Ashmore Global Op Ld AGOL Interim Management Statement

  Ashmore Global Op Ld (AGOL) - Interim Management Statement

RNS Number : 4270R
Ashmore Global Opportunities Ltd
19 November 2012




    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

                               19 November 2012

Investment Objective

Ashmore Global Opportunities  Limited ("AGOL")  is a  closed ended  investment 
company incorporated and registered in Guernsey and listed on the London Stock
Exchange. AGOL'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  external debt,  local currency,  special 
situations (incorporating distressed debt and private equity), corporate  debt 
and equity  with  a  principal  focus  on  special  situations.  This  interim 
management statement relates to the period 1 July 2012 to 31 September 2012.

Performance Summary

Share Class 3 Month Year to date 1 Year
GBP         2.06%   -3.96%       -5.74%
USD         2.21%   -3.49%       -5.57%

Returns are NAV  to NAV,  net of fees  and include  reinvestment of  dividends 
paid. Returns  are to  30 September  2012. Data  is provided  for  information 
purposes only. Shares in AGOL do not necessarily trade at a price equal to the
prevailing NAV per Share, which may be at a discount or premium.

The NAV of AGOL as at 30 September was $502.10m

Portfolio Overview

The third quarter was  heavily dominated by policy  action by developed  world 
central banks which helped spur positive asset price performance. Fundamentals
however, remained pretty much unchanged; that is Europe continues to  struggle 
with growth whilst the Emerging Markets, despite experiencing some contraction
generally appear  robust.  Data  from  the  US  would  suggest  that  economic 
conditions there are getting better  although headwinds do exist most  notably 
the impeding fiscal cliff. Whilst developed world central banks turned to  the 
printing presses in Q3 to stimulate their economies, Emerging Markets  central 
banks have cut  interest rates and  in some cases  embarked on  infrastructure 
spending, thus laying the foundations for long term economic prosperity.

NAV performance over  the period was  driven by  a mixture of  mark to  market 
price movements  as well  revaluations  by third  party valuation  agents.  As 
reported in previous  monthly fund updates,  Digicable's intended merger  with 
Reliance Communications failed  to materialise for  regulatory reasons. In  Q4 
2011, the Indian government  mandated digitisation of the  Indian cable TV  in 
several phases  over a  3 year  period.  This left  Digicable in  a  difficult 
position with 8 million subscribers,  but with massive up-front capital  costs 
to subsidise digital set-top boxes for them, in order to achieve the  mandated 
timetable for digitisation. As per the  Reliance plans we had been working  on 
consolidation in this fragmented industry and we have now exited our  position 
in this company to Sahara, an Indian business group. Increased competition  in 
the telecoms space has led to  ECI announcing a restructure of its  business. 
The third party valuation  agent marked the asset  down over the period  which 
reflected much  of  the  restructuring activities,  in  addition  to  industry 
comparables. AEI and Sweta were marked up over the period. AEI  successfully 
disposed of its non-core  assets , while Sweta  benefitted from higher  prices 
and revenues on its Central Park  II development. Bangkok Land, EMTEK and  MCX 
saw strong share price performance over the quarter. Bangkok Land announced  a 
strong set of results  for the period  ending 30 June  2012 where net  quarter 
profit increased almost 6-fold primarily due to the result of higher sales  of 
real estate as  well as  exhibition and  convention revenue  compared to  last 

Top 10 underlying investments as at 30 September 2012

Name         Holding Country      Business Description Website Link
ETH          13.39%  Brazil       Renewable energy
Bioenergia                        equipment company
                                  for production of
                                  ethanol &
                                  electricity from
                                  sugar cane.
EMTEK        9.35%   Indonesia    Listed Indonesian
                                  telecom, information
                                  technology &
                                  multimedia company.
AEI          8.90%   Cayman       Owns and operates
                                  businesses in
                                  emerging markets.
Multi        5.54%   India        Nationwide 
Commodity                         electronic commodity
Exchange of                       futures exchange
India (MCX)                       trading in over 40
Alphaland    5.27%   Philippines  Real estate
                                  development company
                                  focussing on
Bangkok Land 5.27%   Thailand     Listed property
                                  developer in Metro
Star Energy  5.19%   Indonesia    Oil & gas  
                                  exploration &
                                  production and
                                  Geothermal energy
Jasper       4.43%   Singapore    Listed company
Investments                       investing in Asian
                                  enterprises, but
                                  primarily oil
Pacnet Int'l 4.23%   Singapore    Asia'sleading
Ltd.                              independent
                                  infrastructure and
                                  service provider.
GEMS/UTILECO 3.14%   Saudi Arabia Saudi Arabian
                                  integrated           /
                                  industrial services
                                  and waste management
Total:       64.71%

Recent company events

ETH Bioenergia

ETHB's began  its  2012/13  harvest season  in  April,  with all  9  mills  in 
operation for the  first time.  Weather problems continued  into the  current 
harvest season, with a delayed start to harvest and above-average rainfall  in 
April reducing production at the outset of the season. Production has  picked 
up, however, and  ETHB still  expects to  crush close  to 20  million tons  of 
sugarcane this season. Industry-wide  production is expected  to edge up  this 
coming  harvest  season,  after  two  seasons  of  weather-related  production 
shortages. Despite  a benign  supply/demand dynamic,  domestic ethanol  prices 
have been stagnant for the past 9 months, capped by regulated gasoline  prices 
which are widely expected to be raised later this year.


The turnaround of Indosiar continues with per minute ad rates increasing  from 
cross selling across SCTV and EMTEK  and increased industry pricing power.  A 
new  programming  line-up   combining  high  quality   foreign  and   in-house 
productions has protected  ratings -  the combined  operations were  No 1  for 
April and May and 2 for June


AEI continued to execute on its plan comprised of i) non-core asset sales, ii)
development of existing  greenfield projects  and iii)  concentration on  core 
Latin American power  generation business.  Sales of the  3 largest  non-core 
assets, Huatong,  GTB/TBG and  Trakya, were  all signed  during the  quarter. 
Gross proceeds of over $500 million are expected to be received as these sales
close in early Q3, and will be subject to certain escrows and applicable  fees 
and taxes. Net proceeds  will be used to  fund existing Greenfield  projects, 
with any  excess  to  be distributed  to  shareholders.  Greenfield  projects 
continue to progress, although the Jaguar project in Guatemala is experiencing
delays as the EPC contractor is  experiencing delays in getting visas for  its 
workers to enter Guatemala. AEI is  working with the EPC contractor and  with 
visa authorities  to  remediate.  Performing assets  performed  above  budget 
through April; however,  scheduled maintenance at  San Felipe uncovered  major 
maintenance items that were not anticipated. EBITDA impact of the San  Felipe 
maintenance is expected to be $6-8 million.

Multi Commodity Exchange of India (MCX)

MCX became the  3rd largest commodity  futures exchange globally  in terms  of 
contracts traded in CY11. MCX reported strong growth and performance in FY12,
revenue increased by 41%; transaction revenue  grew by 45%, net profit  growth 
of 71%  and EBITDA  margins expanded  to  70% (60%  in FY11).  Mr  Shreekant 
Javalgekar took charge as the MD & CEO on the completion of the tenure of  Mr 
Lamon Rutten,  who  will continue  on  the board  of  MCX as  a  Non-Executive 
Director. Prior to his appointment, Mr Javalgekar was the Director -  Finance 
& Investor  Relations at  Financial Technologies,  the promoter  and  largest 
shareholder of MCX.


All the main construction projects (Balescin Resort, Makati Place  Residential 
and City Club  and the Alphaland  Tower) continue to  come in at  or ahead  of 
budget and  time.  Sales and  marketing  efforts  for all  the  projects  are 
underway with good progress to  date and we expect  them to accelerate as  the 
projects are finished and newly hired sales staff become productive.


Ashmore Investment Management Limited

Robert Hegt

Tel: +44 (0) 203 077 6147

Northern Trust International Fund Administration Services (Guernsey) Limited

Andrew Maiden

Tel: +44 (0) 1481 745 368

                     This information is provided by RNS
           The company news service from the London Stock Exchange


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