Half Yearly Report

28th Aug 2009 07:00

ASHMORE GLOBAL OPPORTUNITIES LIMITED

Interim Report and Unaudited Condensed Interim Financial Statements

For the six months ended 30 June 2009

Contact:

Gay Collins/Clare Milton

020 7786 4882 / 07798626282 / 020 7786 4874

ashmore@penrose.co.uk

  Financial Highlights

		30 June 2009	31 December 2008
Total Net Assets		US$544,974,469	US$524,058,172
Net Asset Value per Share
US$ Shares		US$8.46	US$8.58
€ Shares		€8.27	€8.45
£ Shares		£8.40	£8.53
Closing-Trade Share Price
US$ Shares		US$5.85	US$6.65
€ Shares		€5.65	€7.15
£ Shares		£5.80	£7.20
Discount to Net Asset Value
US$ Shares		(30.85%)	(22.49%)
€ Shares		(31.68%)	(15.38%)
£ Shares		(30.95%)	(15.59%)

Chairman's Statement

Your board is pleased to report to shareholders at the end of the six month interim reporting period to 30 June 2009, a period during which Ashmore Global Opportunities Limited ("AGOL" or the "Company") has continued to weather significant market volatility and the recession in the global economy. Despite this uncertain backdrop, investment performance over this six month period has remained resilient with the NAVs of the US dollar, Sterling and Euro classes standing at US$8.46, £8.40 and €8.27 respectively. 

The Company's investment objective is to deploy capital in a diversified portfolio of global emerging market strategies which are actively managed in order to maximise total returns. This is achieved by dynamically allocating the Company's assets into funds managed by Ashmore Investment Management Limited ("Ashmore") across a range of investment themes (currently, Special Situations, External Debt, Local Currency, Equity and Corporate High Yield) with the principal focus being on Special Situations.

The Company's assets are fully invested across a range of Ashmore managed funds and, consistent with its stated objective at the time of listing and Ashmore's positive view of the opportunities set within Special Situations, the Company's focus on Special Situations has been maintained, and stood at 84.21% of the total portfolio of investments as at 30 June 2009, compared with 86.92% as at 31 December 2008. The Company's most significant exposure is its investment in Ashmore's Global Special Situations Fund 4 which accounted for 42.62% of the total portfolio of investments as at 30 June 2009. During the period, the Company made a commitment of US$50 million to the latest fund in Ashmore's Global Special Situations range, Global Special Situations Fund 5, of which US$25 million had been drawn down by 30 June 2009. 

Shareholders have continued to be able to switch between share currency classes at each quarter end. In line with this capability, the Directors approved the conversion of 949,382 Euro and 400,572 US dollar shares to 1,142,278 Sterling shares, 750,000 Euro and 350 Sterling shares to 974,053 US Dollar shares and 76,594 US Dollar shares to 59,007 US Dollar shares in April and 1,312,352 Euro and 82,000 US dollar shares to 1,150,602 Sterling shares in July.

The share prices of the three currency classes of the Company's shares continue to trade at substantial discounts to their NAVs. This situation is not limited to AGOL as investment companies in a range of sectors and asset classes have continued to trade at similarly wide discounts following the significant market sell off in the final quarter of 2008 and investors' continued risk aversion. Private equity focused investment companies in particular have experienced substantial discounts.

Having repurchased a number of shares in 2008, initially with positive results, your Board determined it appropriate to recommence share repurchase activity early in 2009. However, due in part to the continuing liquidity demands of investors, these actions appeared to have a limited, if any, beneficial impact on the level of the discount. As of April 2009, the Company had repurchased 491,480 US dollar shares, 331,346 Euro shares and 277,916 Sterling shares representing 2.02%, 4.44% and 1.45% of the shares in issue in each class at a cost of US$3,718,984, €2,337,560 and £2,021,337 respectively. These shares are currently being held in treasury.

Over the 365 day period to 16 February 2009, AGOL's shares representing greater than 75% of the NAV of the Company traded at an average discount of greater than 10%. Therefore, in line with the Company's Articles, the Board convened an Extraordinary General Meeting ("EGM") at which a resolution to wind-up the Company was put to shareholders. 

At the EGM held on 5 May 2009, shareholders, in line with the Board's recommendation, voted overwhelmingly against the resolution to wind up the Company underlining their support for AGOL's investment proposition. 80% of the votes cast at the EGM were against winding up the Company.

In the EGM circular the Board proposed that, in order to further enhance the Company's appeal to existing and potential investors, and to assist in reducing the discount to NAV at which the Company's shares are trading, arrangements should be established for an annual partial capital return. Any such capital return will be determined by the Board prior to the announcement of the full year's results to 31 December 2009. In reaching its decision, the Board will consider a number of factors including current market conditions and the availability of liquid resources. The amount of capital returned may represent up to 50% of the positive NAV performance of the Company for the financial year.

We the Board believe that AGOL continues to represent an innovative structure which provides the opportunity for investors to gain exposure to a broad range of diversified Special Situations throughout the emerging markets. The opportunities set in Special Situations have increased as a result of the events in global financial markets over the course of the past eighteen months and therefore, despite the challenges that have been faced, your Board believes the AGOL is well positioned to take advantage of them. 

Over the course of June and July 2009, both Ashmore Group plc and its Chief Executive, Mark Coombs have acquired shares in the Company which have resulted in them both disclosing interests of greater than 3% in the Company which the Board welcomes.

I look forward to writing to you again in early 2010 when AGOL reports its full year results.

Jonathan Agnew

26 August 2009

Investment Manager's Report

Global view

The trough in the global economic growth took place in Q4 08 and Q1 09, and Ashmore Investment Management Limited ("Ashmore") believes that we are embarked on a path of recovery from the violent economic and financial disruptions triggered by the sub-prime crisis and the collapse of Lehman Brothers. Ashmore believe most emerging markets and the US economy are likely to return to positive growth this year and all the world's regions ought to experience substantial positive real GDP growth rates in 2010. The global recovery began to take root in the past 6 months in emerging markets, notably in regions without serious de-leveraging issues, such as Asia, Latin America, and Africa. Growth in the US, Japan, Europe, and Eastern Europe has lagged Emerging Markets due to de-leveraging by consumers in the US and lingering unemployment in the Eurozone, thus making the global recovery gentler than in previous downturns, and avoiding the much touted V-shaped recovery. That said individual regions within Emerging Markets are currently recovering in a fashion consistent with V-shaped recoveries.

In our view, a gentle global recovery is beneficial to emerging markets by avoiding unplanned inflationary surprises, the need for rapid disruptive policy reversals, and sharp rises in the prices of key commodities, such as oil, which in turn could scupper confidence among still fragile consumers in wealthy countries. 

The other main risk to recovery remains double dip recessions in the next year or two. So far, US fiscal policy appears to have been aimed at limiting the rise in unemployment, while US monetary and exchange rate policies - a steep yield curve and a stable USD exchange rate with oil producers and China - have helped nurse banks back to health. Ashmore thinks the basic objective of US economic policy is to achieve stronger banks and more confident consumers such that the US government can begin to withdraw fiscal stimulus in 2011 without risking plunging the US economy into a double dip recession. In the first 6 months of the year, this policy appears to have been working. 

The combination of economic recovery and persistent global imbalances has also been supportive for asset prices. Reserves accumulation in the surplus economies has continued at pace despite a smaller current account deficit in the US, and has ensured a strong demand for USD denominated assets at a time when the supply of such instruments has declined sharply, including mortgage related paper, ABS, structured products, and investment opportunities in the real economy. Generally, this imbalance between supply and demand has been supportive for equities, Emerging Markets assets, and commodities. Emerging Markets assets have also benefited from still pervasive supply-side constraints in commodity space, which have put a floor under prices. Since these constraints have not gone away and may in fact have intensified due to the credit crunch, Ashmore believes that commodity prices may remain well supported as global demand recovers.

Emerging Markets assets in a global recovery

Emerging Markets assets staged a strong recovery in the first half of 2009. Emerging Markets external debt spreads to US treasuries nearly halved from 670bps to 350bps. MSCI Emerging Markets equities rallied 56% from the start of 2009. Emerging Markets currencies such as Brazil, Korea, and Turkey are stronger now than at the start of the year. Moreover, the combination of global economic recovery, a squeeze on financial assets, and the strong backdrop for commodities constitute a still very bullish environment for emerging markets going forward. While the spread compression for lower beta credits in Emerging Markets space has already gone a long way, we still have not normalized for high beta credits, quasi-sovereigns, and especially corporates. Gradual normalization of market conditions in developed countries has been supportive. For example, the restoration of bond repo for Emerging Markets investors has enabled leveraged players to begin to re-enter. Positioning in Emerging Markets equities and local currency markets is also helpful, because these markets are still being traded mainly on a tactical basis due to lingering risk aversion, though continuing spread compression should in our opinion result in a shift of exposure away from USD paper towards local currency and equities against a backdrop of a weaker USD. 

Regional outlook

Latam and Asia are generally well positioned to take advantage of the global recovery, and are already now set to be the two first regions to emerge from the slump and to need to implement monetary policy tightening. This applies especially to countries with strong domestic demand, such as India and Malaysia, and to a lesser extent Brazil. Africa is also well-placed to benefit from the global recovery. The region was never very exposed to global capital markets and the IMF expects the region to grow 4.1% in 2010. Currencies and domestic demand adjusted quickly and sharply to the collapse in trade finance, which means that both ought to have upside potential in the ongoing recovery phase. Inflation is declining sharply, which is strongly supportive for domestic demand, and the region does not suffer from the same scepticism of markets as we see in other regions such as parts of Latin America. A multi-strategy approach to investing in the small illiquid African markets seems sensible with a growing emphasis on equity exposure, since Africa ought to emerge from this crisis with its promising growth potential entirely intact. By contrast, Eastern Europe and the Middle East are, uniquely, within Emerging Markets, experiencing weak domestic demand and high unemployment on account of very large debt excesses, which should keep policy rates low throughout the period, in our view. We believe selective exposure to corporates in countries such as Ukraine, Kazakhstan, Russia, and Georgia should offer good returns over the medium term.

Selected countries

China's early and decisive response to the global downturn through extensive fiscal and credit stimulus was supportive for commodity markets as well as China's domestic growth momentum during H1 2009. The risk facing the Chinese authorities is increasingly becoming one of dealing with isolated bubbles in equity and property markets rather than conventional inflation. One solution to this problem could be that China lets its domestic institutions invest more abroad though the QDII program, which could prove supportive for Emerging Markets, in our view.

Brazil weathered the global downturn better than most countries in the world on account of a strong external position, moderate economic policies, and stable politics. Domestic demand held up well during the downturn, supported by strong credit extension from The Brazilian Development Bank and rate cuts from the Central Bank. As a result, spreads on Brazilian external debt has narrowed sharply during H1 2009 and the currency remained extremely well bid in the context of a weak global environment. Ashmore think that Brazil is likely to emerge from the global crisis as one of the least affected economies and therefore well placed to benefit from the upturn. 

Russia's external balances stabilised following the lengthy devaluation process in the second half of 2008. Russia's reserve position remains very sound and oil prices should support the credit going forward if they hold up. Russia faces important ongoing fiscal challenges, competitiveness issues, and deleveraging problems, but from the perspective of ability and willingness to pay it has been solid throughout and still looks attractive from a spread perspective, despite expectations of considerable sovereign issuance over the next 12 months. 

Like Brazil, Turkey weathered the global downturn better than expected. Banks and corporates were able to roll significant dollar financing requirements with relative ease despite the lingering uncertainty surrounding the government's discussions with the IMF about a new standby program. Turkey has been keen as far as possible to avoid a formal program with the IMF, which it perceives as stigmatising, but its ability to do so depends on the outturn of the global economy as well as the domestic business cycle and its impact on the public finances. In a sign of strength, however, Turkey has demonstrated that it has the ability to tap external markets in the current climate. 

Venezuela has predictably had a tough time adjusting to lower oil prices. The combination of market unfriendly policies and excessive public spending has created a dependence on imports, which may eventually force the government to devalue the Bolivar in order to balance the books. So far in 2009, President Chavez has resisted the temptation to devalue on account of the inflationary consequences on his core voters. Instead, the government has sought to soak up excess liquidity in the domestic economy by issuing dollar bonds to locals, with adverse implications for the sovereign curve. A devaluation will be very supportive for the credit, but pending that the credit trades heavy on fear of new supply. 

The medium term outlook in Argentina improved sharply during H1 2009 and especially following the larger than expected defeat of the Kirchners in the recent mid-term elections in June. Having lost their majorities in both houses of parliament, the Kirchner administration has become more constrained in its ability to implement radical policies, while the Peronist party, which is keen to remain in power after the next Presidential election in 2011, is pushing the Kirchners to pursue policies which ensure stability. Argentina has faced a tough bout of Swine Flu, drought, and a deep recession, but the government has enough finances to meet its near-term debt service obligations and is now actively working on restoring relations with financial markets. 

Mexico's PAN led government lost influence in the legislature to the PRI party in the latest mid-term elections. This situation does not make it easy to pass much needed structural and fiscal reforms, though Ashmore believes some modest reform seems likely in the coming semester, which may or may not be enough to avoid a downgrade from ratings agencies. The government's fiscal situation and the relatively weak transmission mechanism for monetary policy mean that the official sector's ability to stimulate the economy out of the current deep recession is limited. Oil production has remained sluggish, and Mexico's growth from here hinges increasingly on a US recovery.

In Indonesia, SBY's convincing re-election as President has ushered in period of political stability, which is strongly supportive for the credit. The government handled the credit crunch professionally, securing foreign credit lines and avoiding the stigma of having to engage formally with the IMF. Indonesia's large population and strong domestic demand were important stabilizing factors in the recent turbulent period.

Special situations investments

Special Situations is the largest exposure by investment theme as per the investment objective of the company. The stresses experienced in global financial markets over the last 12 months have created many opportunities in Emerging Market assets. Investors who may have purchased assets at inflated prices or relied on leverage as a key driver of performance, have come to the market in search of liquidity. For our part, investee companies continue to be well and prudently managed, and the investments have not suffered from any mismanagement of derivatives, excessive leverage and/or refinancing risks. The financing situation in local markets appears to have improved (with the exception of Russia), and countries in which the funds have invested in have a better economic and financial outlook compared to western markets. In February 2009, Ashmore launched its fifth special situations fund, Ashmore Global Special Situations Fund 5("GSSF5"). AGOL committed $50m to GSSF5 of which 50% of has been drawn down at 30 June 2009.

The largest investment continues to be AEI (www.aeienergy.co m). AGOL holds a stake in AEI both directly and indirectly through Ashmore funds. AEI is a company that manages essential energy infrastructure assets in the emerging world. AEI is unique in that it is a global multi line business and, over time is expected to grow in Asia and Eastern Europe so that its portfolio better reflects the relative economic weights of different regions. AEI begun the year in line with its 2009 budget and is in negotiations for new gas supply contracts with several parties. AEI also aqcuired a Nicaraguan wind farm and purchased a stake in an Argentine electricity distribution company. The Company has filed with the SEC to become a public reporting company.

 

Another investment in the energy sector is Petron Corporation (www.petron.com). Petron is located in the Philippines, and as well as being the countries largest oil refiner also has the country's largest network of service stations. Ashmore entered into option arrangements with San Miguel Corporation such that San Miguel has an interest in purchasing a majority stake in the company. Petron has been evaluating expansion opportunities and discussing growth options with potential strategic partners. Management are also looking at developing a number of concepts to increase the coverage of fuel and non fuel consumption at the service stations.

Rubicon (www.rubicon-offshore.com) serves the Asian oil production industry by providing vessels which work in deep water on the fields, and manage production. The company distinguishes itself by converting bespoke vessels at a lower cost than competitors and its willingness to work with smaller operators on shorter contracts that pay higher contract rates. Operations have been satisfactory but the company is in dispute over one of its contracts in Australia. The management are optimistic of resolving this issue.

Jasper (www.jasperinvests.com) is a Singapore-listed company which owns a majority of shares in Neptune Marine, an offshore drilling company. Management believe that the offshore mid-water and deepwater drilling industry will remain very profitable in the medium term, with high ROE's. The lack of available capital is curtailing the number of new build rigs and renovations. This, together with a scaling back of exploration budgets and a move from onshore to offshore deep and mid water has thus far been a positive for daily rates charged by Jasper. However, oil price volatility will have a continued impact on the company.

The most interesting opportunities continue to exist in telecoms markets. Pacnet (www.pacnet.com) has built a genuine pan-Asian services business for corporate customers in addition to its wholesale broadband sales. Headquartered in Hong Kong and Singapore, the business is now located in 13 countries across Asia and North America. Pacnet is in the process of implementing projects that will increase capacity on some networks as well as expanding into new markets such as Vietnam. Pacnet was also named Best Wholesale Carrier at the Telecom Asia Awards 2009 for its extensive and robust network, broad product range, continued expansion through the region and double-digit sales growth. 

Investment Performance

As at 30 June 2009, annualised performance since inception for the Sterling, Euro and USD shares was -10.6%, -11.5% and -10.2% respectively, compared with -14.0%, -14.8% and -13.5% at 31 December 2008.

The NAV for the Sterling, Euro and USD shares was £8.40, €8.27 and US$8.46 respectively compared with £8.53, €8.45 and US$8.58 at 31 December 2008.

Ashmore Investment Management Limited

26 August 2009

Schedule of Investments as at 30 June 2009

a) Investments

	Valuation in	% of
	US$	NAV
Ashmore Global Special Situations Fund 4 LP	218,577,090	40.11
Ashmore Asian Recovery Fund	115,461,617	21.19
Ashmore Multistrategy Fund	64,034,209	11.75
AEI Limited (Equity)	62,370,383	11.44
Ashmore Global Special Situations Fund 5 LP	25,160,231	4.62
Ashmore Emerging Markets Corporate High Yield Fund	23,205,986	4.26
Ashmore SICAV 2 Global Liquidity US$ Fund	4,039,482	0.74
Total investments at fair value	512,848,998	94.11
Net other current assets	32,125,471	5.89
Total net assets	544,974,469	100.00

b) Underlying Investment Themes

The breakdown of investments by investment theme as at 30 June 2009 is as follows:

	Valuation in	% of
	US$	NAV
Special Situations	431,870,141	79.25
External Debt	27,796,416	5.10
Cash and equivalent	25,539,880	4.69
Corporate High Yield	23,539,769	4.32
Local Currency	4,102,792	0.75
	512,848,998	94.11

Board Members

The Directors are responsible for the determination of the investment policy of Ashmore Global Opportunities Limited (the "Company") and have overall responsibility for the Company's activities. The Directors, all of whom are non-executive, are listed below:

Jonathan Agnew (UK resident) appointed to the Board on 16 October 2007

Graeme Dell (UK resident) appointed to the Board on 5 March 2008

Nigel de la Rue (Guernsey resident) appointed to the Board on 16 October 2007

George Grunebaum (US resident) appointed to the Board on 16 October 2007

John Roper (Guernsey resident) appointed to the Board on 16 October 2007

Directors' Report

The Directors present their Interim Report and the Unaudited Financial Statements of the Company for the six months ended 30 June 2009 which have been prepared properly, in accordance with IAS 34 "Interim Financial Reporting".

The Company

The Company was incorporated with limited liability in Guernsey, Channel Islands as a 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.

Investment Policy

The Company's investment objective is to deploy capital in a diversified portfolio of global emerging market strategies which will be actively managed with a view to maximising total returns. This will be achieved by investing across investment themes, including special situations, external debt, local currency, equity and corporate high yield with a principal focus on special situations.

Results and Dividends

The results for the period are set out in the Unaudited Condensed Statement of Comprehensive Income. The Directors do not recommend the payment of a dividend in accordance with the distribution policy.

Association of Investment Companies (AIC)

The Company became a member of the AIC on 18 March 2008.

Discount/Premium to Net Asset Value

The level of the share price discount/premium to the Net Asset Value is monitored. The Board has a number of discount control mechanisms at its disposal, which are set out in Note 4.

Derivatives and Hedging

The shares in the Company are denominated in US dollars, Euros and Sterling. The base currency is the US dollar, and therefore non-US dollar subscription monies for shares will be converted to US dollars for operational purposes. The costs and any benefit of hedging the foreign currency exposure of the assets attributable to the shares denominated in Euros and Sterling from the US dollar will be allocated solely to the relevant class of shares. This may result in variations in the Net Asset Value of the three classes of shares.

Shareholder Information

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.

Share Capital

The number of shares in issue at the period end is disclosed in Note 5 to the financial statements.

Directors' Shareholding

Jonathan Agnew has a beneficial interest in 10,000 Sterling shares. 

Nigel de la Rue has a beneficial interest in 2,000 Sterling shares. 

Directors' Interest

Graeme Dell is Group Finance Director of Ashmore Group plc. He also sits on the Board of Ashmore Investment Management Limited

John Roper is a non-executive director on a number of Guernsey registered Ashmore funds and fund management company subsidiaries including Asset Holder PCC No.2 Limited and Ashmore Emerging Market Corporate High Yield Fund.

George Grunebaum is a Managing Partner of Dolomite Capital Management which is a subsidiary of Ashmore Investments (UK) Limited.

Signed on behalf of the Board of Directors on 26 August 2009.

Jonathan Agnew

Director 

George Grunebaum

Director

Directors' Responsibility Statement

We confirm that to the best of our knowledge:

 

 

Signed on behalf of the Board of Directors on 26 August 2009.

 

Jonathan Agnew

Director 

George Grunebaum

Director

Independent Review Report to Ashmore Global Opportunities Limited

 

Introduction

We have been engaged by the Ashmore Global Opportunities Limited (the "Company") to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2009 which comprises the Unaudited Condensed Statement of Financial Position, the Unaudited Condensed Statement of Comprehensive Income, the Unaudited Condensed Statement of Changes in Equity, the Unaudited Condensed Statement of Cash Flows and the related explanatory notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of the Disclosure and Transparency Rules ("the DTR") of the UK's Financial Services Authority ("the UK FSA"). 

Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this 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 for our review work, for this report, or for the conclusions we have reached.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FSA.

The annual financial statements of the Company are prepared in accordance with IFRSs. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with IAS 34 Interim Financial Reporting.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2009 is not prepared, in all material respects, in accordance with IAS 34 and the DTR of the UK FSA.

KPMG Channel Island Limited

Chartered Accountants

26 August 2009

Unaudited Condensed Statement of Financial Position 

As at 30 June 2009

		30 Jun 2009	31 Dec 2008
	Notes	US$	US$
Current assets
Financial assets at fair value through profit or loss	3	522,370,793	546,059,026
Cash and cash equivalents		24,661,399	20,541,728
Other receivables		-	294,688
Total assets		547,032,192	566,895,442
Current liabilities
Financial liabilities at fair value through profit or loss	3	-	28,694,903
Accounts payable and accrued expenses		2,057,723	14,142,367
Total liabilities		2,057,723	42,837,270
Net assets		544,974,469	524,058,172
Represented by:
Shareholders' equity
Share capital		-	-
Reserves		544,974,469	524,058,172
Total Equity	5	544,974,469	524,058,172
Net asset values
Net assets per US$ share	5	US$8.46	US$8.58
Net assets per € share	5	€8.27	€8.45
Net assets per £ share	5	£8.40	£8.53

The unaudited condensed interim financial statements were approved by the Board of Directors on 26 August 2009, and were signed on its behalf by:

Jonathan Agnew George Grunebaum

Director Director

The notes form an integral part of these financial statements

Unaudited Condensed Statement of Comprehensive Income 

For the six months ended 30 June 2009

		30 Jun 2009	30 Jun 2008*
	Notes	US$	US$
Revenue
Interest income		976,758	1,060,009
Dividend income		5,369	767,013
Net realised gain on financial assets and liabilities at
fair value through profit or loss	6	7,794,740	4,566,669
Net unrealised gain on financial assets and liabilities at
fair value through profit or loss	6	17,389,189	3,336,167
Other net loss on foreign exchange		(10,938)	2,049
Net investment expense		26,155,118	9,731,907
Expenses
Net investment management fee		(842,192)	565,867
Incentive fee		(1,190,123)	-
Directors' remuneration		(157,552)	(266,691)
Fund administration fee		(128,139)	(194,749)
Custodian fee		(51,250)	(77,893)
Legal services		(49,355)	(112,346)
Other expenses		(255,606)	(939,489)
Total operating expenses before finance costs		(2,674,217)	(1,025,301)
Gain for the period		23,480,901	8,706,606
Other comprehensive income for the period		-	-
Total comprehensive income for the period		23,480,901	8,706,606
Earnings per share
Basic and diluted earnings per US$ per share	7	US$ (0.13)	US$ (0.01)
Basic and diluted earnings per € share	7	US$ (0.33)	US $0.75
Basic and diluted earnings per £ per share	7	US$ 1.63	US$ (0.16)

All items derive from continuing activities.

* The comparative figures are for the period from 21 June 2007 (date of incorporation) to 30 June 2008.

The notes form an integral part of these financial statements.

Unaudited Condensed Statement of Changes in Equity 

For the six months ended 30 June 2009

	Share	Special	Reserve for	Retained
	premium	reserve	own shares	earnings	Total
	US$	US$	US$	US$	US$
Balance at 1 Jan 2009	-	734,848,391	(7,247,687)	(203,542,532)	524,058,172
Gain for the period	-	-	-	23,480,901	23,480,901
Other comprehensive income	-	-	-	-	-
Total comprehensive income
for the period	-	-	-	23,480,901	23,480,901
Transactions with owners,
recorded directly in equity
Repurchase of own shares	-	-	(2,564,604)	-	(2,564,604)
Total transactions with owners	-	-	(2,564,604)	-	(2,564,604)
Balance at 30 Jun 2009	-	734,848,391	(9,812,291)	(180,061,631)	544,974,469

Unaudited Condensed Statement of Changes in Equity 

For the period from 21 June 2007 (date of incorporation) to 30 June 2008

	Share	Special	Reserve for	Retained
	premium	reserve	own shares	earnings	Total
	US$	US$	US$	US$	US$
Gain for the period	-	-	-	8,706,606	8,706,606
Other comprehensive income	-	-	-	-	-
Total comprehensive income
for the period	-	-	-	8,706,606	8,706,606
Transactions with owners,
recorded directly in equity
Issue of ordinary shares	734,848,352	-	-	-	734,848,352
Transfer to special reserve	(734,848,352)	734,848,352	-	-	-
Total transactions with owners	-	734,848,352	-	-	734,848,352
Balance at 30 Jun 2008	-	734,848,352	-	8,706,606	743,554,958

The notes form an integral part of these financial statements.

Unaudited Condensed Statement of Cash Flows

For the six months ended 30 June 2009

	30 Jun 2009	30 Jun 2008*
	US$	US$
Operating activities
Gain for the period	23,480,901	8,706,606
Adjustments for:
Interest income	(976,758)	(1,060,009)
Dividend income	(5,369)	(767,013)
Changes in operating assets and liabilities
Net (decrease)/increase in accounts payable and accrued expenses	(12,084,644)	223,831
Net (increase)/decrease in financial assets at fair value through profit and
loss, excluding derivatives (see note below)	11,317,100	(735,643,240)
Net increase in derivative financial instruments	(16,323,770)	(7,141,770)
Cash used in operations	5,407,460	(735,681,595)
Interest received	1,271,446	1,058,692
Dividend received	5,369	767,013
Cash flows from operating activities	6,684,275	(733,855,890)
Financing activities
Issue of shares	-	734,848,352
Repurchase of own shares	(2,564,604)	-
Cash flows from financing activities	(2,564,604)	734,848,352
Net increase in cash and cash equivalents	4,119,671	992,462
Cash and cash equivalents at beginning of the period	20,541,728	-
Cash and cash equivalents at end of the period	24,661,399	992,462

Note: Cash flows from the purchase of these financial assets during the period amounted to US$38,885,183 (30 June 2008: US$1,351,682,125) and proceeds from the sale of these financial assets during the period amounted to US$43,500,000 (30 June 2008: US$614,674,522).

* The comparative figures are for the period from 21 June 2007 (date of incorporation) to 30 June 2008.

The notes form an integral part of these financial statements.

Notes to the Unaudited Condensed Interim Financial Statements

1. Statement of compliance

These unaudited condensed interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the audited financial statements of the Company as at and for the year ended 31 December 2008.

These unaudited condensed interim financial statements were approved by the Board of Directors on 26 August 2009.

2. Significant Accounting Policies 

Except for the adoption of new standards and interpretations as of 1 January 2009 as described below, the accounting policies applied by the Company in these unaudited condensed interim financial statements are the same as those applied by the Company in its financial statements as at and for the year ended 31 December 2008.

IAS 1 Revised Presentation of Financial Statements

The Company applies revised IAS 1 Presentation of Financial Statements (2007), which became effective as of 1 January 2009. As a result, the Company presents in the statement of changes in equity all owner changes in equity, whereas all non-owner changes in equity are presented in the statement of comprehensive income. The Company has elected to present the comprehensive income in one statement. The presentation has been applied in these unaudited condensed interim financial statements as of and for the six months period ended 30 June 2009.

Comparative information has been re-presented so that it also is in conformity with the revised standard. Since the change in accounting policy only impacts presentation aspects, there is no impact on earnings per share.

IFRS 7 Financial Instruments: Disclosures

The amended standard requires additional disclosure about fair value measurement and liquidity risk. Fair value measurements are to be disclosed by source of inputs using a three level hierarchy for each class of financial instrument. In addition, reconciliation between the beginning and ending balance for Level 3 fair value measurements is now required, as well as significant transfers between Level 1 and Level 2 fair value measurements. The fair value measurement disclosures are presented in note 9 and the liquidity risk disclosures are not significantly impacted by the amendments. The amendments also clarify that the requirements for liquidity risk disclosures are not significantly impacted by these amendments.

An entity shall classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy shall have the following levels:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: inputs other than quoted prices included within Level 1 that are observable for theasset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety shall be 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.

IFRS 8 Operating Segments

This standard requires disclosure of information about the Company's operating segments and replaces the requirement to determine primary and secondary reporting segments of the Company. Adoption of this standard did not have any affect on the financial position or performance of the Company. The Company is organised and operates as one segment as the principal focus is on emerging market strategies, mainly achieved via investments in funds domiciled in Europe. Consequently, the management deems that segment reporting is not meaningful.

Other new standards, amendments to standards and interpretations that are not relevant to the Company's operations have not been presented.

3. Financial Assets and Liabilities at fair Value Through Profit or Loss

	30 Jun 2009	31 Dec 2008
	US$	US$
Financial assets at fair value though profit or loss:
Designated as at fair value through profit or loss upon initial recognition
Equity investments	512,848,998	482,634,960
Debt investments	-	41,531,138
	512,848,998	524,166,098
Held for trading
Derivative financial instruments	9,521,795	21,892,928
Total financial assets at fair value through profit or loss	522,370,793	546,059,026
Financial liabilities at fair value though profit or loss:
Held for trading
Derivative financial instruments	-	28,694,903
Total financial liabilities at fair value through profit or loss	-	28,694,903

Derivative financial instruments comprise forward foreign currency contracts entered into mainly for the purpose of managing currency risks arising on the € share class and the £ share class.

4. Capital and Reserves

Following an average negative daily net asset value variance by greater than 10% over a rolling 365 day period to 16 February 2009, an extraordinary general meeting of shareholders was held on 5 May 2009 to consider the resolution for the voluntary wind up of the Company, with 80% of the votes cast against the winding up of the Company.

In addition to the obligation to consider voluntary wind up upon occurrence of average negative net asset value variance of greater than 10% of discount over 365 days, existing discount control measures include share repurchases. The following share repurchases were made for the six months ended 30 June 2009:

		Number of shares repurchased		Consideration in US$
US$ share class		74,749		433,060
€ share class		160,000		1,298,275
£ share class		96,355		833,269
				2,564,604

A total of 1,100,742 shares were held in Treasury by the Company as at 30 June 2009 (31 December 2008: 769,638 shares). 

An additional discount control measure of making an annual capital return to shareholders is expected to be proposed at the Company's 2009 annual general meeting. Any such capital return will be determined by the Board prior to the announcement of the full year's results to 31 December 2009. The Board will consider a number of factors including current market conditions and the availability of liquid resources. The amount of capital returned may represent up to 50% of the positive NAV performance of the Company for the financial year.

Net Asset Value

The net asset value of each US$, € and £ share is determined by dividing the net assets of the Company attributed to the US$, € and £ share classes by the number of US$, €, and £ shares in issue at the period end as follows:

As at 30 Jun 2009	Net assets attributable to each		Net assets per share	Net assets per share
	share class in US$	Shares in issue	in US$	in local currency
US$ Share	201,371,564	23,807,656	8.46	8.46
€ Share	82,749,820	7,134,964	11.60	8.27
£ Share	260,853,085	18,864,638	13.83	8.40
	544,974,469	49,807,258
As at 31 Dec 2008	Net assets attributable to each		Net assets per share	Net assets per share
	share class in US$	Shares in issue	in US$	in local currency
US$ Share	193,096,358	22,498,352	8.58	8.58
€ Share	118,382,229	10,082,531	11.74	8.45
£ Share	212,579,585	17,340,023	12.26	8.53
	524,058,172	49,920,906

6. Gains and Losses from Financial Assets and Liabilities

The following table details the gains and losses from financial assets and liabilities at fair value through profit or loss:

	30 Jun 2009	30 Jun 2008
Net realised gain/(loss)	US$	US$
Designated at fair value through profit or loss:
-Equity investments	(7,767,707)	2,441,241
Held for trading:
-Derivative financial instruments	15,562,447	2,125,428
Net realised gain on financial assets and liabilities at fair
value through profit or loss	7,794,740	4,566,669
Net change in unrealised gain/(loss)
Designated at fair value through profit or loss:
-Equity investments	1,065,424	(3,805,604)
Held for trading:
-Derivative financial instruments	16,323,765	7,141,771
Net unrealised gain on financial assets and liabilities at fair
value through profit or loss	17,389,189	3,336,167

7. Earnings Per Share (EPS)

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

Gain/(loss) attributable to each share class as at 30 June 2009:

	US$ Share	€ Share	£ Share
Gain/(loss) per share class (US$)	(3,132,124)	(2,738,959)	29,351,984
Weighted average number of shares	23,342,055	8,424,234	18,044,137
EPS per share class	(0.13)	(0.33)	1.63
Weighted average number of shares:
Issued shares at the beginning of period	22,498,352	10,082,531	17,340,023
Effect of own shares held	(61,592)	(148,400)	(81,262)
Effect of share conversion	905,295	(1,509,897)	785,376
Weighted average number of shares at end of period:	23,342,055	8,424,234	18,044,137

Gain/(loss) attributable to each share class as at 30 June 2008:

	US$ Share	€ Share	£ Share
Gain/(loss) per share class (US$)	(315,047)	9,162,529	(2,524,593)
Weighted average number of shares	23,437,371	12,182,889	15,735,059
EPS per share class	(0.01)	0.75	(0.16)
Weighted average number of shares:
Issued shares at the beginning of period	23,437,371	12,182,889	15,735,059
Effect of own shares held	-	-	-
Effect of share conversion	-	-	-
Weighted average number of shares at end of period:	23,437,371	12,182,889	15,735,059

There were no dilutive instruments in issue during both periods under review.

8. Financial Instruments and Associated Risks

The Company's investing activities may expose it to various types of risk that are associated with the financial instruments and markets in which it invests. In general, financial risks to which the Company is exposed are market risk, credit risk and liquidity risk. Market risk includes price risks, interest rate risk and currency risk. 

The nature and extent of the financial instruments outstanding at the balance sheet date and the risk management policies employed by the Company are discussed below.

Market risks

The majority of the Company's financial instruments are recognised at fair value, and changes in market conditions may directly affect net investment income. Price risk is the risk that the value of these securities will fluctuate as a result of changes in interest rates, foreign currency exchange rates, investment risks, general economic conditions and equities risks.

The Company's strategy on the management of investment risk is driven by the Company's investment objective. The Company intends primarily to invest 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. Accordingly, in order to achieve a principal focus on special situations over time, a significant proportion of the net proceeds may be invested in Ashmore Global Special Situations Funds.

The Company's market risk is managed on a daily basis by the Investment Manager in accordance with policies and procedures in place. The Company is managed in accordance with the investment restrictions described in the prospectus. These restrictions are intended to ensure that the investments of the Company are appropriately diversified. 

Details of the Company's investment portfolio at the balance sheet date are disclosed in the Schedule of Investments.

Currency risk

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

When appropriate, currency exposures are hedged by the Investment Manager by reference to the most recent Net Asset Value of the underlying investment funds via the use of forward foreign currency contracts.

As at the balance sheet date, the Company is not exposed to any significant currency risk arising on the financial assets and liabilities. However, the Company has put in place hedging mechanisms to hedge the currency risk arising on the € share class and £ share class.

The shares in the Company are denominated in US$, € and £. The base currency is the US dollar, and therefore non-US dollar subscription monies for shares will be converted to US dollars for operational purposes. The costs and any benefit of hedging the foreign currency exposure of the assets attributable to the shares denominated in Euros and Sterling from the US dollar will be allocated solely to the relevant class of shares. This may result in variations in the net asset value of the three classes of shares as expressed in US dollar.

As at 30 June 2009 the effect of the Company's hedge on the € share class and £ share class is as follows (in US$):

	€ share	£ share
Currency exposure of non-US$ share class	82,749,820	260,853,085
Effect of currency hedge	83,156,776	256,620,530
Net foreign currency exposure	(406,956)	4,232,555

As at 31 December 2008 the effect of the Company's hedge on the € share class and £ share class is as follows (in US$):

	€ share	£ share
Currency exposure of non-US$ share class	118,382,229	212,579,585
Effect of currency hedge	110,154,384	232,794,008
Net foreign currency exposure	8,227,845	(20,214,423)

A sensitivity analysis of currency risk is not meaningful as the significant currency exposure arises from non-US$ denominated share classes, for which appropriate hedging mechanisms have been put in place.

Interest rate risk

As at 30 June 2009, the Company's exposure to interest rate risk is limited to cash and cash equivalents as the Company's investment portfolio is composed only of non-interest bearing assets and none of the liabilities are interest-bearing.

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. 

The carrying amounts of financial assets best represent the maximum credit risk exposure at the balance sheet date. 

At the reporting date, the Company's financial assets exposed to credit risk amounted to the following:

	30 Jun 2009	31 Dec 2008
	US$	US$
Debt investment	-	41,531,138
Cash and cash equivalents	24,661,399	20,541,728
Other receivables	-	294,688
	24,661,399	62,367,554

Credit risk arising on transactions with brokers relates to transactions awaiting settlement. Risk relating to unsettled transactions is considered small due to the short settlement period involved and since these are typically delivered versus payment. 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, including cash, of the Company are held by Northern Trust (Guernsey) Limited. Bankruptcy or insolvency of the Custodian may cause the Company's rights with respect to securities held by the Custodian to be delayed or limited. The Company monitors its risk by monitoring the credit quality and financial positions of the Custodian that the Company uses.

The Company analyses credit concentration based on the counterparties of the financial assets that the Company holds.

Liquidity risk

The Company is not exposed to liquidity risk arising from redemptions at shareholders' discretion as the shares issued are non-redeemable.

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 equity instruments. As a result, in certain circumstances, the Company may not be able to quickly liquidate its investments in these instruments. 

Residual maturities of financial liabilities in US$ is as follows:

	Less than 3 months	Less than 3 months
	30 Jun 2009	31 Dec 2008
	US$	US$
Derivative financial instruments	-	28,694,903
Due to brokers	-	13,327,067
Accrued expenses	2,057,723	815,300
	2,057,723	42,837,270

9. Fair Value Disclosures

The following tables present the assets and liabilities that are measured at fair value on a recurring basis as at 30 June 2009 and 31 December 2008.

	Assets and Liabilities at Fair value as at 30 June 2009
	Level 1	Level 2	Level 3	Total
Equity investments designated at fair value through profit or loss	-	4,039,482*	508,809,516	512,848,998
Derivative assets held for trading	-	9,521,795	-	9,521,795
	-	13,561,277	508,809,516	522,370,793

	Assets and Liabilities at Fair value as at 31 December 2008
	Level 1	Level 2	Level 3	Total
Equity investments designated at fair value through profit or loss	-	34,112*	482,600,848	482,634,960
Debt investments designated at fair value through profit or loss	-	-	41,531,138	41,531,138
Derivative assets held for trading	-	21,892,928	-	21,892,928
Derivatives liabilities held for trading	-	(28,694,903)	-	(28,694,903)
	-	(6,767,863)	524,131,986	517,364,123

* Level 2 Investment includes Ashmore Sicav 2 Global Liquidity US$ Fund, which is a money market fund with daily NAV of US$1.

The following table includes a roll forward of the amounts for the period ended 30 June 2009 for assets measured at fair value on a recurring basis classified within Level 3. 

Fair Value Measurements using Level 3 inputs
	Investments
Balance as at 31 December 2008	524,131,986
Net Purchases and Sales	(8,620,187)
Gain/(Losses):
Realised	(7,767,707)
Unrealised	1,065,424
Balance as at 30 June 2009	508,809,516

During the six month period ended 30 June 2009, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 for fair value measurements. Gains and losses for the period are presented as net realised/unrealised gains on financial assets and liabilities at fair value through profit or loss in the condensed statement of comprehensive income.

10. Related party

Ultimate controlling party

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

Related party transactions 

During the period, the Company engaged in the following related party transactions: 

30 June 2009		Income	Receivable/
		(Expense)	(Payable)
Related Party	Nature	US$	US$
Ashmore Investment Management Limited	Management fees (net)	(842,192)	(226,301)
	Incentive fees	(1,190,123)	(1,435,270)
	Promotional fees	(98,712)	(97,694)
Board of directors	Directors' fees	(157,552)	(43,350)
		Income	Receivable/
30 June 2008		(Expense)	(Payable)
	Nature	US$	US$
Related Party
Ashmore Investment Management Limited	Management fees (net)	565,867	67,127
	Incentive fees	-	-
	Promotional fees	(112,346)	(61,904)
Board of directors	Directors' fees	(266,691)	(31,422)

The annual Directors' fees comprise £70,000 per annum to Mr. Agnew, the Chairman, £30,000 each per annum to Mr. Grunebaum, Mr. de la Rue, Mr. Dell and Mr. Roper. Mr. Dell's fee is paid to Ashmore Investment Management Limited.

11. Commitment

The Company has committed to invest US$ 50,000,000 in Ashmore Global Special Situations Fund 5 LP, of which US$25,000,000 is outstanding as at 30 June 2009.

12. Subsequent Events

Share Conversions

The Company's Articles incorporate provisions to enable Shareholders of any one class of Shares to convert all or part of their holding into any other class of Shares on a quarterly basis after the relevant "NAV Calculation Date". This provision was taken up after the June "NAV Calculation Date" following Board approval which resulted in a decrease in the number of US$ Class shares and € Class shares of 82,000 and 1,312,352 shares respectively, and an increase of 1,150,602 £ Class shares of no par value. The € Class and US$ Class shares (of no par value) were cancelled and the £ Class shares were issued with effect 20 July 2009.

Ashmore Global Special Situations Fund 5 - Drawdown

A further drawdown was called of $12,500,000 on 05 August 2009, with a value date of 19 August 2009, bringing the total amount drawndown to 75% of the US$50,000,000 committed amount.

ENDIR PUUWPRUPBPUM

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Related Shares:

AGOL.L