+----------------------------------------------+---------------+---------+
| BlackRock World Mining Trust Plc | 3,308 | 1.58 |
+----------------------------------------------+---------------+---------+
| Top 10 Investments | 147,920 | 70.43 |
+----------------------------------------------+---------------+---------+
| | | |
+----------------------------------------------+---------------+---------+
| BlackRock Middle East & North Africa Opps. | 3,212 | 1.53 |
| Fund | | |
+----------------------------------------------+---------------+---------+
| BlackRock Agriculture Fund | 3,206 | 1.53 |
+----------------------------------------------+---------------+---------+
| Findlay Park American Smaller Companies Fund | 3,189 | 1.52 |
+----------------------------------------------+---------------+---------+
| Orbis SICAV - Japan Equity | 3,162 | 1.51 |
+----------------------------------------------+---------------+---------+
| Prusik Asia Fund Plc | 3,135 | 1.49 |
+----------------------------------------------+---------------+---------+
| Investec Global Energy Fund | 2,829 | 1.35 |
+----------------------------------------------+---------------+---------+
| Jupiter European Opportunities Trust Plc | 2,808 | 1.34 |
+----------------------------------------------+---------------+---------+
| Finsbury Growth & Income Trust Plc | 2,528 | 1.20 |
+----------------------------------------------+---------------+---------+
| BlueBay European Credit Opportunity Fund | 2,432 | 1.16 |
+----------------------------------------------+---------------+---------+
| SR Global Fund Asia Portfolio | 2,348 | 1.12 |
+----------------------------------------------+---------------+---------+
| Top 20 Investments | 28,850 | 13.74 |
+----------------------------------------------+---------------+---------+
| | | |
+----------------------------------------------+---------------+---------+
| Harbinger CP Special Situations Fund | 2,086 | 0.98 |
+----------------------------------------------+---------------+---------+
| Aberdeen Global Asia Pacific | 2,002 | 0.94 |
+----------------------------------------------+---------------+---------+
| Pacific Alliance China Land Ltd | 1,965 | 0.93 |
+----------------------------------------------+---------------+---------+
| Close Far East Equity Fund | 1,899 | 0.90 |
+----------------------------------------------+---------------+---------+
| Jupiter Financial Opportunities Fund | 1,661 | 0.78 |
+----------------------------------------------+---------------+---------+
| CLSA MezzAsia Capital, LP | 1,619 | 0.76 |
+----------------------------------------------+---------------+---------+
| EFG-Hermes MEDA Fund | 1,598 | 0.75 |
+----------------------------------------------+---------------+---------+
| Neptune Russia & Greater Russia Fund | 1,588 | 0.75 |
+----------------------------------------------+---------------+---------+
| R/C Global Energy and Power Fund IV, LP | 1,244 | 0.59 |
+----------------------------------------------+---------------+---------+
| Hupomone Capital Fund, LP | 1,134 | 0.58 |
+----------------------------------------------+---------------+---------+
| Top 30 Investments | 16,796 | 7.96 |
+----------------------------------------------+---------------+---------+
| | | |
+----------------------------------------------+---------------+---------+
| Other Investments (32) | 16,429 | 7.82 |
+----------------------------------------------+---------------+---------+
| Total Trading Investments | 209,994 | 100.00 |
+----------------------------------------------+---------------+---------+
Portfolio Activity
At the beginning of the year, the portfolio had cash and liquid funds of $167.7m
available for investment. During 2008, $62.1m of this cash and liquid funds was
deployed. Of this, $31.9m was for "new investments", $16.1m was for "follow-on
investments" (additions to pre-existing holdings) and there were draw downs of
capital in the portfolio's "fixed term investments" of $14.1m.
As at 31st December 2008, the portfolio's cash and liquid funds totalled
$119.8m. In response to the dramatic collapse in financial markets in the second
half of 2008, the Investment Adviser decided to defer further deployment of
OWIL's liquid assets and consequently is in a position of strength to evaluate
new opportunities.
Purchases - New Investments
Ten new investments, totalling $31.9m, were made in 2008, as detailed below:
Aberforth Smaller Companies Trust Plc invests in small UK quoted companies and
will normally consist of investments in over 80 companies.
Ashmore Local Currency Debt Portfolio invests in a diversified portfolio of
emerging markets local currency and local currency denominated assets.
Investments are mainly in shorter duration bonds, loans and derivatives of
sovereign and corporate issuers and to a lesser extent, special situations. See
'Switches' below.
Atlantis China Fund invests in equity and equity related investments of
companies operating in The People's Republic of China. The Fund focuses on small
and mid-cap Chinese equities.
BlackRock Middle East and North Africa Opportunities Fund is a hedge fund,
investing in the securities of companies operating in the Middle East and North
Africa.
EFG-Hermes Middle East & Developing Africa Fund invests in equity and
equity-related securities of listed companies across the 'MEDA' region.
Gazprom ADR represents four ordinary shares in Gazprom, Russia's largest
company. The Company extracts, transports, stores and sells natural gas.
GLG Emerging Equity Fund is a hedge fund investing, in emerging as well as
frontier markets. Due to the lead manager's resignation, OWIL redeemed its
holding in the Fund (at a small gain). See 'Sales' below.
Harbinger Capital Partners Special Situations Fund is a hedge fund, investing
globally in medium to long term investments including special situation
equities, distressed/high yield debt and private loans/notes.
Jupiter Financial Opportunities Fund invests in investments in financial
services companies and, to a lesser extent, property related companies.
Neptune Russia & Greater Russia Fund invests in Russian (and to a much lesser
extent Ukraine and the 'Stans') liquid blue chips.
Purchases - Follow-on Investments
In addition, seven additional investments were made to pre-existing (prior to
2008) holdings during the period. These additions, totalling $16.1m, were into
the following holdings: (i) BlackRock Agriculture Fund, (ii) BlackRock World
Mining Trust Plc, (iii) Finsbury Growth & Income Trust Plc, (iv) Investec Global
Energy Fund, (v) Jupiter European Opportunities Trust Plc, (vi) Prusik Asia Fund
Plc and (vii) VinaCapital Vietnam Opportunity Fund Ltd.
Fixed Term Investments - New Investment Commitments
Two new investment commitments, totalling $10m, were made to fixed term
investments in 2008, as detailed below:
Oaktree Capital Management Value Opportunities (Cayman) Fund Ltd ($5m
commitment) invests in distressed debt and other value investments across the
capital structure. Oaktree conduct thorough proprietary research and insist upon
buying debt at a discount to its true value. The Fund is a feeder into Oaktree
Value Opportunities Fund, LP (a Cayman Islands Exempted Limited Partnership) and
is structured as an open-ended 'evergreen' entity. 50% of the commitment has an
18 month lock-up with the balance locked up for three years. The Fund's small
capital base should allow for an opportunistic, flexible and trade-oriented
approach.
Riverstone/Carlyle Global Energy and Power Fund IV, LP ($5m commitment) invests
globally in the energy and power industry. The Fund will make equity investment
in the $250-450m range, making both controlling and strategic minority
investments. The Fund will focus on four sectors of the energy market: (i)
Exploration & Production, (ii) Midstream, (iii) Oilfield Services and (iv) Power
(generation, transmission and distribution). The Fund has a life of ten years
(ending in December 2018).
Switches
Two switches, totalling $41.2m, were made in 2008, as detailed below:
Ashmore Emerging Market Liquid Investment Portfolio - the switch from Ashmore
Emerging Market Liquid Investment Portfolio, a dollar based fund, into the Local
Currency Debt Portfolio (the
local currency denominated equivalent) reflected the Investment Adviser's view
that these local currencies will have to reflect the strength of their economies
through their currencies eventually and the majority of the gains on the dollar
have been made.
In August, the holding in Lehman Brothers USD Liquidity Fund was liquidated and
the proceeds transferred to JP Morgan USD Liquidity Fund. JP Morgan USD
Liquidity Fund aims to offer a high level of security coupled with instant
access and a competitive yield. Permissible investments include: government,
agency and sovereign debt, repurchase agreements, time deposits, commercial
paper, asset-backed securities, mortgage-backed securities and investment grade
corporate bonds. In common with the other liquidity fund holdings, JP Morgan USD
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