Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Ashmore trust faces near 12% loss after biggest holding implodes

Ashmore trust faces near 12% loss after biggest holding implodes

The £205 million Ashmore Global Opportunities trust has warned that its shareholders should expect a ‘material reduction’ in its net asset value after the value of its largest holding imploded.

‘This decline is predominantly due to a reduction of approximately 90% in the value of the company’s holding in Odebrecht Agroindustrial,’ Ashmore’s board told investors.

The business, a Brazilian producer of ethanol from sugar cane, represents 13% of the fund’s worth and a loss of that magnitude would equate to a write-down of 11.7% of fund assets.

As recently as October Ashmore claimed that the company was ‘on track to double Ebitda from last year’s levels’.

Ashmore added at the time: ‘Frost in Brazil has affected the harvest somewhat but the company should still produce over 23 million tonnes of sugarcane, compared to 19 million tonnes last year. 'Cap-ex for re-planting and for expansion of agricultural land remains considerable and debt has continued to rise as a result.’

The Ashmore Global Opportunities trust is in the process of being wound down, but it invests in other Ashmore products that also have exposure to Odebrecht Agroindustrial.

Over the past five years the Ashmore Global Opportunities fund has lost 28% while its average peer in the Global Emerging Markets sector has returned 121%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Volatility is back, Europe's future & Ethical's key moment

Volatility is back, Europe's future & Ethical's key moment

This week’s episode of Investment Pulse takes a look at European prospects, FTSE volatility and whether public pressure is about to provide a push for ethical investment

Play Volatility spike: How ETFs can soften the blow

Volatility spike: How ETFs can soften the blow

ETFGI’s Deborah Fuhr discusses the role of ETFs in client portfolios during volatile market conditions

Play Winter market warmers, the post QE world and timing the Fed

Winter market warmers, the post QE world and timing the Fed

This week’s episode of Investment Pulse looks at the winding down of quantitative easing, whether to try and time a US Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Wealth Manager on Twitter