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”)
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 Management Statement to
31 March 2015
1 June 2015
Investment Objective
Ashmore Global Opportunities Limited (“AGOL”) is a closed ended
investment company incorporated and registered in Guernsey and
listed on the London Stock Exchange. On 13
March 2013, the Board of AGOL announced that shareholders
had approved the proposals at the EGM held on the same day to amend
the investment objective of AGOL to realise the Company's assets in
an orderly manner and to deliver a regular, quarterly return of
cash to shareholders and to remove the continuation vote. Please
refer to the AGOL website (www.agol.com) for further
information.
This update relates to the period 1
January 2015 to 31 March
2015.
NAV Performance Summary
Share Class |
|
3 Month |
Year to date |
1 Year |
3 Years |
Inception |
GBP |
|
-2.32% |
-2.32% |
-16.53% |
-16.51% |
-8.48% |
USD |
|
-2.10% |
-2.10% |
-15.90% |
-16.46% |
-8.27% |
|
|
|
|
|
|
|
Returns are NAV to NAV, net of fees and include reinvestment of
dividends paid. Returns are to 31 March
2015. Data is provided for information purposes only. Shares
in AGOL do not necessarily trade at a price equal to the prevailing
NAV per Share, which may be at a discount or premium. Past
performance is not a reliable indicator of future results. Periods
greater than one year are annualised.
The NAV of AGOL as at 31 March
2015 was $122.42m. The NAV per
share was $5.13 for the USD share
class and £5.05 for the GBP share class. On 15 January 2015, the Company announced that it
would return 123.78 pence and 125.39
US cents per GBP and USD share respectively, on a payment date of
30 January 2015 using the
31 December 2014 Net Asset Value.
On 16 April 2015, the Company
announced that it would return 80.36
pence and 81.70 US cents per GBP and USD share respectively
on 1 May 2015 using the 31 March 2015 NAV.
Portfolio Overview
The USD and GBP share classes returned -2.10% and -2.32%
respectively in the first quarter of 2015.
The investment company continues to make progress on realising
investments from the underlying Funds while discussions are ongoing
with regards to the remaining investments.
Ashmore Funds realised their position in Indostar, an Indian
financial services company, in January
2015. The equity interests of all the Ashmore Funds were
sold in January 2015 to two
co-investors under a right of first offer (ROFO).
Bedfordbury Development Corporation agreed the sale of the Ayala
Avenue Tower asset, one of the three remaining portfolio assets.
The transaction closed in early February
2015 with proceeds applied to meet certain obligations of
the asset split transaction in 2014, and to pay down senior debt
and provide working capital.
Outside of this reporting period, the underlying Funds also
realised the position in Pacnet. The deal with Telstra completed in
April 2015, and was paid 85% in cash.
The remainder will be disbursed subject to Pacnet meeting
performance hurdles. MCX, the multi commodity exchange, was also
sold through the stock exchange, a process which started in
November 2014 and which was completed
in 2015. Al Noor was fully exited in
late April 2015.
Existing shareholders of Asian Genco have agreed to a
restructuring of the business in which Government of Sikkim (GoS),
a 26% partner in the hydro project, will increase its stake to 51%
and convert this from a private to a public project. Consequently,
underlying Ashmore Funds saw the position diluted in Asian
Genco.
Top 10 underlying investments as at
31 March 2015
Investment
Name |
Holding |
Country |
Business
Description |
Website
Link |
AEI |
20.23% |
Cayman Islands |
Owns, operates and
develops interests in power generation assets in Latin
America. |
www.aeienergy.com |
Bedfordbury |
17.27% |
Philippines |
Real estate
development company focussing on underdeveloped sites. |
n/a |
Pacnet |
10.05% |
Singapore |
Asia’s leading
independent telecommunications infrastructure and service
provider. |
www.pacnet.com |
Al Noor
Medical |
9.75% |
UAE |
Provider of
integrated healthcare services. |
www.alnoorhospital.com |
Far East Energy
Bermuda |
2.70% |
China |
Oil exploration and
production. |
www.fareastenergy.com |
Microvast |
2.48% |
China |
Battery/battery
systems supplier. |
www.microvast.com |
Largo
Resources |
1.84% |
Brazil |
Brazilian provider
of mining services. |
www.largoresources.com |
GZ Industries |
1.76% |
Nigeria |
Aluminium cans
manufacturing. |
www.gzican.com |
Emerald Plantation
Holdings |
0.46% |
China |
Manages and
operates forest plantations. |
www.emeraldplantationholdings.com |
Arcil |
0.32% |
India |
Provides asset
reconstruction services. |
www.arcil.co.in |
Total: |
66.84% |
|
|
Recent company events
AEI
One operating asset (San Felippe) and two greenfield projects
(Fenix and Jaguar) remain within the business. Focus remains on
selling all remaining operating assets as soon as possible and
completing the greenfield projects before sale. Fenix achieved full
commercial operation date (COD) on January
15 and is now generating full cash flows through
transmission of power to the state grid. Active disposal processes
are ongoing with target completion of Q3 2015. Jaguar in
Guatemala commissioned the first
130MW of power and is on track for full commissioning. Arbitration
proceedings are ongoing with the previous EPC contractor.
Bedfordbury
BDC agreed the sale of the Ayala Avenue Tower asset, one of the
three remaining portfolio assets. The transaction closed in early
February 2015. The transaction
proceeds were applied to meet certain obligations of the asset
split transaction in 2014, and to pay down senior debt and provide
working capital. The remaining proceeds are held pending the
outcome of a tax ruling, expected in Q2 2015. Ashmore and BDC staff are now discussing the
potential transaction of the remaining two assets.
Pacnet
The deal with Telstra completed in April, and was paid 85% in
cash, with the remaining dependent on certain performance
hurdles.
Al
Noor
Al Noor was fully exited in late
April 2015, at an average IRR across
Ashmore Funds of 51%.
MCX
The sale of MCX equity through the stock exchange, which started
in November 2014, was completed in
2015.
Microvast
Production capacity is a constraining factor and additional
funding is required for capital investment. The company is in
discussions with shareholders and other parties to organise this
funding.
Largo Resources
Largo is in dispute with Global Tungsten & Powders (GTP)
concerning a contract which Largo entered into for the supply of
tungsten, from Currais Novos (CN). A recent arbitration award was
made against Largo, and Largo is negotiating the final outcome with
GTP. CN remains shut due to production problems, including a lack
of water.
GZ Industries
Business is on track on the overall African growth strategy with
two new plants being built at the moment – one in eastern
Nigeria and one in Kenya. The Company has entered into an
agreement to buy Figroglass, the largest glass packaging
manufacturer in Nigeria, subject
to financing.
Allocation by Investment Theme
Investment
Theme |
Allocation |
Theme
Description |
Corporate Debt |
3.21% |
Corporate debt
investment theme focusing on the developing corporate debt asset
class in emerging markets. |
Real Estate |
4.75% |
Direct real estate
investments in emerging markets primarily in the residential and
commercial sectors. |
Special
Situations |
70.91% |
Bottom-up, value
and event-driven strategy. Investments are mainly in corporate
restructurings through distressed debt, private and public equity
and equity linked securities. |
G7 Other |
1.17% |
|
Cash &
Equivalent |
19.96% |
|
Total |
100.00% |
|
Allocation is shown by the investment themes of the underlying
Funds or companies which AGOL is invested in. Allocation is
calculated as a percentage of the investment portfolio.
Allocation by
Country
Country |
Holding |
Cayman
Islands |
20.23% |
Philippines |
17.45% |
United Arab
Emirates |
11.97% |
Singapore |
10.05% |
China |
9.46% |
India |
4.70% |
Russia |
3.16% |
Brazil |
1.84% |
Nigeria |
1.76% |
Qatar |
0.74% |
Other
Countries |
0.77% |
Cash &
Equivalent, and G7 |
17.88% |
Total |
100.00% |
Allocation by Industry*
Industry |
Holding |
Real Estate |
21.03% |
Electric
Integration/Generation |
20.23% |
Telecommunications |
10.05% |
Healthcare
Services |
9.75% |
Oil & Gas |
2.73% |
Electrical
Components/Equipment |
2.48% |
Retail |
2.28% |
Mining |
1.84% |
Miscellaneous
Manufacturing |
1.76% |
Other
Industries |
1.54% |
Cash &
Equivalent, and G7** |
26.30% |
Total |
100.00% |
* Bloomberg industry group classifications
** Includes EM cash holdings which comprise 11.19% of the
portfolio
Allocation by investment*
Investment Name |
Holding |
Quarterly NAV
Performance (net) |
Investment
Description |
Ashmore Global
Special Situations Fund 4 |
28.06% |
-5.85% |
Global emerging
markets special situations investment Fund with a 7 year fixed life
and limited partnership structure. |
Ashmore Global
Special Situations Fund 5 |
14.00% |
-8.71% |
Global emerging
markets special situations investment Fund with a 7 year fixed life
and limited partnership structure. |
AEI |
12.17% |
0.00% |
AEI owns, operates
and develops interests in multiple power generation assets in Latin
America. |
Ashmore Asian
Recovery Fund |
10.94% |
4.91% |
Asian special
situations with investments mainly in corporate restructurings
through distressed debt, private & public equity. Shareholders
voted in January 2013 in favour of proposals to wind-up this Fund
in an orderly manner. |
AA Development
Capital India Fund |
5.28% |
-8.50% |
Fund focusing on
developmental capital deals on Indian subcontinent. |
VTBC Ashmore Real
Estate Partners |
3.13% |
-16.01% |
Russian real estate
Fund currently investing in the Moscow metropolitan area. |
Ashmore Global
Special Situations Fund 3 |
2.39% |
-0.54% |
Global emerging
markets special situations investment Fund with a 7 year fixed life
and limited partnership structure. |
Everbright Ashmore
China Real Estate Fund |
1.61% |
44.67% |
Fund focusing on
direct Chinese real estate primarily in the residential and retail
sectors in growing tier 2 and 3 cities in conjunction with a local
partner, Everbright. |
Ashmore Asian
Special Opportunities Fund |
0.78% |
1.42% |
A 5 year fixed life
Fund focussing on bottom-up, event-driven Asian special situation
opportunities which are accessed by purchasing shares of the
Ashmore Asian Recovery Fund at a discount to its prevailing
NAV. |
Ashmore Global
Special Situations Fund 2 |
0.75% |
-0.69% |
Global emerging
markets special situations investment Fund with a 5 year fixed life
and limited partnership structure. |
* Holdings of less than 0.5% not shown.
Enquiries:
Ashmore Investment Advisors Limited
Robert Hegt
Tel: +44 (0) 203
077 6147
Northern Trust International Fund Administration Services
(Guernsey) Limited
Andrew
Maiden
Tel: +44 (0) 1481
745 368