TIDMAGOL

RNS Number : 7218K

Ashmore Global Opportunities Ltd

20 April 2015

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.

Annual Results

For the year ended 31 December 2014

The financial information set out in this announcement do not constitute the Company's statutory accounts for the year ended 31 December 2014. All figures are based on the audited financial statements for the year ended 31 December 2014.

The financial information for the year ended 31 December 2014 is derived from the financial statements delivered to the UK Listing Authority. The Auditors reported on those accounts, their report was unqualified and did not contain a statement under Section 263(2) and 263(3) of The Companies (Guernsey) Law, 2008.

The announcement is prepared on the same basis as will be set out in the annual accounts.

The Annual Report will shortly be posted to shareholders and will also be available on the company website: www.agol.com

Financial Highlights

 
                                    31 December      31 December 
                                           2014             2013 
 
 Total Net Assets                US$170,431,338   US$278,192,239 
 
 Net Asset Value per Share 
 US$ shares                             US$5.28          US$6.26 
 GBP shares                             GBP5.21          GBP6.19 
 
 Closing-Trade Share Price 
 US$ shares                             US$4.05          US$4.72 
 GBP shares                             GBP3.93          GBP4.40 
 
 Discount to Net Asset Value 
 US$ shares                            (23.30)%         (24.60)% 
 GBP shares                            (24.57)%         (28.92)% 
 

Chairman's Statement

In the 2012 Annual Report, my predecessor wrote that the Board expected approximately half of the 31 December 2012 NAV to become available for distribution by 31 December 2014. I am pleased to report that this target has been met. Including the compulsory redemption of US$40.5 million paid in January 2015, the Company has now distributed 50% of the December 2012 NAV or 72% of the December 2012 market capitalisation. Furthermore, more than 50% of that NAV has been realised as the January distribution did not include proceeds from the announced sale of Pacnet, which are expected to be received in Q2 2015 and distributed shortly thereafter. Other realisations are being actively pursued, with a number of these in advanced stages. The Board expects that approximately half of the Company's remaining NAV as at 31 December 2014 after January's distribution of US$40.5 million will be realised during 2015, subject to market conditions being conducive to such realisations.

AGOL's Net Asset Values ("NAVs") per share have fallen from US$6.26 and GBP6.19 at the end of 2013 to US$5.28 and GBP5.21 at the end of 2014. Key detractors from performance were Jasper, Pacnet and Skenzo, while positive contributions came from GEMS/UtilEco, MCX and Indostar. Further details on these and AGOL's other investments are provided in the Investment Manager's Report.

The US$ and GBP share prices stood at US$4.05 and GBP3.93 as at 31 December 2014, decreases of 14.2% and 10.7% respectively against 31 December 2013 levels. As at 31 December 2014, the NAV of the Company was US$170.43 million and the market capitalisation was US$129.19 million, reflecting an average discount of 23.6% between the NAVs per share and the share prices. This discount narrowed slightly during the year as further proceeds were returned to investors at a nil discount to NAV.

 
 Quarterly Distributions 
 
                                                                              % of 31 December 
 Quarter End Date                 Distributions    % of 31 December 2012             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% 
-------------------------  --------------------  ------------------------  ---------------------- 
 Total                              237,650,000             50%                      72% 
 
 

Given that the Company is in the process of a managed wind-down, the Board is carefully controlling operating costs. To this end, in the latter part of 2014 the Board considered the costs and benefits of continuing to have the shares of the Company listed on the London Stock Exchange. Following consultation with both shareholders and advisors, the Board came to the conclusion that the listing remains beneficial to shareholders as a whole. As the Company realises its investments and distributes the proceeds, the Company's NAV will diminish. As this occurs the Board will continue to monitor the costs and benefits of listing.

As mentioned in last year's report, Graeme Dell retired from the Board with effect from 16 January 2014, and Steve Hicks was appointed to the Board with effect from the same date.

I would like to thank everyone involved with AGOL for their hard work.

Richard Hotchkis

16 April 2015

Investment Manager's Report

Performance

As at 31 December 2014, the Net Asset Values ("NAVs") per share of the US dollar and Sterling classes stood at US$5.28 and GBP5.21 respectively, representing returns of -15.65% and -15.83% over the twelve months to

31 December 2014.

Portfolio

Despite 2014 being a very challenging year for some of its underlying investee companies, Ashmore Global Opportunities Limited ("AGOL") has paid distributions of US$69.25m relating to portfolio realisations during the year. GEMS/Utilico, the Saudi Arabian waste management business, was sold in the third quarter of 2014 to Jadwa, at a premium of approximately 30% compared to its last valuation. Another smaller exit was that of Skenzo/Media.net, an internet technology company which was realised in October. In December, Ashmore managed Funds realised their positions in EMTEK, the Jakarta Stock Exchange listed media company, roughly in line with the prevailing mark.

Aside from the realisations mentioned above, performance was also impacted by write downs and by positive mark-to-market price movements.

One of the largest detractors from performance over the year was Odebrecht Agroindustrial, the Brazilian ethanol producer. Odebrecht's trading over the last couple of years has been hampered by a combination of poor harvests and politically motivated price controls. This resulted in rising levels of debt which eventually exceeded the company's enterprise value. Odebrecht's equity was marked down to zero by the independent valuation agent in May 2014.

Jasper Investments, the Singapore exchange listed oil field services business, saw a significant fall in its share price in August. Having struggled to secure new contracts for its Explorer vessel, Jasper was also unable to sell its hospitality vessel, Cosmopolitan. As a result, Jasper breached covenants and the Yiulian Shipyard was able to exercise its right to force a sale of Cosmopolitan. Jasper will continue to work with Yiulian in order to realise maximum value for Cosmopolitan but the equity value of Jasper has been written down to zero.

As part of the restructuring of Pacnet in 2012, it was refocused around its data centres and data mining business. This focus continued in 2014 with a further expansion of the company's data centres, however, revenue growth was slower than expected and the business fell behind budget, leading the third party valuation agent to reduce the enterprise value over the course of the year. In late December, Telstra, the Australian telecoms company, announced that it would buy Pacnet in a deal which is expected to complete in the second quarter of 2015.

AEI made progress with its two remaining Greenfield projects which are located in Peru (Fenix) and Guatemala (Jaguar). Fenix was fully commissioned in April 2014 but as mentioned in the interim report, subsequent damage to one of the turbines led to a delay in achieving full capacity. With the turbine repairs now complete, the power station is fully operational and is generating cash flows through the transmission of power to the state grid. Jaguar's construction activities are proceeding well and the plant is expected to be operational in the second quarter of 2015.

One of the strongest performers over the year was MCX, the multi-commodity exchange of India, which benefited from the stellar performance delivered by publically listed Indian equities following the election victory of Narendra Modi's Bharatiya Janata Party in April 2014. Another significant event during the year was the complete exit from MCX of Financial Technologies India ("FTI"), one of the company's original sponsors. In December 2013 the Forward Markets Commission (the regulator) had ordered FTI to divest its holding following an alleged fraud at FTI. The ruling and a subsequent challenge by FTI created uncertainty for MCX which was resolved following FTI's exit. Operationally, a rise in the commodities transaction tax increased the cost of trading three-fold, which led to a fall in sales and revenue. Notwithstanding this, MCX put in place plans to increase its product offerings and expand geographically.

In the first half of the year, the shareholder dispute at Alphaland was settled with an agreement to split the assets of the company between the Ashmore Funds and the local Filipino shareholder group. In October 2014, the first closing of the transaction occurred with Ashmore Funds taking title to three assets: the Ayala Avenue Tower, a 50% interest in the Bay City JV and a 60% interest in the Boracay Gateway JV. Following the closing, the investment manager focused on securing an active sale or leasing plan for the tower asset, that being the most liquid part of the portfolio. Prior to the end of the year, an agreement was reached on the sale of the tower and the transaction closed in early February 2015. The proceeds were used to fund certain obligations of the asset split transaction and to pay down bank debt.

Indostar, the Indian non-bank finance company, saw a mark-up of its valuation in December as revenue growth and profitability performed in line with expectations. Subsequent to the year end, the Ashmore Funds' interest in the company was sold at a price in excess of its most recent mark.

Al Noor, the UAE hospitals business, continued to perform well; revenues increased, additional physicians have been hired and new centres were commissioned in Bateen and Baniva.

Outlook

The Investment Manager is focused on realising the Company's remaining assets in an orderly fashion and returning funds to shareholders. As described in the commentary above, the new financial year has already witnessed some early success.

Details on the Top 10 Underlying Holdings (on a look through basis)

The table below shows the top 10 underlying investments. Changes to the table since the interim report have resulted from a decrease in the value of Jasper, and from the realisations of EMTEK and GEMS/Utileco. These changes have resulted in the inclusion of Asian Genco, Microvast and ISM. There have also been some changes in size/ranking by NAV.

 
Investment Name   Holding   Country          Business Description 
 AEI              14.82%    Cayman Islands   Owns, operates and develops interests 
                                              in multiple power generation assets 
                                              in Latin America. 
 Bedfordbury      12.78%    Philippines      Real estate development company focusing 
                                              on underdeveloped sites. 
 Pacnet           7.37%     Singapore        Asia's leading independent telecoms 
                                              infrastructure and service provider. 
 Al Noor Medical  7.12%     UAE              Provider of integrated healthcare services. 
 Indostar         5.66%     India            Non-bank finance company (NBFC) focusing 
                                              on wholesale lending in India. 
 MCX              4.88%     India            India's leading commodity exchange 
                                              with over 80% market share. 
 Largo Resources  2.67%     Brazil           Brazilian provider of mining services. 
 Asian Genco      1.93%     Singapore/India  Infrastructure development company 
                                              with investments in power generation 
                                              assets. 
 Microvast        1.81%     China            Manufacturer of advanced battery solutions. 
 ISM              1.49%     Philippines      Telecommunications, multimedia and 
                                              information technology business. 
----------------  -------  ----------------  ------------------------------------------- 
 

Good performance from MCX and Indostar saw India top the country allocations with the Philippines also remaining a core allocation. By industry, the largest weighting reverted to Real Estate, as per the prior year end. The tables below show the top ten country and industry allocations at the end of December 2014:

 
 Country                 (% of NAV)   Industry                         (% of NAV) 
 India                       16.17%   Real Estate                          18.27% 
                                      Electric Integration and 
 Cayman Islands              14.82%    Generation                          16.75% 
 Philippines                 14.27%   Diversified Financial Services       12.25% 
 China                        7.60%   Telecommunications                    7.37% 
 United Arab Emirates         7.52%   Healthcare Services                   7.12% 
 Singapore                    7.38%   Mining                                2.67% 
 Russia                       2.87%   Oil and Gas Services                  1.93% 
                                      Electrical Components and 
 Brazil                       2.67%    Equipment                            1.81% 
 Nigeria                      1.27%   Retail                                1.49% 
 Qatar                        0.11%   Miscellaneous Manufacturing           1.27% 
 
 

AEI

Company: AEI

Industry: Power Generation

Country: Regional Latin America

Website: www.aeienergy.com

Company Status: Private

Deal Type: Private Equity

Investment Risk: Equity

Operational update

n Two operating assets (Cuiaba and San Felippe) and two greenfield projects (Fenix and Jaguar) remain. The focus is on selling all remaining operating assets as soon as possible and completing the greenfield projects prior to their sale

n Greenfields:

n Fenix achieved full commercial operation on January 15 and is now generating full cash flows through the transmission of power to the state grid. The focus now is on refinancing with a subsequent disposal in the next nine months.

n Jaguar's construction activities are proceeding at full speed with a target commercial operation date in Q2 2015. Arbitration proceedings with the previous EPC contractor are ongoing.

n HQ headcount is being continuously reduced in line with the downsizing of the business.

Key risks

n Jaguar project completion on budget and on time

n CMNC arbitration

n Retention of key people to support the wind down

2015 operational strategy/priorities

n On time and on budget commissioning of Fenix

n Disposal planning for all assets

n HQ cost reduction

Exit strategy

n Sale of individual assets

Bedfordbury

Company: Bedfordbury Development Corporation

Industry: Real Estate Development

Country: Philippines

Website: www.alphaland.com.ph

Company Status: Public

Deal Type: Private Equity

Investment Risk: Equity

Exit strategy and timing

n In October 2014, the first closing of the transaction occurred which saw Bedfordbury Development Corporation (BDC), a Philippines company in which the Ashmore Funds are indirect shareholders, take title to three former Alphaland assets: the Ayala Avenue Tower, a 50% interest in the Bay City JV and a 60% interest in the Boracay Gateway JV.

n Following the closing, Ashmore staff focused on negotiating an active sale and/or leasing plan for the tower which is the most liquid part of the portfolio.

n Subsequently, BDC agreed the sale of the tower which closed in early February 2015. The transaction proceeds have been applied to meet certain obligations of the asset split transaction above, and to pay down senior debt.

Pacnet

Company: Pacnet

Industry: Telecommunications

Country: Hong Kong and Singapore

Website: www.pacnet.com

Company Status: Private

Deal Type: Private Equity

Investment Risk: Equity

Operational update

n The exit from low margin products and cost reduction initiatives has resulted in a year-on-year 32% increase in EBITDA and a 763 bps improvement in the EBITDA margin.

n The year saw capex investment in the sub-sea network with over 70% of the network now transmitting data on 100g coherent technology.

n Pacnet is pioneering Network as a Service (NaaS), the ability to provision managed network services using software defined networking technology, through the launch of Pacnet Enabled Networks (PEN) which allow customers to "cloudify" their network requirements.

n New tier 3 data centres (DCs) were opened in Singapore and Chongqing bringing the total racks in Pacnet's core DCs to 6000. Pacnet now has 7 owned DCs.

2015 operational/strategic initiatives

n Launch further versions of PEN for IP-VPN and wavelength managed network products. This will allow products generating over 70% of revenues to be provisioned using the PEN platform.

n Close large indefeasible right of use (IRU) deals for a total contract value of c. US$60m with two leading internet players.

n Open new data centre in Tianjin with the capacity for up to 2,000 racks.

Key risks

n Various completion items, particularly regulatory approvals (for example, from Infocomm Development Authority of Singapore)

Exit strategy

n An agreement has been signed to sell 100% of the Company to Telstra, subject to receiving regulatory approval. It is estimated that gross proceeds will be in the region of US$330-350m for the entire equity, depending on adjustments to be made at closing, with 10% of this subject to a hold back clause.

Al Noor Medical Company

Company: Al Noor Medical Company

Industry: Healthcare

Country: United Arab Emirates

Website: www.alnoorhospital.com

Company Status: Private

Deal Type: Private Equity

Investment Risk: Equity

Operational update

n Q3 2014 sales were US$101m vs US$84m in Q3 2013, 20% growth year on year.

n Cash on hand was US$105m as at 30 September 2014.

n Inpatient volumes are flat.

n In 2014 medical centres were commissioned in Bateen and Baniya, as well as an ICAD, for industrial workers.

n A further 49 physicians have been recruited since December 2013, bringing the total to 519.

n An interim dividend of 3.7p per share was paid in October.

2015 operational strategy/priorities

n Upgrade of Khalifa Street through the leasing and fitting-out of additional space

n Progress with the construction underway in Al Ain (due 2016)

n Continued growth in UAE/Oman

Key risks

n Significant private shareholdings may be a drag on the market for Al Noor's equity.

Exit strategy

n The Al Noor shares underlying our investments are now unlocked, but remain subject to the customary closed-period restrictions and to the phased unwinding of our investment vehicle over the coming 6 months.

Indostar

Company: Indostar Capital Finance

Industry: Banking and Financial Services

Country: India

Website: www.indostarcapital.com

Company Status: Private

Deal Type: Private Equity

Investment Risk: Equity

Operational update

n The management team is focussed on improving business performance amidst a challenging lending environment. Year-to-date profitability is in line with the budget.

n Indostar completed an on-budget borrowing programme, where leverage (D/E) increased from 1.66x in FY14 to 1.84x in December 2014.

n The weighted cost of borrowing has been reduced by 150 bps to 11.81% since March 2014.

n Indostar is currently well placed from both an asset portfolio and a liquidity position.

2015 operational strategy/priorities

n Continue to build the loan book with an increased focus on origination and higher fee income to increase the return on equity

n Increase leverage while also reducing borrowing costs by diversifying sources and improving the company's debt rating

n Diversify income streams through the launch of an SME Financing and Asset Management businesses

Key risks

n Sale and Purchase Agreement (SPA) execution

Exit strategy

n Strategic stake sale

Multi Commodity Exchange of India Limited (MCX)

Company: Multi Commodity Exchange of India

Industry: Banking and Finance

Country: India

Website: www.mcxindia.com

Company Status: Public

Deal Type: Private Equity

Investment Risk: Equity

Operational update

n MCX has an 81% market share of the commodities market.

n Average daily turnover/revenues decreased to US$ 3bn in FY15 (FY14: US$ 4.5bn) after the implementation of the Commodities Transaction Tax (CTT) in FY14 which increased the cost of trading three-fold.

n EBITDA margins were hit due to the fall in revenues and slower cuts to overheads.

n The promoters have exited their stake in MCX to comply with the order of the Forward Markets Commission (FMC) (the Regulator). Kotak Mahindra Bank is now the largest shareholder with a 15% stake.

n MCX renegotiated its technology services contract, which reduced costs and improved the profitability of the company.

2015 operational strategy/priorities

n Enhance the product portfolio by adding new commodities

n Expand geographically and improve penetration though international strategic tie ups, investor awareness drives and by signing up new brokers

n Appointment of a professional CEO

Key risks

n Continued regulatory oversight by the FMC

n Uncertainty with regard to the enactment timing of the Forward Contracts Regulations Act, which will bring in a new set of investors and allow MCX to start offering "options" as a product

Exit strategy

n Sale in the public market

Largo Resources

Company: Largo Resources

Industry: Metals and Mining

Country: Brazil

Website: www.largoresources.com

Company Status: Public

Deal Type: Private Equity

Investment Risk: Equity

Operational/corporate update

n Production proper commenced in August 2014, and as at January 2015 was running at 55-75% of nameplate capacity. The ramp-up is expected to take another 6-9 months.

n Vanadium pricing is currently at a five year low, trading at around US$5 per pound, which is more than 15% below its pricing a year ago. Largo's cash cost in the ramp-up stage is somewhat misleading, but is currently below US$5 and should decline as the production ramp-up is achieved.

2015 operational strategy/priorities

n Ramp up production to the design capacity of 9,600 tonnes of V2O5 concentrate by Q3 2015

Key risks

n Vanadium pricing remains low in the commodity cycle.

n Price shocks and commissioning delays could cause funding gaps and/or negatively impact investor sentiment.

n 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). An arbitration award of US$8m was recently made against Largo, and it is reviewing its response. CN remains shut due to production problems including a lack of water.

Exit strategy

n Re-listing on the main TSX exchange or a strategic sale

Asian Genco

Company: Asian Genco Private Limited

Industry: Energy and Utilities

Country: Singapore / India

Website: www.asiangenco.com

Company Status: Private

Deal Type: Private Equity

Investment Risk: Equity

Operational update

n The hydro project is 92% physically constructed.

n There is uncertainty around the balance of equity funding as investors are unwilling to fund given uncertainty over completion timelines and expected further cost over-runs.

n Construction activity at the site has stalled due to a lack of funding.

n The Government of Sikkim, a 26% partner in the hydro project, is looking to increase its stake to 51% and convert this from a private to a public project. This will be achieved through a combination of primary equity against the balance of equity required, and a secondary stake purchased from the existing investors. There is further support through the monitoring of the project by the Central Government.

2015 operational strategy/priorities

n To complete the hydro project with limited further time and cost over-runs. Government of Sikkim to arrange for equity funds relating to the shortfall created by existing co-investors not being able/willing to bring in their share of the equity capital call

n Target completion date December 2015 (first turbine by September 2015)

n Focus on project execution, including augmenting/replacing existing management and contractors

n Sell the stake in the thermal project to a strategic investor

Key risks

n Further time and cost over-runs on the hydro project

n Loss of the controlling stake in the hydro project, dilution of existing rights and uncertainty of timely exit

Exit strategy

n M&A of the company, sale of its individual assets or the sale of a strategic stake

Microvast

Company: Microvast

Industry: Technology/Clean-tech

Country: China

Website: www.microvast.com

Company Status: Private

Deal Type: Private Equity

Investment Risk: Equity

Operational update

n Microvast continues to supply batteries to Chongqing with over 1,000 buses now in operation.

n There has been a steady flow of orders and Microvast has now signed contracts to supply 800 pure E bus packs to Wright Bus Co. in London and VDL in Belgium.

n 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.

n The business is also in advanced discussions for sales contracts with a number of other Chinese local governments including Beijing, Fujian, Jinan and Suzhou.

2015 operational strategy/priorities

n Delivering high quality packs to all customers considering pressures on production capacity

n Expanding production capacity

n Review financing needs for a scaled-up business

n Liquidity event planning

Key risks

n Production failures/quality issues

n Working capital constraints

Exit strategy

n Block sale pre- or post-IPO

n "Put" shares back to the company

ISM

Company: ISM

Industry: Telecom/Banking

Country: Philippines

Website: http://edge.pse.com.ph/companyInformation/form.do?cmpy_id=36

Company Status: Public

Deal Type: Private Equity

Investment Risk: Equity

ISM Holdco.

n ISM sold its 21% stake of The Philippine Bank of Communications ('PBCom') for PHP 33 per share (approximately PHP 2.1bn/US$46m).

n Besides the proceeds from the sale of PBCom shares, ISM holds a 32.5% equity stake in Acentic (an integrator of hospitality technologies; that is, a provider of hotel-based interactive multimedia) and has a claim for contingent consideration on the sale of Eastern Telecom.

Exit strategy

n Following completion of the PBCom transaction above, Ashmore Funds have tendered to participate in the current ISM share buy-back scheme which would see the repurchase of up to 1.2bn shares at PHP 1.52 per share.

Ashmore Investment Advisors Limited

Investment Manager

16 April 2015

Board Members

As at 31 December 2014, 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 annual report, the independence of each Director has been considered.

Richard Hotchkis, Independent Chairman, (Guernsey resident) appointed 18 April 2011

Richard Hotchkis has 38 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 Alternative Investment Strategies Limited and Advance Frontier Markets Fund Limited.

Steve Hicks, Non-Independent Director (connected to the Investment Manager), (UK resident) appointed

16 January 2014

Steve Hicks, who is a qualified UK lawyer, has held a number of legal and compliance roles over a period of more than 25 years. From June 2010 until January 2014 he was the Ashmore Group Head of Compliance. Prior thereto he was Director, Group Compliance at the London listed private equity company 3i Group plc.

Nigel de la Rue, Independent Director,(Guernsey resident) appointed 16 October 2007

Nigel de la Rue graduated in 1978 from Pembroke College, Cambridge with a degree in Social and Political Sciences. He is qualified as an Associate of the Chartered Institute of Bankers, as a Member of the Society of Trust and Estate Practitioners (STEP) and as a Member of the Institute of Directors. He was employed for 23 years by Baring Asset Management's Financial Services Division, where he was responsible for the group's Fiduciary Division and sat on the Executive Committee. He left Baring in December 2005, one year after that Division was acquired by Northern Trust. He has served on the Guernsey Committees of the Chartered Institute of Bankers and STEP, and on the Guernsey Association of Trustees, and currently holds a number of directorships in the financial services sector.

Christopher Legge, Independent Director,(Guernsey resident) appointed 27 August 2010

Christopher Legge has over 25 years' experience in financial services. He qualified as a Chartered Accountant in London in 1980 and spent the majority of his career based in Guernsey with Ernst & Young, including being the Senior Partner of Ernst & Young in the Channel Islands. Christopher retired from Ernst & Young in 2003 and currently holds a number of directorships in the financial sector, including at BH Macro Limited where he is Senior Independent Director and chairs the Audit Committee.

Graeme Dell, Non-Independent Director(employee of the Investment Manager), (UK resident) appointed 5 March 2008 and resigned 16 January 2014

Disclosure of Directorships in Public Companies Listed on Recognised Stock Exchanges

The following summarises the Directors' directorships in other public companies:

Company Name Exchange

Richard Hotchkis

Advance Frontier Markets Fund Limited AIM and CISE

Steve Hicks Nil

Nigel de la Rue Nil

Christopher Legge

        Baring Vostok Investments PCC Limited                                                        CISE 

BH Macro Limited London, Bermuda and Dubai

        John Laing Environmental Assets Group Limited                                             London 
        Schroder Global Real Estate Securities Limited (since 1 January 2015)             London 
        Sherborne Investors (Guernsey) B Limited                                                     London 

Third Point Offshore Investors Limited London

        TwentyFour Select Monthly Income Fund Limited                                           London 

Directors' Report

The Directors submit their Report together with the Company's Statement of Financial Position, Statement of Comprehensive Income, Statement of Changes in Equity, Statement of Cash Flows, and related notes for the year ended 31 December 2014, which have been prepared properly, in accordance with International Financial Reporting Standards ("IFRS") as adopted by the IASB and are in agreement with the accounting records, which have been properly kept in compliance with section 238 of the Companies (Guernsey) Law, 2008.

The Company

The Company was incorporated with limited liability in Guernsey, Channel Islands as an authorised closed-ended investment company on 21 June 2007. The Company was launched on 7 December 2007 and the Company's shares were admitted to the Official Listing of the London Stock Exchange on 12 December 2007, pursuant to Chapter 14 of the Listing Rules. Following changes to the Listing Rules on 6 April 2010, the listing became a Standard Listing. On 27 April 2011, the UK Listing Authority confirmed the transfer of the Company from a Standard Listing to a Premium Listing under Chapter 15 of the Listing Rules. The Company's US$ shares and GBP shares are included in the FTSE All-Share Index.

Investment Strategy

Prior to the Extraordinary General Meeting ("EGM") of shareholders on 13 March 2013, the Company's investment objective was to deploy capital in a diversified portfolio of global emerging market strategies and actively manage these with a view to maximising total returns. This was implemented by investing across various investment themes (Alternatives including Special Situations and Real Estate, External Debt, Local Currency, Equities, Corporate Debt and Multi-Strategy), with a principal focus on Special Situations.

The Company employed a dynamic allocation of the Company's assets across Ashmore's investment themes with a principal focus on Special Situations, seeking to create value for shareholders and target total return through active portfolio management. The Investment Manager employed a predominantly top-down and value-driven investment approach coupled with a bottom-up selection of investments in those Ashmore funds ("Funds") where corporate and Special Situations assets were more significant. Through investing in the Funds, the Company sought to build a globally diverse portfolio of investments and to benefit from the Investment Manager's experience in investing globally in emerging markets countries (including in distressed and Special Situations assets) and in the resolution or restructuring of such investments.

On 12 December 2012, the Board announced, following its review and in conjunction with its independent financial and legal advisers, options to address the structural issue of the discount to net asset value at which the shares were trading, which included proposals to shareholders: to amend the investment strategy to make no new Special Situations investments (with any new investments to be shorter term in nature); to realise the Company's assets for cash over the next few years; and over time to return all cash realised from the investment portfolio to shareholders (the "Managed Wind-Down"). Shareholders approved these proposals at an EGM held on 13 March 2013. The Board believes the revised investment strategy is the best way of realising the value of the Company.

Going Concern

The Board of Directors called an EGM, which was held on 13 March 2013, to approve proposals for a managed wind-down of the Company`s portfolio. All proposals were duly passed at the EGM and accordingly the Board:

1. changed the investment objective of the Company to the realisation of the Company's assets in an orderly manner in order to return cash to shareholders;

2. amended the Articles of Incorporation to facilitate a regular, quarterly return of cash to shareholders;

   3.   amended the Articles of Incorporation in relation to the removal of the continuation vote; 

4. amended the Articles of Incorporation to reduce the minimum number of Directors from five to one; and

5. amended the terms of the Investment Management Agreement ("IMA") between the Company and Ashmore Investment Advisors Limited ("Investment Manager") (Ashmore Investment Management Limited until July 2014).

The Directors have examined significant areas of possible financial going concern risk and are satisfied that no material exposures exist. The Directors therefore consider that the Company has adequate resources to continue in operational existence for the foreseeable future and after due consideration believe it is appropriate to adopt the going concern basis in preparing the financial statements, despite the managed wind-down of the Company over the next few years.

Results and Dividends

The results for the year are set out in the Statement of Comprehensive Income of this annual report.

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 year ended 31 December 2014, the Company announced returns of capital to shareholders by way of compulsory partial redemptions of shares, with the following redemption dates:

   --     31 January 2014, using the 31 December 2013 Net Asset Value; 
   --     8 August 2014, using the 30 June 2014 Net Asset Value; and 
   --     31 October 2014, using the 30 September 2014 Net Asset Value. 

Between the end of the reporting year and the date when the financial statements were authorised for issue, the Company announced returns of capital to shareholders by way of compulsory partial redemptions of shares, with the following redemption dates:

   --     30 January 2015, using the 31 December 2014 Net Asset Value. 

The amounts applied to the partial redemptions of shares comprised monies from the realisation of the Company's investments up to and including the reference NAV calculation dates pursuant to the wind-down of the Company.

Share Capital

The number of shares in issue at the year end is disclosed in note 8 to the financial statements.

The Board

The Board of Directors has overall responsibility for safeguarding the Company's assets, for the determination of the investment policy of the Company, for reviewing the performance of the service providers and for the Company's activities. The Directors, all of whom are non-executive, are listed in the Board Members section.

In accordance with Article 18.3 of the Company's Articles of Incorporation, at each Annual General Meeting one-third of the Directors shall retire from office via rotation and be put forward for re-election based on continued satisfactory performance. Any Director who serves nine years on the Board, will thereafter be put forward for re-election on an annual basis.

The Board holds Board meetings at least four times a year. At Board meetings, the Directors review the management of the Company's assets and all other significant matters so as to ensure that the Directors maintain overall control and supervision of the Company's affairs. The Board is responsible for the appointment and monitoring of all service providers to the Company, following updates and recommendations from the Management Engagement Committee. Between these formal meetings there is regular contact with the Investment Manager. The Directors are kept fully informed of investment and financial controls and other matters that are relevant to the business of the Company and should be brought to the attention of the Directors. The Directors also have access to the Secretary and, where necessary in the furtherance of their duties, to independent professional advice at the expense of the Company.

The table below sets out the number of Board, Audit and Management Engagement Committee meetings during the year ended 31 December 2014:

 
                                                                       Management Engagement 
                           Board meetings   Audit Committee meetings       Committee meeting 
                                 attended                   attended                attended 
 Richard Hotchkis                       5                          3                       1 
 Steve Hicks                            4                        N/A                     N/A 
 Nigel de la Rue                        4                          3                       1 
 Christopher Legge                      5                          3                       1 
 Graeme Dell                            1                        N/A                     N/A 
 
 
 No. of meetings during 
  the year                              5                          3                       1 
 

In addition to the meetings above, six other committee meetings were held during the year. Any Directors who are not members of Board Committees are invited to attend meetings of such committees as necessary.

Directors' Interests

As at 31 December 2014, three Directors, Nigel de la Rue, Christopher Legge and Richard Hotchkis, had beneficial interests in 2,177, 1,360 and 818 GBP shares respectively.

The Company has adopted a code of Directors' dealings in shares, which is based on the Model Code for Directors' dealings contained in the LSE's Listing Rules.

Directors' Indemnity

Directors' and officers' liability insurance cover is in place in favour of the Directors. The Directors entered into indemnity agreements with the Company which provide for, subject to the provisions of the Companies (Guernsey) Law, 2008, an indemnity for Directors in respect of costs which they may incur relating to the defence of proceedings brought against them arising out of their positions as Directors, in which they are acquitted or judgement is given in their favour by the Court. The agreement does not provide for any indemnification for liability which attaches to the Directors in connection with any negligence, unfavourable judgements, or breach of duty or trust in relation to the Company.

Corporate Governance

To comply with the UK Listing Regime, the Company must comply with the requirements of the UK Corporate Governance Code. The Company is also required to comply with the Code of Corporate Governance issued by the Guernsey Financial Services Commission.

The Company is a member of the Association of Investment Companies (the "AIC") and, by complying with the AIC Code of Corporate Governance ("AIC Code"), it is deemed to comply with both the UK Corporate Governance Code and Guernsey Code of Corporate Governance.

The Guernsey Financial Services Commission's Code of Corporate Governance (the "GFSC Code") provides a framework that applies to all entities licensed by the Guernsey Financial Services Commission or which are registered or authorised as a collective investment scheme in Guernsey. Companies reporting against the UK Corporate Governance Code or the AIC Code are deemed to comply with the GFSC Code.

The Board of the Company has considered the principles and recommendations of the AIC Code by reference to the AIC Corporate Governance Guide for Investment Companies ("AIC Guide"). The AIC Code, as explained by the AIC Guide, addresses all the principles set out in the UK Corporate Governance Code, as well as setting out additional principles and recommendations on issues that are of specific relevance to the Company.

The Board considers that reporting against the principles and recommendations of the AIC Code, by reference to the AIC Guide (which incorporates the UK Corporate Governance Code), will provide better information to shareholders. To ensure ongoing compliance with these principles, the Board receives and reviews a report from the Secretary, at each quarterly meeting, identifying whether the Company is in compliance and recommending any changes that are necessary.

The Company has complied with the recommendations of the AIC Code and the relevant provisions of the UK Corporate Governance Code, except as set out below:

The UK Corporate Governance Code includes provisions relating to:

-- the role of the chief executive;

-- executive Directors' remuneration;

-- the need for an internal audit function;

-- whistle-blowing policies;

-- nomination committees;

-- remuneration committees.

For the reasons set out in the AIC Guide, and as explained in the UK Corporate Governance Code, the Board considers that these provisions are not relevant to the position of the Company as an investment company. The Company has therefore not reported further in respect of these provisions. The Directors are non-executive and the Company does not have employees, hence no whistle-blowing policy is required. The Directors have satisfied themselves that the Company's key service providers have appropriate whistle-blowing policies and procedures and seek regular confirmation from the service providers that nothing has arisen under those policies and procedures which should be brought to the attention of the Board. Details of compliance are noted in the succeeding pages. There have been no instances of non-compliance, other than those noted above.

The AIC have released an updated Guide and Code in February 2015, which is effective for accounting periods commencing 1 January 2015. The Company will therefore report against the updated AIC Code and Guide in subsequent Annual Reports.

Details and biographies for all the Directors can be found in the Board Members section of this annual report, and on the Company's website (www.agol.com). In considering the independence of the Chairman, the Board has taken note of the provisions of the Code relating to independence and has determined that Richard Hotchkis is an Independent Director. As the Chairman is an Independent Director, no appointment of a Senior Independent Director has been made.

The Board has a breadth of experience relevant to the Company and the Directors believe that any changes to the Board's composition can be managed without undue disruption.

The Board, Audit Committee and Management Engagement Committee undertake an evaluation of their own performance and that of the individual Directors on an annual basis. In order to review their effectiveness, the Board, Audit Committee and Management Engagement Committee carry out a process of formal self-appraisal in order to consider how they function as a whole and also to review the individual performance of their members. This process is conducted by the respective Chairman reviewing the Directors' performance, contribution and commitment to the Company. Given that the Company is in a managed wind-down, the Board considers that it would not be justified in incurring the expense of an independent evaluation of the Board's performance.

With the appointment to the Board of any new Director, consideration will be given as to whether an induction process is appropriate.

Ongoing Charges

Ongoing charges for the year ended 31 December 2014 have been prepared in accordance with the AIC's recommended methodology and amounted to 0.54% of the NAV (31 December 2013: 0.96%).

Audit Committee

An Audit Committee has been established and holds meetings at least twice a year for the purpose, amongst others, of considering the appointment, independence, effectiveness and remuneration of the auditor and to review and recommend the statutory annual report and interim report to the Board of Directors. Full details of its functions and activities are set out in the Report of the Audit Committee.

Nomination Committee

The Board as a whole fulfils the function of a nomination committee. The Board considers that, given the size of the Board and that the Company has no executives, it would not be appropriate to establish a separate nomination committee as anticipated by the AIC Code. Neither external search consultancy nor open advertising have been used when appointing a Chairman or a non-executive Director because of the specialist nature of the appointments and the knowledge amongst existing Directors and Ashmore Investment Advisors Limited (Ashmore Investment Management Limited until July 2014).

Conversion Committee

The Company has established a Conversion Committee, which consists of Nigel de la Rue, Christopher Legge and Richard Hotchkis. The Conversion Committee holds meetings in order to determine the terms of monthly/quarterly share conversions, based on shareholders' requests received by the Company. The date on which conversion of the shares takes place (the "Conversion Date") is determined by the Conversion Committee, being not more than 20 business days after the relevant Conversion Calculation Date.

The Directors approved a number of conversions during the year, the details of which can be found in note 8 in the notes to the financial statements. Conversions approved by the Directors subsequent to the year end are detailed in note 19 in the Notes to the Financial Statements.

Disclosure Committee

The Company has established a Disclosure Committee with formally delegated duties and functions. The Disclosure Committee meets when required to consider any potential disclosures to be made by the Company through a Regulatory Information Service provider, in compliance with the Company's obligations under the Disclosure and Transparency Rules. The Disclosure Committee is comprised of Richard Hotchkis, Christopher Legge and Chairman, Nigel de la Rue. The principal duty of the Disclosure Committee is to consider and approve announcements and disclosures to be made on behalf of the Company in accordance with the Company's ongoing compliance with applicable law.

Management Engagement Committee

The function of the Management Engagement Committee, comprised of three independent Directors (Christopher Legge, Richard Hotchkis and Nigel de la Rue), is to ensure that the Company's Investment Management Agreement is competitive and reasonable for the shareholders, along with the Company's agreements with all other third-party service providers (other than the external auditor). The Committee also reviews the performance of the Investment Manager and the other third-party service providers on a periodic basis.

The Company has entered into an agreement with the Investment Manager, Ashmore Investment Advisors Limited (Ashmore Investment Management Limited until July 2014). This sets out the Investment Manager's key responsibilities, which include proposing an investment strategy to the Board and, within certain authority limits, selecting investments for acquisition and disposal and arranging appropriate lending facilities. The Investment Manager is also responsible for all issues pertaining to asset management. The Management Engagement Committee reviews the performance, fees and terms of the Investment Management Agreement on an annual basis.

Despite the performance of the Company since incorporation, at its October 2012 and January 2013 meetings it was the view of the Management Engagement Committee that it is in the best interests of the shareholders to continue with the current appointment of the Investment Manager. At the date of this report, the Board continues to expect that Ashmore will remain the Investment Manager for the remaining life of the Company.

Remuneration Committee

As all the Directors are non-executive, the Board has resolved that it is not appropriate to form a Remuneration Committee and remuneration is reviewed and discussed by the Board as a whole (with each Director abstaining when approving any changes to their own fee), with independent advice from the Administrator and the Broker. Details on Directors' remuneration can be found in the Directors' Remuneration Report.

The terms of reference of all the existing committees are made available by the Company to shareholders upon request.

Internal Controls

The Board is ultimately responsible for the Company's system of internal control and for reviewing its effectiveness. The Board confirms that there is an ongoing process for identifying, evaluating and managing the significant risks faced by the Company. This process has been in place for the year under review and up to the date of approval of this annual report and accords with the Turnbull guidance. The Code requires Directors to conduct, at least annually, a review of the Company's system of internal control, covering all controls, including: financial, operational, compliance and risk management.

The risk matrix is subject to an annual review by the Board. The Board has reviewed the effectiveness of the systems of internal control. In particular, it has reviewed and updated the process for identifying and evaluating the significant risks affecting the Company and the policies by which these risks are managed. The internal control systems are designed to meet the Company's particular needs and the risks to which it is exposed. Accordingly, the internal control systems are designed to manage rather than eliminate the risk of failure to achieve business objectives and by their nature can only provide reasonable and not absolute assurance against misstatement and loss.

Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive ("AIFMD") establishes an EU-wide harmonised framework for monitoring and supervising risks relating to collective investment undertakings that are not subject to the UCITS regime. AGOL meets the definition of an Alternative Investment Fund ("AIF") under this legislation and is subject to the AIFMD framework.

Ashmore Investment Advisors Limited ("AIAL") was authorized as an Alternative Investment Fund Manager ("AIFM") by the Financial Conduct Authority ("FCA") on 18 July 2014. Effective 18 July 2014, the Board appointed AIAL as the Company's AIFM and AIAL assumed the role of Investment Manager to the Company from Ashmore Investment Management Limited ("AIML"), pursuant to a Novation of the 5 November 2007 Investment Management Agreement. Prior to 18 July 2014, AIML served as Investment Manager to the Company. The investment advisory services provided to the Company were novated to AIAL to comply with the new AIFMD legislation.

AIAL and AIML are both wholly-owned subsidiaries of Ashmore Investments (UK) Limited, which is a wholly-owned subsidiary of the Ashmore Group plc ("Ashmore Group"). The novation of the Investment Management Agreement with the Company did not result in any change in: (i) the manner in which investment management services are provided (including the manner in which the Company is managed or operated) as contemplated by the Investment Management Agreement; (ii) the personnel who are responsible for providing or supervising the provision of investment management services (including those responsible for the management, portfolio management and operation of the Company); or (iii) the personnel ultimately responsible for overseeing such provision of services.

Foreign Account Tax Compliance Act

The Foreign Account Tax Compliance Act ("FATCA") is aimed at determining the ownership of US assets in foreign accounts and improving US tax compliance with respect to those assets. The legislation is wide-encompassing and affects all non-US Funds, albeit some more than others. However, on 13 December 2013 the States of Guernsey entered into an Inter-Governmental Agreement ("IGA") with the US Treasury in order to facilitate the requirements of FATCA through local legislation. The IGA and the associated guidance notes set out the requirements and obligations of the Company under the rules, and the Board is monitoring implementation with the assistance of its legal advisers and accountants.

UK Guernsey Intergovernmental Agreement

The States of Guernsey has also entered into an IGA with the UK, signed on 22 October 2013, under which a disclosure obligation will arise on the Company in respect of all shareholders who have a UK connection. The IGA and the associated guidance notes set out the requirements and obligations of the Company under the rules, and the Board is monitoring implementation with the assistance of its legal advisers and accountants.

Relations with Shareholders

The Investment Manager maintains a regular dialogue with institutional shareholders, the feedback from which is reported to the Board. In addition, Board members are available to respond to shareholders' questions at the Annual General Meeting.

The Company announces its Net Asset Value on a monthly basis to the London Stock Exchange. A monthly report on investment performance is published on the Company's website (www.agol.com). Shareholders who wish to communicate with the Board should contact the Administrator in the first instance, whose contact details can be found on the Company's website.

Significant Shareholders

As at 31 December 2014, the following entities had significant shareholdings in the Company:

 
                                                 US$ shares                GBP shares   % holding in 
  Significant Shareholder                              held                      held        Company 
 Chase Nominees Limited                              34,016                 5,406,456         25.87% 
 Goldman Sachs Securities (Nominees) 
  Limited                                         4,045,952                   165,636         13.32% 
 State Street Nominees Limited                    1,664,140                 1,519,724         12.39% 
 Nortrust Nominees Limited                        2,485,991                   265,515          8.96% 
 The Bank Of New York (Nominees) 
  Limited                                                 -                 1,834,827          8.74% 
 Nordea Bank Danmark A/S                          1,494,483                         -          4.63% 
 Lynchwood Nominees Limited                         697,596                   400,168          4.07% 
 UBS Private Banking Nominees Limited                     -                   826,980          3.94% 
 Rock (Nominees) Limited                            291,114                   503,330          3.30% 
 

Signed on behalf of the Board of Directors on 16 April 2015

   Richard Hotchkis                                                       Christopher Legge 
   Chairman                                                          Chairman of the Audit Committee 

Report of the Audit Committee

On the following pages, we present the Audit Committee (the "Committee") Report for 2014, setting out the Committee's structure and composition, principal duties and key activities during the year. As in previous years, the Committee has reviewed the Company's financial reporting, the independence and effectiveness of the independent auditor and the internal control and risk management systems of service providers.

Structure and Composition

The Audit Committee consists of Nigel de la Rue, Richard Hotchkis and Chairman Christopher Legge. Appointment to the Audit Committee is for a period of up to three years, which may be extended for two further three-year periods provided that the majority of the Audit Committee remains independent of the Investment Manager. Nigel de la Rue, Christopher Legge and Richard Hotchkis are currently serving their third, second and first, three-year terms respectively. An induction programme is provided for new Audit Committee members and ongoing training is available for all members as required.

The Audit Committee conducts formal meetings at least twice a year. The first table of the Director's Report sets out the number of Audit Committee meetings held during the year ended 31 December 2014 and the number of such meetings attended by each Committee member. The independent auditor is invited to attend meetings at which the annual and interim reports are presented to the Committee as well as the annual audit planning meeting.

Principal Duties

The role of the Committee includes:

-- to monitor the integrity of the financial statements of the Company and any formal announcements relating to the Company's financial performance, reviewing significant financial reporting judgements contained therein;

-- to review the Company's internal financial controls and, unless expressly addressed by the Board itself, to review the Company's internal control and risk management systems;

-- to make recommendations to the Board, and for them to be subsequently put to shareholders for their approval at the Annual General Meeting, in relation to the appointment, re-appointment or removal of the external auditor and to approve the remuneration and terms of engagement of the external auditor;

-- to review and monitor the external auditor's independence and objectivity and the effectiveness of the audit process, taking into consideration relevant UK professional and regulatory requirements;

-- to develop and implement policy on the engagement of the external auditor to supply non-audit services, taking into account relevant ethical guidance regarding the provision of non-audit services by the external audit firm; and to report to the Board, identifying any matters in respect of which it considers that action or improvement is needed, making recommendations as to the steps to be taken; and

   --   to report to the Board on how it has discharged its responsibilities. 

The complete details of the Committee's formal duties and responsibilities are set out in the Committee's terms of reference, which can be obtained from the Company's administrator.

Independent Auditor (independence and effectiveness)

KPMG Channel Islands Limited have expressed their willingness to continue in office as auditor and a resolution proposing their re-appointment will be submitted at the Annual General Meeting.

The independence and objectivity of the independent auditor is reviewed by the Audit Committee, which also reviews the terms under which the independent auditor is appointed to perform non-audit services. The Audit Committee has also established pre-approval policies and procedures for the engagement of KPMG to provide audit, assurance and tax services.

The audit and non-audit fees proposed by the auditor each year are reviewed by the Committee taking into account the Company's structure, operations and other requirements during the year, and the Committee makes recommendations to the Board.

Committee Evaluations during the Year

The following sections discuss the assessments made by the Committee during the year.

Effectiveness of the Audit

The Committee had formal meetings with KPMG during the course of the year: 1) before the start of the audit to discuss formal planning, discuss any potential significant issues and agree the scope of the audit, and 2) after the audit work was concluded to discuss any significant issues encountered.

The Board reviewed the effectiveness and independence of KPMG by using a number of qualitative measures, including but not limited to:

   --     the audit plan presented before the start of the audit; 
   --     the post audit report and presentation, including deviations from the original plan; 
   --     any changes to audit personnel; 
   --     the auditor's own internal procedures to identify threats to independence; 
   --     feedback from both the Manager and the Administrator. 

Further to the above, on the conclusion of the 2014 audit, the Committee performed a specific evaluation of the performance of the independent auditor. This covered qualitative areas such as the quality of the audit team, business understanding, audit approach and management.

There were no significant adverse findings from this evaluation.

Significant Financial Statement Issues

The Committee's review of the interim and annual financial statements focused on the following areas:

The financial statements have been prepared on the going concern basis, despite the managed wind-down of the Company which was approved by the shareholders during the EGM of 13 March 2013. The Directors discussed the rationale for this accounting basis and they noted that they had examined significant areas of possible financial going concern risk, and were satisfied that no material exposures existed.

The valuation of the Company's investment portfolio, given it represents the majority of the total assets of the Company requires the use of significant judgement for unlisted investments. The Directors are satisfied with the Investment Manager's Pricing Methodology and Valuation Committee ("PMVC")'s controls, and the appropriateness of the valuation techniques, inputs and assumptions used in relation to valuation of unlisted investments. The foregoing matters were discussed during the planning and testing stages of the audit and there were no significant disagreements noted between management and the independent auditor.

The Committee is satisfied that the significant assumptions used for determining the value of assets and liabilities have been appropriately scrutinised and challenged and are sufficiently robust. The Committee further concludes that the financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's performance, business model and strategy.

The Independent Auditor reported to the Committee that no material unadjusted misstatements were found in the course of its work. Furthermore, both the Investment Manager and the Administrator confirmed to the Committee that they were not aware of any material unadjusted misstatements, including matters relating to presentation. The Committee confirms that it is satisfied that the Independent Auditor has fulfilled its responsibilities with regard to diligence and professional scepticism.

Audit Fees and Safeguards for Non-Audit Services

Where non-audit services are to be provided to the Company by its auditor, full consideration of the financial and other implications for the independence of the auditor arising from any such engagement are considered prior to proceeding.

The table below summarises the remuneration of KPMG Channel Islands Limited and of other KPMG affiliates for audit and non-audit services for the years ended 31 December 2014 and 31 December 2013:

 
                                   Year ended         Year ended 
                             31 December 2014   31 December 2013 
                                          US$                US$ 
 Audit and audit related 
  services 
  - Annual audit                       71,011             98,425 
  - Interim review                     32,480             43,701 
 
 

Internal Control

The Audit Committee has reviewed the need for an internal audit function. Based on reviews of control reports, the Audit Committee has concluded that the systems and procedures employed by the Administrator and the Investment Manager, including their internal audit functions, provide sufficient assurance that a sound system of internal control which safeguards the Company's assets is maintained. An internal audit function specific to the Company is therefore considered unnecessary.

Conclusions and Recommendations

The Audit Committee is satisfied that the external auditor remains independent and confirms that the Audit Committee also met with the external auditor without the Investment Manager or Administrator (Northern Trust International Fund Administration Services (Guernsey) Limited) being present, so as to provide a forum for the external auditor to raise any matters of concern in confidence.

Consequent to the review process on the effectiveness of the independent audit and the review of the audit and non-audit services that the Independent Auditor delivers, the Committee has recommended that KPMG be reappointed for the coming financial year.

For any questions on the activities of the Committee not addressed in the foregoing, a member of the Audit Committee remains available to attend each Annual General Meeting to respond to such questions.

Christopher Legge

Chairman of the Audit Committee

16 April 2015

Statement of Directors' Responsibility in respect of the Annual Report and Audited Financial Statements

The Directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with International Financial Reporting Standards and applicable law.

The financial statements are required by law to give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the Directors are required to:

   --   select suitable accounting policies and then apply them consistently; 
   --   make judgements and estimates that are reasonable and prudent; 

-- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

-- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies (Guernsey) Law, 2008. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

Disclosure of Information to the Auditor

The Directors who held office at the date of approval of the financial statements confirm that, so far as they are each aware:

   --   there is no relevant audit information of which the Company's auditor is unaware; and 

-- each Director has taken all the steps that they ought to have taken as a Director to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Responsibility Statement in respect of the Annual Report and Audited Financial Statements

The Directors confirm that to the best of their knowledge and belief the annual report and audited financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for the shareholders to assess the Company's performance, business model and strategy.

Statement under the Disclosure and Transparency Rules 4.1.12

We confirm that to the best of our knowledge and belief:

-- the financial statements, prepared in accordance with International Financial Reporting Standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company;

-- the financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for the shareholders to assess the Company's performance, business model and strategy; and

-- the Chairman's Statement, the Investment Manager's Report and the Directors' Report include a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that the Company faces.

Signed on behalf of the Board of Directors on 16 April 2015

   Richard Hotchkis                                                       Christopher Legge 
   Chairman                                                          Chairman of the Audit Committee 

Directors' Remuneration Report

Introduction

An ordinary resolution for the approval of the annual remuneration report will be put to shareholders at the Annual General Meeting.

Remuneration Policy

As all the Directors are non-executive, the Board has resolved that it is not appropriate to form a Remuneration Committee and remuneration is reviewed and discussed by the Board as a whole. Directors' remuneration is considered on a periodic basis.

The Company's policy is that the fees payable to the Directors should reflect the time spent by the Directors on the Company's affairs in addition to the responsibilities borne by the Directors, and should be sufficient to attract, retain and motivate Directors of the quality required to run the Company successfully. The Chairman of the Board is paid a higher fee in recognition of his additional responsibilities, as is the Chairman of the Audit Committee. The policy is to review fee rates periodically, although such a review will not necessarily result in any changes to the rates, and account is taken of fees paid to the Directors of comparable companies.

There are no long-term incentive schemes provided by the Company and no performance fees are paid to Directors.

In accordance with Article 18.3 of the Company's Articles of Incorporation, at each Annual General Meeting one-third of the Directors retire from office via rotation and are put forward for re-election based on continued satisfactory performance. Any Director who serves nine years on the Board will thereafter be put forward for re-election on an annual basis. Directors' appointments can also be terminated in accordance with the Articles. Should shareholders vote against a Director standing for re-election, the Director affected will not be entitled to any compensation. There are no set notice periods and a Director may resign by giving notice in writing to the Board at any time.

As Steve Hicks is connected to the Investment Manager and is therefore deemed not to be an Independent Director, he shall be put forward for re-election on an annual basis.

As a result of the Company being placed into a managed wind-down, it was considered appropriate for there to be a reduction in Directors' fees.

Directors' Fees

Directors are remunerated in the form of fees, payable monthly in arrears, to the Directors personally. No other remuneration or compensation was paid or payable by the Company during the year to any of the Directors apart from the reimbursement of allowable expenses.

Effective 1 January 2013, Mr Dell agreed to waive his Director's fee. Upon his appointment on 16 January 2014, Mr Hicks also agreed to waive his entitlement to a Director's fee.

Prior to 31 March 2013, Directors' remuneration was as follows: the Chairman: GBP75,000 per annum, the Chairman of the Audit Committee: GBP35,000 per annum and the Directors: GBP33,000 per annum.

Effective 31 March 2013, the Independent Directors agreed to reduce their fees as follows: the Chairman by 20% and the other Directors by 10%.

Richard Hotchkis agreed that his fee as Chairman would be GBP31,500 per annum, effective from 1 November 2013.

The fees payable by the Company in respect of each of the Directors who served during the years ended

31 December 2014 and 2013, were as follows:

 
                             Year ended          Year ended 
                       31 December 2014    31 December 2013 
                                    GBP                 GBP 
 Richard Hotchkis*               31,500              30,825 
 Steve Hicks**                        -                   - 
 Christopher Legge               31,500              32,375 
 Nigel de la Rue                 29,700              30,525 
 Jonathan Agnew***                    -              53,750 
 Graeme Dell****                      -                   - 
 Total                           92,700             147,475 
-------------------  ------------------  ------------------ 
 

* Appointed as Chairman on 17 October 2013

** Appointed as Non-Independent Director on 16 January 2014

*** Retired as Chairman on 17 October 2013

**** Retired as Non-Independent Director on 16 January 2014

Signed on behalf of the Board of Directors on 16 April 2015

   Richard Hotchkis                                                       Christopher Legge 
   Chairman                                                          Chairman of the Audit Committee 

Independent Auditor's Report to the Members of Ashmore Global Opportunities Limited

Opinions and conclusions arising from our audit

Opinion on financial statements

We have audited the financial statements (the "financial statements") of Ashmore Global Opportunities Limited (the "Company") for the year ended 31 December 2014 which comprise the statement of financial position, the statement of comprehensive income, the statement of changes in equity, the statement of cash flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards. In our opinion, the financial statements:

-- give a true and fair view of the state of the Company's affairs as at 31 December 2014 and of its total comprehensive income for the year ended 31 December 2014;

-- have been properly prepared in accordance with International Financial Reporting Standards ; and

   --     comply with the Companies (Guernsey) Law, 2008. 

Our assessment of risks of material misstatement

The risks of material misstatement detailed in this section of this report are those risks that we have deemed, in our professional judgment, to have had the greatest effect on: the overall audit strategy; the allocation of resources in our audit; and directing the efforts of the engagement team. Our audit procedures relating to these risks were designed in the context of our audit of the financial statements as a whole. Our opinion on the financial statements is not modified with respect to any of these risks, and we do not express an opinion on these individual risks.

In arriving at our audit opinion above on the financial statements, the risks of material misstatements that had the greatest effect on our audit were as follows:

Valuation of investments (US$134.4 million)

-- The risk - The incorrect valuation of investments. As described in the Report from the Audit Committee, the valuation of the Company's listed and unlisted investments is a significant area of our audit as those investments represent the majority (78.8%) of the Company's net assets. Of that balance, 96.5% (US$ 129.7 m) are unlisted or in an inactive market and are subject to estimation risk.

-- Our response -Our audit procedures with respect to the valuation of investments included, but were not limited to:

We tested the design and implementation of the Investment Manager's Pricing Methodology and Valuation Committee ("PMVC")'s controls in relation to the valuation of unlisted direct investments; we evaluated the work performed by management's valuation expert, and we assessed the appropriateness of the valuation techniques, inputs and assumptions used.

For unlisted direct investments into underlying investees (8.9% of net assets (US$ 15.1 m)), we used our own valuations specialist, to evaluate the methodologies applied by considering the nature of the investments and accepted industry practices as well as challenging key assumptions applied by the Investment Manager and its PMVC by reference to independent market data and information and industry expectations.

For unlisted investments in other funds (23.1% of net assets (US$ 39.4 m)) we obtained net asset value per share confirmations directly from the underlying funds' administrators and inspected the latest audited financial statements of these underlying funds in order to evaluate the nature of the investments held by the underlying funds, the financial reporting standards applied in the preparation of the underlying funds' financial statements and any modifications to audit reports and other disclosures which may be relevant to the valuation of the Company's investments.

For investments in other Ashmore Special Situations investment funds, which are also audited by KPMG Channel Islands Limited (44% of net assets (US$ 75.1 m)) we undertook discussions on key audit findings with the audit teams of those funds and examined their coterminous audited financial statements.

Our audit procedures with respect to the Company's listed investments included, but were not limited to, verifying the fair value used in the financial statements to a third-party pricing service provider.

We have also considered the Company's disclosures (see Note 2d) in relation to the use of estimates and judgments regarding fair value of investments and the Company's valuation policies adopted and fair value disclosures in Note 7 for compliance with International Financial Reporting Standards.

Going concern

-- The risk - At an Extraordinary General Meeting in March 2013, the shareholders approved proposals for a managed wind-down of the Company's investment portfolio changing the investment objective of the company to the realization of the Company's assets in an orderly manner in order to return cash to shareholders. Refer to the Report of the Audit Committee and Note 2b accounting policies.

-- Our response -Our audit procedures with respect to going concern included, but were not limited to, holding discussions with the Board of Directors and the Investment Manager, Ashmore Investment Management Limited, to understand the proposed investment portfolio realisation programme and to assess the implications of the managed wind-down on the financial statements. We also challenged management's assessment of the Company's ability to continue as a going concern against our other audit findings.

We also considered the Company's going concern disclosure in Note 2b of the financial statements for compliance with International Financial Reporting Standards and other appropriate technical guidance.

Our application of materiality and an overview of the scope of our audit

Materiality is a term used to describe the acceptable level of precision in financial statements. Auditing standards describe a misstatement or an omission as "material" if it could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. The auditor has to apply judgment in identifying whether a misstatement or omission is material and to do so the auditor identifies a monetary amount as "materiality for the financial statements as a whole".

Materiality for the financial statements as a whole was set at US$3.4 million. This has been calculated using a benchmark of the Company's net asset value (of which it represents approximately 2%) which we believe is the most appropriate benchmark as net asset value is considered to be one of the principal considerations for members of the Company in assessing the financial performance of the Company.

We agreed with the audit committee to report to it all corrected and uncorrected misstatements we identified through our audit with a value in excess of US$170,000, in addition to other audit misstatements below that threshold that we believe warranted reporting on qualitative grounds.

Our audit of the Company was undertaken to the materiality level specified above, which has informed our identification of significant risks of material misstatement and the associated audit procedures performed in those areas as detailed above.

Whilst the audit process is designed to provide reasonable assurance of identifying material misstatements or omissions it is not guaranteed to do so. Rather we plan the audit to determine the extent of testing needed to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements does not exceed materiality for the financial statements as a whole. This testing requires us to conduct significant depth of work on a broad range of assets, liabilities, income and expense as well as devoting significant time of the most experienced members of the audit team, in particular the Responsible Individual, to subjective areas of the accounting and reporting process.

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Board of Directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Matters on which we are required to report by exception

Under International Standards on Auditing [ISAs] (UK and Ireland) we are required to report to you if, based on the knowledge we acquired during our audit, we have identified other information in the Annual Report that contains a material inconsistency with either that knowledge or the financial statements, a material misstatement of fact, or that is otherwise misleading.

In particular, we are required to report to you if:

-- we have identified material inconsistencies between the knowledge we acquired during our audit and the directors' statement that they consider that the Annual Report and financial statements taken as a whole is fair, balanced and understandable and provides the information necessary for members to assess the Company's performance, business model and strategy; or

-- the Report of the Audit Committee does not appropriately address matters communicated by us to the audit committee.

Under the Companies (Guernsey) Law, 2008, we are required to report to you if, in our opinion:

   --     the Company has not kept proper accounting records; or 
   --     the financial statements are not in agreement with the accounting records; or 

-- we have not received all the information and explanations, which to the best of our knowledge and belief are necessary for the purpose of our audit.

Under the Listing Rules we are required to review the part of the Corporate Governance Statement relating to the Company's compliance with the ten provisions of the UK Corporate Governance Code specified for our review.

We have nothing to report in respect of the above responsibilities.

Scope of report and responsibilities

The purpose of this report and restrictions on its use by persons other than the Company's members as a body

This report is made solely to the Company's members, as a body, in accordance with section 262 of the Companies (Guernsey) Law, 2008 and, in respect of any further matters on which we have agreed to report, on terms we have agreed with the Company. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditor

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit, and express an opinion on, the financial statements in accordance with applicable law and ISAs (UK and Ireland). Those standards require us to comply with the UK Ethical Standards for Auditors.

Neale D Jehan

For and on behalf of KPMG Channel Islands Limited

Chartered Accountants and Recognised Auditors

Glategny Esplanade, Glategny Court, St Peter Port, Guernsey

17 April 2015

Schedule of Investments

As at 31 December 2014

 
                                                                Fair value          % of 
 Description of investment                                             US$    net assets 
 
 Ashmore Global Special Situations Fund 4 LP                    46,574,674         27.33 
 Ashmore Global Special Situations Fund 5 LP                    24,551,794         14.41 
 Ashmore Asian Recovery Fund                                    16,118,434          9.46 
 AEI Inc - Equity                                               15,125,986          8.88 
 AA Development Capital India Fund 1, LLC                        6,558,761          3.85 
 Everbright Ashmore China Real Estate Fund LP                    5,646,645          3.31 
 VTBC Ashmore Real Estate Partners 1 LP                          4,793,939          2.81 
 Aginyx Ordinary Shares                                          4,779,524          2.80 
 Ashmore SICAV 2 Global Liquidity US$ Fund                       4,000,000          2.35 
 Ashmore Global Special Situations Fund 3 LP                     2,993,539          1.76 
 Ashmore Asian Special Opportunities Fund Limited                2,341,044          1.37 
 Ashmore Global Special Situations Fund 2 Limited                  942,616          0.55 
 Ashmore Private Equity Turkey Fund 1 LP                            20,840          0.01 
 Renovavel Investments BV New PIK/PPN                                    -          0.00 
 
 Total investments at fair value                               134,447,796         78.89 
                                                    ----------------------  ------------ 
 
 Net other current assets                                       35,983,542         21.11 
 
 Total net assets                                              170,431,338        100.00 
                                                    ----------------------  ------------ 
 

Statement of Financial Position

As at 31 December 2014

 
                                                                  31 December                     31 December 
                                                                         2014                            2013 
                                           Note                           US$                             US$ 
----------------------------------------  -----  ----------------------------  ------------------------------ 
 Assets 
 Cash and cash equivalents                                        14,383,849                    41,013,703 
 Other financial assets                     6                     24,730,545                            9,895 
 Financial assets at fair value through 
  profit or loss                            4                   134,464,226                   241,385,286 
 Total assets                                                   173,578,620                   282,408,884 
----------------------------------------  -----  ----------------------------  ------------------------------ 
 
 Equity 
 Capital and reserves attributable 
  to equity holders 
  of the Company 
 Special reserve                            8                   515,783,066                   579,014,573 
 Retained earnings                                            (345,351,728)                 (300,822,334) 
 Total equity                                                   170,431,338                   278,192,239 
----------------------------------------  -----  ----------------------------  ------------------------------ 
 
 Liabilities 
 Current liabilities 
 Other financial liabilities                6                      2,608,411                     3,693,957 
 Financial liabilities at fair value 
  through profit or loss                    4                         538,871                       522,688 
 Total liabilities                                                 3,147,282                     4,216,645 
----------------------------------------  -----  ----------------------------  ------------------------------ 
 Total equity and liabilities                                   173,578,620                   282,408,884 
----------------------------------------  -----  ----------------------------  ------------------------------ 
 
 Net asset values 
 Net assets per US$ share                   9                         US$5.28                         US$6.26 
----------------------------------------  -----  ----------------------------  ------------------------------ 
 Net assets per GBP share                   9                         GBP5.21                         GBP6.19 
----------------------------------------  -----  ----------------------------  ------------------------------ 
 

The financial statements were approved by the Board of Directors on 16 April 2015, and were signed on its behalf by:

   Richard Hotchkis                                                       Christopher Legge 
   Chairman                                                          Chairman of the Audit Committee 

The accompanying notes form an integral part of these financial statements.

Statement of Comprehensive Income

For the year ended 31 December 2014

 
                                                                     Year ended                        Year ended 
                                                                    31 December                       31 December 
                                                                           2014                              2013 
                                         Note                               US$                               US$ 
--------------------------------------  -----  --------------------------------  -------------------------------- 
 
 Interest income                          10                                  -                          4,489 
 Dividend income                          10                   50,761,382                        40,483,106 
 Net foreign currency (loss)                                      (239,591)                       (1,748,890) 
 Other net changes in the fair value 
  of financial assets and liabilities 
  at fair value through profit or 
  loss                                    5                   (92,086,427)                    (106,813,766) 
 Total net (loss)                                             (41,564,636)                      (68,075,061) 
--------------------------------------  -----  --------------------------------  -------------------------------- 
 
 Expenses 
 Net investment management fees          11a                    (2,652,687)                       (7,337,095) 
 Incentive fees                          11a                        191,193                        1,542,435 
 Directors' remuneration                 11b                      (145,670)                         (256,906) 
 Fund administration fees                11c                        (42,040)                          (72,462) 
 Custody fees                            11d                        (18,965)                          (34,306) 
 Interest charges                                                     (1,084)                                   - 
 Other operating expenses                 12                      (295,505)                       (1,497,886) 
 Total operating expenses                                       (2,964,758)                       (7,656,220) 
--------------------------------------  -----  --------------------------------  -------------------------------- 
 
 Operating (loss) for the year                                (44,529,394)                      (75,731,281) 
--------------------------------------  -----  --------------------------------  -------------------------------- 
 
 Other comprehensive income                                                   -                                 - 
 Total comprehensive (loss) for the 
  year                                                        (44,529,394)                      (75,731,281) 
--------------------------------------  -----  --------------------------------  -------------------------------- 
 
 Earnings per share 
 Basic and diluted (loss) per US$         13                          US$(1.00)                         US$(1.48) 
  share 
--------------------------------------  -----  --------------------------------  -------------------------------- 
 Basic and diluted (loss) per GBP         13                          US$(2.08)                         US$(2.36) 
  share 
--------------------------------------  -----  --------------------------------  -------------------------------- 
 

All items derive from continuing activities.

The accompanying notes form an integral part of these financial statements.

Statement of Changes in Equity

For the year ended 31 December 2014

 
                                                          Special                  Retained 
                                                          reserve                  earnings               Total 
                                   Note                       US$                       US$                 US$ 
--------------------------------  -----  ------------------------  ------------------------  ------------------ 
 
 Total equity as at 1 January 
  2014                                                579,014,573             (300,822,334)         278,192,239 
 Total comprehensive loss 
  for the year                                                  -              (44,529,394)        (44,529,394) 
 Capital distribution               8                (63,231,507)                         -        (63,231,507) 
 Total equity as at 31 December 
  2014                                          515,783,066            (345,351,728)                170,431,338 
                                         ------------------------  ------------------------  ------------------ 
 
 
 Total equity as at 1 January 
  2013                                          705,125,322            (225,091,053)                480,034,269 
 Total comprehensive loss 
  for the year                                                  -              (75,731,281)        (75,731,281) 
 Capital distribution                               (126,110,749)                         -       (126,110,749) 
 Total equity as at 31 December 
  2013                                          579,014,573            (300,822,334)                278,192,239 
                                         ------------------------  ------------------------  ------------------ 
 

The accompanying notes form an integral part of these financial statements.

Statement of Cash Flows

For the year ended 31 December 2014

 
                                                                    Year ended                     Year ended 
                                                                   31 December                    31 December 
                                                                          2014                           2013 
                                                                           US$                            US$ 
--------------------------------------------  --------------------------------  ----------------------------- 
 Cash flows from operating activities 
 Net bank interest received                                                  -                          4,489 
 Dividends received                                           33,585,788                        40,483,106 
 Operating expenses paid                                      (4,050,575)                      (10,626,821) 
 Net cash inflow from operating activities                    29,535,213                        29,860,774 
--------------------------------------------  --------------------------------  ----------------------------- 
 
 Cash flows from investing activities 
 Sale of investments and return on capital                    13,810,673                       212,914,814 
 Purchase of investments                                      (4,000,000)                    (101,661,281) 
 Net cash flows on derivative instruments 
  and foreign exchange                                        (2,744,233)                        (2,131,105) 
 Net cash inflow from investing activities                      7,066,440                      109,122,428 
--------------------------------------------  --------------------------------  ----------------------------- 
 
 Cash flows from financing activities 
 Capital distributions                                      (63,231,507)                     (126,110,749) 
 Net cash used in financing activities                            (63,231,507)                  (126,110,749) 
--------------------------------------------  --------------------------------  ----------------------------- 
 
 Net (decrease)/increase in cash and cash 
  equivalents                                                     (26,629,854)                     12,872,453 
============================================  ================================  ============================= 
 
 Reconciliation of net cash flows to movement in cash 
  and bank balances 
 
 Cash and cash equivalents at the beginning 
  of the year                                                 41,013,703                        28,141,250 
 (Decrease)/increase in cash and bank 
  balances                                                  (26,629,854)                        12,872,453 
-------------------------------------------- 
 Cash and cash equivalents at the end 
  of the year                                                 14,383,849                        41,013,703 
--------------------------------------------  --------------------------------  ----------------------------- 
 

The accompanying notes form an integral part of these financial statements.

Notes to the Financial Statements

   1.   General Information 

Ashmore Global Opportunities Limited (the "Company", "AGOL") is an authorised closed ended investment company incorporated in Guernsey on 21 June 2007 with an indefinite life and a listing on the London Stock Exchange. As an existing closed ended Company, AGOL is deemed to have been granted an authorisation in accordance with section 8 of the Protection of Investors (Bailiwick of Guernsey) Law 1987, as amended, and rule 7.02(2) of the Authorised Closed Ended Investment Schemes Rules 2008 on the same date as the Company obtained consent under the Control of Borrowing (Bailiwick of Guernsey) Ordinance 1959 to 1989. AGOL's investment objective was to deploy capital in a diversified portfolio of global emerging market strategies and actively manage these with a view to maximising total returns. This was implemented by investing across various investment themes, including external debt, local currency, Special Situations (incorporating distressed debt and private equity), corporate high yield and equities with a principal focus on special situations.

The Company was launched on 7 December 2007 and the Company's shares were admitted to the Official Listing of the London Stock Exchange on 12 December 2007, pursuant to Chapter 14 of the Listing Rules. Following changes to the Listing Rules on 6 April 2010, the listing became a Standard Listing. On 27 April 2011, the UK Listing Authority confirmed the transfer of the Company from a Standard Listing to a Premium Listing under Chapter 15 of the Listing Rules.

On 20 February 2013, the Board of Directors proposed a managed wind-down of the Company following consultation with the Investment Manager and the main shareholders. The proposal was accepted during the Extraordinary General Meeting of shareholders on 13 March 2013.

Investment Strategy

The Board of Directors is charged with setting the Company's investment strategy in accordance with the Articles of Incorporation. They have delegated the day-to-day implementation of this strategy to the Investment Manager but retain responsibility to ensure that adequate resources of the Company are directed in accordance with their decisions. The investment decisions of the Investment Manager are reviewed on a regular basis to ensure compliance with the policies and legal responsibilities of the Board. The Investment Manager has been given full authority to act on behalf of the Company, including the authority to purchase and sell securities and other investments on behalf of the Company and to carry out other actions as appropriate to give effect thereto. Whilst the Investment Manager may make investment decisions on a day-to-day basis regarding the allocation of funds to different investments, any changes to the investment strategy or major allocation decisions have to be approved by the Board, although they may be proposed by the Investment Manager. The Board therefore retains full responsibility for major allocation decisions made on an ongoing basis. The Investment Manager will always act in accordance with the terms of the Investment Management Agreement, which cannot be changed without the approval of the Board of Directors.

Following the EGM held on 13 March 2013, the investment restrictions ceased to apply for the Company in order to facilitate the realisation of its assets in an orderly manner to return cash to shareholders.

The Company is domiciled in Guernsey, Channel Islands. Most of the Company's income is from investment entities incorporated in Guernsey.

Significant Shareholders

The Company has a diversified shareholder population. As at 31 December 2014 and 2013, Chase Nominees Limited, Goldman Sachs Securities (Nominees) Limited and State Street Nominees Limited held more than 10% of the Company's Net Asset Value. Significant shareholders are listed in the Directors' Report.

   2.   Summary of Significant Accounting Policies 

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied for the years presented, unless otherwise stated.

   a)   Statement of Compliance 

The financial statements, which give a true and fair view, are prepared in accordance with: International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board; interpretations issued by the International Financial Reporting Standards Committee; and the Listing Rules of the UK Listing Authority. They comply with the Companies (Guernsey) Law, 2008 (the "Law").

   b)   Basis of Preparation 

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities at fair value through profit or loss.

The financial statements have been prepared on the going concern basis, despite the managed wind-down of the Company which was approved by the shareholders during the Extraordinary General Meeting of 13 March 2013. The factors surrounding this are detailed in the Directors' Report. The Board has concluded that the managed wind-down of the Company has no significant impact on the valuation of the Company's investments or its ability to meet liabilities as they fall due for the foreseeable future, including for at least 12 months from the date of this report.

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and the reported amounts of assets, liabilities, income and expenses.

These estimates and their associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and their underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

The key judgements made by management in the application of IFRS that have a significant effect on the financial statements and the key estimates with a significant risk of material adjustment relate to unquoted financial instruments as described in note 2d.

   c)   Foreign Currency Transactions 
   i)    Functional and presentation currency 

The financial statements have been prepared in US dollars (US$), which is the Company's functional and presentation currency, rounded to the nearest US dollar. The Board of Directors considers the US dollar to be the currency that most faithfully represents the economic effect of the underlying transactions, events and conditions. The US dollar is the currency in which the Company measures its performance and reports its results. This determination also considers the competitive environment in which the Company is compared to other European investment products.

   ii)   Transactions and balances 

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary assets and liabilities are translated into the functional currency using the exchange rate prevailing at the Statement of Financial Position date.

Foreign exchange gains and losses arising from translation are included in the Statement of Comprehensive Income.

Foreign exchange gains and losses relating to the financial assets and liabilities carried at fair value through profit or loss are presented in the Statement of Comprehensive Income within "Other net changes in the fair value of financial assets and financial liabilities at fair value through profit or loss".

   d)   Financial Assets and Financial Liabilities 
   i)    Classification 

The Company has classified financial assets and financial liabilities into the following categories:

   -              Financial assets and financial liabilities at fair value through profit or loss: 

Financial assets and liabilities held for trading:

Financial assets or financial liabilities classified as held for trading are those acquired or incurred principally for the purpose of selling or repurchasing in the short term. Derivatives, including forward foreign currency contracts, are categorised as financial assets or financial liabilities held for trading.

Financial assets and liabilities designated at fair value through profit or loss at inception:

Financial assets and financial liabilities designated at fair value through profit or loss at inception are financial instruments that are not classified as held for trading but are managed, and whose performance is evaluated on a fair value basis in accordance with the Company's documented investment strategy. These financial instruments include direct debt or equity investments and investments in quoted and unquoted Funds.

   -              Financial assets and financial liabilities at amortised cost: 

Loans and receivables

This includes cash and cash equivalents, balances due from brokers, and other receivables.

Other financial liabilities

This includes balances due to brokers and other payables.

   ii)   Initial recognition 

Regular purchases and sales of financial assets and liabilities are initially recognised on the trade date - the date on which the Company becomes a party to the contractual provisions of the instrument. Other financial assets and liabilities are recognised on the date they are originated.

Financial assets and financial liabilities at fair value through profit or loss are initially recognised at fair value, with transaction costs recognised in the Statement of Comprehensive Income. Financial assets or financial liabilities not at fair value through profit or loss are initially recognised at fair value and include transaction costs that are directly attributable to their acquisition or issue.

iii) Subsequent measurement

   -              Fair value measurement 

Subsequent to initial recognition, all financial assets and financial liabilities at fair value through profit or loss are measured at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Gains and losses arising from changes in the fair value of the financial assets or financial liabilities at fair value through profit or loss category are presented in the Statement of Comprehensive Income within "Other net changes in the fair value of financial assets and liabilities at fair value through profit or loss" in the period in which they arise and can be unrealised or realised.

Unrealised gains and losses comprise changes to the fair value of financial instruments for the period and the reversal of prior period unrealised gains and losses for financial instruments which were realised in the reporting period.

Realised gains and losses on the disposal of financial instruments classified as at fair value through profit or loss are calculated using the average cost method.

   -              Valuation of investments in Funds 

Investments in quoted open ended Funds are valued by reference to the most recent prices quoted on a recognised investment exchange. Investments in unquoted Funds are valued on the basis of the latest Net Asset Value provided by the administrator of the unquoted Fund in question, as at the close of business on the relevant valuation day.

   -              Valuation of direct investments 

Direct investments may be effected via holding vehicles. The valuations of such positions are based on the valuation of underlying investments. The fair values of direct investments in debt or equity securities are based on their quoted market prices at the Statement of Financial Position date, without any deduction for estimated future selling costs. If a quoted market price is not available on a recognised stock exchange or from a broker/dealer for non-exchange traded financial instruments, the fair value is estimated using valuation techniques, as described in note 7.

   -              Valuation of forward foreign currency contracts 

Open forward foreign currency contracts at the Statement of Financial Position date are valued at forward currency rates prevailing on that date. The change in the fair value of open forward foreign currency contracts is calculated as the difference between the contract rate and the forward currency rate as at the Statement of Financial Position date.

The Company does not apply hedge accounting.

iv) Impairment of financial assets classified as loans and receivables

At each reporting date, the Company assesses whether there is objective evidence that financial assets classified as loans and receivables are impaired. As at 31 December 2014 and 2013, the Company's loans and receivables were not impaired.

Objective evidence of impairment may include: significant financial difficulty of the borrower or issuer, default or delinquency by a borrower or issuer, restructuring of a loan or advance by the Company on terms that the Company would not otherwise consider, indications that a borrower or issuer will enter bankruptcy or other observable data relating to a group of assets such as adverse changes in the payment status of borrowers or issuers in the group or economic conditions that correlate with defaults in the group.

Impairment losses on loans and receivables are measured as the difference between the carrying amount of the financial asset and the present value of the estimated future cash flows from the asset discounted at its original effective interest rate. Impairment losses are recognised in the Statement of Comprehensive Income and reflected in the Statement of Financial Position in an allowance account against loans and receivables. Interest on impaired assets continues to be recognised through the unwinding of the discount. The Company writes off loans and receivables when they are determined to be uncollectible.

When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment is reversed through profit or loss.

   v)   Derecognition 

Financial assets are derecognised when the contractual rights to receive cash flows from the investments have expired or the Company has transferred substantially all the risks and rewards of ownership. Financial liabilities are derecognised when their contractual obligations are discharged, cancelled or expire.

vi) Offsetting

Financial assets and liabilities are offset and the net amount presented in the Statement of Financial Position when, and only when, the Company has a legal right to offset the recognised amounts and it intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

The Company has adopted the amendments to IAS 32 on offsetting. These amendments clarify the offsetting criteria in IAS 32 by explaining when an entity currently has a legally enforceable right to set-off and when gross settlement is considered to be equivalent to net settlement.

The Company does not hold any financial assets or financial liabilities that are subject to master netting agreements or similar agreements and, as such, has not presented any financial assets or liabilities net on the Statement of Financial Position. There were no financial assets or financial liabilities that are offset in the Statement of Financial Position.

Income and expenses are presented on a net basis only when permitted under IFRS.

   e)   Amounts due from and due to Brokers 

Amounts due from and due to brokers represent receivables for securities sold and payables for securities purchased that have been contracted for but not yet settled or delivered on the Statement of Financial Position date respectively. The accounting policy for the recognition of amounts due from and due to brokers is discussed in note 2d.

   f)    Cash and Cash Equivalents 

Cash and cash equivalents may comprise current deposits with banks, bank overdrafts and other short-term highly liquid investments that: are readily convertible to known amounts of cash; are subject to insignificant changes in value; and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. Cash, deposits with banks and bank overdrafts are stated at their principal amount.

   g)   Share Capital 

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are included in equity as a deduction from issue proceeds, net of tax.

   h)   Interest Income and Dividend Income 

Interest income is recognised in the Statement of Comprehensive Income as it accrues, on a time-proportionate basis using the effective interest rate method. It includes interest income from cash and cash equivalents and from debt securities at fair value though profit or loss.

Income distributions from quoted Funds are recognised in the Statement of Comprehensive Income as dividend income when declared. Dividend income from unquoted Funds and private equity investments is recognised when the right to receive payment is established.

   i)    Earnings per Share 

The Company presents basic and diluted earnings per share ("EPS") data for each class of its ordinary shares. The basic EPS of each share class is calculated by dividing the profit or loss attributable to the ordinary shareholders of each share class by the weighted average number of ordinary shares outstanding for the respective share class during the period. Where dilutive instruments are in issue, diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of the dilutive instruments.

   j)    Expenses 

All expenses are recognised in the Statement of Comprehensive Income on an accruals basis.

   k)   Segmental Reporting 

Although the Company has two classes of shares 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.

   l)     Consolidation 

The Company is not required to consolidate any of the investments listed in the Schedule of Investments or the underlying investments of the Funds held, as it does not control them and given the fact that the Company is an investment entity under IFRS 10 - Investment Entities. All investments including those effected via holding vehicles are valued at fair value through profit or loss.

i) Disclosure of Interests in Other Entities

As a result of the application of IFRS 12, Disclosure of Interests in Other Entities, the Company has made disclosures about its involvement with unconsolidated structured entities in note 16.

The Company has concluded that un-listed funds in which it invests, but which it does not consolidate, meet the definition of structured entities for the following reasons:

-- the voting rights attached to the funds are not considered to be dominant rights as the holder is unable to control the funds. The rights relate only to influence over administrative tasks;

   --    each fund's activities are restricted by its prospectus; and 

-- the funds have narrow and well-defined objectives to provide investment opportunities to investors.

   ii)   Investment Entities 

The Company has adopted the accounting standards on Investment Entities (amendments to IFRS 10, IFRS 12, and IAS 27) and management has concluded that the Company meets the definition of an investment entity. All investments of the Company in underlying funds are measured at fair value through profit and loss.

m) New Standards and Interpretations not yet Adopted

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2014, and have not been applied in preparing these financial statements. The only new standard relevant to the Company is IFRS 9 Financial Instruments, which is discussed below. The Company does not plan to adopt IFRS 9 early.

   i)    IFRS 9 Financial Instruments 

IFRS 9, published in July 2014, will replace the existing guidance in IAS 39. It includes revised guidance on the classification and measurement of financial instruments, including a new expected credit loss model for calculating impairment on financial assets, and new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from IAS 39.

IFRS 9 is effective for annual reporting periods beginning on or after 1 January 2018, with early adoption permitted. Based on an initial assessment by management, this standard is not expected to have a material impact on the Company.

   ii)   Amendments to IAS 24 

Annual Improvements to IFRSs 2010-2012 Cycle - Amendments to IAS 24, issued in December 2013, extends the definition of a related party to include a management entity that provides key management personnel services to the reporting entity. The amendments specify that if key management personnel services are provided by a management entity, then the reporting entity is required to separately disclose the amounts incurred for the provision of key management personnel services that are provided by that management entity. However, the reporting entity is not required to look through to the management entity and disclose compensation paid by the management entity to its employees and directors.

An entity applies the amendments for annual periods beginning on or after 1 July 2014. Earlier application is permitted. As the Company is already disclosing this information, the amendment will not have an impact on the Company.

   3.   Taxation 

The Director of Income Tax in Guernsey has confirmed that, for the year ended 31 December 2014, the Company is exempt from Guernsey Income Tax under the Income Tax (Exempt bodies) (Guernsey) Ordinance 1989, and that any surplus income of the Company may be distributed without the deduction of Guernsey Income Tax. Pursuant to the exemption granted under the above-mentioned ordinance, the Company is subject to an annual fee, currently GBP600, payable to States of Guernsey Income Tax. The Company is exposed to other taxes in its countries of investment.

   4.   Financial Assets and Liabilities at Fair Value through Profit or Loss 
 
                                                      31 December   31 December 
                                                             2014          2013 
                                                              US$           US$ 
 Financial assets held for trading: 
 - Derivative financial assets                             16,430     4,072,451 
--------------------------------------------------- 
 Total financial assets held for trading                   16,430     4,072,451 
---------------------------------------------------  ------------  ------------ 
 
 Designated at fair value through profit or 
  loss at inception: 
 - Equity investments                                 134,447,796   234,666,774 
 - Debt investments                                             -     2,646,061 
--------------------------------------------------- 
 Total designated at fair value through profit 
 or loss at inception                                 134,447,796   237,312,835 
---------------------------------------------------  ------------  ------------ 
 Total financial assets at fair value through 
  profit or loss                                      134,464,226   241,385,286 
---------------------------------------------------  ------------  ------------ 
 

During the year ended 31 December 2014, the Company invested in the Ashmore SICAV 2 Global Liquidity US$ Fund. There were no other significant changes to the Company's direct equity and debt investments other than the valuation movements.

As at 31 December 2014, derivative financial assets comprised forward foreign currency contracts as follows:

 
 Currency       Amount   Currency      Amount     Maturity   Unrealised 
  Bought        Bought    Sold           Sold         Date         Gain 
----------  ----------  ---------  ----------  -----------  ----------- 
 US$         3,198,215   GBP        2,041,330   17/02/2015       16,430 
 Derivative financial assets                                     16,430 
---------------------------------------------  -----------  ----------- 
 

As at 31 December 2013, derivative financial assets comprised forward foreign currency contracts as follows:

 
 Currency         Amount   Currency        Amount     Maturity   Unrealised 
  Bought          Bought    Sold             Sold         Date         Gain 
----------  ------------  ---------  ------------  -----------  ----------- 
 BRL          31,607,567   US$         13,210,000   04/02/2014       76,223 
 GBP         120,308,128   US$        196,194,284   17/01/2014    3,047,441 
 US$          15,988,451   BRL         35,778,956   04/02/2014      948,787 
 Derivative financial assets                                      4,072,451 
-------------------------------------------------  -----------  ----------- 
 
 
                                                     31 December                31 December 
                                                            2014                       2013 
                                                             US$                        US$ 
 Financial liabilities held for trading: 
 - Derivative financial liabilities                    (538,871)                  (522,688) 
-------------------------------------------------- 
 Total financial liabilities held for trading          (538,871)                  (522,688) 
--------------------------------------------------  ------------  ------------------------- 
 

As at 31 December 2014, derivative financial liabilities comprised forward foreign currency contracts as follows:

 
 Currency        Amount   Currency        Amount     Maturity                 Unrealised 
  Bought         Bought    Sold             Sold         Date                       Loss 
----------  -----------  ---------  ------------  -----------  ------------------------- 
 GBP         67,358,975   US$        105,530,125   17/02/2015                  (538,871) 
 Derivative financial liabilities                                              (538,871) 
------------------------------------------------  -----------  ------------------------- 
 

As at 31 December 2013, derivative financial liabilities comprised forward foreign currency contracts as follows:

 
 Currency        Amount   Currency       Amount     Maturity                 Unrealised 
  Bought         Bought    Sold            Sold         Date                       Loss 
----------  -----------  ---------  -----------  -----------  ------------------------- 
 US$          5,010,012   EUR         3,693,588   21/01/2014                   (79,524) 
 US$         23,404,608   GBP        14,400,000   17/01/2014                  (443,164) 
 Derivative financial liabilities                                             (522,688) 
-----------------------------------------------  -----------  ------------------------- 
 
   5.   Net Gain/Loss from Financial Assets and Liabilities at Fair Value through Profit or Loss 
 
                                                        31 December             31 December 
                                                               2014                    2013 
                                                                US$                     US$ 
 Other net changes in fair value through profit 
 or loss: 
 - Realised                                            (20,853,104)            (16,964,482) 
 - Change in unrealised                                (71,233,323)            (89,849,284) 
---------------------------------------------------- 
 Total (losses)                                        (92,086,427)           (106,813,766) 
----------------------------------------------------  -------------  ---------------------- 
 
 Other net changes in fair value on assets 
  held for trading - derivatives                        (6,576,846)               (155,505) 
 Other net changes in fair value on assets 
  designated at fair value through profit or 
  loss                                                 (85,509,581)           (106,658,261) 
---------------------------------------------------- 
 Total net (losses)                                    (92,086,427)           (106,813,766) 
----------------------------------------------------  -------------  ---------------------- 
 
   6.   Other Financial Assets and Liabilities 

a) Other financial assets:

Other financial assets comprised the following:

 
                                     31 December                   31 December 
                                            2014                          2013 
                                             US$                           US$ 
 Dividends receivable                 17,175,594                             - 
 Due from brokers                      7,544,785                             - 
 Prepaid Directors' insurance             10,166                         9,895 
                                      24,730,545                         9,895 
                                    ------------  ---------------------------- 
 

The amounts due from brokers relate to the sale of investments for which the settlement date was subsequent to the Statement of Financial Position date.

b) Other financial liabilities:

Other financial liabilities relate to accounts payable and accrued expenses, and comprised the following:

 
                                     31 December   31 December 
                                            2014          2013 
                                             US$           US$ 
 Management fee payable (net)            117,712       258,918 
 Incentive fee payable                 1,726,717     2,600,241 
 Other accruals                          763,982       834,798 
                                       2,608,411     3,693,957 
                                    ------------  ------------ 
 

The net management fee payable includes a rebate of US$102,437 (31 December 2013: US$665,598) due from the Investment Manager in accordance with the Investment Management Agreement as described in note 11a.

   7.   Financial Instruments 

a) Carrying amounts versus fair values

As at 31 December 2014, the carrying values of financial assets and liabilities presented in the Statement of Financial Position approximate their fair values.

b) Financial instruments carried at fair value - fair value hierarchy

The Company classifies fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

   --   Level 1: Quoted prices (unadjusted) in an active market for identical instruments. 

-- Level 2: Valuation techniques based on observable inputs, either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using: quoted prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques for which all significant inputs are directly or indirectly observable from market data.

-- Level 3: Valuation techniques using significant unobservable inputs. This category includes all instruments for which the valuation technique includes inputs not based on observable market data and the unobservable inputs have a significant effect on the instrument's valuation. This category includes instruments that are valued based on quoted prices for similar instruments for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability.

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.

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 at 31 December 2014:

 
                                     Level 1   Level 2       Level 3   Total balance 
 Financial assets at fair value 
  through profit and loss 
 Financial assets held for 
  trading: 
 - Derivative financial assets             -    16,430             -          16,430 
 Financial assets designated 
  at fair value through profit 
  or loss at inception: 
 - Equity investments              8,779,524         -   125,668,272     134,447,796 
 Total                             8,779,524    16,430   125,668,272     134,464,226 
--------------------------------  ----------  --------  ------------  -------------- 
 
 
                                        Level 1   Level 2   Level 3   Total balance 
 Financial liabilities at fair 
  value 
  through profit and loss 
 Financial liabilities held 
  for trading: 
 - Derivative financial liabilities           -   538,871         -         538,871 
 Total                                        -   538,871         -         538,871 
------------------------------------  ---------  --------  --------  -------------- 
 

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 at 31 December 2013:

 
                                         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                 -   4,072,451             -       4,072,451 
 Financial assets designated 
  at fair value through profit 
  or loss at inception: 
 - Equity investments                  5,371,650           -   229,295,124     234,666,774 
 - Debt investments                            -           -     2,646,061       2,646,061 
 Total                                 5,371,650   4,072,451   231,941,185     241,385,286 
------------------------------------  ----------  ----------  ------------  -------------- 
 
 Financial liabilities at fair 
  value 
  through profit and loss 
 Financial liabilities held 
  for trading: 
 - Derivative financial liabilities            -     522,688             -         522,688 
 Total                                         -     522,688             -         522,688 
------------------------------------  ----------  ----------  ------------  -------------- 
 

Level 1assets include listed Aginyx Ordinary Shares (MCX) and the Ashmore SICAV 2 Global Liquidity US$ Fund.

Level 2assets include forward foreign currency contracts that are calculated internally using observable market data.

Level 2liabilities 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, provided by the administrator of the unquoted fund, as at the close of business on the relevant valuation day. Unquoted funds are classified as level 3 assets after consideration of their underlying investments, lock-up periods and liquidity.

The following tables present the movement in level 3 instruments for the years ended 31 December 2014 and December 2013 by class of financial instrument:

 
                                           Equity securities          Debt securities              Total 
---------------------------------------  -------------------  -----------------------  ----------------- 
 Opening balance as at 1 January 
  2014                                           229,295,124                2,646,061        231,941,185 
 Sales and return of capital                    (16,584,258)                        -       (16,584,258) 
 Gains and losses recognised in profit 
  and loss *                                    (87,042,594)              (2,646,061)       (89,688,655) 
---------------------------------------- 
 Closing balance as at 31 December 
  2014                                           125,668,272                        -        125,668,272 
----------------------------------------  ------------------  -----------------------  ----------------- 
 
 
                                            Equity securities   Debt securities             Total 
---------------------------------------  --------------------  ----------------  ---------------- 
 Opening balance as at 1 January 
  2013                                            266,380,538        31,379,479       297,760,017 
 Purchases                                            548,690                 -           548,690 
 Sales and return of capital                     (82,546,152)                 -      (82,546,152) 
 Transfer into level 3                            110,194,018                 -       110,194,018 
 Gains and losses recognised in profit 
  and loss *                                     (65,281,970)      (28,733,418)      (94,015,388) 
---------------------------------------- 
 Closing balance as at 31 December 
  2013                                            229,295,124         2,646,061       231,941,185 
----------------------------------------  -------------------  ----------------  ---------------- 
 

* Gains and losses recognised in profit and loss include unrealised results on existing assets as at

31 December 2014 of US$(366,282,237) (31 December 2013: US$(293,659,787)).

Total gains and losses included in the Statement of Comprehensive Income are presented in "Other net changes in the fair value of financial assets and financial liabilities at fair value through profit and loss".

As at 31 December 2014, the carrying values of other financial assets and liabilities approximated their fair values.

Valuation methodology of level 3 assets held 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 event and market volatility outside of local market hours). These assets, which are classified within level 3, may include all asset types but are frequently 'Special Situations' style investments, typically incorporating distressed, illiquid or private equity assets.

For these hard-to-value investments, the methodology and models used to determine fair value were created in accordance with the International Private Equity and Venture Capital Valuation (IPEV) guidelines by experienced personnel at an independent third-party valuation specialist. The valuation is then subject to review, amendment if necessary, then approval, firstly by the PMVC, and then by the Board of Directors of the Company.

Valuation techniques used by the third-party valuation specialists include the market approach, the income approach or the cost approach for which sufficient and reliable data is available. Within level 3, the use of the market approach generally consists of using comparable market transactions, while the use of the income approach generally consists of the net present value of estimated future cash flows, adjusted as deemed appropriate for liquidity, credit, market and/or other risk factors.

The main inputs used by the third-party valuation specialist in estimating the value of level 3 investments include the original transaction price, recent transactions in the same or similar instruments, completed or pending third-party transactions in the underlying investment or comparable issuers, subsequent rounds of financing, recapitalisations and other transactions across the capital structure, offerings in the equity or debt capital markets, and changes in financial ratios or cash flows. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability.

The following tables show the valuation techniques and the key unobservable inputs used in the determination of fair value of level 3 direct investments:

 
                    Balance as at 31   Valuation methodology   Unobservable inputs         Range 
                       December 2014 
                                 US$ 
--------------------  --------------  ----------------------  --------------------------  ------ 
 Equity in private        15,125,986   Comparable and          - Forecast annual revenue     N/A 
  companies                                                     growth rate 
                                       Discounted Cashflows    - Forecast EBITDA margin 
                                                               - Risk adjusted discount 
                                                                rate 
                                                               - Market multiples 
--------------------  --------------  ----------------------  --------------------------  ------ 
 Debt in private                   -   Comparables             -                               - 
  companies 
--------------------  --------------  ----------------------  --------------------------  ------ 
 Investments in          110,542,286   Net Asset Value         Inputs to Net Asset           N/A 
  unlisted Funds                                                Value 
 
 
                    Balance as at 31   Valuation methodology   Unobservable inputs         Range 
                       December 2013 
                                 US$ 
--------------------  --------------  ----------------------  --------------------------  ------ 
 Equity in private        16,471,209   Comparable and          - Forecast annual revenue     N/A 
  companies                                                     growth rate 
                                       Discounted Cashflows    - Forecast EBITDA margin 
                                                               - Risk adjusted discount 
                                                                rate 
                                                               - Market multiples 
--------------------  --------------  ----------------------  --------------------------  ------ 
 Debt in private           2,646,061   Comparables             - Market multiples            N/A 
  companies 
                                                               - Discounts 
--------------------  --------------  ----------------------  --------------------------  ------ 
 Investments in          212,823,915   Net Asset Value         Inputs to Net Asset           N/A 
  unlisted Funds                                                Value 
 
 

The Company believes that its estimates of fair value are appropriate, however the use of different methodologies or assumptions could lead to different measurements of fair value. For fair value investments in level 3, changing one or more of the assumptions used to alternative assumptions 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 year that are different from the assumptions used could require a material adjustment to the carrying amounts of affected assets.

   8.   Capital and Reserves 

The Company's capital is represented by two classes of ordinary shares, namely the US$ share classand GBP share class. The holders of ordinary shares are entitled to dividends as declared from time to time and have no redemption rights.

The total comprehensive gain or loss during the year is allocated proportionately to each share class except for the results of hedging the US dollar exposure of the assets attributable to the Pound Sterling-denominated GBPshare class, which are allocated solely to this share class.

The Company is authorised to issue an unlimited number of US$ and GBP shares at no par value.

Ordinary Shares

The following table presents the summary of changes in the number of shares issued and fully paid during the year ended 31 December 2014:

 
                                                          US$ shares                             GBP shares 
 Shares outstanding as at 31 
  December 2013                                         15,462,002                             17,690,012 
 Share conversions                                        1,475,994                               (888,808) 
 Compulsory redemptions                                  (3,989,355)                           (4,229,154) 
 Shares outstanding as at 31 
  December 2014                                         12,948,641                             12,572,050 
                                ------------------------------------  ------------------------------------- 
 

Share Conversion

A shareholder has the right, as the Directors may determine for this purpose at each "Conversion Calculation Date", to elect to convert some or all of the shares of any class they hold into a different class or classes of shares by giving at least five business days' notice to the Company before the relevant Conversion Calculation Date. Prior to the 2011 AGM, shareholders were able to convert their shares on a quarterly basis at the NAV Calculation Dates in March, June, September and December. As per the amended Articles of Incorporation dated 18 April 2011, shareholders were able to convert their shares on a monthly basis.

On 30 August 2013, the Directors of the Company announced that share conversion opportunities were offered for the months ending February, May, August and November. Share conversion opportunities for all other month ends were no longer offered and this decision was taken due to the timings and processes surrounding the anticipated returns of capital as part of the orderly wind-down of the Company.

The following share conversions took place during the year ended 31 December 2014:

 
 Transfers from    Transfers to    Number of shares   Number of shares 
                                      to switch out       to switch in 
----------------  --------------  -----------------  ----------------- 
 GBP shares        US$ shares               937,797          1,551,842 
 US$ shares        GBP shares                75,848             48,989 
 

Compulsory Redemptions

Following the approval by the Company's shareholders of the wind-down proposal as described in the circular published on 20 February 2013, during the year ended 31 December 2014, the Company announced partial returns of capital to shareholders by way of compulsory partial redemptions of shares with the following redemption dates:

   --     31 January 2014, using the 31 December 2013 Net Asset Value; 
   --     8 August 2014, using the 30 June 2014 Net Asset Value; and 
   --     31 October 2014, using the 30 September 2014 Net Asset Value. 

The amounts applied to the partial redemptions of shares comprised monies from the realisation of the Company's investments up to and including the reference NAV calculation dates pursuant to the wind-down of the Company. During the year, the following shares were redeemed by way of compulsory partial redemptions of shares.

 
                Number of ordinary   Consideration in 
                   shares redeemed                US$ 
------------   -------------------  ----------------- 
 US$ shares              3,989,355         23,216,527 
 GBP shares              4,229,154         40,014,980 
                                           63,231,507 
                                    ----------------- 
 

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) is as follows:

 
 US$ shares:    1.0000 
 GBP shares:    2.0288 
 

The above figures may be used by shareholders as the denominator for calculations to determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA's Disclosure and Transparency Rules.

Special Reserve

On 5 November 2007, the Company passed a special resolution that, subject to the admission of the Company's shares to the London Stock Exchange becoming unconditional and with the approval of the Royal Court, the amount standing to the credit of the share premium account of the Company following completion of the offering be cancelled and the amount of the share premium account so cancelled be credited as a distributable reserve to be established in the books of account of the Company. This reserve is able to be applied in any manner in which the Company's profits available for distribution (as determined in accordance with the Laws) are able to be applied, including in the purchase of the Company's own shares and in the payment of dividends.

Distribution Policy

Subject to the Laws and the Listing Rules, the Company may by ordinary resolution from time to time declare dividends. No dividend shall exceed the amount recommended by the Board. The Board may declare and pay interim dividends if, in the opinion of the Board, they are justified by the profits of the Company.

No dividends were declared during the year ended 31 December 2014 or the year ended 31 December 2013.

Following the EGM on 13 March 2013, shareholders approved proposals to distribute surplus cash held by the Company on a quarterly basis by way of pro rata compulsory redemptions of shares.

   9.   Net Asset Value 

The Net Asset Value of each US$ and GBP Share is determined by dividing the total net assets of the Company attributed to the US$ and GBP Share classes by the number of US$ and GBP shares in issue respectively at the year end as follows:

 
 As at 31 December       Net assets   Shares in issue   Net assets           Net assets 
  2014                 attributable                      per share            per share 
                            to each                         in US$    in local currency 
                        share class 
                             in US$ 
                     --------------  ----------------  -----------  ------------------- 
 US$ shares              68,325,380        12,948,641         5.28                 5.28 
 GBP shares             102,105,958        12,572,050         8.12                 5.21 
                        170,431,338 
-------------------  --------------  ----------------  -----------  ------------------- 
 
 
 As at 31 December       Net assets   Shares in issue   Net assets           Net assets 
  2013                 attributable                      per share            per share 
                            to each                         in US$    in local currency 
                        share class 
                             in US$ 
                     --------------  ----------------  -----------  ------------------- 
 US$ shares              96,788,419        15,462,002         6.26                 6.26 
 GBP shares             181,403,820        17,690,012        10.25                 6.19 
                        278,192,239 
-------------------  --------------  ----------------  -----------  ------------------- 
 

10. Dividend and Interest Income

 
                                      Year ended     Year ended 
                                     31 December    31 December 
                                            2014           2013 
 Interest income                             US$            US$ 
 Cash and cash equivalents                     -          4,489 
 Total interest income                         -          4,489 
---------------------------------  -------------  ------------- 
 
 Equity investments designated 
  at fair value through profit 
  or loss                             50,761,382     40,483,106 
 Total dividend income                50,761,382     40,483,106 
---------------------------------  -------------  ------------- 
 

11. Significant Agreements

   a)   Investment Manager 

Ashmore Investment Advisors Limited ("AIAL") was authorized as an Alternative Investment Fund Manager ("AIFM") by the Financial Conduct Authority ("FCA") on 18 July 2014. Effective 18 July 2014, the Board appointed AIAL as the Company's AIFM and AIAL assumed the role of Investment Manager to the Company from Ashmore Investment Management Limited ("AIML"), pursuant to a Novation of the 5 November 2007 Investment Management Agreement. Prior to 18 July 2014, AIML served as Investment Manager to the Company. The investment advisory services provided to the Company were novated to AIAL as part of regulatory change and ongoing regulatory compliance in the United Kingdom. The IMA has been amended; to reflect these changes; to comply with regulatory obligations; and to provide an appropriate balance between the Board's independence from the new AIFM, its control over the Company and the Company's investment policies.

Until 12 December 2014 the Investment Manager was remunerated at a monthly rate of one twelfth of 2% of the Net Asset Value (calculated before the deduction of investment management fees for that month and before the deduction of any accrued incentive fee), payable monthly in arrears. There was an arrangement to offset the investment management fees payable by the Company against management fees charged at the Sub-Fund level to avoid double-charging management fees, so that the effective monthly investment management fee payable at Company level equated to one twelfth of 2% of the Net Asset Value. From 13 December 2014, the monthly rate reduced to one twelfth of 1% of the Net Asset Value excluding investments made in Funds (calculated before deduction of the investment management fee for that month and before the deduction of any accrued incentive fee). In relation to investments made in the Funds, the Investment Manager is entitled only to management fees at the rate charged by it to the Funds.

The Investment Manager may terminate the Investment Management Agreement at any time by giving the Company not less than six months' written notice.

The Investment Management Agreement, which is governed by English law, had a fixed term of three years, which commenced on Admission. Following this initial term, the agreement continues unless: (i) it is terminated by the Company, giving the Investment Manager not less than two years' written notice, provided that any such notice may only be given following the expiry of the fixed initial term of three years; or (ii) it is terminated by the Company, giving the Investment Manager sixty calendar days' written notice to expire no earlier than the fixed three-year initial term of the agreement, provided that the Company provides the Investment Manager with certain compensation.

Under the terms of the Investment Management Agreement, the Investment Manager was entitled to 4% of the reduction in Net Asset Value resulting from any repurchase of shares pursuant to the Company's buy-back policy, or any distribution made in relation to shares, or any return of capital made in relation to the shares, provided that such reduction occurred with reference date on or before 30 June 2014. The investment management fee expense amounts in these financial statements include all such fees.

The net investment management fees during the year were as follows:

 
                                          Year ended              Year ended 
                                         31 December             31 December 
                                                2014                    2013 
                                                 US$                     US$ 
 Investment management fee expense       (4,231,908)             (7,315,304) 
 Investment management fee rebate          3,345,221               5,352,797 
 Buyback fees                            (1,766,000)             (5,374,588) 
                                         (2,652,687)             (7,337,095) 
                                       -------------  ---------------------- 
 

The Investment Manager is entitled to incentive fees based on the performance of investments other than investments in Funds, if those investments achieve a return over the period in excess of 6% per annum. Provided that the 6% return hurdle is cleared, the incentive fee is calculated as 20% of the aggregate of (i) the amount received by the Company in excess of the cost of investment and (ii) the returns achieved on investments above 6% per annum. Incentive fees are payable only upon the realisation of investments. During the year, incentive fees of US$682,331 were paid and US$(191,193) were credited (31 December 2013: US$1,324,234 paid and US$(1,542,435) credited respectively).

   b)   Directors' Remuneration 

During the year ended 31 December 2014, Directors' remuneration was as follows:

 
 Chairman:                          GBP31,500 per annum 
 Chairman of the Audit Committee:   GBP31,500 per annum 
 Independent Directors:             GBP29,700 per annum 
 Non-Independent Directors:         waived 
 

During the year ended 31 December 2013, Directors' remuneration was as follows: until 31 March 2013: Chairman: GBP75,000 per annum, Chairman of the Audit Committee: GBP35,000 per annum and Independent Directors: GBP33,000 per annum. With effect from 1 April 2013, the remuneration was reduced by 20 per cent for the Chairman and by 10 per cent for the Chairman of the Audit Committee and Independent Directors, which equates to GBP60,000, GBP31,500 and GBP29,700 respectively. With effect from 1 November 2013, the remuneration was reduced to GBP31,500 per annum for the Chairman. The Non-Independent Director's remuneration was waived from 1 January 2013.

   c)   Administrator 

The Administrator, Northern Trust International Fund Administration Services (Guernsey) Limited, performs administrative duties for which it was remunerated at an annual rate of 0.02% of the Company's Total Net Assets.

   d)    Custodian 

Northern Trust (Guernsey) Limited (the "Custodian") was remunerated at an annual rate of 0.01% of the Company's Total Net Assets.

12. Other Operating Expenses

 
                           Year ended     Year ended 
                          31 December    31 December 
                                 2014           2013 
                                  US$            US$ 
 Promotional fees            (92,904)        121,886 
 Audit fees                   103,491        142,126 
 Professional fees           (22,341)        826,683 
 Legal fees                    15,878              - 
 Miscellaneous fees           291,381        407,191 
                              295,505      1,497,886 
                        -------------  ------------- 
 

Promotional fees are fees reimbursed to the Investment Manager for promotional and administrational costs they incurred in relation to the Company.

13. Earnings per Share (EPS)

The calculation of the earnings per US$ and GBP share is based on the gain/(loss) for the year attributable to US$ and GBP shareholders and the respective weighted average number of shares in issue for each share class during the year.

The loss attributable to each share class for the year ended 31 December 2014 was as follows:

 
                                                             US$ share                    GBP share 
---------------------------------------    ---------------------------  --------------------------- 
 (Loss) per share class (US$)                             (13,963,351)                 (30,566,043) 
 Weighted average number of shares                          13,936,230                   14,705,142 
 EPS per share class (US$)                                      (1.00)                       (2.08) 
-----------------------------------------  ---------------------------  --------------------------- 
 
 Issued shares at the beginning 
  of the year                                               15,462,002                   17,690,012 
 Effect on the weighted average number 
  of shares: 
 Conversion of shares                                          748,662                    (451,679) 
 Compulsory redemption of shares                           (2,274,434)                  (2,533,191) 
 Weighted average number of shares                          13,936,230                   14,705,142 
-----------------------------------------  ---------------------------  --------------------------- 
 

There were no dilutive instruments in issue during the year.

The loss attributable to each share class for the year ended 31 December 2013 was as follows:

 
                                                             US$ share                    GBP share 
---------------------------------------    ---------------------------  --------------------------- 
 (Loss) per share class (US$)                             (28,693,899)                 (47,037,382) 
 Weighted average number of shares                          19,446,877                   19,960,122 
 EPS per share class (US$)                                      (1.48)                       (2.36) 
-----------------------------------------  ---------------------------  --------------------------- 
 
 Issued shares at the beginning 
  of the year                                               23,834,219                   23,052,010 
 Effect on the weighted average number 
  of shares: 
 Conversion of shares                                        (810,141)                      526,419 
 Compulsory redemption of shares                           (3,577,201)                  (3,618,307) 
 Weighted average number of shares                          19,446,877                   19,960,122 
-----------------------------------------  ---------------------------  --------------------------- 
 

There were no dilutive instruments in issue during the year.

14. Financial Risk Management

The Company's activities expose it to a variety of financial risks which include: market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk.

The Company puts policies and processes in place to measure and manage the various types of risk to which it is exposed; these are explained below.

Market risk

The majority of the Company's financial instruments are recognised at fair value, and changes in market conditions directly affect net investment income.

i) Currency Risk

Although the majority of the Company's investments are denominated in US$, which is its functional currency, the Company may invest in financial instruments denominated in currencies other than its functional currency. Consequently, the Company is exposed to the risk that the value of its currency, relative to other foreign currencies, may change in a manner that has an adverse effect on the value of the portion of the Company's assets or liabilities denominated in currencies other than US$.

The Investment Manager may hedge currency exposures by reference to the most recent Net Asset Value of the Company's underlying investments via the use of forward foreign currency contracts or similar instruments.

As at the Statement of Financial Position date, the Company is not exposed to any significant currency risk arising on its financial assets and liabilities, as all investments of the Company are denominated in US$. However, the Company has put in place hedging mechanisms to hedge the currency risk arising on the GBP share class.

Shares in the Company are denominated in US$ and GBP. The base currency is the US dollar, and therefore non-US dollar subscription monies for shares are typically converted into US dollars for operational purposes. The costs and any benefit of hedging the foreign currency exposure of the assets attributable to shares denominated in Pound Sterling against the US dollar will be allocated solely to the GBP share class. This may result in variations in the Net Asset Values of the two classes of shares as expressed in US dollars.

As at 31 December 2014, the net foreign currency exposure on the GBP share class was as follows (in US$):

 
                                             GBP share 
 Currency exposure of GBP share 
  class                                    102,105,958 
 Nominal value of currency hedges        (102,331,910) 
 Net foreign currency exposure               (225,952) 
                                        -------------- 
 

As at 31 December 2013, the net foreign currency exposure on the GBP share class was as follows (in US$):

 
                                             GBP share 
 Currency exposure of GBP share 
  class                                    181,403,820 
 Nominal value of currency hedges        (172,789,676) 
 Net foreign currency exposure               8,614,144 
                                        -------------- 
 

As at 31 December 2014, had the US dollar strengthened by 1% in relation to the Pound Sterling, with all other variables held constant, net assets attributable to equity holders would have decreased by US$5,224

(31 December 2013: increased by US$35,498).

A 1% weakening of the US dollar against the above currencies would have resulted in an equal but opposite effect on the net assets attributable to shareholders, on the basis that all other variables remain constant. This currency risk sensitivity analysis is a relative estimate of risk rather than a precise and accurate number.

ii) Interest rate risk

The majority of the Company's financial assets and liabilities are non-interest bearing (31 December 2014: 91.56%, 31 December 2013: 85.26%). As at 31 December 2014, interest-bearing financial assets comprised cash and cash equivalents of US$14,383,849. The Company's investment portfolio is composed entirely of non-interest bearing assets as at 31 December 2014 (31 December 2014: 100%, 31 December 2013: 100%). As a result, the Company is subject to limited exposure to interest rate risk due to fluctuations in the prevailing levels of market interest rates and a sensitivity analysis of interest rate risk is not meaningful at this time.

iii) Other price risk

Other price risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk), whether caused by factors specific to an individual investment, its issuer or any other relevant factors.

The Company's strategy for the management of price risk is driven by the Company's investment objective. The Company invests primarily in Funds managed by the Investment Manager ("Ashmore Funds"), with a principal focus on Special Situations. The Company may also invest (or co-invest alongside Ashmore Funds and/or others when appropriate) in direct investments and, on a limited basis, third-party Funds.

The table below summarises the sensitivity of the Company's net assets attributable to equity holders to investment price movements as at the Statement of Financial Position date. The analysis is based on the assumption that the prices of the investments increase by 5% (2013: 5%), with all other variables held constant.

A 5% decrease in prices of the investments would result in an equal but opposite effect on the net assets attributable to equity holders, on the basis that all other variables remain constant. The price risk sensitivity analysis provided is a relative estimate of risk rather than a precise and accurate number.

 
                         31 December   31 December 
                                2014          2013 
                                 US$           US$ 
 Equity investments        6,722,390    11,733,339 
 Debt investments                  -       132,303 
                           6,722,390    11,865,642 
                        ------------  ------------ 
 

Credit Risk

Credit risk is the risk that the counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Company. Credit risk is generally higher when a non exchange-traded financial instrument is involved, because the counterparty is not backed by an exchange clearing house.

As at the Statement of Financial Position date, the maximum exposure to credit risk before any credit enhancements is the carrying amount of the financial assets, as set out below:

 
                                 31 December   31 December 
                                        2014          2013 
                                         US$           US$ 
 Cash and cash equivalents        14,383,849    41,013,703 
 Forward currency contracts           16,430     4,072,451 
                                  14,400,279    45,086,154 
                                ------------  ------------ 
 

None of these assets are impaired nor past due but not impaired.

The credit risk arising on transactions with brokers relates to transactions awaiting settlement. The risk relating to unsettled transactions is considered small due to the short settlement period involved. In addition, the Company monitors the credit rating and the financial positions of the brokers used to further mitigate this risk.

Substantially all of the assets of the Company, including cash, are held by Northern Trust (Guernsey) Limited. Bankruptcy or insolvency of the Custodian may cause the Company's rights with respect to assets held by the Custodian to be delayed or limited. The Company monitors this risk by monitoring the credit quality and financial positions of the Custodian that the Company uses.

The Company is not considered to have exposure to credit risk on its PIK/PPN debt instruments, as the underlying investment is an equity (PIK and PPN agreements are made with an SPV which is used to acquire the direct investment).

The Company is considered to have exposure to concentration risk from its investment in AEI Inc - Equity which is also held in the GSSF Funds. As at 31 December 2014, the exposure to this instrument (held directly and indirectly) amounted to US$11,372,195 (31 December 2013: US$27,738,601). As at 31 December 2013, the Company also had direct and indirect exposure to Renovavel Investments BV New PIK/PPN amounting to US$4,926,434. These amounts were classified in the caption "Financial assets at fair value through profit and loss" in the Statement of Financial Position.

Liquidity Risk

The Company is not exposed to any significant liquidity risk arising from redemptions at the shareholders' discretion as the shares issued have no defined redeemable date.

In accordance with the investment objective, a significant proportion of the Company's investments are focused on Special Situations via investments in unlisted Funds and other financial instruments. As a result, the Company may not be able to quickly liquidate its investments in these instruments.

All residual maturities of the financial liabilities of the Company in US$ as at 31 December 2014 and 2013 are less than three months, except for incentive fees payable to the Investment Manager on realisation of investments.

Liquidity risk is primarily related to outstanding commitments and recallable distributions from investments in limited partnerships. The outstanding investment commitments of the Company are disclosed in note 18. As at 31 December 2014 and 2013, the Company had enough cash and liquid assets to meet its obligations on these outstanding commitments.

Capital Management

The Company is not subject to externally imposed capital requirements. The shares issued by the Company provide an investor with the right to require redemption for cash at a value proportionate to the investor's share in the Company's net assets at redemption date and are classified as equity. See note 8 for a description of the terms of the shares issued by the Company. The Company's objective is to realise the assets in orderly manner to return cash to shareholders. The Articles of Incorporation of the Company were amended to facilitate regular returns of cash to shareholders

15. Ultimate Controlling Party

In the opinion of the Directors on the basis of shareholdings advised to them, the Company has no ultimate controlling party.

16. Involvement with Unconsolidated Structured Entities

The table below describes the types of structured entities that the Company does not consolidate but in which it holds an interest.

 
 Type of structured   Nature and purpose               Interest held by the Company 
  entity 
-------------------  -----------------------------    ----------------------------- 
 Investment funds     To manage assets on behalf       Investments in units issued 
                       of third party investors         by the Funds 
                       and generate fees for 
                       the investment manager. 
 
                       These vehicles are financed 
                       through the issue of 
                       units to investors. 
 

The table below sets out interests held by the Company in unconsolidated structured entities. The maximum exposure to loss is the carrying amount of the financial assets held.

 
                                                                 Carrying amount 
                                                          included in "Financial 
                               Number of                          assets at fair 
 Investment in unlisted         investee     Total net      value through profit 
  investment funds                 funds        assets                  or loss" 
----------------------------  ----------  ------------  ------------------------ 
 Special Situations Private 
  Equity Funds                         8   524,943,085               100,101,702 
 Real Estate Funds                     2   119,297,211                10,440,584 
 

During the year, the Company did not provide financial support to these unconsolidated structured entities and has no intention of providing financial or any other support, except for the outstanding commitments as disclosed in note 18 to the financial statements.

17. 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 year ended 31 December 2014, the Company engaged in the following related party transactions:

 
                                                                   Income/   Receivable/ 
                                                                 (Expense)     (Payable) 
 Related Party                  Nature                                 US$           US$ 
 Ashmore Investment Advisors    Management fees 
  Limited*                       (net)                         (2,652,687)     (117,712) 
 Ashmore Investment Advisors 
  Limited*                      Incentive fees                     191,193   (1,726,717) 
 Ashmore Investment Advisors    Promotional fees 
  Limited*                                                          92,904             - 
 Board of Directors             Directors' fees                  (145,670)      (13,000) 
 
                                                                Investment 
                                                                  Activity 
                                                                       US$ 
 Related funds                  Purchases                      (4,000,000) 
 Related funds                  Sales                           16,584,258 
 Related funds                  Dividends                       50,761,382 
 

* Ashmore Investment Management Limited until 18 July 2014.

During the year ended 31 December 2013, the Company engaged in the following related party transactions:

 
                                                                  Income/   Receivable/ 
                                                                (Expense)     (Payable) 
 Related Party                    Nature                              US$           US$ 
 Ashmore Investment Management    Management fees 
  Limited                          (net)                      (7,337,095)     (258,918) 
 Ashmore Investment Management 
  Limited                         Incentive fees                1,542,435   (2,600,241) 
 Ashmore Investment Management 
  Limited                         Promotional fees              (121,886)      (92,904) 
 Board of Directors               Directors' fees               (256,906)      (20,081) 
 
                                                               Investment 
                                                                 Activity 
                                                                      US$ 
 Related funds                    Purchases                 (101,661,280) 
 Related funds                    Sales                       200,461,039 
 Related funds                    Dividends                    40,483,106 
 

Related funds are other Funds managed by Ashmore Investment Management Limited.

The Directors had the following beneficial interests in the Company:

 
                       31 December 2014      31 December 2013 
                      GBP ordinary shares   GBP ordinary shares 
 Nigel de la Rue             2,177                 2,883 
 Christopher Legge           1,360                 1,802 
 Richard Hotchkis             818                  1,082 
 

Purchases and sales of the Ashmore SICAV 2 Global Liquidity Fund ("Global Liquidity Fund") were solely related to the cash management of US dollars on account. Funds are swept into the S&P AAAm rated Global Liquidity Fund and returned as and when required for asset purchases or distributions. The Global Liquidity Fund is managed under the dual objectives of the preservation of capital and the provision of daily liquidity, investing exclusively in very highly rated short-term liquid money market securities.

18. 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 31 December 2014, the outstanding commitment was US$529,455 (31 December 2013: US$808,727).

During the year ended 31 December 2011, the Company increased its commitment to VTBC Ashmore Real Estate Partners 1 LP to a total of EUR11.4 million. As at 31 December 2014, the outstanding commitment was EUR243,474 (31 December 2013: EUR243,474).

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$23,851,027. 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 31 December 2014, the outstanding commitment was US$6,261,340 (31 December 2013: US$6,261,340).

19. Subsequent Events

   a)    Share Conversion 

The following conversion occurred subsequent to 31 December 2014:

 
 Transfers     Transfers      Number of shares   Number of shares 
  from          to               to switch out       to switch in 
------------  ------------   -----------------  ----------------- 
 GBP shares    US$ shares              874,782          1,336,168 
 
   b)    Compulsory Redemption of Shares 

The following compulsory redemption of shares occurred on 31 January 2015 with reference to the

31 December 2014 Net Asset Value:

 
                Number of ordinary   Consideration in 
                   shares redeemed                US$ 
------------   -------------------  ----------------- 
 US$ shares              3,101,167         16,236,375 
 GBP shares              3,010,927         23,372,144 
                                           39,608,519 
                                    ----------------- 
 

Corporate Information

 
 Directors                                Custodian 
  Richard Hotchkis                         Northern Trust (Guernsey) Limited 
  Nigel de la Rue                          PO Box 71 
  Christopher Legge                        Trafalgar Court 
  Steve Hicks                              Les Banques 
  Graeme Dell (retired 16 January          St Peter Port 
  2014)                                    Guernsey GY1 3DA 
                                           Channel Islands 
 
 Registered Office                        Auditor 
  PO Box 255                               KPMG Channel Islands Limited 
  Trafalgar Court                          Glategny Court 
  Les Banques                              Glategny Esplanade 
  St Peter Port                            St Peter Port 
  Guernsey GY1 3QL                         Guernsey GY1 1WR 
  Channel Islands                          Channel Islands 
 
 Administrator, Secretary and Registrar   Advocates to the Company 
  Northern Trust International Fund        Carey Olsen 
  Administration Services (Guernsey)       Carey House 
  Limited                                  Les Banques 
  PO Box 255                               St Peter Port 
  Trafalgar Court                          Guernsey GY1 4BZ 
  Les Banques                              Channel Islands 
  St Peter Port 
  Guernsey GY1 3QL 
  Channel Islands 
 
 Investment Manager                       UK Solicitors to the Company 
  Ashmore Investment Advisors Limited      Slaughter and May 
  (effective 18 July 2014)                 One Bunhill Row 
  61 Aldwych                               London EC1Y 8YY 
  London WC2B 4AE                          United Kingdom 
  United Kingdom 
 
 Ashmore Investment Management Limited    UK Transfer Agent 
  (until 18 July 2014)                     Computershare Investor Services 
  61 Aldwych                               PLC 
  London WC2B 4AE                          The Pavilions 
  United Kingdom                           Bridgewater Road 
                                           Bristol BS13 8AE 
                                           United Kingdom 
 
 Broker                                   Website 
  J.P. Morgan Cazenove                     Performance and portfolio information 
  20 Moorgate                              for shareholders can be found at: 
  London EC2R 6DA                          www.agol.com 
  United Kingdom 
 
 Broker 
  Jefferies International Limited 
  Vintners Place 
  68 Upper Thames Street 
  London EC4V 3BJ 
  United Kingdom 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR SELFESFISEEL

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