maturity
Date |
Unrealised
Loss |
£ |
12,999,408 |
|
US$ |
16,180,884 |
|
17/02/2017 |
(99,251) |
Derivative financial liabilities |
|
|
(99,251) |
4. Net Gain/Loss from
Financial Assets and Liabilities at Fair Value through Profit or
Loss
|
|
|
|
|
|
30 June
2017 |
30 June
2016 |
|
|
|
|
|
|
|
US$ |
US$ |
|
Other net
changes in fair value through profit or loss: |
|
|
|
|
- Realised
gains on investments |
|
- |
1,668,136 |
* |
- Realised
losses on investments |
|
- |
(12,264,589) |
* |
- Realised
gains on forward foreign currency contracts |
|
614,486 |
376,040 |
* |
- Realised
losses on forward foreign currency contracts |
|
(25,482) |
(2,000,837) |
* |
- Change
in unrealised gains on investments |
|
7,958,795 |
13,183,805 |
* |
- Change
in unrealised losses on investments |
|
(117,665) |
(2,592,946) |
* |
- Change
in unrealised gains on forward foreign exchange contracts |
|
150,363 |
1,045,910 |
* |
- Change
in unrealised losses on forward foreign exchange contracts |
|
(5,536) |
(1,759,279) |
* |
Total
gain/(loss) |
|
8,574,961 |
(2,343,760) |
|
|
|
|
|
|
|
|
|
|
Other net
changes in fair value on derivative assets held for trading |
733,831 |
(2,338,166) |
|
Other net
changes in fair value on assets designated at fair value through
profit or loss |
7,841,130 |
(5,594) |
|
Total
net gain/(loss) |
|
8,574,961 |
(2,343,760) |
|
* The prior period comparatives have been amended to conform
with the current period’s presentation whereby gains and losses
from financial assets and liabilities at fair value through profit
or loss have been broken down to show the gross gains and losses
for each type of financial asset and liability.
5. Other Financial Assets
and Liabilities
a) Other financial assets:
Other financial assets relate to accounts receivable and prepaid
expenses and comprise the following:
|
|
|
|
|
|
30 June
2017 |
31
December 2016 |
|
|
|
|
|
|
US$ |
US$ |
Prepaid
Directors’ insurance fees |
|
11,294 |
6,833 |
Other
receivables and prepaid expenses |
|
3,252 |
1,348 |
|
|
|
|
|
|
14,546 |
8,181 |
b) Other financial liabilities:
Other financial liabilities relate to accounts payable and
accrued expenses, and comprise the following:
|
|
|
|
|
|
30 June
2017 |
31
December 2016 |
|
|
|
|
|
|
US$ |
US$ |
Investment
management fees payable |
|
(5,364) |
(4,731) |
Incentive
fees payable |
|
(946,042) |
(795,093) |
Other
accruals |
|
(92,210) |
(114,399) |
|
|
|
|
|
|
(1,043,616) |
(914,223) |
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 2016.
b) Carrying amounts versus fair values
As at 30 June 2017, 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 2017.
|
Held
for trading |
Designated at fair value |
Loans
and receivables |
|
Other
financial
liabilities |
Total |
Cash and cash
equivalents |
- |
- |
1,364,915 |
|
- |
1,364,915 |
Non-pledged financial
assets at fair value
through profit or loss |
51,112 |
61,488,883 |
- |
|
- |
61,539,995 |
Other receivables |
- |
- |
14,546 |
|
- |
14,546 |
Total |
51,112 |
61,488,883 |
1,379,461 |
|
- |
62,919,456 |
|
|
|
|
|
|
|
Other payables |
- |
- |
- |
|
(1,043,616) |
(1,043,616) |
Total |
- |
- |
- |
|
(1,043,616) |
(1,043,616) |
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 2016.
|
Held
for trading |
Designated at fair value |
Loans
and receivables |
|
Other
financial
liabilities |
Total |
Cash and cash
equivalents |
- |
- |
956,920 |
|
- |
956,920 |
Non-pledged financial
assets at fair value
through profit or loss |
5,536 |
53,647,750 |
- |
|
- |
53,653,286 |
Other receivables |
- |
- |
8,181 |
|
- |
8,181 |
Total |
5,536 |
53,647,750 |
965,101 |
|
- |
54,618,387 |
|
|
|
|
|
|
|
Financial liabilities
at fair value
through profit or loss |
(99,251) |
- |
- |
|
- |
(99,251) |
Other payables |
- |
- |
- |
|
(914,223) |
(914,223) |
Total |
(99,251) |
- |
- |
|
(914,223) |
(1,013,474) |
c) Financial instruments carried at fair value - fair value
hierarchy
Fair value is defined as the price that would be received to
sell an asset or paid to transfer a liability (i.e. the exit price)
in an orderly transaction between market participants at the
measurement date.
For certain of the Company’s financial instruments including
cash and cash equivalents, prepaid/accrued expenses and other
creditors, their carrying amounts approximate fair value due to the
immediate or short-term nature of these financial instruments. The
Company’s investments and financial derivative instruments are
carried at market value, which approximates fair value.
The Company classifies financial instruments within a fair value
hierarchy that prioritises the inputs to valuation techniques used
to measure fair value. The hierarchy gives the highest priority to
unadjusted quoted prices in active markets for identical assets or
liabilities (Level 1 measurements) and the lowest priority to
unobservable inputs (Level 3 measurements). The three levels of the
fair value hierarchy are as follows:
Level 1 inputs are unadjusted quoted prices in active
markets for identical assets or liabilities that the reporting
entity has the ability to access at the measurement date.
Level 2 inputs are observable inputs other than quoted
prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly, including:
- quoted prices for similar assets or liabilities in active
markets;
- quoted prices for identical or similar assets or liabilities in
markets that are not active;
- inputs other than quoted prices that are observable for the asset
or liability;
- inputs that are derived principally from or corroborated by an
observable market.
Level 3 inputs are unobservable inputs for the asset or
liability.
Inputs are used in applying various valuation techniques and
broadly refer to the assumptions that market participants use to
make valuation decisions, including assumptions about risk. Inputs
may include price information, volatility statistics, specific and
broad credit data, liquidity statistics, and other factors. A
financial instrument’s level within the fair value hierarchy is
based on the lowest level of any input that is significant to the
fair value measurement. However, the determination of what
constitutes “observable” requires significant judgement. The
Company considers observable data to be that market data which is
readily available, regularly distributed or updated, reliable and
verifiable, not proprietary, and provided by independent sources
that are actively involved in the relevant market.
The categorisation of a financial instrument within the
hierarchy is based upon the pricing transparency of the instrument
and does not necessarily correspond to the Company’s perceived risk
of that instrument.
Investments: Investments whose values are based on quoted
market prices in active markets, and are therefore classified
within Level 1, include active listed equities, certain U.S.
government and sovereign obligations, and certain money market
securities. The Company does not generally adjust the quoted price
for such instruments, even in situations where it holds a large
position and a sale could reasonably impact the quoted price.
Investments that trade in markets that are not considered to be
active, but are valued based on quoted market prices, dealer
quotations or alternative pricing sources supported by observable
inputs are classified within Level 2. These may include government
and sovereign obligations, government agency securities, corporate
bonds, and municipal and provincial obligations.
Investments classified within Level 3 have significant
unobservable inputs, as they trade infrequently or not at all.
Level 3 instruments may include private equity investments, certain
loan agreements, less-liquid corporate debt securities (including
distressed debt instruments) and collateralised debt obligations.
Also included in this category are government and sovereign
obligations, government agency securities and corporate bonds for
which independent broker prices are used and information relating
to the inputs of the price models is not observable.
When observable prices are not available; e.g. if an asset does
not trade regularly, the Company may rely on information provided
by any person, firm or entity including any professional person
whom the Directors consider to be suitably qualified to provide
information in respect of the valuation of investments and who is
approved by the Custodian (an “Approved Person”). Approved Persons
may include certain brokers and the Pricing Methodology and
Valuation Committee (“PMVC”) of the Investment Manager.
The PMVC may provide assistance to the Administrator in
determining the valuation of assets where the Administrator cannot
determine a valuation from another source. These assets, which are
classified within Level 3, may include all asset types but are
frequently ‘Special Situations’ type investments, typically
incorporating distressed, illiquid or private investments.
For these hard-to-value investments, the methodology and models
used to determine fair value are created in accordance with the
International Private Equity and Venture Capital Valuation (“IPEV”)
guidelines. Smaller investments may be valued directly by the PMVC
but material investments are valued by experienced personnel at an
independent third-party valuation specialist. Such valuations are
subject to review, amendment if necessary, then approval by the
PMVC. The valuations are ultimately approved by the Directors and
the auditors to a material extent in so far as they make up part of
the Net Asset Value (“NAV”) in the financial statements.
Valuation techniques used include the market approach, the
income approach or the cost approach depending on the availability
of reliable information. The market approach generally consists of
using; comparable transactions, earnings before interest, tax,
depreciation and amortisation (“EBITDA”) multiples; or enterprise
value (“EV”) multiples (based on comparable public company
information). The use of the income approach generally consists of
the net present value of estimated future cash flows, adjusted as
deemed appropriate for liquidity, credit, market and/or other risk
factors.
Inputs used in estimating the value of investments may include
the original transaction price, recent transactions in the same or
similar instruments, completed or pending third-party transactions
in the underlying investment or comparable issuers, subsequent
rounds of financing, recapitalisations and other transactions
across the capital structure, offerings in the equity or debt
capital markets and bids received from potential buyers.
For the determination of the NAV, Level 3 investments may be
adjusted to reflect illiquidity and/or non-transferability.
However, any such adjustments are typically reversed in the
financial statements where it is determined that this is required
by the accounting standards.
The Company believes that its estimates of fair value are
appropriate, however estimates and assumptions concerning the
future, by definition, seldom equal the actual results and the
estimated value may not be realised in a current sale or immediate
settlement of the asset or liability. The use of different
methodologies, assumptions or inputs would lead to different
measurements of fair value and given the number of different
factors affecting the estimate, specific sensitivity analysis
cannot be reliably quantified. It is reasonably possible, on the
basis of existing knowledge, that outcomes within the next
financial year that are different from the assumptions used could
require a material adjustment to the carrying amounts of affected
assets.
Financial Derivative Instruments: Financial derivative
instruments can be exchange-traded or privately negotiated
over-the-counter (“OTC”). Exchange-traded derivatives, such as
futures contracts and exchange-traded option contracts, are
typically classified within Level 1 or Level 2 of the fair value
hierarchy depending on whether or not they are deemed to be
actively traded.
OTC derivatives, including forwards, credit default swaps,
interest rate swaps and currency swaps, are valued by the Company
using observable inputs, such as quotations received from the
counterparty, dealers or brokers, whenever these are available and
considered reliable. In instances where models are used, the value
of an OTC derivative depends upon the contractual terms of, and
specific risks inherent in, the instrument as well as the
availability and reliability of observable inputs. Such inputs
include market prices for reference securities, yield curves,
credit curves, measures of volatility, prepayment rates and
correlations of such inputs. Certain OTC derivatives, such as
generic forwards, swaps and options, have inputs which can
generally be corroborated by market data and are therefore
classified within Level 2.
Those OTC derivatives that have less liquidity or for which
inputs are unobservable are classified within Level 3. While the
valuations of these less liquid OTC derivatives may utilise some
Level 1 and/or Level 2 inputs, they also include other unobservable
inputs which are considered significant to the fair value
determination. At each measurement date, the Company updates the
Level 1 and Level 2 inputs to reflect observable inputs, though the
resulting gains and losses are reflected within Level 3 due to the
significance of the unobservable inputs.
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 2017 and the year ended
31 December 2016.
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 2017:
|
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 |
- |
51,112 |
- |
51,112 |
Financial assets
designated at fair value through profit or loss at inception: |
|
|
|
|
- Equity
investments |
933 |
- |
61,487,950 |
61,488,883 |
Total |
933 |
51,112 |
61,487,950 |
61,539,995 |
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 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 |
- |
5,536 |
- |
5,536 |
Financial assets
designated at fair value through profit or loss at inception: |
|
|
|
|
- Equity
investments |
930 |
- |
53,646,820 |
53,647,750 |
Total |
930 |
5,536 |
53,646,820 |
53,653,286 |
|
|
|
|
|
Financial
liabilities at fair value
through profit and loss |
|
|
|
|
Financial liabilities
held for trading: |
|
|
|
|
- Derivative financial
liabilities |
- |
(99,251) |
- |
(99,251) |
Total |
- |
(99,251) |
- |
(99,251) |
Level 1 assets include 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 Ashmore Funds
(“Funds”), limited partnerships and unquoted investments.
Investments in unquoted Funds and limited partnerships are valued
on the basis of the latest NAV, which represents the fair value, as
provided by the administrator of the unquoted Fund at the close of
business on the relevant valuation day. Unquoted Funds have been
classified as Level 3 assets after consideration of their
underlying investments, lock-up periods and liquidity.
The following table presents the movement in Level 3 instruments
for the period ended 30 June
2017.
|
|
Equity investments |
Opening balance as at
1 January 2017 |
|
|
|
53,646,820 |
Gains and
losses recognised in profit and loss * |
|
|
7,841,130 |
Closing balance as
at 30 June 2017 |
|
|
|
61,487,950 |
* Gains and losses recognised in profit and loss include net
unrealised losses on existing assets as at 30 June 2017 of US$351,227,164.
Total gains and losses included in the Unaudited Condensed
Statement of Comprehensive Income are presented in “Other net
changes in fair value on financial assets and liabilities at fair
value through profit or loss”.
The following tables show the valuation techniques and the key
unobservable inputs used in the determination of the fair value of
Level 3 direct investments:
|
Balance as at
30 June 2017 |
|
Valuation |
|
|
US$ |
|
methodology |
Unobservable
inputs |
Equity in private
companies |
6,526,325 |
|
Discounted Cash Flows
/ Comparable listed company EV/EBITDA multiples |
- Forecast annual
revenue growth rate
- Forecast EBITDA margin
- Risk adjusted discount rate
- Market multiples |
Investments in
unlisted Funds |
54,961,625 |
|
Net Asset Value |
Inputs to NAV* |
|
|
|
|
|
|
Balance as at
31 December 2016 |
|
Valuation |
|
|
US$ |
|
methodology |
Unobservable
inputs |
Equity in private
companies |
5,771,581 |
|
Discounted Cash Flows
/ Comparable listed company EV/EBITDA multiples |
- Forecast annual
revenue growth rate
- Forecast EBITDA margin
- Risk adjusted discount rate
- Market multiples |
Investments in
unlisted Funds |
47,875,239 |
|
Net Asset Value |
Inputs to NAV* |
* Management has assessed whether there are any discounts in
relation to lock-in periods that are impacting liquidity. There
were no discounts in relation to lock-in periods as at 30 June 2017 or at 31
December 2016.
The Company believes that its estimates of fair value are
appropriate; however the use of different methodologies or
assumptions could lead to different measurements of fair value. For
fair value investments in Level 3, changing one or more of the
assumptions used to alternative assumptions could result in an
increase or decrease in net assets attributable to investors. Due
to the numerous different factors affecting the assets, the impact
cannot be reliably quantified. It is reasonably possible on the
basis of existing knowledge, that outcomes within the next
financial period that are different from the assumptions used could
require a material adjustment to the carrying amounts of affected
assets.
7. Capital and
Reserves
Ordinary Shares
The following table presents a summary of changes in the number
of shares issued and fully paid during the period ended
30 June 2017:
|
|
US$
shares |
|
£
shares |
Shares
outstanding as at 1 January 2017 |
7,465,478 |
|
2,586,288 |
Share conversions |
|
232,582 |
|
(193,480) |
Shares
outstanding as at 30 June 2017 |
7,698,060 |
|
2,392,808 |
Share Conversion
The following share conversions took place during the period
ended 30 June 2017:
Transfers from |
Transfers to |
Number
of shares
to switch out |
|
Number
of shares
to switch in |
£ shares |
US$ shares |
196,572 |
|
236,300 |
US$ shares |
£ shares |
3,718 |
|
3,092 |
Compulsory Partial Redemptions
During the period ended 30 June
2017, the Company did not announce any partial returns of
capital to shareholders by way of compulsory partial redemptions of
shares following the approval by the Company’s shareholders of the
wind-down proposal as described in the circular published on
20 February 2013.
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 NAV 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
2017 |
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 |
44,557,744 |
7,698,060 |
5.79 |
5.79 |
£ shares |
17,318,096 |
2,392,808 |
7.24 |
5.57 |
|
61,875,840 |
|
|
|
As at 31 December
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 |
37,910,997 |
7,465,478 |
5.08 |
5.08 |
£ shares |
15,693,916 |
2,586,288 |
6.07 |
4.91 |
|
53,604,913 |
|
|
|
The allocation of the Company’s NAV between share classes is
further described in the Company’s Prospectus.
9. Earnings per Share
(“EPS”)
The calculation of the earnings per US$ and £ 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 attributable to each share class for the period ended
30 June 2017 was as follows:
|
|
|
US$
share |
|
£
share |
Issued shares at the
beginning of the period |
|
|
7,465,478 |
|
2,586,288 |
Effect on
the weighted average number of shares: |
|
|
|
|
- Conversion of
shares |
|
|
116,291 |
|
(96,740) |
Weighted average
number of shares |
|
|
7,581,769 |
|
2,489,548 |
Gain per share
class (US$) |
|
|
5,455,908 |
|
2,815,019 |
EPS (US$) |
|
|
0.72 |
|
1.13 |
There were no dilutive instruments in issue during the period
ended 30 June 2017.
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
ended 30 June 2016.
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 as at 30
June 2017.
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 |
7 |
|
263,032,567 |
|
48,647,966 |
|
18.50 |
Real Estate |
2 |
|
68,422,349 |
|
6,313,659 |
|
9.23 |
The maximum exposure to loss is the carrying amount of the
financial assets held.
During the period, the Company did not provide financial support
to these unconsolidated structured entities and the Company has no
intention of providing financial or other support, except for the
outstanding commitments disclosed in note 14 to the financial
statements.
13. Related Party Transactions
Parties are considered to be related if one party has the
ability to control the other party or to exercise significant
influence over the other party in making financial or operational
decisions.
The Directors are responsible for the determination of the
investment policy of the Company and have overall responsibility
for the Company’s activities. The Company’s investment portfolio is
managed by AIAL.
The Company and the Investment Manager entered into an
Investment Management Agreement under which the Investment Manager
has been given responsibility for the day-to-day discretionary
management of the Company’s assets (including uninvested cash) in
accordance with the Company’s investment objectives and policies,
subject to the overall supervision of the Directors and in
accordance with the investment restrictions in the Investment
Management Agreement and the Articles of Incorporation.
During the period ended 30 June
2017, the Company had the following related party
transactions:
|
|
Expense |
Payable |
Related
Party |
Nature |
US$ |
US$ |
AIAL |
Investment management
fees |
(31,301) |
(5,364) |
AIAL |
Incentive fees |
(150,949) |
(946,042) |
Board of
Directors |
Directors’
remuneration |
(35,307) |
- |
|
|
|
|
|
|
|
Investment Activity |
Related
Party |
Nature |
|
US$ |
Ashmore SICAV 2 Global
Liquidity US$ Fund |
Dividends |
|
3 |
During the period ended 30 June
2016, the Company engaged in the following related party
transactions:
|
|
Expense |
Payable |
Related
Party |
Nature |
US$ |
US$ |
AIAL |
Investment management
fees |
(53,458) |
(5,656) |
AIAL |
Incentive fees |
(493,650) |
(1,017,077) |
Board of
Directors |
Directors’
remuneration |
(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 |
Related Funds are other Funds managed by Ashmore Investment
Advisors Limited or its associates.
Purchases and sales of the Ashmore SICAV 2 Global Liquidity US$
Fund (“Global Liquidity Fund”) were solely related to the cash
management of US dollars on account. Funds are swept into the
S&P AAA rated Global Liquidity Fund and returned as and when
required for asset purchases or distributions. The Global Liquidity
Fund is managed under the dual objectives of the preservation of
capital and the provision of daily liquidity, investing exclusively
in very highly rated short-term liquid money market securities.
During the periods ended 30 June
2017 and 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 had the following beneficial interests in the
Company:
|
30 June
2017 |
31
December 2016 |
|
£
ordinary shares |
£
ordinary shares |
Nigel de la Rue |
785 |
785 |
Christopher Legge |
490 |
490 |
Richard Hotchkis |
295 |
295 |
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 2017, the outstanding commitment was
US$529,455 (31
December 2016: 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 2017, the outstanding
commitment was €243,474 (31 December
2016: €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
2017, the outstanding commitment was US$6,261,340 (31 December
2016: US$6,261,340).
15. Subsequent Events
On 25 August 2017, the Board
approved a US$3,000,000 distribution
to shareholders following partial realisations of the investment in
Microvast in June and July 2017.
Nigel de la Rue reached nine
years of services in October 2016 and
was re-elected as a Director of the Company at the Annual General
Meeting held on 20 July 2017.
There were no other significant events subsequent to the
period-end date that require adjustment to, or disclosure in, the
financial statements.
Corporate Information
Directors
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 |
Alternative Investment Fund 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 |