AGOL.L Regulatory News (AGOL)

NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION ASHMORE GLOBAL OPPORTUNITIES LIMITED ("AGOL") A Guernsey incorporated and registered limited liability closed-ended investment company with a Premium Listing of its US Dollar and Sterling share classes on the Official List. Interim Management Statement to 30 September 2014 20 October 2014 Investment Objective Ashmore Global Opportunities Limited ("AGOL") is a closed ended investmentcompany incorporated and registered in Guernsey and listed on the London StockExchange. On 13 March 2013, the Board of AGOL announced that shareholders hadapproved the proposals at the EGM held on the same day to amend the investmentobjective of AGOL to realise the Company's assets in an orderly manner and todeliver a regular, quarterly return of cash to shareholders and to remove thecontinuation vote. Please refer to the AGOL website (www.agol.com) for furtherinformation. This update relates to the period 1 July 2014 to 30 September 2014. NAV Performance Summary Share 3 Month Year to date 1 Year 3 Years InceptionClass GBP -9.00% -14.47% -25.39% -15.25% -8.53% USD -8.59% -14.33% -25.49% -15.43% -8.36% Returns are NAV to NAV, net of fees and include reinvestment of dividends paid.Returns are to 30 September 2014. Data is provided for information purposesonly. Shares in AGOL do not necessarily trade at a price equal to theprevailing NAV per Share, which may be at a discount or premium. Pastperformance is not a reliable indicator of future results. Periods greater thanone year are annualised. The NAV of AGOL as at 30 September 2014 was $197.33m. The NAV per share was$5.32 for the USD share class and £5.26 for the GBP share class. On 21 July2014, the Company announced that it would return 17.44 pence and 17.56 US centsper GBP and USD share respectively, on a payment date of 8 August 2014 usingthe 30 June 2014 Net Asset Value. On 16 October 2014, the Company announced that it would return 56.63 pence and57.31 US cents per GBP and USD share respectively on 31 October 2014 using the30 September 2014 NAV. Portfolio Overview The third quarter proved to be challenging with the USD and GBP share classesreturning -8.59% and -9.00% respectively. The negative performance wasattributable to mark to market price valuations of publically tradedinvestments and a material mark down in some of the non-quoted investments. Jasper Investments, the Singapore exchange listed oil field services business,saw a significant fall in its share price in August. Jasper has struggled tosecure new contracts for its Explorer vessel. In addition, it was unable tosell its hospitality vessel, the Cosmopolitan. As a result the Yiulian Shipyardwas able to exercise its right to seek a sale of the Cosmopolitan vessel.Jasper will work with Yiulian in order to realise maximum value for theCosmopolitan. The equity value of Jasper has been written down to zero. As reported previously, Pacnet had undergone a restructuring of the business,where excess costs were stripped out and the focus of the business turned todata centres and data mining rather than the traditional cabling and telephonybusiness, which led to a 30% increase in EBITDA in 2013. In 2014, the companyhas continued to build out its data centre capacity. However, this yearprogress on increasing revenues at the data centres has been slower thanexpected. Consequently, the valuation was marked down by 30% by the independentvaluation agent. At EMTEK, FX and share price movements, as well as a refinement to thevaluation methodology, caused the EMTEK valuation to fall by 18%. Therefinement to the valuation methodology was made in conjunction with theauditors, to better reflect the performance of the underlying operating companyand to make it less susceptible to the volatility in the EMTEK share pricewhich can fluctuate significantly on low trading volumes. The investment in GEMS/Utileco was realised by the underlying investment fundsin September. The investment was sold at a premium of approximately 30%compared to the last valuation. In a subsequent development, we can report thatin early October the position in Media.net/Skenzo was exited at a value in linewith the latest valuation. A number of other exit discussions are currently taking place. Top 10 underlying investments as at 30 September 2014 Investment Holding Country Business Description Website LinkName EMTEK 15.49% Indonesia Listed Indonesian www.emtek.co.id telecom, information technology & multimedia company. AEI 13.03% Cayman Owns, operates and www.aeienergy.com Islands develops interests in power generation assets in Latin America. Alphaland 9.67% Philippines Real estate www.alphaland.com.ph development company focussing on underdeveloped sites. MCX 7.94% India India's leading www.mcxindia.com commodity exchange with over 80% market share. Pacnet 7.61% Singapore Asia's leading www.pacnet.com independent telecommunications infrastructure and service provider. Al Noor 6.25% UAE Provider of www.alnoorhospital.comMedical integrated healthcare services. Indostar 4.00% India Non-bank finance www.indostarcapital.com company (NBFC) focusing on wholesale lending in India. Largo 3.51% Brazil Brazilian provider of www.largoresources.comResources mining services. Media.net 2.47% India Indian advertising www.media.net/ services company. www.skenzo.com Asian Genco 1.70% India Infrastructure www.asiangenco.com development company with investments in power generation assets and a services business. Total: 71.65% Recent company events EMTEK Despite good operating performance, the valuation in EMTEK was marked down dueto a combination of FX and share price movements and reflecting a refinement inthe valuation methodology which is more in line with the performance of themain operating company, rather than being susceptible to listed share pricemovements on low trading volumes. AEI AEI now has two remaining Greenfield projects; one in Peru (Fenix) and one inGuatemala (Jaguar). The development in Peru was commissioned in April 2014. Afaulty transformer in one of the two power trains is being replaced at the timeof writing. The Jaguar plant is expected to be commissioned in 2015. Alphaland Following a shareholder dispute, we came to an agreement to split Alphaland'sassets between shareholders, which is in the process of being formalised. MCX The listed share price of MCX has gradually increased over the period. It wasconfirmed that the 15% stake in MCX which was owned by Financial Technologieswas sold to Kotak Mahindra Bank. Pacnet As mentioned above, the revenues growth for the data centre business is behindexpectations, leading to a reduction in valuation. Al Noor Al Noor announced first half results which showed further strong profitablegrowth. Indostar Indostar continues to build its loan book with an increased focus onorigination and a higher fee income to increase return on equity. Largo Resources Production at the Brazilian metals and mining company commenced in August 2014.Largo also announced that it had successfully completed the closing of a USD30m private placement. Media.net Underlying Ashmore Funds exited this position in October 2014. Allocation by Investment Theme Investment Allocation Theme DescriptionTheme Corporate 1.83% Corporate debt investment theme focusing on theDebt developing corporate debt asset class in emerging markets. Real Estate 5.23% Direct real estate investments in emerging markets primarily in the residential and commercial sectors. Special 78.47% Bottom-up, value and event-driven strategy.Situations Investments are mainly in corporate restructurings through distressed debt, private and public equity and equity linked securities. G7 Other 0.05% Cash & 14.42%Equivalent Total 100.00% Allocation is shown by the investment themes of the underlying funds orcompanies which AGOL is invested in. Allocation is calculated as a percentageof the investment portfolio. Allocation by Country Country Holding India 19.33% Indonesia 15.49% Cayman Islands 13.03% Philippines 10.99% Singapore 7.61% United Arab Emirates 6.31% China 5.81% Brazil 3.51% Russia 2.53% Nigeria 1.09% Other Countries 0.06% Cash & Equivalent, 14.25%and G7 Total 100.00% Allocation by Industry* Industry Holding Media 15.49% Electric Integration/ 14.73%Generation Real Estate 14.27% Diversified Financial 13.46%Services Telecommunications 7.61% Healthcare Services 6.24% Mining 3.51% Advertising 2.47% Oil & Gas 1.59% Retail 1.27% Electrical Components/ 1.26%Equipment Miscellaneous 1.09%Manufacturing Other Industries 0.75% Cash & Equivalent, and G7 16.26%** Total 100.00% * Bloomberg industry group classifications ** Includes EM cash holdings which comprise 2.01% of the portfolio Allocation by investment* Investment Name Holding Quarterly Investment Description NAV Performance (net) Ashmore Global 29.84% -6.24% Global emerging markets specialSpecial situations investment fund with a 7Situations Fund year fixed life and limited4 partnership structure. Ashmore Asian 16.42% -27.93% Asian special situations withRecovery Fund investments mainly in corporate restructurings through distressed debt, private & public equity. Shareholders voted in January 2013 in favour of proposals to wind-up this fund in an orderly manner. Ashmore Global 12.39% 4.23% Global emerging markets specialSpecial situations investment fund with a 7Situations Fund year fixed life and limited5 partnership structure. AEI 7.84% 0.02% AEI owns, operates and develops interests in multiple power generation assets in Latin America. Multi-Commodity 4.59% 30.32% India's largest commodity exchangeExchange of which offers futures trading in moreIndia (MCX) than 40 commodities from various market segments including bullion, energy, spices, plastic and fibre. Ashmore Global 4.43% -17.63% Global emerging markets specialSpecial situations investment fund with a 7Situations Fund year fixed life and limited3 partnership structure. AA Development 3.55% 0.00% Fund focusing on developmental capitalCapital India deals on Indian subcontinent.Fund Everbright 2.73% 0.00% Fund focusing on direct Chinese realAshmore estate primarily in the residentialChina Real and retail sectors in growing tier 2Estate Fund and 3 cities in conjunction with a local partner, Everbright. VTBC Ashmore 2.40% -7.62% Russian Real estate fund currentlyReal Estate investing in the Moscow metropolitanPartners area. Ashmore Asian 1.28% -24.73% A 5 year fixed life fund focussing onSpecial bottom-up, event-driven Asian specialOpportunities situation opportunities which areFund accessed by purchasing shares of the Ashmore Asian Recovery Fund at a discount to its prevailing NAV. Ashmore Global 0.51% -12.32% Global emerging markets specialSpecial situations investment fund with a 5Situations Fund year fixed life and limited2 partnership structure. * Holdings of less than 0.5% not shown. Enquiries: Ashmore Investment Advisors LimitedRobert HegtTel: +44 (0) 203 077 6147 Northern Trust International Fund Administration Services (Guernsey) LimitedAndrew MaidenTel: +44 (0) 1481 745 368