AGOL.L Regulatory News (AGOL)

ASHMORE GLOBAL OPPORTUNITIES LTD - Correction - Half-yearly Report

PR Newswire

London, August 27

NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

Ashmore Global Opportunities Limited (“AGOL”, or the “Company”)a Guernsey incorporated and registered limited liability closed-ended investment company with a Premium Listing of its US Dollar and Sterling share classes on the Official List.

Interim ResultsFor the period ended 30 June 2015

The financial information set out in this announcement does not constitute the Company’s statutory accounts for the period ended 30 June 2015. All figures are based on the unaudited financial statements for the period ended 30 June 2015.

The financial information for the period ended 30 June 2015 is derived from the financial statements delivered to the UK Listing Authority.

The unaudited interim report and financial statements for the period ended 30 June 2015 will be available on the company website: www.agol.com 

Financial Highlights

Chairman’s Statement

The Company’s Net Asset Values (“NAVs”) per share have fallen slightly from US$5.28 and £5.21 at the end of 2014 to US$5.20 and £5.11 as at 30 June 2015.

The US$ and £ share prices stood at US$3.85 and £3.70 respectively as at 30 June 2015, decreases of 4.94% and 5.85% respectively against 31 December 2014 levels. As at 30 June 2015, the NAV of the Company was US$107.57 million and its market capitalisation was US$78.64 million, reflecting an average discount of 26.90% between the NAVs and the share prices. The discounts widened slightly over the period.

The main contributors to negative performance were Asian Genco, Largo Resources and Bedfordbury (previously Alphaland). These detractors were substantially off-set by positive contributions from Microvast, AEI, the Everbright Ashmore China Real Estate Fund, and a further earn-out from GEMS/Utileco (which was sold during the previous financial year). Further details on these companies are given in the Investment Manager’s Report.

In terms of realisations during the period, AGOL sold its direct and indirect positions in MCX; indirect positions in Al-Noor Medical, Indostar and Pacnet; and most of its indirect position in ISM. Within Bedfordbury, the Alphaland Tower was sold, which was one of the three assets resulting from the Alphaland asset split.

AGOL shareholders received proceeds from these realisations of US$46.75 million (including the distribution announced on 21 July 2015 with reference to the NAV as at 30 June 2015, and excluding the distribution paid in January 2015 with reference to the NAV as at 31 December 2014). Since the announcement of the managed wind-down of the Company, total distributions including the above have amounted to US$284.4 million.

The Board continues to receive regular updates from the Investment Manager on the progress made towards further realisations. A number of exit discussions are at an advanced stage and are expected to be completed by the end of the year. The Board is confident that the target set in the 2014 Annual Report remains achievable, namely; to realise approximately half of the Company’s remaining NAV as at 31 December 2014 after January’s distribution of US$40.5 million, during 2015. This of course remains subject to market conditions being conducive to the sale of the Company’s holdings by the Investment Manager.

Richard Hotchkis

27 August 2015

Investment Manager’s Report

Performance

As at 30 June 2015, the Net Asset Values (“NAVs”) per share of the US$ and £ share classes stood at US$5.20 and £5.11, returns of -1.52% and -1.92% over the six months to 30 June 2015.

Portfolio

In the first six months of the year, Ashmore Global Opportunities Limited (“AGOL”) realised a number of underlying portfolio positions as detailed below. This enabled the declaration of a further US$46.75m of distributions (excluding the distribution announced in the annual report, which was based on the 31 December 2014 NAV, and including the distribution announced on 21 July 2015 with reference to the NAV at 30 June 2015).

In April 2015, the Ashmore Funds realised their holdings in Pacnet, which was sold to Telstra, an Australian telecoms company. Investors received 85% of the sale price in cash with the remainder to be disbursed on the attainment of certain performance hurdles.

An agreement was reached in 2014 between Alphaland Corporation and its local Filipino shareholder group to split the assets of the business. Bedfordbury Development Corporation (“BDC”), a Philippines company in which the Ashmore Funds are indirect shareholders, acquired the main commercial asset (the “Alphaland Tower”) and the two main land banks (Alphaland Bay City and Boracay Gateway). BDC agreed the sale of the Alphaland Tower in early February 2015 with proceeds applied; to meet certain obligations of the 2014 asset split transaction, to pay down senior debt, and to provide working capital. BDC management is now discussing the potential sale of the remaining land bank assets.

Also in February, the Ashmore Funds realised their investment in Indostar, the Indian non-bank finance company. Indostar was performing in line with expectations; both in terms of growth and profitability, and the final sale price was higher than its most recent mark which had been revalued upward by 22% in late 2014.

A part realisation of ISM was made in the first quarter of 2015, when ISM used the proceeds of its sale of The Philippine Bank of Communications (“PBCom”) to buy back shares from investors.

AGOL realised its direct and indirect positions in MCX, the Mumbai Stock Exchange listed Multi Commodity Exchange, by selling its holdings on the stock exchange; a gradual process which started in November 2014 and was completed in early 2015.

Following its June 2013 listing, the Ashmore Funds realised their holdings in Al Noor, the UAE healthcare business, via a joint placement of shares into the public market in April 2015.

Aside from the realisations mentioned above, the result for the six months to 30 June 2015 was negatively affected by write downs, while some mark to market price movements contributed to performance.

AEI continues to focus on its two remaining greenfield projects; “Fenix” in Peru and “Jaguar” in Guatemala, while further non-core assets have been sold off. Fenix is generating full cash flows through the transmission of power to the state grid and management have initiated a sale process which is expected to complete later this year. Jaguar achieved commercial operation in May 2015 and at the time of writing, is expected to be fully operational by August 2015. Once this has been achieved, management will begin the sale process which is expected to complete by summer 2016. AEI was marked up 5% during the period by the third party valuation agent.

Microvast, which develops and manufactures fast-charge batteries for electric vehicles, performed strongly over the period. The company continues to supply batteries to the Chongqing region of China, and there are now over 1,000 Microvast powered buses in operation. With a steady flow of orders and signed contracts to supply batteries to bus companies in both London and Belgium, the business is now looking to expand further including into the USA and Germany.

Far East Energy engages in the acquisition, exploration, development and production of coal bed methane gas assets in China. Demand for energy in China has been strong, and the company has continued to actively “spud” new wells across its fields. We see this domestic producer, which is backed by global investors and industry experts, as well placed to benefit from China’s desire to reduce its dependence on imported energy.

GZ Industries is an aluminium can manufacturer based in Nigeria. The Nigerian market has experienced difficult macro-economic conditions for the last 12-18 months but despite this, GZ has achieved 2014 results close to budget. Management is focussed on getting the new plants in Nigeria and Kenya fully contracted and on protecting the relatively flat Nigerian market from competitor Nampak, while exploring opportunities for further international diversification.

Largo, the Brazilian metals and mining producer, was a detractor from performance over the period. Production is below capacity and vanadium is trading at a five year low. Largo recently agreed to settle arbitration with Global Tungsten & Powders (“GTP”) for US$11m after an award in GTP’s favour. A private placement and debt restructuring have resulted in the dilution of the Ashmore Funds to 5% of equity.

Asian Genco agreed to a restructuring in which the Government of Sikkim, previously a 26% partner in the hydro project, increased its stake to 51% converting the project from private to a public venture. As a result the Ashmore Funds saw their positions diluted.

Outlook

The Investment Manager is focussed on the orderly realisation of the Company’s remaining assets. Further realisations are expected before the end of the financial year.

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

The tables below show the top 10 underlying investments, along with country and industry exposures as at 30 June 2015.

Details on a Selection of the Underlying Holdings

AEI

Industry:  Power Generation

Country:  Regional Latin America

Website:  www.aeienergy.com

Company Status:  Private

Deal Type:  Private Equity

Investment Risk:  Equity

To develop and sell the remaining assets by mid-2016

Operational update

Key risks

2015 operational strategy/priorities

Exit strategy

Bedfordbury Development Corporation

Industry:  Real Estate Development

Country: Philippines

Website:  N/A

Company Status:  Private

Deal Type: Private Equity

Investment Risk:  Equity

Sale of the individual assets

Exit strategy

Microvast

Industry:  Technology/Clean-tech

Country:  China

Website:  www.microvast.com

Company Status:  Private

Deal Type:  Private Equity

Investment Risk:  Equity

China EV market in fast growth mode

Operational update

2015 operational priorities

Key risks

Exit strategy

GZ Industries Limited

Industry:  Aluminium Can Manufacturing

Country:  Nigeria

Website:  www.gzican.com

Company Status:  Active

Deal Type:  Private Equity

Investment Risk:  Underlying Equity

Tough trading in Nigeria; pan-African growth being pursued

Operational update

2015 operational strategy/priorities

Key risks

Exit strategy and timing

Largo Resources

Industry:  Metals and Mining

Country:  Brazil

Website:  www.largoresources.com

Company Status:  Public

Deal Type:  Private Equity

Investment Risk:  Equity

Ramping up production

Operational update

2015 operational priorities

Key risks

Exit strategy and timing

Pacnet

Industry:  Telecommunications

Country:  Hong Kong and Singapore

Website:  www.pacnet.com

Company Status:  Private

Deal Type:  Private Equity

Investment Risk:  Equity

Deferred consideration from Telstra – final payment due 2016

Exit strategy and timing

ISM

Industry:  Telecom/Banking

Country:  Philippines

Website:  www.ismcorp.com.ph

Company Status:  Public

Deal Type:  Private Equity

Investment Risk:  Equity

Deferred sale process is due to complete in May 2016

ISM Holdco

Exit strategy and timing

Ashmore Investment Advisors Limited

Investment Manager

27 August 2015

Board Members

As at 30 June 2015, the Board consisted of four non-executive Directors. The Directors are responsible for the determination of the investment policy of Ashmore Global Opportunities Limited (the “Company” or “AGOL”) and have overall responsibility for the Company’s activities. As required by the AIC Code on Corporate Governance (the “Code”), the majority of the Board of Directors are independent of the Investment Manager. In preparing this interim report, the independence of each Director has been considered.

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

Richard Hotchkis has 39 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 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.

Disclosure of Directorships in Public Companies Listed on Recognised Stock Exchanges

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

Directors’ Responsibility Statement

We confirm that to the best of our knowledge:

Signed on behalf of the Board of Directors on 27 August 2015

Richard Hotchkis Christopher Legge

Chairman Chairman of the Audit Committee

Unaudited Schedule of Investments

As at 30 June 2015

Unaudited Condensed Statement of Financial Position

As at 30 June 2015

The unaudited condensed interim financial statements were approved by the Board of Directors on 27 August 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.

Unaudited Condensed Statement of Comprehensive Income

For the six months ended 30 June 2015

All items derive from continuing activities.

* The credit to other expenses represents the reversal of accruals as a result of a reduction in expenses as the Company continues to wind down.

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

Unaudited Condensed Statement of Changes in Equity

For the six months ended 30 June 2015

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

Unaudited Condensed Statement  of Cash Flows

For the six months ended 30 June 2015

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

Notes to the Unaudited Condensed Interim Financial Statements

1. Basis of Preparation

a) Statement of Compliance

These unaudited condensed interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and on a going concern basis, despite the managed wind-down of the Company approved by the shareholders on 13 March 2013. The Directors have examined significant areas of possible financial going concern risk and are satisfied that no material exposures exist. The Directors therefore consider that the Company has adequate resources to continue in operational existence for the foreseeable future and after due consideration believe that it is appropriate to adopt the going concern basis despite the managed wind-down of the Company over the next few years.

These unaudited condensed interim financial statements do not include as much information as the annual financial statements, and should be read in conjunction with the audited financial statements of the Company for the year ended 31 December 2014. Selected explanatory notes are included to explain events and transactions that are relevant to understanding the changes in financial position and performance of the Company since the last annual financial statements. 

These unaudited condensed interim financial statements were authorised for issue by the Board of Directors on 27 August 2015.

b) Judgements and Estimates

Preparing the unaudited condensed interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities income and expenses. Actual results may differ from these estimates. The significant judgements made by management in applying the Company’s accounting policies, and the key sources of estimation uncertainty, were the same as those that applied to the audited financial statements of the Company for the year ended 31 December 2014.

2. Summary of Significant Accounting Policies

The Board has concluded that at present the managed wind-down of the Company has no significant impact on the valuation of the Company’s investments.

The accounting policies applied in these unaudited condensed interim financial statements are the same as those applied in the Company’s audited financial statements for the year ended 31 December 2014.

3. Financial Assets and Liabilities at Fair Value through Profit or Loss

There were no significant changes to the Company’s direct equity other than valuation movements.

As at 30 June 2015, derivative financial assets comprised forward foreign currency contracts as follows:

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

As at 30 June 2015, there were no derivative financial liabilities held by the Company.

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

4. Net Gain/Loss from Financial Assets and Liabilities at Fair Value through Profit or Loss

5. Other Financial Assets and Liabilities

a) Other financial assets:

Other financial assets relate to prepaid expenses and comprised the following:

b) Other financial liabilities:

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

The net management fee payable includes a rebate of US$16,323 (31 December 2014: US$102,437) due from the Investment Manager in accordance with the Investment Management Agreement.

6. Financial Instruments

a) Financial risk management

The Company’s financial risk management objectives and policies are consistent with those disclosed in the audited financial statements of the Company for the year ended 31 December 2014.

b) Carrying amounts versus fair values

As at 30 June 2015, the carrying values of financial assets and liabilities presented in the Unaudited Condensed Statement of Financial Position approximate their fair values.

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

The Company considers observable market data to be that market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

The Company recognises transfers between levels 1, 2 and 3 based on the date of the event or change in circumstances that caused the transfer. This policy on the timing of recognising transfers is the same for transfers into a level as for transfers out of a level.

There were no transfers to or from level 3 during the period.

The following table analyses within the fair value hierarchy the Company’s financial assets and liabilities at fair value through profit and loss (by class) measured at fair value as at 30 June 2015:

The following table analyses within the fair value hierarchy the Company’s financial assets and liabilities at fair value through profit and loss (by class) measured at fair value as at 31 December 2014:

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

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

Level 3 assets include all unquoted funds, limited partnerships and unquoted investments. Investments in unquoted funds and limited partnerships are valued on the basis of the latest Net Asset Value, which represents the fair value, as provided by the administrator of the unquoted fund at the close of business on the relevant valuation day. Unquoted funds have been classified as level 3 assets after consideration of their underlying investments, lock-up periods and liquidity.

The following table presents the movement in level 3 instruments for the period ended 30 June 2015.

* Gains and losses recognised in profit and loss include unrealised results of US$(389,498,518) on existing level 3 instruments as at 30 June 2015.

Total gains and losses included in the Unaudited Condensed Statement of Comprehensive Income are presented in “Other net changes in fair value on financial assets and liabilities at fair value through profit or loss”.

Valuation methodology of level 3 assets held directly by the Company and indirectly by the Company through its investments in the underlying Ashmore Funds

The Pricing Methodology and Valuation Committee (PMVC) which has been authorised as an Approved Person to provide valuations to the Administrator, operates and meets to consider the methods for pricing hard-to-value investments where a reliable pricing source is not available, if an asset does not trade regularly, or in the case of a significant event (such as a major economic event or market volatility outside of local market hours). These assets, which are classified within level 3, may include all asset types but are frequently ‘Special Situations’ 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 are 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.

Inputs used by the third-party valuation specialist in estimating the value of level 3 investments may include the original transaction price, recent transactions in the same or similar instruments, completed or pending third-party transactions in the underlying investment or comparable issuers, subsequent rounds of financing, recapitalisations and other transactions across the capital structure, offerings in the equity or debt capital markets, and 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 the fair value of level 3 direct investments:

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 would result in an increase or decrease in net assets attributable to investors. Due to the numerous different factors affecting the assets, the impact cannot be reliably quantified. It is reasonably possible on the basis of existing knowledge, that outcomes within the next financial period that are different from the assumptions used could require a material adjustment to the carrying amounts of affected assets.

7. Capital and Reserves

Share Conversion

The following share conversions took place during the period ended 30 June 2015:

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 period ended 30 June 2015, the Company announced partial 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; and

• 1 May 2015, using the 31 March 2015 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 period, the following shares were redeemed by way of compulsory partial redemptions of shares:

Voting rights

The voting rights each share is entitled to in a poll at any general meeting of the Company (applying the Weighted Voting Calculation as described in the Prospectus published by the Company on 6 November 2007) are as follows:

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

8. Net Asset Value

The Net Asset Value of each US$ and £ share is determined by dividing the total net assets of the Company attributable to the US$ and £ share classes by the number of US$ and £ shares in issue respectively at the period end as follows:

The allocation of the Company’s Net Asset Value between share classes is further described in the Company’s Prospectus.

9. Earnings per Share (EPS)

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

The loss attributable to each share class for the period ended 30 June 2015 was as follows:

There were no dilutive instruments in issue during the period.

The loss attributable to each share class for the period ended 30 June 2014 was as follows:

There were no dilutive instruments in issue during the period.

10. Segmental Reporting

Although the Company has two share classes and invests in various investment themes, it is organised and operates as one business and one geographical segment, as the principal focus is on emerging market strategies, mainly achieved via investments in funds domiciled in Europe but investing globally. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment. The financial results from this segment are equivalent to the financial statements of the Company as a whole. Additionally, the Company’s performance is evaluated on an overall basis. The Company’s management receives financial information prepared under IFRS and, as a result, the disclosure of separate segmental information is not required.

11. Ultimate Controlling Party

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

12. Involvement with Unconsolidated Structured Entities

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

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.

During the period, the Company did not provide financial support to these unconsolidated structured entities and the Company has no intention of providing financial or other support, except for the outstanding commitments disclosed in note 14 to the financial statements.

13. Related Party Transactions

Parties are considered to be related if one party has the ability to control the other party or to exercise significant influence over the other party in making financial or operational decisions.

The Directors are responsible for the determination of the investment policy of the Company and have overall responsibility for the Company’s activities. The Company’s investment portfolio is managed by Ashmore Investment Advisors Limited*.

The Company and the Investment Manager entered into an Investment Management Agreement under which the Investment Manager has been given responsibility for the day-to-day discretionary management of the Company’s assets (including uninvested cash) in accordance with the Company’s investment objectives and policies, subject to the overall supervision of the Directors and in accordance with the investment restrictions in the Investment Management Agreement and the Articles of Incorporation.

During the period ended 30 June 2015, the Company had the following related party transactions:

* Ashmore Investment Management Limited until 18 July 2014.

During the period ended 30 June 2014, the Company engaged in the following related party transactions:

Related funds are other funds managed by Ashmore Investment Advisors Limited or its associates.

During the period ended 30 June 2015, Directors’ remuneration was as follows:

The Directors had the following beneficial interests in the Company:

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.

14. Commitments

During the year ended 31 December 2010, the Company entered into a subscription agreement with Everbright Ashmore China Real Estate Fund LP for a total commitment of US$10 million. As at 30 June 2015, the outstanding commitment was US$529,455 (31 December 2014: US$529,455).

During the year ended 31 December 2011, the Company increased its commitment to VTBC Ashmore Real Estate Partners 1 LP to a total of €11.4 million. As at 30 June 2015, the outstanding commitment was €243,474 (31 December 2014: €243,474).

During the year ended 31 December 2011, the Company entered into a subscription agreement with AA Development Capital India Fund LP for an initial commitment of US$4,327,064, which was subsequently increased to US$23,581,027. AA Development Capital India Fund LP was dissolved by its General Partner on 28 June 2013 with all outstanding commitments transferred to AA Development Capital India Fund 1 LLC. As at 30 June 2015, the outstanding commitment was US$6,261,340 (31 December 2014: US$6,261,340).

15. Subsequent Events

Compulsory Redemption of Shares

The following compulsory redemption of shares occurred on 31 July 2015 with reference to the 30 June 2015 Net Asset Value:

Corporate Information