Ashmore Group plc

5 September 2024

Results for the year ended 30 June 2024 

Ashmore Group plc (Ashmore, the Group), the specialist Emerging Markets asset manager, today announces its audited results for the year ended 30 June 2024. 

 

-	Increasingly diversified business underpins financial performance
	-	Assets under management (AuM) of US$49.3 billion1. Positive investment performance of US$2.1 billion. Lower redemptions drive reduction in net outflows to US$8.5 billion.
	-	Adjusted net revenue of £187.8 million, 4% lower YoY reflecting higher performance fees offset by 10% lower average AuM.
		•	Net management fees of £160.4 million, 12% lower YoY.
		•	Performance fees of £22.7 million, significantly higher than prior year (£5.1 million).
	-	Adjusted operating costs increased by 22% YoY.
		•	Higher variable remuneration driven by performance fees, realised seed capital gains2 and interest income (31.0% of EBVCT).
	-	Adjusted EBITDA of £77.9 million, 27% lower YoY, and adjusted EBITDA margin of 41%.
	-	Profit before tax increased 15% to £128.1 million, reflecting higher contribution from seed capital investments (£21.7 million gain) and interest income (£24.9 million), and £5.2 million realised gain on disposal of investments.
	-	Diluted EPS of 13.6 pence, 12% higher than in the prior year. Adjusted diluted EPS declined by 17% to 10.5 pence.
	-	Strong and liquid balance sheet with approximately £700 million of capital resources including £500 million of cash and deposits.
	-	Final ordinary dividend maintained at 12.1 pence per share, to give total dividends per share of 16.9 pence.
-	Active management delivering medium-term investment outperformance
	-	Continued positive Emerging Markets index returns of +1% to +13% over the 12 months.
	-	Approximately 60% of AuM outperforming benchmarks over three and five years.
	-	Ashmore is well-positioned to capitalise on further Emerging Markets performance.
-	Ashmore continues to diversify in line with its strategic growth objectives
	-	Equities AuM increased 8% over the year and demand for IG strategies continues.
	-	Local asset management platforms continue to grow; AuM +7% YoY to US$7.5 billion.
	-	EM-domiciled clients represent 37% of Group AuM, an increase from 33% a year ago.
-	Positive outlook, Emerging Markets' resilience and superior growth should drive capital flows
	-	Emerging Markets have been resilient to external shocks.
		•	Effective monetary and fiscal policies.
		•	Consequently delivering superior economic growth.
	-	Strong asset class performance.
		•	Robust fundamentals and valuations present an opportunity.
		•	Underweight investors need to increase allocations to capture future performance.

Commenting on the Group's results, Mark Coombs, Chief Executive Officer, Ashmore Group said: 

"Ashmore's diversified business model delivered strong profit growth this year notwithstanding the impact of lower AuM levels. The Emerging Markets continue to perform well; for capital flows to respond more powerfully to this positive backdrop requires near-term uncertainties to be resolved in some investors' minds. Some of these factors, such as the phasing of the next Fed rate cycle and the outcome of the US election, will become clear over the coming months. Therefore, as pent-up demand is unlocked, the pick up in investor interest in the Emerging Markets should gather momentum through the second half of 2024 and into 2025. Ashmore is delivering investment outperformance for clients and has a highly-scalable operating platform, which means it is well-positioned to benefit from capital flows to Emerging Markets as investor risk appetite increases."

1.	As reported on 12 July 2024, adjusted for US$0.2 billion AuM business disposal.
2.	Life-to-date basis.

 

Analysts briefing 

There will be a presentation for sell-side analysts at 9.00am on 5 September 2024 at UBS, 5 Broadgate, London, EC2M 2QS. A copy of the presentation will be made available on the Group's website at ir.ashmoregroup.com. 

Contacts 

For further information please contact: 

Ashmore Group plc
Tom Shippey, Group Finance Director	+44 (0)20 3077 6191
Paul Measday, Investor Relations	+44 (0)20 3077 6278

 

FTI Consulting
Neil Doyle	+44 (0)7771 978 220
Kit Dunford	+44 (0)7717 417 038

CEO review

Emerging Markets are delivering positive investment returns, supported by resilient economic fundamentals, and Ashmore is delivering outperformance for clients across a broad range of strategies. This favourable backdrop means the Group is well-positioned to benefit from higher capital flows to Emerging Markets as investor risk appetite increases.

Emerging Markets assets have generally performed well over the past year, supported by attractive valuations, ongoing reforms in many countries, positive credit rating changes and the delivery of superior economic growth. As described in the Market review, fixed income indices have outperformed their developed world counterparts, and while equity returns are positive, they were held back by weaker performance in China.

Notwithstanding the returns delivered by Emerging Markets in the period, extending the recovery from significantly oversold levels that began in late 2022, there has not yet been a meaningful shift in investor allocations to deliver net inflows to the asset classes. This is in contrast to previous cycles when a prolonged period of strong asset class performance, and outperformance, has delivered capital flows. The cautious approach by some investors reflects a combination of a rapid shift from a lengthy period of low interest rates to more normal levels in response to higher inflation, ongoing geopolitical issues, and uncertainty with respect to major elections, notably in the US. Greater clarity around these factors will increase risk appetite and the Emerging Markets should be beneficiaries of the resultant capital flows.

Ashmore's investment processes have delivered outperformance for clients across a broad range of investment themes. Approximately 60% of AuM is outperforming over three and five years, which includes the challenging market conditions of late 2021 and early 2022, and the delivery of future performance is supported by the resilient underlying economic conditions in emerging countries, together with the attractive valuations and inherent upside reflected in portfolios. The reduction in outperformance over one year to 40% is attributable to modest underperformance in a number of local currency mandates.

A lower level of redemptions means that the Group's net flows improved compared with the prior year, albeit they remain negative in line with the industry. Encouragingly, there is increasing evidence of sales momentum building with client interest in a range of investment strategies, although as noted above the conversion to actual flows is likely to require continued improvement in the global macro environment.

From a reported financial perspective, Ashmore has performed satisfactorily this year as reflected in the 15% increase in profit before tax to £128 million and a 12% rise in diluted EPS to 13.6 pence per share. However, from an operating perspective, the performance is influenced by the 10% lower level of average AuM and higher total operating costs. The main contributor to the increase in total operating costs is a higher VC charge at this point in the cycle, reflecting the delivery of a meaningful increase in performance fees and strong balance sheet returns. The resulting adjusted diluted EPS of 10.5 pence per share is 17% lower than in the prior year. The Board has recommended an unchanged final ordinary dividend per share.

Further progress against long-term strategic objectives

Phase 1

The Emerging Markets allocation opportunity is substantial, as superior economic growth leads to greater representation in world capital markets and investors have to reconsider underweight positions. While risk aversion has continued for longer than in previous cycles, the outlook for capital flows is supported by a combination of continued performance by Emerging Markets, heavily underweight allocations, and a moderation of some of the macro factors that have reduced risk appetite. Ashmore is well-positioned to benefit from an increase in capital flows over the medium term.

Phase 2

The Group's investment in its equities franchise, through both global and local operations, has provided meaningful diversification benefits over the current market cycle. Equities AuM increased by US$0.5 billion over the year and represents 13% of Group AuM compared with 11% a year ago. The scale of the equities opportunity for Ashmore is significant.

Another consistent diversification theme is the demand for IG strategies, notably from investors in Europe and Asia. Ashmore's investment performance is strong across external debt, corporate debt and blended debt IG strategies, which supports further growth in this increasingly important asset class.

Phase 3

The performance of local markets, and the behaviour of investors within them, continues to deliver growth in local AuM. Ashmore's local asset management platforms increased AuM by US$0.5 billion over the 12 months to US$7.5 billion. There was notably strong growth in Colombia, India and Saudi Arabia, while the Indonesia asset management industry continues to work through regulatory changes. Overall, clients domiciled in the Emerging Markets represent 37% of Group AuM, an increase from 33% a year ago.

Notably, Ashmore launched a single-country equity fund investing in Qatar and is in the process of establishing additional on the ground capabilities. Ashmore India launched two domestically-focused equity funds to capitalise on the exciting opportunities offered by this large and rapidly growing economy.

 

Established business model is appropriate for the whole market cycle

Ashmore's distinctive business model underpins its ability to deliver long-term outperformance for clients and to create value for shareholders over market cycles.

-	Investment performance is delivered by more than 100 investment professionals, with a 'no star' culture sustained by teams operating within IC structures.
-	The remuneration philosophy has a significant bias to long-dated equity awards, which provides a strong alignment of interests between employees and shareholders, maintains a team-based culture, and delivers low employee turnover.
-	Non-VC operating costs remain well-controlled notwithstanding recent inflation pressures. The Group therefore delivers a level of profitability over the market cycle that is relatively high compared with its peer group. For example, the Group has delivered a 41% adjusted EBITDA margin even after a meaningful downcycle that has seen AuM fall 50% from US$98 billion to US$49 billion.
-	Ashmore's operational architecture is scalable and has significant capacity to support the expansion of the Group's profit margin with higher AuM levels.
-	The balance sheet remains well-capitalised and liquid, with approximately £700 million of financial resources including more than £500 million of cash and deposits.

 

The business model is designed to operate effectively over the market cycle, and therefore these characteristics will continue to support the delivery of performance for clients and returns to shareholders as Ashmore executes its long-term growth strategy.

Regulation

The broad extent of the Group's office network, from Colombia to Tokyo, means it is accountable to numerous regulators and Ashmore's business model has adapted well to the significant changes in the regulatory landscape experienced around the world in recent years. The regulatory requirements of the asset management industry continue to increase, and Ashmore's business model will continue to adapt to meet these changing regulations.

Employees

While the past year saw the world continue to return to normal in terms of monetary policies and working practices, it also faced continued uncertainty in respect of geopolitical risks and the potential impact of new technologies on many industries including financial services. I would like to thank all my colleagues across Ashmore's offices around the world for their commitment, professionalism and adherence to high standards of conduct that underpin the Group's delivery of performance for its clients and the creation of long-term value for shareholders.

Outlook

Emerging Markets are delivering positive investment returns and continue to have attractive valuations, both in their own right and compared with Developed Markets. This is supported by a resilient economic performance in recent years, and an expectation of further superior growth as the emerging countries continue on a long-term convergence path with the developed world.

Investors that have moderated their risk appetite and reduced allocations to Emerging Markets have missed out on significant asset class returns over the past 12 to 18 months. However, at current valuations, with substantially higher yields available in Emerging Markets than in the developed world, and equities markets offering improving growth on low earnings multiples, there remains an attractive opportunity to capture meaningful outperformance over the coming years.

For capital flows to respond more powerfully to this positive backdrop requires near-term uncertainties to be resolved in some investors' minds. While it is difficult to predict the outcome of some of the geopolitical issues, factors such as the phasing of the next Fed rate cycle and the outcome of the US election will become clear over the coming months. Therefore, as this pent-up demand is unlocked, the pick up in investor interest in the Emerging Markets asset classes should gather momentum through the second half of 2024 and into 2025. Ashmore is delivering investment outperformance for clients and has a highly-scalable operating platform, which means it is well-positioned to benefit from capital flows to Emerging Markets as investor risk appetite increases.

 

Mark Coombs

Chief Executive Officer

4 September 2024

 

Market review

Emerging Markets performed well over the past 12 months, delivering positive returns that reflect the resilience and growth of the underlying economies. Fixed income asset classes outperformed developed world equivalents, and equities delivered strong returns even with the headwinds in China.

External debt

Over the 12 months to 30 June 2024, the EMBI GD delivered a return of +9% and therefore comfortably outperformed world bonds with the Bloomberg Global Aggregate index rising by +1% over the period. The principal driver of the EMBI GD performance was tighter spreads, which reduced from 430bps to 385bps over US Treasuries. The HY sub-index performed particularly well with a return of +16% compared with +3% for the IG sub-index.

The external debt market comprises US$1.7 trillion of bonds, of which three-quarters are in the EMBI GD. The index is highly diversified across 67 countries and with 50% of the bonds rated IG. The index yields 8.4% and provides myriad attractive investment opportunities, particularly in the context of lower global interest rates and the potential for further spread compression back towards the 300bps to 350bps range experienced in the past.

Local currency

The GBI-EM GD returned +1% over the past year, with good performance in rates markets and positive carry held back by the impact of a stronger US dollar for much of the period.

It is notable that most of the issuance by Emerging Markets countries is in their domestic currencies rather than US dollars or other hard currencies. For example, the total sovereign issuance in local currency is US$19.7 trillion, more than 10 times the size of the sovereign external debt market, and provides structural resilience to those countries. However, the index representation is lower, with only 21% of bonds in the benchmark index due to strict eligibility criteria including minimum issue size and factors such as the existence of investment quotas or other forms of capital control.

The asset class continues to benefit from the quality and effectiveness of policymaking, with many central banks acting early and aggressively to counter inflationary pressures in recent years, and who are now in a position to ease monetary policy as inflation falls back towards more normal levels. The still high level of real yields provides attractive income and support for currencies, as well as the scope for a prolonged period of policy easing. Furthermore, the possibility of a weaker US dollar over the medium term could enhance investor returns in this asset class.

Corporate debt

The CEMBI BD performed well, increasing +9% over the year and delivering similar returns to the sovereign asset class and US HY bonds (JP Morgan High Yield Bond Index +11%). Also echoing the sovereign market performance, HY bonds outperformed IG with returns of +13% and +6%, respectively.

The 12-month default rate at the end of the period was 5.9%, which is higher than the US and Europe default rates (2.1% and 2.5%, respectively), principally due to a higher level of defaults in Asia. In emerging Europe and Latin America, default rates of 2.6% and 1.6%, respectively, are in line with or lower than the developed world levels.

Similar to sovereign markets, corporate issuance is primarily in local currencies (US$17.3 trillion) rather than hard currencies (US$2.9 trillion). Approximately one third of the bonds in issue are in the CEMBI BD benchmark, which comprises 724 issuers in 59 countries and of which 59% are IG rated. Corporate debt is therefore a highly diverse asset class that is underpinned by relatively low net leverage, higher spreads than US issuers with equivalent credit ratings, and attractive yields in both HY and IG markets.

Equities

The MSCI EM returned +13% over the 12 months, with the performance held back somewhat by lower returns in China as the authorities seek to reform the economy and stimulate growth (MSCI EM ex China +18% over the period). Frontier markets performed well with a 12-month return of +13%.

Emerging Markets equities trade at a meaningful discount to developed world equities, reflecting in part the performance and valuation of the US stock market, and illustrated by the MSCI EM trading on a forward PER of 12.3x, which is a 34% discount to the MSCI World on 18.6x. This valuation discount is unwarranted given the sound economic backdrop across emerging countries and the potential for an inflection in earnings given rising GDP and companies participating in trends such as the demand for technology.

Therefore, investors with underweight allocations risk missing outperformance as equity valuations benefit from a weaker US dollar and the historical correlation between relative equity market performance and the GDP growth premium of Emerging Markets compared with Developed Markets.

Outlook

Many emerging countries have proven resilient to external shocks over the past few years, as a consequence of pursuing orthodox and effective fiscal and monetary policies. This has delivered a favourable economic backdrop that includes higher GDP growth than in developed countries, falling inflation and relatively high real interest rates, particularly in the less-indebted countries, providing scope for further rate cuts by Emerging Markets central banks. Importantly, this resilient and stable performance is being recognised through positive credit rating changes, and underpins the positive outlook for each of the main Emerging Markets asset classes.

Notably, large emerging countries such as India and Saudi Arabia are delivering strong economic and capital markets performance, and the outlook for China is improving as government stimulus and reforms will address some of the challenges of the past few years.

In the near term, the outcome of the US election is important for global capital markets, but whichever candidate or party wins, the current state of the US economy, with its twin deficits and high indebtedness, provides very little room for manoeuvre. When combined with the likelihood of lower Fed interest rates over the medium term, and intervention by other central banks, the outlook is for further weakness in the US dollar over the medium term from its recent peak.

Regrettably, geopolitical risk, including war, remains an issue in certain parts of the world. Rather than following the knee-jerk reaction to sell risk assets, investors can mitigate the impact of such events through diversification and allocations to 'neutral' countries, many of which are in the emerging world rather than the developed world.

In summary, as there becomes greater certainty over the timing and pace of monetary policy easing by developed countries, with no significant escalation in geopolitical events, and continued delivery of superior economic performance by emerging economies, investors' risk appetite should increase and lead to higher allocations to Emerging Markets. Current valuations across the Emerging Markets asset classes, including yields that are towards the upper end of the range seen over the past decade, support this argument and underpin an expectation of outperformance over the next cycle.

 

Business review

Reported PBT increased by 15%, with increased performance fees, higher interest income and seed capital returns compensating for the effect of lower average AuM. Ashmore's balance sheet remains robust with approximately £700 million of capital resources including more than £500 million of cash and deposits.

		Reconciling items:
£m	FY2024 Reported	Seed capital (gains)/losses	FX translation (gains)/losses	FY2024 Adjusted	FY2023 Adjusted
Net management fees	160.4	-	-	160.4	183.2
Performance fees	22.7	-	-	22.7	5.1
Other revenue	3.7	-	-	3.7	2.7
Foreign exchange	2.5	-	(1.5)	1.0	4.4
Net revenue	189.3	-	(1.5)	187.8	195.4
Net losses on investment securities	(17.2)	17.2	-	-	-
Personnel expenses	(85.1)	-	0.5	(84.6)	(65.9)
Other expenses excluding depreciation and amortisation	(26.7)	1.4	-	(25.3)	(23.3)
EBITDA	60.3	18.6	(1.0)	77.9	106.2
EBITDA margin	32%	-	-	41%	54%
Depreciation and amortisation	(3.1)	-	-	(3.1)	(3.2)
Operating profit	57.2	18.6	(1.0)	74.8	103.0
Finance income	65.2	(40.3)	-	24.9	15.9
Realised gains on disposal of investments	5.2	-	-	5.2	-
Share of profit from associates	0.5	-	-	0.5	0.5
Profit before tax	128.1	(21.7)	(1.0)	105.4	119.4
Diluted EPS (p)	13.6	(3.0)	(0.1)	10.5	12.7

Assets under management

AuM declined by US$6.6 billion over the year to US$49.3 billion, driven by net outflows of US$8.5 billion, partially offset by positive investment performance of US$2.1 billion. The average AuM level was 10% lower than in the prior year at US$52.4 billion (FY2023: US$58.2 billion).

Gross subscriptions of US$7.2 billion represent 13% of opening AuM, in line with the prior year and at a relatively subdued level given continued risk aversion by some investors (FY2023: US$7.2 billion, 11% of opening AuM). Subscriptions were strongest in the local currency and equities investment themes, with the latter seeing new mandate wins notably from the Middle East and Asia.

Gross redemptions of US$15.7 billion, or 28% of opening AuM (FY2023: US$18.7 billion, 29% of opening AuM) continue to reflect institutional decisions to reduce Emerging Markets allocations given ongoing macroeconomic uncertainty and geopolitical tension. This was particularly evident in the fixed income investment themes, notwithstanding good market performance and delivery of medium-term outperformance by Ashmore's investment processes. There was a return of capital from the alternatives theme following the successful realisation of private equity investments.

As a consequence of lower redemptions, the total net outflow for the period of US$8.5 billion is 26% lower than in the prior year (FY2023: US$11.5 billion).

Ashmore delivered US$2.1 billion of positive investment performance over the 12 months, broadly spread across the liquid investment themes with the exception of local currency where a stronger US dollar led to flat performance overall.

Total AuM in the Group's local offices increased by 7% to US$7.5 billion (30 June 2023: US$7.0 billion) and therefore continued to demonstrate the diversification benefit of the Group's strategy.

There was notable AuM growth in Colombia with capital raised into a third private equity fund; in India due to continued strong equity market returns and fund launches; and in Saudi Arabia as a consequence of market performance and net fund flows including new mandates. AuM in Indonesia declined due to profit taking in the equity market and a subdued flow environment as the economy faced some headwinds from lower levels of Chinese growth.

AuM movements by investment theme

The AuM development by theme is shown in the table below. The 'other' column includes reclassification of funds between external debt, corporate debt and blended debt following changes to investment guidelines and benchmarks; and the 'other' movement in alternatives is due to the sale of the Group's Colombian real estate business. The local currency investment theme includes US$7.6 billion of overlay/liquidity funds (30 June 2023: US$6.3 billion).

 

Investment theme	AuM 30 June 2023 US$bn	Gross subscriptions US$bn	Gross redemptions US$bn	Net flows US$bn	Performance US$bn	Other US$bn	AuM 30 June 2024 US$bn
External debt	11.0	0.7	(2.8)	(2.1)	0.7	(2.4)	7.2
Local currency	18.8	3.3	(4.4)	(1.1)	-	-	17.7
Corporate debt	6.5	0.1	(1.7)	(1.6)	0.2	(0.4)	4.7
Blended debt	11.9	0.8	(4.6)	(3.8)	0.8	2.8	11.7
Fixed income	48.2	4.9	(13.5)	(8.6)	1.7	-	41.3
Equities	6.2	2.1	(2.1)	-	0.5	-	6.7
Alternatives	1.5	0.2	(0.1)	0.1	(0.1)	(0.2)	1.3
Total	55.9	7.2	(15.7)	(8.5)	2.1	(0.2)	49.3

The geographic split of the Group's AuM remains diverse and consistent with recent periods: 38% of AuM is invested in Latin America, 25% in Asia Pacific, 15% in Eastern Europe and 22% in the Middle East and Africa.

Clients

Ashmore's clients are predominantly a diversified set of institutions, representing 96% of AuM (30 June 2023: 96%), with the remainder sourced through intermediary retail channels. Segregated accounts represent 82% of AuM (30 June 2023: 81%).

The mix of clients is broadly stable compared with the prior year, with an increase in AuM from government-related institutions (central banks, sovereign wealth funds and other government entities) from 42% to 46%, offset by a decline in assets managed for pension funds from 23% to 19%. Geographically, the largest change was an increase in AuM from clients domiciled in the Middle East and Africa, from 19% to 23%, compared with a modest reduction in each of the other regions.

Ashmore's principal mutual fund platforms are in Europe and the US, which in total represent AuM of US$4.0 billion in 45 funds. The European SICAV range comprises 33 funds with AuM of US$3.5 billion (30 June 2023: US$4.8 billion in 31 funds) and the US 40 Act range has 12 funds with AuM of US$0.5 billion (30 June 2023: US$0.9 billion in 12 funds).

Investment performance

As of 30 June 2024, 40% of AuM is outperforming over one year, 59% over three years and 62% over five years (30 June 2023: 67%, 69% and 49%, respectively).

The proportion of AuM outperforming over one year has reduced. This is principally due to underperformance in some local currency funds, without which the proportion of AuM outperforming over the 12 months would be similar to the three and five-year levels. While there is some underperformance in HY corporate debt strategies, this reflects assets with potentially high recovery values.

Over the medium to longer term, Ashmore is delivering outperformance in external debt, local currency bonds, blended debt and a range of equity strategies, together with IG strategies across the fixed income themes.

Revenues

Net revenue was 4% lower than in the prior year as a consequence of the impact of lower average AuM on net management fees, mostly offset by higher performance fees.  On an adjusted basis, excluding FX translation effects, net revenue also fell by 4% to £187.8 million.

Net revenue

	FY2024 £m	FY2023 £m
Net management fees	160.4	183.2
Performance fees	22.7	5.1
Other revenue	3.7	2.7
FX: hedges	1.0	4.4
Adjusted net revenue	187.8	195.4
FX: balance sheet translation	1.5	1.0
Net revenue	189.3	196.4

Net management fee income of £160.4 million fell by 12% as a consequence of 10% lower average AuM and the headwind from a higher average GBP:US$ rate. At constant FY2023 exchange rates, net management fee income reduced by 9%.

The net management fee margin increased slightly to 39 basis points (FY2023: 38 basis points), due to the recognition of one-off fees related to capital raising by Ashmore Colombia. There was an overall positive impact from investment theme mix and large mandate flows, offset by competition and other mix effects.

Performance fees of £22.7 million (FY2023: £5.1 million) were earned in the year, and delivered by a range of funds in the local currency, corporate debt and equities investment themes, together with a notable contribution from the alternatives theme following successful asset realisations. Approximately US$11 billion of the Group's AuM, or 23% of the total, is eligible to earn performance fees as of 30 June 2024. The Group continues to expect its diverse sources of net management fee income to generate the majority of its net revenues.

Translation of the Group's non-Sterling assets and liabilities, excluding seed capital, resulted in an unrealised FX gain of £1.5 million (FY2023: £1.0 million gain).

The Group's effective hedging programme and the active management of FX exposures during the period meant that realised and unrealised hedging gains of £1.0 million were delivered (FY2023: £4.4 million gain). Therefore, the Group recognised a total FX gain of £2.5 million in revenues (FY2023: £5.4 million gain).

Other revenue of £3.7 million was broadly comparable to the prior year (FY2023: £2.7 million).

 

The table below summarises the net management fee income, performance fee income and net management fee margin by investment theme.

	Net management fees		Performance fees		Net management fee margin
Investment theme	FY2024 £m	FY2023 £m	FY2024 £m	FY2023 £m	FY2024 bps	FY2023 bps
External debt	18.8	32.5	-	-	33	31
Local currency	40.6	43.0	7.4	3.3	29	28
Corporate debt	13.5	16.2	-	-	33	30
Blended debt	40.9	46.8	0.1	1.1	37	44
Fixed income	113.8	138.5	7.5	4.4	33	33
Equities	27.8	29.5	0.8	-	55	58
Alternatives	18.8	15.2	14.4	0.7	162	144
Total	160.4	183.2	22.7	5.1	39	38

Operating costs

Total operating costs of £114.9 million (FY2023: £94.0 million) include £1.4 million of expenses incurred by seeded funds that are required to be consolidated (FY2023: £1.3 million), as disclosed in note 20. On an adjusted basis, taking into account the impact of seed capital and the proportion of the accrual for variable compensation that relates to FX translation gains, operating costs increased by 22% compared with the prior year. Adjusted operating costs increased by 24% at constant FY2023 exchange rates.

	FY2024 £m	FY2023 £m
Staff costs	(32.2)	(31.4)
Other operating costs	(25.3)	(23.3)
Depreciation and amortisation	(3.1)	(3.2)
Operating costs before VC	(60.6)	(57.9)
Variable compensation (VC)	(52.9)	(34.8)
VC accrual on FX gains/losses	0.5	0.3
Adjusted operating costs	(113.0)	(92.4)
Consolidated funds costs	(1.4)	(1.3)
Add back VC on FX gains/losses	(0.5)	(0.3)
Total operating costs	(114.9)	(94.0)

Staff costs increased by 3% to £32.2 million due to the full period impact of wage inflation in certain locations, while the average headcount fell by 1%. Other operating costs increased by 9% to £25.3 million due to a higher level of professional fees incurred in the current year.

Ashmore accrued charitable donations of £0.6 million (FY2023: £0.5 million), equivalent to 0.5% of profit before tax.

Variable compensation has been accrued at 31.0% of EBVCT (as defined in the APMs section) resulting in a charge of £52.9 million. The charge is higher than in the prior year (FY2023: £34.8 million) to reflect the delivery of investment outperformance for clients, a meaningful level of performance fees, the successful realisation of seed capital gains and higher levels of interest income earned on the Group's cash and deposits.

The combined depreciation and amortisation charges for the period of £3.1 million were similar to the prior year.

Adjusted EBITDA

The impact of the lower revenue base and higher operating costs means that adjusted EBITDA was 27% lower at £77.9 million (FY2023: £106.2 million), resulting in a margin of 41% for the year (FY2023: 54%). At constant FY2023 exchange rates, adjusted EBITDA declined by 21%.

Finance income

Net finance income of £70.4 million (FY2023: £33.9 million) includes gains relating to seed capital investments, which are described in more detail below, and £5.2 million realised gains on the disposal of the Group's Colombian real estate business and the partial disposal of a minority interest in an Indonesian financial services company.

Excluding these items, net interest income for the period of £24.9 million increased compared with the prior year (FY2023: £15.9 million) due to the benefit of higher market interest rates on the Group's cash and deposits.

Seed capital

The following table summarises the principal IFRS items in the accounts to assist in understanding the financial impact of the Group's seed capital programme on profits. The seed capital investments generated total realised and unrealised gains of £21.7 million in the year (FY2023: £8.3 million loss). This comprises a £4.7 million loss in respect of consolidated funds (FY2023: £15.3 million loss) and a £26.4 million mark-to-market gain in respect of unconsolidated funds (FY2023: £7.0 million gain).

 

Impact of seed capital investments on profits

		FY2024 £m	FY2023 £m
Consolidated funds (note 20):
Net losses on investment securities		(17.2)	(25.0)
Operating costs		(1.4)	(1.3)
Investment income		13.9	11.0
Sub-total: consolidated funds		(4.7)	(15.3)
Unconsolidated funds (note 8):
Market return		23.5	5.7
FX		2.9	1.3
Sub-total: unconsolidated funds		26.4	7.0
Total seed capital gains/(losses)		21.7	(8.3)
-	realised	11.3	2.4
-	unrealised	10.4	(10.7)

Profit before tax

Statutory profit before tax was 15% higher at £128.1 million (FY2023: £111.8 million), reflecting lower operating profit more than offset by higher interest income, gains on seed capital investments and gains on disposal of investments.

Taxation

The effective tax rate of 23.3% (FY2023: 22.6%) reflects the geographic mix of the Group's profits in the period, the valuation of deferred tax assets relating to share-based remuneration and the impact of seed capital gains and losses. The effective tax rate is higher compared with the prior year primarily due to a greater proportion of profits generated in jurisdictions with higher tax rates, such as Colombia and the UK. Note 12 to the financial statements provides a reconciliation of the tax charge to the UK corporation tax rate of 25.0%.

The Group's current effective tax rate, based on its geographic mix of profits and prevailing tax rates, is approximately 21% to 22%.

Earnings per share

Basic EPS for the period increased by 12% to 13.9 pence (FY2023: 12.4 pence) and diluted EPS also rose by 12% from 12.2 pence to 13.6 pence.

On an adjusted basis, excluding the effects of FX translation, seed capital-related items and relevant tax, diluted EPS was 17% lower at 10.5 pence (FY2023: 12.7 pence).

Balance sheet

Ashmore's consistent approach is to maintain a strong and liquid balance sheet over market cycles, supporting the commercial demands of current and prospective investors, enabling investment in strategic development opportunities and supporting the Group's dividend policy.

As of 30 June 2024, total equity attributable to shareholders of the parent was £882.6 million (30 June 2023: £898.8 million). The Group has no debt.

The level of capital required to support the Group's activities, including its regulatory requirements, is £97.0 million. As of 30 June 2024, the Group had total capital resources of £696.2 million, equivalent to 98 pence per share, and therefore representing an excess of £599.2 million over the Board's level of required capital.

Cash

Ashmore has maintained a strong cash position with more than £500 million of cash and deposits as of 30 June 2024. Excluding cash held in consolidated funds, the Group's cash and deposits increased by £37.4 million to £505.7 million (30 June 2023: £468.3 million), reflecting post-tax operating cash flows, the proceeds from the effective recycling of seed capital investments and interest income, offset by dividends paid to shareholders. The proportion of cash held in US dollars increased as US dollar revenues earned were not sold for Sterling as the GBP:US$ rate strengthened over the period.

Cash and deposits by currency

	30 June 2024 £m	30 June 2023 £m
Sterling	241.8	374.0
US dollar	229.8	71.1
Other	40.2	33.5
Total	511.8	478.6

The Group's business model delivers a high conversion rate of operating profits to cash. Based on operating profit of £57.2 million for the period (FY2023: £77.4 million), the Group generated £112.5 million of cash from operations (FY2023: £111.6 million). The operating cash flows after excluding consolidated funds represent 146% of adjusted EBITDA (FY2023: 105%).

Seed capital investments

Ashmore invests seed capital in its funds to achieve a number of commercial objectives, including to provide initial scale, to support the development of an investment track record, and to enhance a fund's position with intermediary distributors.

The programme has delivered growth in third-party AuM with approximately US$5 billion of current AuM in funds that have been seeded, representing 10% of total Group AuM.

The diversified mix of seed capital investments means that the underlying fund portfolios, some of which are consolidated under IFRS 10, have exposure to a range of Emerging Markets asset classes, including sovereign and corporate fixed income, listed equities and private equity, and a wide array of industries including basic materials, education, energy, financials, healthcare, media, industrials, infrastructure, real estate, transport and utilities.

During the year, the Group made new investments of £13.7 million and realised £68.9 million from previous investments. The unrealised mark-to-market gain on the portfolio was £21.3 million, consistent with the strong returns described in the Market review. Overall, therefore, the market value of the Group's seed capital investments reduced to £257.6 million (30 June 2023: £291.5 million).

Subscriptions in the period were focused on developing new funds in the alternatives, local currency and equities themes, including facilitating access to strategies managed by the Group's local offices.

Seed capital recycling in the period was achieved through successful asset realisations in the alternatives theme and the subsequent return of capital to investors, and from globally and locally managed funds in the equities investment theme.

The Group realised a gain of £11.3 million in the period, and the life-to-date realised gain on the redeemed investments was £16.1 million. This demonstrates the effective use of the Group's balance sheet in supporting strategic development and delivering meaningful realised profits to shareholders.

Seed capital market value by currency

	30 June 2024 £m	30 June 2023 £m
US dollar	213.9	240.1
Colombian peso	23.6	19.7
Other	20.1	31.7
Total market value	257.6	291.5

In addition, Ashmore has made seed capital commitments to funds of £7.2 million that were undrawn at the period end, giving a total value for the Group's seed capital programme of approximately £265 million.

Shares held by the EBT

The EBT purchased £13.8 million of ordinary shares during the period in anticipation of the vesting of employee share awards. Consequently, as of 30 June 2024, the EBT owned 49,481,410 ordinary shares (30 June 2023: 50,834,683 ordinary shares), representing 6.9% of the Group's issued share capital (30 June 2023: 7.1%).

Foreign exchange

The majority of the Group's fee income is received in US dollars and it is the Group's policy to hedge up to two-thirds of the notional value of budgeted foreign currency-denominated net management fees. Foreign currency assets and liabilities, including cash, are marked to market at the period end exchange rate with movements reported in either revenues or other comprehensive income (OCI).

Movements in the GBP:US$ and other exchange rates over the period reduced net management fees by 3%, reduced operating costs by 1%, and resulted in a translation gain in net revenue of £1.5 million on the Group's foreign currency assets and liabilities and a £2.9 million mark-to-market gain on the Group's seed capital investments.

Included in OCI is an unrealised FX translation loss on non-Sterling assets and liabilities of £4.6 million (FY2023: £26.2 million loss), which primarily comprises FX translation movements on cash, seed capital and the Group's subsidiaries.

Dividend

The Board's policy is to pay a progressive ordinary dividend over time, taking into consideration factors such as the financial performance over the period, the Group's strong financial position, cash generation and the near-term outlook.

Therefore, the Board has recommended a final dividend of 12.1 pence per share, which, if approved by shareholders, will be paid on 6 December 2024 to all shareholders on the register on 8 November 2024.

 

Tom Shippey

Group Finance Director

4 September 2024

 

Risk management

In accordance with the Code, the Board is ultimately responsible for the Group's risk management and internal control systems and for reviewing their effectiveness. Such systems and their review are designed to manage, rather than eliminate, the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.

Consideration of changes to the Code

The Board notes the changes to the Code issued by the FRC in January 2024, including the additional requirements relating to risk management and internal controls that will apply to the Group in FY2027.

Principal and emerging risks, controls and mitigants

The table below summarises those principal risks that the Group has assessed as being most significant currently, together with examples of associated controls and mitigants. Reputational and conduct risks are common to most aspects of Ashmore's strategy and business model.

Ashmore's internal control framework considers the assessment and management of emerging risks alongside its principal risks. Current examples of emerging risks considered by the process are:

-	the increased risk of recessions due to higher inflation volatility, higher fiscal deficits and the resulting monetary/fiscal policies;
-	an increase in geopolitical risks;
-	ESG risks including regulatory and industry focus on potential greenwashing, legal uncertainty and litigation risks arising from the industry's differing interpretation of ESG regulation, and the impact of ESG factors on investors' decisions to invest in Emerging Markets; and
-	uncertainty and risks regarding the use of artificial intelligence technologies in the work environment.

Principal risks and associated controls and mitigants

Description of principal risks		Examples of associated controls and mitigants
Strategic and business risks (Responsibility: Board of Directors)
Long-term downturn in Emerging Markets fundamentals/technicals/sentiment, and impact of broader industry changes (including ESG) on Ashmore's strategy and business model		-   Group strategy is reviewed and approved by a board with relevant industry experience -   Diversification of investment capabilities -   Ashmore has a strong balance sheet with no debt -   Governance bodies meet regularly -   The Nominations and Remuneration Committees review diversity data at least annually
Market capacity issues and increased competition constrain growth		-   Experienced Emerging Markets investment professionals with deep market knowledge -   Periodic investment theme capacity reviews -   Emerging Markets asset classes continue to grow, increasing the size of Ashmore's investable universe
Failure to understand and plan for the potential impact of investor sentiment, climate change and ESG regulations on product preferences and underlying asset prices (including effects of transition to a low-carbon economy)		-   ESG integration framework includes scoring and engagement strategy -   Head of Responsible Investment and ESG Policy provides updates to the Board -   ESGC considers and reports on the risks and opportunities relating to climate change
Client risks (Responsibility: Product Committee and RCC)
Inappropriate marketing or ESG strategy and/or ineffective management of existing and potential fund investors and distributors, including impact of net outflows and fee margin pressure		-   Regular Product Committee meetings review product suitability and appropriateness -   Experienced distribution team with appropriate geographic coverage -   Investor education to ensure understanding of Ashmore investment themes and products -   ESGC includes distribution team members
Inadequate client oversight including alignment of interests		-   Global distribution team appropriately structured for institutional and intermediary retail clients -   Monitoring of client-related issues including a formal complaint handling process -   Compliance and legal oversight to ensure clear and fair terms of business, disclosures and financial promotions

 

Description of principal risks		Examples of associated controls and mitigants
Treasury risks (Responsibility: CEO and GFD)
Inaccurate financial projections impact decision making including hedging of future cash flows and balance sheet investments		-   Defined risk appetite, and risk appetite measures updated quarterly -   Group FX and Liquidity Management Committee meets frequently and regularly
Investment risks (Responsibility: Group ICs)
Downturn in long-term performance		-   Consistent investment philosophy over more than 30 years and numerous market cycles, with dedicated Emerging Markets focus including country visits and network of local offices
Operational risks (Responsibility: Governance bodies)
Inadequate security of information including cyber security and data protection		-   Information security and data protection policies, subject to annual review including cyber security review -   Cyber Security Working Group meets regularly -   Employees receive online training and undertake mandatory testing
Failure of IT infrastructure, including inability to support business growth		-   Appropriate IT policies with annual review cycle -   IT systems and environmental monitoring -   Group IT platform incorporates local offices
Legal action, fraud or breach of contract perpetrated by or against the Group, its funds or investments		-   Independent Internal Audit function that considers risk of fraud in each audit -   Anti-money laundering and anti-bribery and corruption policies, also required for service providers -   Whistleblowing policy including independent reporting line and Board sponsor -   Due diligence on service providers -   Insurance policies in place with appropriate cover
Insufficient resources, including loss of key employees and inability to attract employees, or health & safety issues, hamper growth or the Group's ability to execute its strategy		-   Committee-based investment management reduces key person risk -   Appropriate Remuneration Policy with emphasis on performance-related pay and long-dated deferral of equity awards -   Regular reviews of resource requirements and updates provided to the Board -   Annual review of remuneration and benefits including benchmarking against industry -   Annual Culture and Conduct report to the Board
Lack of understanding and compliance with global and local regulatory requirements, as well as conflicts of interest and not treating customers fairly, and financial crime, which includes money laundering, bribery and corruption, leading to high level publicity or regulatory sanction		-   Regulatory Development Steering Group and compliance monitoring programme -   Compliance standards cover global and local offices -   Anti-money laundering, anti-bribery and corruption, and conflicts of interest policies -   Conduct and culture risks considered by the Board on a semi-annual basis -   ESGC oversight of regulatory and reporting requirements -   Compliance function manages sanctions restrictions
Inadequate oversight of Ashmore overseas offices		-   GFD has oversight responsibility for overseas offices. Senior employees take local board/advisory positions -   Dual reporting lines into local management and Group department heads, with adherence to applicable Group policies -   Local risk and compliance committees held and RCC receives updates -   Internal Audit reviews
Inappropriate oversight of market, liquidity, credit, counterparty and operational risks		-   Group risk management policies, reviewed regularly -   Monthly reviews of market and liquidity risk -   Quarterly reviews of principal risks, counterparties and credit risk

 

 

Consolidated statement of comprehensive income

For the year ended 30 June 2024

 

	Notes	2024 £m	2023 £m
Management fees		162.6	185.4
Performance fees		22.7	5.1
Other revenue		3.7	2.7
Total revenue		189.0	193.2
Distribution costs		(2.2)	(2.2)
Foreign exchange gains	7	2.5	5.4
Net revenue		189.3	196.4
Net losses on investment securities	20	(17.2)	(25.0)
Personnel expenses	9	(85.1)	(66.2)
Other expenses	11	(29.8)	(27.8)
Operating profit		57.2	77.4
Finance income	8	70.4	33.9
Share of profit from associate	26	0.5	0.5
Profit before tax		128.1	111.8
Tax expense	12	(29.9)	(25.3)
Profit for the year		98.2	86.5
Other comprehensive income/(loss), net of related tax effect
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences arising on foreign operations		(4.6)	(26.2)
Cash flow hedge intrinsic value gains		-	4.9
Other comprehensive loss, net of tax		(4.6)	(21.3)
Total comprehensive income for the year		93.6	65.2
Profit attributable to:
Equity holders of the parent		93.7	83.3
Non-controlling interests		4.5	3.2
Profit for the year		98.2	86.5
Total comprehensive income attributable to:
Equity holders of the parent		89.6	62.7
Non-controlling interests		4.0	2.5
Total comprehensive income for the year		93.6	65.2
Earnings per share attributable to equity holders of the parent
Basic	13	13.94p	12.43p
Diluted	13	13.55p	12.15p

 

 

Consolidated balance sheet

As at 30 June 2024

 

	Notes	2024 £m	2023 £m
Assets
Non-current assets
Goodwill and intangible assets	15	87.0	86.9
Property, plant and equipment	16	7.3	6.5
Investment in associates	26	2.7	2.3
Financial assets at fair value	19, 20	57.6	54.1
Deferred acquisition costs		0.2	0.3
Deferred tax assets	18	18.9	23.9
		173.7	174.0
Current assets
Investment securities	19, 20	200.9	229.9
Financial assets at fair value	19, 20	32.8	55.8
Derivative financial instruments	19, 21	0.2	-
Trade and other receivables	17	60.3	70.4
Cash and deposits	21	511.8	478.6
		806.0	834.7
Total assets		979.7	1,008.7
Equity and liabilities
Capital and reserves - attributable to equity holders of the parent
Issued capital	22	0.1	0.1
Share premium		15.6	15.6
Retained earnings		863.3	875.4
Foreign exchange reserve		3.6	7.7
		882.6	898.8
Non-controlling interests	31	8.2	14.2
Total equity		890.8	913.0
Liabilities
Non-current liabilities
Lease liabilities	16	4.5	3.7
Deferred tax liabilities	18	8.9	9.3
		13.4	13.0
Current liabilities
Lease liabilities	16	1.9	2.1
Derivative financial instruments	19, 21	-	0.2
Third-party interests in consolidated funds	19, 20	39.4	56.2
Trade and other payables	24	34.2	24.2
		75.5	82.7
Total liabilities		88.9	95.7
Total equity and liabilities		979.7	1,008.7

 

Approved by the Board on 4 September 2024 and signed on its behalf by:

Mark Coombs Chief Executive Officer

Tom Shippey Group Finance Director

 

 

Consolidated statement of changes in equity

For the year ended 30 June 2024

 

	Attributable to equity holders of the parent
	Issued capital £m	Share premium  £m	Retained earnings £m	Foreign exchange reserve £m	Cash flow hedging reserve £m	Total £m	Non-controlling interests £m	Total equity  £m
Balance at 30 June 2022	0.1	15.6	901.0	33.2	(4.9)	945.0	21.8	966.8
Profit for the year	-	-	83.3	-	-	83.3	3.2	86.5
Other comprehensive income/(loss):
Foreign currency translation differences arising on foreign operations	-	-	-	(25.5)	-	(25.5)	(0.7)	(26.2)
Cash flow hedge intrinsic value gains	-	-	-	-	4.9	4.9	-	4.9
Total comprehensive income/(loss)	-	-	83.3	(25.5)	4.9	62.7	2.5	65.2
Transactions with owners:
Purchase of own shares	-	-	(15.6)	-	-	(15.6)	-	(15.6)
Share-based payments	-	-	18.5	-	-	18.5	-	18.5
Movements in non-controlling interests	-	-	6.6	-	-	6.6	(6.8)	(0.2)
Dividends to equity holders	-	-	(118.4)	-	-	(118.4)	-	(118.4)
Dividends to non-controlling interests	-	-	-	-	-	-	(3.3)	(3.3)
Total transactions with owners	-	-	(108.9)	-	-	(108.9)	(10.1)	(119.0)
Balance at 30 June 2023	0.1	15.6	875.4	7.7	-	898.8	14.2	913.0
Profit for the year	-	-	93.7	-	-	93.7	4.5	98.2
Other comprehensive income/(loss):
Foreign currency translation differences arising on foreign operations	-	-	-	(4.1)	-	(4.1)	(0.5)	(4.6)
Total comprehensive income/(loss)	-	-	93.7	(4.1)	-	89.6	4.0	93.6
Transactions with owners:
Purchase of own shares	-	-	(13.8)	-	-	(13.8)	-	(13.8)
Share-based payments	-	-	27.9	-	-	27.9	-	27.9
Movements in non-controlling interests	-	-	-	-	-	-	(5.5)	(5.5)
Dividends to equity holders	-	-	(119.9)	-	-	(119.9)	-	(119.9)
Dividends to non-controlling interests	-	-	-	-	-	-	(4.5)	(4.5)
Total transactions with owners	-	-	(105.8)	-	-	(105.8)	(10.0)	(115.8)
Balance at 30 June 2024	0.1	15.6	863.3	3.6	-	882.6	8.2	890.8

 

 

 

Consolidated cash flow statement

For the year ended 30 June 2024

	2024 £m	2023 £m
Operating activities
Profit for the year	98.2	86.5
Adjustments for non-cash items:
Depreciation and amortisation	3.1	3.2
Share-based payments	28.0	18.9
Foreign exchange gains	(2.5)	(5.4)
Net losses on investment securities	17.2	25.0
Finance income	(70.4)	(33.9)
Tax expense	29.9	25.3
Share of profits from associate	(0.5)	(0.5)
Cash generated from operations before working capital changes	103.0	119.1
Changes in working capital:
Decrease/(increase) in trade and other receivables	(0.1)	9.7
Increase in derivative financial instruments	(0.4)	(5.0)
Increase/(decrease) in trade and other payables	10.0	(12.2)
Cash generated from operations	112.5	111.6
Taxes paid	(23.4)	(7.1)
Net cash generated from operating activities	89.1	104.5
Investing activities
Interest received	21.2	15.2
Investment income received	19.8	16.0
Investment in term deposits	(203.8)	-
Purchase of non-current financial assets measured at fair value	(4.0)	(19.5)
Purchase of financial assets measured at fair value	(10.4)	(23.0)
Purchase of investment securities	(8.0)	-
Sale of non-current financial assets measured at fair value	20.2	5.0
Sale of financial assets measured at fair value	34.8	-
Sale of investment securities	28.3	3.2
Cash movement on funds and subsidiaries no longer consolidated	(5.7)	(1.7)
Purchase of property, plant and equipment	(0.8)	(0.4)
Net cash used in investing activities	(108.4)	(5.2)
Financing activities
Dividends paid to equity holders	(119.9)	(118.4)
Dividends paid to non-controlling interests	(4.5)	(3.3)
Third-party subscriptions into consolidated funds	4.7	2.8
Third-party redemptions from consolidated funds	(7.8)	(29.1)
Distributions paid by consolidated funds	(7.4)	(4.2)
Decrease of non-controlling interests	-	(0.4)
Payment of lease liabilities	(2.2)	(2.2)
Interest paid	(0.3)	(0.3)
Purchase of own shares	(13.8)	(15.6)
Net cash used in financing activities	(151.2)	(170.7)
Net decrease in cash and cash equivalents	(170.5)	(71.4)
Cash and cash equivalents at beginning of year	478.6	552.0
Effect of exchange rate changes on cash and cash equivalents	(0.1)	(2.0)
Cash and cash equivalents at end of year (note 21)	308.0	478.6
Cash and deposits at end of year comprise the following:
Cash at bank and in hand	53.5	40.9
Daily dealing liquidity funds	213.2	56.8
Short-term deposits	41.3	380.9
Cash and cash equivalents	308.0	478.6
Term deposits	203.8	-
Cash and deposits (note 21)	511.8	478.6

 

Company balance sheet

As at 30 June 2024

 

	Notes	2024 £m	2023 £m
Assets
Non-current assets
Goodwill	15	4.1	4.1
Property, plant and equipment	16	2.6	4.1
Investment in subsidiaries	25	19.9	19.9
Deferred acquisition costs		0.2	0.3
Trade and other receivables	17	196.3	167.8
Deferred tax assets	18	11.4	11.6
		234.5	207.8
Current assets
Trade and other receivables	17	165.7	116.6
Derivative financial instruments	21	0.1	0.2
Cash and deposits	21	222.1	327.7
		387.9	444.5
Total assets		622.4	652.3
Equity and liabilities
Capital and reserves
Issued capital	22	0.1	0.1
Share premium		15.6	15.6
Retained earnings		580.9	605.2
Total equity attributable to equity holders of the Company		596.6	620.9
Liabilities
Non-current liabilities
Lease liability	16	1.0	2.2
Current liabilities
Lease liability	16	1.2	1.2
Trade and other payables	24	23.6	28.0
		24.8	29.2
Total liabilities		25.8	31.4
Total equity and liabilities		622.4	652.3

The Company has taken the exemption under section 408 of the Companies Act 2006 not to present its profit and loss account and related notes. The Company's profit for the year ended 30 June 2024 was £81.5 million (30 June 2023: £120.1 million).

 

The financial statements of Ashmore Group plc (registered number 03675683) were approved by the Board on 4 September 2024 and signed on its behalf by:

 

Mark Coombs Chief Executive Officer

Tom Shippey Group Finance Director

 

Company statement of changes in equity

For the year ended 30 June 2024

 

	Issued capital £m	Share premium £m	Retained earnings  £m	Cash flow hedging reserve £m	Total equity attributable to equity holders of the parent £m
Balance at 30 June 2022	0.1	15.6	600.6	(4.9)	611.4
Profit for the year	-	-	120.1	-	120.1
Cash flow hedge intrinsic value losses	-	-	-	4.9	4.9
Purchase of own shares	-	-	(15.6)	-	(15.6)
Share-based payments	-	-	18.5	-	18.5
Dividends to equity holders	-	-	(118.4)	-	(118.4)
Balance at 30 June 2023	0.1	15.6	605.2	-	620.9
Profit for the year	-	-	81.5	-	81.5
Purchase of own shares	-	-	(13.8)	-	(13.8)
Share-based payments	-	-	27.9	-	27.9
Dividends to equity holders	-	-	(119.9)	-	(119.9)
Balance at 30 June 2024	0.1	15.6	580.9	-	596.6

 

 

 

Company cash flow statement

For the year ended 30 June 2024

 

	2024 £m	2023 £m
Operating activities
Profit for the year	81.5	120.1
Adjustments for:
Depreciation and amortisation	1.8	1.8
Share-based payments	20.2	13.7
Foreign exchange losses/(gains)	(2.6)	9.6
Finance income	(15.6)	(10.0)
Tax expense	7.2	9.8
Dividends received from subsidiaries	(99.6)	(145.2)
Cash used in operations before working capital changes	(7.1)	(0.2)
Changes in working capital:
Decrease/(increase) in trade and other receivables	(7.2)	57.8
Decrease/(increase) in derivative financial instruments	0.1	(5.4)
Decrease in trade and other payables	(5.9)	(15.5)
Cash generated from/(used in) operations	(20.1)	36.7
Taxes paid	(12.0)	(6.3)
Net cash generated from/(used in) operating activities	(32.1)	30.4
Investing activities
Interest received	12.4	8.9
Investment in term deposits	(202.0)	-
Loans advanced to subsidiaries	(78.3)	(27.3)
Loans repaid by subsidiaries	25.0	137.8
Dividends received from subsidiaries	99.6	145.2
Purchase of property, plant and equipment	(0.2)	(0.3)
Net cash generated from/(used in) investing activities	(143.5)	264.3
Financing activities
Dividends paid	(119.9)	(118.4)
Payment of lease liability	(1.2)	(1.2)
Interest paid	(0.1)	(0.1)
Purchase of own shares	(13.8)	(15.6)
Net cash used in financing activities	(135.0)	(135.3)
Net increase/(decrease) in cash and cash equivalents	(310.6)	159.4
Cash and cash equivalents at beginning of year	327.7	159.7
Effect of exchange rate changes on cash and cash equivalents	3.0	8.6
Cash and cash equivalents at end of year (note 21)	20.1	327.7
Cash and deposits at end of year comprise the following:
Cash at bank and in hand	9.0	2.9
Daily dealing liquidity funds	11.1	0.8
Short-term deposits	-	324.0
Cash and cash equivalents	20.1	327.7
Term deposits	202.0	-
Cash and deposits (note 21)	222.1	327.7

 

 

 

Notes to the financial statements

 

1) General information

Ashmore Group plc (the Company) is a public limited company listed on the London Stock Exchange and incorporated and domiciled in the United Kingdom. The consolidated financial statements for the year to 30 June 2024 comprise the financial statements of the Company and its consolidated subsidiaries (together the Group). The principal activity of the Group is described in the Directors' report.

2) Basis of preparation

The Group and Company financial statements for the year ended 30 June 2024 have been prepared in accordance with UK-adopted international accounting standards.

The financial statements have been prepared on a going concern basis under the historical cost convention, except for the measurement at fair value of derivative financial instruments and financial assets and liabilities that are held at fair value through profit or loss.

The Company has taken advantage of the exemption in section 408 of the Companies Act 2006 that allows it not to present its individual statement of comprehensive income and related notes.

Going concern

The Board of Directors has considered the resilience of the Group, taking into account its current financial position, and the principal and emerging risks facing the business in the context of the current economic outlook. The Board reviewed cash flow forecasts for a period of 12 months from the date of approval of these financial statements which indicate that the Group will have sufficient funds to meet its liabilities as they fall due for that period. The Board applied stressed scenarios, including severe but plausible downside assumptions on AuM, profitability of the Group and known commitments. While there are wider market uncertainties that may impact the Group, the stressed scenarios, which assumed a significant reduction in revenue for the entire forecast period, show that the Group and Company would continue to meet their liabilities as they fall due for a period of 12 months from the date of approval of the annual financial statements. The financial statements have therefore been prepared on a going concern basis.

Principal estimates and judgements

The preparation of the financial statements in conformity with UK-adopted international accounting standards requires the use of certain accounting estimates, and management to exercise its judgement in the process of applying the Group's accounting policies. The estimates and judgements used in preparing the financial statements are periodically evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

In preparing the financial statements, the key source of estimation uncertainty at the reporting date results from the Group's valuation of level 3 financial assets and liabilities using unobservable inputs (note 19). Other areas where estimates are made include the assessment of performance conditions attached to certain executive share awards (note 10) and deferred tax assets (note 18).

The key accounting judgement is the assessment of whether certain funds with seed capital investments are controlled by the Group and therefore need to be consolidated into the financial statements (note 20). Other areas of judgement include the impairment review of goodwill (note 15) and the measurement of lease assets and liabilities (note 16).

Climate risks have been considered in the preparation of the financial statements, principally through the valuation of financial assets. It has been assessed that climate risks did not have a material impact on the financial reporting judgements and estimates in the current year.

3) New and amended Standards and Interpretations

The Group and Company adopted Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) from 1 July 2023. The new Standard did not have a material impact on the Group's accounting policies, but requires disclosure of its material accounting policy information instead of its significant accounting policies.

No other Standards or Interpretations have been issued that are expected to have a material impact on the Group's financial statements.

4) Material accounting policy information

The following material accounting policies have been applied consistently where applicable to all years presented in dealing with items considered material in relation to the Group and Company financial statements, unless otherwise stated.

Basis of consolidation

The consolidated financial statements of the Group comprise the financial statements of the Company and its subsidiaries. This includes an Employee Benefit Trust (EBT) established for the employee share-based awards and consolidated investment funds.

References to profit or loss in the notes to the financial statements has the same meaning as the statement of comprehensive income.

Interests in subsidiaries

Subsidiaries are entities, including investment funds, over which the Group has control as defined by IFRS 10. The Group has control if it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The results of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date when control ceases. The Group reassesses whether or not it controls an entity if facts and circumstances indicate that there are changes to one or more of the elements of control.

The profit or loss and each component of other comprehensive income are attributed to the equity holders of the Company and to any non-controlling interests. Based on their nature, the interests of third parties in consolidated funds are classified as liabilities and appear as 'Third-party interests in consolidated funds' on the Group's balance sheet.

A change in the ownership interest of a consolidated entity that does not result in a loss of control by the Group is accounted
for as an equity transaction. If the Group loses control over a consolidated entity, it derecognises the related assets, goodwill, liabilities, non-controlling interest and other components of equity, and any gain or loss is recognised in consolidated profit or loss. Any investment retained is recognised at its fair value at the date of loss of control.

Interests in associates

Associates are partly owned entities over which the Group has significant influence but not control.

Investments in associates are measured using the equity method of accounting. Under this method, the investments are initially recognised at cost, including attributable goodwill, and are adjusted thereafter for the post-acquisition changes in the Group's share of net assets. The Group's attributable results of associates are recognised in the consolidated profit or loss.

Interests in consolidated structured entities

The Group acts as fund manager to investment funds that are considered to be structured entities. Structured entities are entities that have been designed so that voting or similar rights are not the dominant factor in deciding which party has control: for example, when any voting rights relate to administrative tasks only and the relevant activities of the entity are directed by means of contractual arrangements. The Group's assets under management are managed within structured entities. These structured entities typically consist of unitised vehicles such as Société d'Investissement à Capital Variable (SICAVs), limited partnerships, unit trusts and open-ended and closed-ended vehicles which entitle third-party investors to a percentage of the vehicle's net asset value.

The Group has interests in structured entities as a result of the management of assets on behalf of its clients. Where the Group holds a direct interest in a closed-ended fund, private equity fund or open-ended pooled fund such as a SICAV, the interest is accounted for either as a consolidated structured entity or as a financial asset, depending on whether the Group has control over the fund or not. Control is determined in accordance with IFRS 10, based on an assessment of the level of power and aggregate economic interest that the Group has over the fund, relative to third-party investors. Power is normally conveyed to the Group through the existence of an investment management agreement and/or other contractual arrangements. Aggregate economic interest is a measure of the Group's exposure to variable returns in the fund through a combination of direct interest, expected share of performance fees, expected management fees, fair value gains or losses, and distributions receivable from the fund.

The Group concludes that it acts as a principal when the power it has over the fund is deemed to be exercised for self-benefit, considering the level of aggregate economic exposure in the fund and the assessed strength of third-party investors' 'kick-out' rights (to remove the Group as investment manager). The Group concludes that it acts as an agent when the power it has over the fund is deemed to be exercised for the benefit of third-party investors.

If the Group concludes that it acts as a principal,  it is deemed to have control and, therefore, will consolidate a fund as if it were a subsidiary. If the Group concludes that it does not have control over the fund, the Group recognises and measures its interest in the fund as a financial asset.

Interests in unconsolidated structured entities

The Group classifies the following investment funds as unconsolidated structured entities:

-

Segregated mandates and pooled funds managed where the Group does not hold any direct interest. In this case, the Group considers that its aggregate economic exposure is insignificant and, in relation to segregated mandates, the third-party investor has the practical ability to remove the Group from acting as fund manager, without cause. As a result, the Group concludes that it acts as an agent for third-party investors.

-

Pooled funds managed by the Group where the Group holds a direct interest, for example seed capital investments, and the Group's aggregate economic exposure in the fund relative to third-party investors is less than the threshold established by the Group for determining agent versus principal classification. As a result, the Group concludes that it is an agent for third-party investors and, therefore, will account for its beneficial interest in the fund as a financial asset.

The disclosure of the AuM in respect to consolidated and unconsolidated structured entities is provided in note 27.

Foreign currency

The Group's financial statements are presented in Pounds Sterling (Sterling), which is also the Company's functional and presentation currency. Items included in the financial statements of each of the Group's entities are measured using the functional currency, which is the currency that prevails in the primary economic environment in which the entity operates.

Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of the Group entities at the spot exchange rates at the date of the transactions.

Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated into the functional currency at the spot exchange rate at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

Foreign currency differences arising on translation are recognised in profit or loss, except for qualifying cash flow hedges to the extent that the hedge is effective, in which case foreign currency differences arising are recognised in other comprehensive income.

Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, are translated into Sterling at the spot exchange rates at the balance sheet date. The revenues and expenses of foreign operations are translated into Sterling at rates approximating to the foreign exchange rates ruling at the dates of the transactions.

Foreign currency differences are recognised in other comprehensive income, and accumulated in the foreign currency translation reserve, except to the extent that the translation difference is allocated to non-controlling interests.

When a foreign operation is disposed of such that control is lost, the cumulative amount in the foreign currency translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. If the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests.

If the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign currency differences arising on the item form part of the net investment in the foreign operation and are recognised in other comprehensive income, and accumulated in the foreign currency translation reserve within equity.

Business combinations

Business combinations are accounted for using the acquisition method as at the acquisition date. The acquisition date is the date on which the acquirer effectively obtains control of the acquiree.

The consideration transferred for the acquisition is generally measured at the acquisition date fair value, as are the identifiable net assets acquired, liabilities incurred (including any asset or liability resulting from a contingent consideration arrangement) and equity instruments issued by the Group in exchange for control of the acquiree.

Acquisition-related costs are expensed as incurred, except if they are related to the issue of debt or equity securities.

Goodwill

The cost of a business combination in excess of the fair value of net identifiable assets or liabilities acquired, including intangible assets identified, is recognised as goodwill and stated at cost less any accumulated impairment losses. Goodwill has an indefinite useful life, is not subject to amortisation and is tested at least annually for impairment or when there is an indication of impairment.

Intangible assets

The cost of intangible assets, such as management contracts and brand names, acquired as part of a business combination is their fair value as at the date of acquisition. The fair value at the date of acquisition is calculated using the discounted cash flow methodology and represents the valuation of the profits expected to be earned from the management contracts and brand name in place at the date of acquisition.

Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and impairment losses. Intangible assets with finite life are amortised on a systematic basis over their useful lives. The useful life of an intangible asset which has arisen from contractual or other legal rights does not exceed the period of the contractual or other legal rights.

Non-controlling interests (NCI)

The Group recognises NCI in an acquired entity either at fair value or at the NCI's proportionate share of the acquired entity's net identifiable assets. This decision is made on an acquisition-by-acquisition basis. Changes to the Group's interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost is determined on the basis of the direct and indirect costs that are directly attributable. Property, plant and equipment are depreciated using the straight-line method over the estimated useful lives, assessed to be five years for office equipment and four years for IT equipment. The residual values and useful lives of assets are reviewed at least annually.

The Group's property, plant and equipment include right-of use assets recognised on lease arrangements in accordance with IFRS 16 Leases.

Leases

The Group's lease arrangements primarily consist of leases relating to office space. Obligations are recognised as lease liabilities and rights under lease agreements are recognised and classified within property, plant and equipment on the Group's consolidated balance sheet in accordance with IFRS 16.

The Group initially records a lease liability reflecting the present value of the future contractual cash flows to be made over the lease term, discounted using the rate implicit in the lease, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. Where this rate is not readily available, the Group applies the incremental borrowing rate applicable for each lease arrangement. A right-of-use asset is also recorded at the value of the lease liability plus any directly related costs and estimated dilapidation expenses and is presented within property, plant and equipment. Interest is accrued on the lease liability using the effective interest rate method to give a constant rate of return over the life of the lease whilst the balance is reduced as lease payments are made. The right-of-use asset is depreciated over the life of the lease as the benefit of the lease is consumed.

After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects the likelihood that it will exercise (or not exercise) a term extension option.

The cost of short-term (less than 12 months) leases is expensed on a straight-line basis over the lease term.

Deferred acquisition costs

Costs that are directly attributable to securing an investment management contract are deferred if they can be identified separately and measured reliably and it is probable that they will be recovered. Deferred acquisition costs represent the incremental costs incurred by the Group to acquire an investment management contract, typically on a closed-ended fund. The Group amortises the deferred acquisition asset recognised on a systematic basis, in line with the revenue generated from providing the investment management services over the life of the fund.

Financial instruments

Recognition and initial measurement

Financial instruments are recognised when the Group becomes party to the contractual provisions of an instrument, initially at fair value plus or minus transaction costs, except for financial assets classified at FVTPL. Transaction costs for financial instruments at FVTPL are expensed. Purchases or sales of financial assets are recognised on the trade date, being the date that the Group commits to purchase or sell the asset.

Financial assets are derecognised when the rights to receive cash flows from the investments have expired or been transferred or when the Group has transferred substantially all risks and rewards of ownership. Financial liabilities are derecognised when the obligation under the liability has been discharged, cancelled or expires.

Subsequent measurement

The subsequent measurement of financial instruments depends on their classification in accordance with IFRS 9 Financial Instruments.

Under IFRS 9, the Group classifies its financial assets into two measurement categories: amortised cost and fair value through profit or loss. The classification of financial assets under IFRS 9 is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:

-	it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
-	its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

All financial assets not classified as measured at amortised cost are measured at FVTPL. The Group classifies its financial liabilities at amortised cost except for derivative liabilities that are classified at FVTPL.

Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance.

Financial assets

The Group classifies its financial assets into the following categories: investment securities at FVTPL, financial assets at FVTPL and financial assets measured at amortised cost.

Investment securities at FVTPL

Investment securities represent securities, other than derivatives, held by consolidated funds. These securities are measured at fair value with gains and losses recognised in profit or loss within finance income or expense.

Financial assets at FVTPL

Financial assets at FVTPL include certain readily realisable interests in seeded funds, non-current financial assets measured at fair value and derivatives. From the date the financial asset is recognised, all subsequent changes in fair value, foreign exchange differences, interest and dividends are recognised in the profit or loss within finance income or expense.

(i) Non-current financial assets measured at fair value

Non-current financial assets include the Group's interests in funds that are expected to be realised within a period longer than 12 months from the balance sheet date. They are held at fair value with changes in fair value being recognised in profit or loss within finance income or expense.

(ii) Current financial assets measured at fair value

The Group classifies readily realisable interests in seeded funds as current financial assets measured at FVTPL with fair value changes recognised in profit or loss within finance income or expense. Fair value is measured based on the proportionate net asset value in the fund.

(iii) Derivatives

Derivatives include foreign exchange forward contracts and options used by the Group to manage its foreign currency exposures and those held in consolidated funds. Derivatives are initially recognised at fair value on the date on which a derivative contract is entered into and subsequently remeasured at fair value. Transaction costs are recognised immediately in profit or loss. All derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are recognised in profit or loss within foreign exchange gains or losses and net gains or losses on investment securities, except for the effective portion of cash flow hedges, which is recognised in other comprehensive income.

Financial assets measured at amortised cost

(i) Trade and other receivables

Trade and other receivables are initially recorded at fair value plus transaction costs. The fair value on acquisition is normally the cost. Subsequent to initial recognition these assets are measured at amortised cost less impairment loss allowances. Impairment losses are recognised in profit or loss within other expenses, for expected credit losses, and changes in those expected credit losses over the life of the instrument. Loss allowances are calculated based on lifetime expected credit losses at each reporting date.

(ii) Cash and cash equivalents

Cash represents cash at bank and in hand. Cash equivalents comprise short-term deposits with contractual maturities of less than three months and units in money market funds held for the purposes of meeting short‑term cash commitments. Cash equivalents are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

(iii) Term deposits

Term deposits are fixed term interest-yielding cash investments with contractual maturities of greater than three months.

Financial liabilities

The Group classifies its financial liabilities into the following categories: financial liabilities at FVTPL and financial liabilities at amortised cost.

Financial liabilities at FVTPL

Financial liabilities at FVTPL include derivative financial instruments and third-party interests in consolidated funds. They are carried at fair value with gains or losses recognised in profit or loss within finance income or expense.

Financial liabilities at amortised cost

Other financial liabilities including trade and other payables are subsequently measured at amortised cost using the effective interest rate method. Interest expense is recognised in profit or loss within finance income or expense using the effective interest method, which allocates interest at a constant rate of return over the expected life of the financial instrument based on the estimated future cash flows.

Fair value of financial instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the 'exit price') in an orderly transaction between market participants at the measurement date. In determining fair value, the Group uses various valuation approaches and establishes a hierarchy for inputs used in measuring fair value that maximises the use of relevant observable inputs and minimises the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Group.

Unobservable inputs are inputs that reflect the Group's judgements about the assumptions other market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances.

Securities listed on a recognised stock exchange, or dealt on any other regulated market that operates regularly, is recognised and open to the public, are valued at the last known available closing bid price. If a security is traded on several actively traded and organised financial markets, the valuation is made on the basis of the last known bid price on the main market on which the securities are traded. In the case of securities for which trading on an actively traded and organised financial market is not significant, but which are bought and sold on a secondary market with regulated trading among security dealers (with the effect that the price is set on a market basis), the valuation may be based on this secondary market.

Where instruments are not listed on any stock exchange or not traded on any regulated markets, valuation techniques are used. The methodology and models used to determine fair value are created in accordance with International Private Equity and Venture Capital Valuation Guidelines. The Group has a separate PMVC to review the valuation methodologies, inputs and assumptions used to value individual investments. Smaller investments may be valued directly by the PMVC but material investments are valued by independent third-party valuation specialists.

These techniques include the market approach, the income approach or the cost approach. The use of the market approach generally consists of using comparable market transactions or using techniques based on market observable inputs, 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.

Investments in funds are valued on the basis of the last available net asset value of the units or shares of such funds.

The fair value of the derivatives is their valuation at the balance sheet date.

Hedge accounting

The Group applies the general hedge accounting model in IFRS 9. This requires the Group to ensure that hedge accounting relationships are aligned with its risk management objectives and strategy and to apply a more qualitative and forward-looking approach to assessing hedge effectiveness.

The Group uses forward and option contracts to hedge the variability in cash flows arising from changes in foreign exchange rates relating to management fee revenues. The Group designates only the change in fair value of the spot element of the forward and option contracts in cash flow hedging relationships. The effective portion of changes in fair value of hedging instruments is accumulated in a cash flow hedge reserve as a separate component of equity.

 

The Group applies cash flow hedge accounting when the transaction meets the specified hedge accounting criteria. To qualify, the following conditions must be met:

-	formal documentation of the relationship between the hedging instrument(s) and hedged item(s) must exist at inception;
-	the hedged cash flows must be highly probable and must present an exposure to variations in cash flows that could ultimately affect profit or loss;
-	the effectiveness of the hedge can be reliably measured; and
-	the hedge must be highly effective, with effectiveness assessed on an ongoing basis.

For qualifying cash flow hedges, the change in fair value of the effective hedging instrument is initially recognised in other comprehensive income and is released to profit or loss in the same period during which the relevant financial asset or liability affects the Group's results.

Where the hedge is highly effective overall, any ineffective portion of the hedge is immediately recognised in profit or loss within foreign exchange gain/(loss). Where the instrument ceases to be highly effective as a hedge, or is sold, terminated or exercised, hedge accounting is discontinued.

Impairment of financial assets

Under IFRS 9, impairment losses on the Group's financial assets at amortised cost are measured using an expected credit loss (ECL) model. Under this model, the Group is required to account for expected credit losses, and changes in those expected credit losses, over the life of the instrument. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition and, consequently, more timely information is provided about expected credit losses.

The Group applies the simplified approach to calculate expected credit losses for financial assets measured at amortised cost. Under this approach, expected credit losses are calculated based on the life of the instrument.

Assets measured at amortised cost

Expected credit loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. The Group's financial assets subject to impairment assessment under the ECL model comprise cash deposits held with banks and trade receivables. In assessing the impairment of financial assets under the ECL model, the Group assesses whether the risk of default has increased since initial recognition, by considering both quantitative and qualitative information, and the analysis is based on the Group's historical experience of credit default, including forward-looking information.

The Group's trade receivables comprise balances due from management fees, performance fees and expense recoveries from funds managed, and are generally short term and do not contain financing components. Factors considered in determining whether a default has taken place include how many days past the due date a payment is, deterioration in the credit quality of a counterparty, and knowledge of specific events that could influence a counterparty's ability to pay.

Externally derived credit ratings have been identified as representing the best available determinant of counterparty credit risk for cash balances and credit risk is deemed to have increased if the credit rating has deteriorated at the reporting date relative to the credit rating at the date of initial recognition.

Impairment of non-financial assets

An impairment test is performed annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets, other than goodwill, that have suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

Goodwill

Goodwill is tested for impairment at least annually or whenever there is an indication that the carrying amount may not be recoverable based on management's judgements regarding the future prospects of the business, estimates of future cash flows and discount rates. When assessing the appropriateness of the carrying value of goodwill at year end, the recoverable amount is considered to be the greater of fair value less costs to sell or value in use. The pre-tax discount rate applied is based on the Group's weighted average cost of capital after making allowances for any specific risks.

Goodwill acquired in a business combination is allocated to the cash-generating units that are expected to benefit from that business combination. It is the Group's judgement that the lowest level of cash-generating unit used to determine impairment is the investment management segment level.

The business of the Group is managed as a single unit, with asset allocations, research and other such operational practices reflecting the commonality of approach across all fund themes. This reflects the Group's global operating model, based on a single operating platform, into which acquired businesses are fully integrated and from which acquisition-related synergies are expected to be realised. Therefore, for the purpose of testing goodwill for impairment, the Group is considered to have one cash-generating unit to which all goodwill is allocated and, as a result, no further split of goodwill into smaller cash-generating units is possible and the impairment review is conducted for the Group as a whole.

An impairment loss in respect of goodwill cannot be reversed.

Net revenue

Net revenue is total revenue less distribution costs and include foreign exchange gains or losses on non-Sterling denominated revenues, receivable and payable balances. The Group's total revenue includes management fees, performance fees and other revenue. The primary revenue source for the Group is fee income received or receivable for the provision of investment management services.

The Group recognises revenue in accordance with the principles of IFRS 15 Revenue from Contracts with Customers. Revenue is recognised to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Group applies the IFRS 15 five-step model for recognising revenue, which consists of identifying the contract with the customer; identifying the relevant performance obligations; determining the amount of consideration to be received under the contract; allocating the consideration to each performance obligation; and recognising the revenue as the performance obligations are satisfied. The Group's principal revenue recognition policies are summarised below:

Management fees

Management fees are presented net of rebates, and are calculated as a percentage of net fund assets managed in accordance with individual management agreements. Management fees are calculated and recognised on a monthly basis in accordance with the terms of the management fee agreements. Management fees are typically collected on a monthly or quarterly basis.

Performance fees

Performance fees are earned from some arrangements when contractually agreed performance levels are exceeded within specified performance measurement periods, typically over one year. The fees are recognised when they are crystallised, and there is deemed to be a low probability of a significant reversal in future periods. This is usually at the end of the performance period or upon early redemption by a fund investor. Once crystallised, performance fees typically cannot be clawed-back. Performance fees are presented net of rebates, and are calculated as a percentage of the appreciation in the net asset value of a fund above a defined hurdle.

Rebates

Rebates relate to repayments of management and performance fees charged subject to a rebate agreement, typically with institutional investors, and are calculated based on an agreed percentage of net fund assets managed and recognised as the service is received. Where rebate agreements exist, management and performance fees are presented on a net basis in profit or loss.

Other revenue

Other revenue principally comprises fees for other services, which are typically driven by the volume of transactions, along with revenues that vary in accordance with the volume of fund project development activities.

Other revenue includes transaction, structuring and administration fees, project management fees, and reimbursement by funds of costs incurred by the Group. This revenue is recognised as the relevant service is provided and it is probable that the fee will be collected.

Distribution costs

Distribution costs are costs of sales payable to external intermediaries for marketing and investor servicing. Distribution costs vary based on fund assets managed and the associated management fee revenue, and are expensed over the period in which the service is provided.

Employee benefits

Obligations for contributions to defined contribution pension plans are recognised as an expense in profit or loss within personnel expenses when payable in accordance with the scheme particulars.

Share-based payments

The Group issues share awards to its employees under share-based compensation plans which are accounted for under IFRS 2 Share-based Payment.

For equity-settled awards, the fair value of the amounts payable to employees is recognised as an expense with a corresponding increase in equity over the vesting period after adjusting for the estimated number of shares that are expected to vest. The fair value is measured at the grant date using an appropriate valuation model, taking into account the terms and conditions upon which the instruments were granted. At each balance sheet date prior to vesting, the cumulative expense representing the extent to which the vesting period has expired and management's best estimate of the awards that are ultimately expected to vest is calculated. The movement in cumulative expense is recognised in profit or loss within personnel expenses with a corresponding entry within equity.

For cash-settled awards, the fair value of the amounts payable to employees is recognised as an expense with a corresponding liability on the Group's balance sheet. The fair value is measured using an appropriate valuation model, taking into account the estimated number of awards that are expected to vest and the terms and conditions upon which the instruments were granted. During the vesting period, the liability recognised represents the portion of the vesting period that has expired at the balance sheet date multiplied by the fair value of the awards at that date. Movements in the liability are recognised in profit or loss within personnel expenses.

The Group has in place an intragroup recharge arrangement for equity-settled share-based awards whereby the Company is reimbursed based on the grant-date cost of share awards granted to employees of subsidiary entities. During the vest period, the subsidiaries recognise a share-based payment expense with an intercompany payable to the Company. The Company recognises an intercompany receivable and a corresponding credit within equity as a share-based payment reserve. The intercompany balances are settled regularly and reported as current assets/liabilities.

Finance income and expense

Finance income includes interest receivable on the Group's cash and cash equivalents and term deposits, and both realised and unrealised gains on financial assets at FVTPL.

Finance expense includes both realised and unrealised losses on financial assets at FVTPL. Interest expense on lease liabilities is presented within finance expense.

Taxation

Tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss within tax expense except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year, and any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the balance sheet date in the countries where the Group operates. Current tax also includes withholding tax arising from dividends.

Deferred tax

Deferred tax is recognised using the balance sheet liability method, in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following differences are not provided for:

-	goodwill not deductible for tax purposes; and
-	differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future.

The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the reporting date.

Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the assets can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the balance sheet date.

Dividends

Dividends are recognised when shareholders' rights to receive payments have been established.

Equity shares

The Company's ordinary shares of 0.01 pence each are classified as equity instruments. Ordinary shares issued by the Company are recorded at the fair value of the consideration received or the market price at the day of issue. Direct issue costs, net of tax, are deducted from equity through share premium. When share capital is repurchased, the amount of consideration paid, including directly attributable costs, is recognised as a change in equity.

Own shares

Own shares are held by the Employee Benefit Trust (EBT). The holding of the EBT comprises own shares that have not vested unconditionally to employees of the Group. In both the Group and Company, own shares are recorded at cost and are deducted from retained earnings.

Segmental information

Key management information, including revenues, margins, investment performance, distribution costs and AuM flows, which is relevant to the operation of the Group, is reported to and reviewed by the Board on the basis of the investment management business as a whole. Hence, the Group's management considers that the Group's services and its operations are not run on a discrete geographic basis and comprise one business segment (being provision of investment management services).

Company-only accounting policies

In addition to the above accounting policies, the following specifically relates to the Company:

Investment in subsidiaries

Investments by the Company in subsidiaries are stated at cost less, where appropriate, provisions for impairment. Investments in subsidiaries are reviewed at least annually for impairment or when there is an indication of impairment.

5) Segmental information

The Group's operations are reported to and reviewed by the Board on the basis of the investment management business as a whole, hence the Group is treated as a single segment. The key management information considered is adjusted EBITDA, an alternative performance measure, which is £77.9 million for the year as reconciled in the Business review (FY2023: adjusted EBITDA of £106.2 million).

The disclosures below are supplementary, and provide the location of the Group's non-current assets at year end, which comprise intangible assets, property, plant and equipment and investment in associates.

 

Analysis of non-current assets by geography

	2024 £m	2023 £m
United Kingdom and Ireland	23.1	24.3
Americas	71.5	70.1
Asia and Middle East	2.6	1.6
Total non-current assets	97.2	96.0

6) Revenue

Management fees are accrued throughout the year in line with prevailing levels of AuM and performance fees are recognised when they can be estimated reliably and it is probable that they will crystallise. Performance fees are recognised when they are crystallised, and there is deemed to be a low probability of a significant reversal in future periods.

The Group is not considered to be reliant on any single source of revenue. During the year, none of the Group's funds (FY2023: none) provided more than 10% of total revenue in the year respectively when considering management fees and performance fees on a combined basis.

Disclosures relating to revenue by location are provided below.

Analysis of revenue by geography

	2024 £m	2023 £m
United Kingdom and Ireland	119.4	120.2
Americas	25.1	21.3
Asia and Middle East	44.5	51.7
Total revenue	189.0	193.2

7) Foreign exchange

The foreign exchange rates which had a material impact on the Group's results are the US dollar, the Euro, the Indonesian rupiah, Saudi riyal and the Colombian peso.

£1	Closing rate as at 30 June 2024	Closing rate as at 30 June 2023	Average rate year ended 30 June 2024	Average rate year ended 30 June 2023
US dollar	1.2641	1.2714	1.2609	1.2079
Euro	1.1795	1.1653	1.1653	1.1523
Indonesian rupiah	20,700	19,061	19,763	18,259
Saudi riyal	4.7424	4.7685	4.7292	4.5350
Colombian peso	5,239	5,309	5,030	5,519

Foreign exchange gains are shown below.

	2024 £m	2023 £m
Net realised and unrealised hedging gains	1.0	4.4
Translation gains on non-Sterling denominated monetary assets and liabilities	1.5	1.0
Total foreign exchange gains	2.5	5.4

8) Finance income

	2024 £m	2023 £m
Interest and investment income	39.1	27.2
Realised gains on disposal of investments	5.2	-
Net realised gains on seed capital investments measured at fair value	11.3	2.4
Net unrealised gains on seed capital investments measured at fair value	15.1	4.6
Interest expense on lease liabilities (note 16)	(0.3)	(0.3)
Finance income	70.4	33.9

Included within interest and investment income is interest earned on cash deposits of £25.2 million (FY2023: £16.2 million) and investment income of £13.9 million (FY2023: £11.0 million) on consolidated funds (note 20c).

Realised gains on disposal of investments include a gain of £4.8 million arising on the Group's disposal of its 56% investment in Ashmore Avenida Investments (Real Estate) LLP and £0.4 million gain on partial disposal of its investment in Indonesian entity, PT Buka Investasi Digital.

Included within net realised and unrealised gains on seed capital investments totalling £26.4 million (FY2023: £7.0 million) are £4.7 million gains (FY2023: £2.6 million gains) on financial assets measured at FVTPL (note 20a), £19.1 million gains (FY2023: £1.4 million gains) on non-current financial assets measured at fair value (note 20b) and £2.6m gains on consolidated funds (FY2023: £3.0 million gains).

9) Personnel expenses

Personnel expenses during the year comprised the following:

	2024 £m	2023 £m
Wages and salaries	25.0	24.0
Performance-related cash bonuses	23.4	17.3
Share-based payments (note 10)	29.5	17.5
Social security costs	2.5	2.4
Pension costs	2.2	2.1
Other costs	2.5	2.9
Total personnel expenses	85.1	66.2

Number of employees

At 30 June 2024, the number of investment management employees of the Group (including Executive Directors) during the year was as follows:

	Average for the year ended 30 June 2024 Number	Average for the year ended 30 June 2023 Number	At 30 June 2024 Number*	At 30 June 2023 Number
Total investment management employees	305	309	283	310

* Excludes employees of Ashmore Avenida Investments (Real Estate) LLP and its subsidiaries, disposed of effective 30 June 2024.

Directors' remuneration

Disclosures of Directors' remuneration during the year as required by the Companies Act 2006 are included in the Remuneration report.

There are retirement benefits accruing to two Executive Directors under a defined contribution scheme (FY2023: two).

10) Share-based payments

The cost related to share-based payments recognised by the Group in consolidated profit or loss is shown below:

Group	2024 £m	2023 £m
Omnibus Plan	29.4	17.4
Phantom Bonus Plan	0.1	0.1
Total share-based payments expense	29.5	17.5

The total expense recognised for the year in respect of equity-settled share-based payment awards was £27.9 million (FY2023: £18.5 million), of which £1.9 million (FY2023: £0.4 million) relates to share awards granted to key management personnel.

The Executive Omnibus Incentive Plan (Omnibus Plan)

The Omnibus Plan was introduced prior to the Company listing in October 2006 and provides for the grant of share awards, market value options, premium cost options, discounted options, linked options, phantoms and/or nil-cost options to employees. The Omnibus Plan will also allow bonuses to be deferred in the form of share awards with or without matching shares. Awards granted under the Omnibus Plan typically vest after five years from date of grant, with the exception of bonus awards which vest after the shorter of five years from date of grant or on the date of termination of employment. Awards under the Omnibus Plan are accounted for as equity-settled, with the exception of phantoms which are classified as cash-settled.

The combined cash and equity-settled payments below represent the share-based payments relating to the Omnibus Plan.

Total expense by year awards were granted (excluding national insurance)

Group and Company Year of grant	2024 £m	2023 £m
2018	-	3.0
2019	3.3	3.7
2020	3.8	3.5
2021	3.2	3.9
2022	3.0	3.3
2023	6.3	1.2
2024	8.4	-
Total Omnibus share-based payments expense reported in profit or loss	28.0	18.6

Awards outstanding under the Omnibus Plan were as follows:

 

i) Equity-settled awards

Group and Company	2024 Number of shares subject to awards	2024 Weighted average share price	2023 Number of shares subject to awards	2023 Weighted average share price
Restricted share awards
At the beginning of the year	19,032,817	£3.32	19,311,495	£3.65
Granted	15,307,268	£1.91	5,553,128	£2.14
Vested	(3,762,882)	£3.32	(4,671,286)	£3.25
Forfeited	(774,523)	£2.81	(1,160,520)	£2.17
Awards outstanding at year end	29,802,680	£2.61	19,032,817	£3.32
Bonus share awards
At the beginning of the year	10,146,521	£3.31	10,997,593	£3.64
Granted	385,864	£1.91	3,014,720	£2.14
Vested	(2,095,393)	£3.30	(3,686,132)	£2.87
Forfeited	(5,507)	£3.00	(179,660)	£3.67
Awards outstanding at year end	8,431,485	£3.24	10,146,521	£3.31
Matching share awards
At the beginning of the year	10,210,529	£3.31	10,379,745	£3.65
Granted	681,691	£1.91	3,031,105	£2.14
Vested	(1,929,553)	£3.31	(2,547,699)	£3.28
Forfeited	(181,934)	£3.13	(652,622)	£2.18
Awards outstanding at year end	8,780,733	£3.20	10,210,529	£3.31
Total	47,014,898	£2.84	39,389,867	£3.32

ii) Cash-settled awards

Group and Company	2024 Number of shares subject to awards	2024 Weighted average share price	2023 Number of shares subject to awards	2023 Weighted average share price
Restricted share awards
At the beginning of the year	113,062	£3.13	110,280	£3.60
Granted	146,461	£1.91	47,785	£2.14
Vested	(22,920)	£3.33	(45,003)	£3.24
Forfeited	-	-	-	-
Awards outstanding at year end	236,603	£2.36	113,062	£3.13
Bonus share awards
At the beginning of the year	81,740	£3.12	80,511	£3.60
Granted	-	-	34,982	£2.14
Vested	(16,592)	£3.33	(33,753)	£3.24
Forfeited	-	-	-	-
Awards outstanding at year end	65,148	£3.07	81,740	£3.12
Matching share awards
At the beginning of the year	81,740	£3.12	80,511	£3.60
Granted	-	-	34,982	£2.14
Vested	(16,592)	£3.33	(33,753)	£3.24
Forfeited	-	-	-	-
Awards outstanding at year end	65,148	£3.07	81,740	£3.12
Total	366,899	£2.61	276,542	£3.13

 

iii) Total awards

Group and Company	2024  Number of shares subject to awards	2024 Weighted average share price	2023  Number of shares subject to awards	2023 Weighted average share price
Restricted share awards
At the beginning of the year	19,145,879	£3.32	19,421,775	£3.65
Granted	15,453,729	£1.91	5,600,913	£2.14
Vested	(3,785,802)	£3.32	(4,716,289)	£3.25
Forfeited	(774,523)	£2.81	(1,160,520)	£2.17
Awards outstanding at year end	30,039,283	£2.61	19,145,879	£3.32
Bonus share awards
At the beginning of the year	10,228,261	£3.31	11,078,104	£3.64
Granted	385,864	£1.91	3,049,702	£2.14
Vested	(2,111,985)	£3.30	(3,719,885)	£2.87
Forfeited	(5,507)	£3.00	(179,660)	£3.67
Awards outstanding at year end	8,496,633	£3.24	10,228,261	£3.31
Matching share awards
At the beginning of the year	10,292,269	£3.31	10,460,256	£3.65
Granted	681,691	£1.91	3,066,087	£2.14
Vested	(1,946,145)	£3.31	(2,581,452)	£3.28
Forfeited	(181,934)	£3.13	(652,622)	£2.18
Awards outstanding at year end	8,845,881	£3.20	10,292,269	£3.31
Total	47,381,797	£2.83	39,666,409	£3.32

The weighted average fair value of awards granted to employees under the Omnibus Plan during the year was £1.91 (FY2023: £2.14), calculated based on the average Ashmore Group plc closing share price for the five business days prior to grant. For Executive Directors, the fair value of awards also takes into account the performance conditions set out in the Remuneration report.

Where the grant of restricted and matching share awards is linked to the annual bonus process, the fair value of the awards is spread over a period including the current financial year and the subsequent five years to their vesting date when the grantee becomes unconditionally entitled to the underlying shares. The fair value of the remaining awards is spread over the period from the date of grant to the vesting date.

The liability arising from cash-settled awards under the Omnibus Plan at the end of the year and reported within trade and other payables on the Group consolidated balance sheet is £0.3 million (30 June 2023: £0.3 million) of which £nil (30 June 2023: £nil) relates to vested awards.

11) Other expenses

Other expenses consist of the following:

	2024 £m	2023 £m
Travel	2.0	2.1
Professional fees	7.0	5.5
Information technology and communications	8.1	7.8
Amortisation of intangible assets (note 15)	0.2	0.2
Lease expenses	0.5	0.4
Depreciation of property, plant and equipment (note 16)	2.9	3.0
Premises-related costs	1.6	1.3
Insurance	0.8	1.0
Research costs	0.3	0.4
Auditor's remuneration (see below)	1.0	0.9
Operating expenses in consolidated funds	1.2	1.1
Other operating expenses	4.2	4.1
	29.8	27.8

Lease expenses relates to short-term leases where the Group has applied the optional exemption contained within IFRS 16, which permits the cost of short-term leases (less than 12 months) to be expensed on a straight-line basis over the lease term.

 

Auditor's remuneration

	2024 £m	2023 £m
Fees for statutory audit services:
-  Fees payable to the Company's auditor for the audit of the Group's accounts	0.3	0.2
-  Fees payable to the Company's auditor and its associates for the audit of the Company's subsidiaries pursuant to legislation	0.5	0.5
Fees for non-audit services:
-  Other non-audit services	0.2	0.2
	1.0	0.9

12) Taxation

Analysis of tax charge for the year:

	2024 £m	2023 £m
Current tax
UK corporation tax on profits for the year	12.9	5.6
Overseas corporation tax charge	11.6	10.5
Adjustments in respect of prior years	0.8	0.1
	25.3	16.2
Deferred tax
Origination and reversal of temporary differences (note 18)	4.6	9.1
Tax expense	29.9	25.3

Factors affecting tax charge for the year

	2024 £m	2023 £m
Profit before tax	128.1	111.8
Profit on ordinary activities multiplied by the UK tax rate of 25.0% (FY2023: UK blended tax rate of 20.5%)	32.0	22.9
Effects of:
Permanent differences including non-taxable income and non-deductible expenses	4.7	7.4
Different rate of taxes on overseas profits	(4.9)	(3.2)
Non-taxable investment returns1	(2.7)	(1.9)
Adjustments in respect of prior years	0.8	0.1
Tax expense	29.9	25.3

 

1.	Non-taxable investment returns comprise seed capital investment gains/losses in certain jurisdictions in which the Group operates for which there are local tax exemptions.

The tax charge/(credit) recognised in reserves within other comprehensive income is as follows:

	2024 £m	2023 £m
Current tax expense/(credit) on foreign exchange gains/(losses)	0.2	(0.6)
Tax expense/(credit) recognised in reserves	0.2	(0.6)

13) Earnings per share

Basic earnings per share at 30 June 2024 of 13.94 pence (30 June 2023: 12.43 pence) is calculated by dividing the profit after tax for the financial year attributable to equity holders of the parent of £93.7 million (FY2023: £83.3 million) by the weighted average number of ordinary shares in issue during the year, excluding own shares.

Diluted earnings per share is calculated based on basic earnings per share adjusted for dilutive potential ordinary shares. There is no difference between the profit for the year attributable to equity holders of the parent used in the basic and diluted earnings per share calculations.

The weighted average number of shares used in calculating basic and diluted earnings per share are shown below.

	2024 Number of ordinary shares	2023 Number of ordinary shares
Weighted average number of ordinary shares used in the calculation of basic earnings per share	672,458,761	670,224,113
Weighted average number of ordinary shares used in the calculation of diluted earnings per share	691,730,988	685,760,649

14) Dividends

Dividends paid in the year

Company	2024 £m	2023 £m
Final dividend for FY2023 - 12.10p (FY2022: 12.10p)	85.9	84.8
Interim dividend FY2024 - 4.80p (FY2023: 4.80p)	34.0	33.6
	119.9	118.4

In addition, the Group paid £4.5 million (FY2023: £3.3 million) of dividends to non-controlling interests.

Dividends declared/proposed in respect of the year

Company	2024 pence	2023 pence
Interim dividend per share paid	4.80	4.80
Final dividend per share proposed	12.10	12.10
	16.90	16.90

On 4 September 2024, the Board proposed a final dividend of 12.10 pence per share for the year ended 30 June 2024 (30 June 2023: 12.10 pence final dividend proposed). This has not been recognised as a liability of the Group at the year end as it has not yet been approved by shareholders. Based on the number of shares in issue at the year end that qualify to receive a dividend, the total amount payable would be £85.1 million.

15) Goodwill and intangible assets

Group	Goodwill £m	Fund management intangible assets £m	Total £m
Cost (at original exchange rate)
At 30 June 2023	70.4	0.9	71.3
Disposal	(0.2)	(0.9)	(1.1)
At 30 June 2024	70.2	-	70.2
Accumulated amortisation and impairment
At 30 June 2022	-	(0.6)	(0.6)
Amortisation charge for the year	-	(0.1)	(0.1)
At 30 June 2023	-	(0.7)	(0.7)
Amortisation charge for the year	-	(0.1)	(0.1)
Disposal	-	0.8	0.8
At 30 June 2024	-	-	-
Net book value
At 30 June 2022	90.5	0.4	90.9
Accumulated amortisation for the year	-	(0.1)	(0.1)
Foreign exchange revaluation through reserves*	(3.8)	(0.1)	(3.9)
At 30 June 2023	86.7	0.2	86.9
Accumulated amortisation for the year	-	(0.1)	(0.1)
Disposal	(0.2)	(0.1)	(0.3)
Foreign exchange revaluation through reserves*	0.5	-	0.5
At 30 June 2024	87.0	-	87.0

 

*	Foreign exchange revaluation through reserves is a result of the retranslation of US dollar-denominated intangibles and goodwill.

 

Company	Goodwill £m
Cost
At the beginning and end of the year	4.1
Net carrying amount at 30 June 2024 and 2023	4.1

 

Goodwill impairment review

The Group's goodwill balance relates to the acquisition of subsidiaries. The Company's goodwill balance relates to the acquisition of the business from ANZ in 1999. During the year the Group disposed of its interest in Ashmore Avenida Investments (Real Estate) LLP and as a result derecognised the attributable goodwill of £0.2 million and intangible assets of £0.1 million.

The Group's goodwill is allocated to a single cash-generating unit. Goodwill is tested for impairment at least annually or whenever there is an indication that the carrying amount may not be recoverable. The key assumption used to determine the recoverable amount is based on fair value less costs of disposal calculation using the Company's market share price.

An annual impairment review of goodwill was undertaken for the year ending 30 June 2024, and no factors indicating potential impairment of goodwill were noted.

Based on the calculation as at 30 June 2024 using a market share price of £1.70, the recoverable amount was in excess of the carrying value of goodwill and no impairment was implied. In addition, the sensitivity of the recoverable amount to a 15% change in the Company's market share price will not lead to any impairment. Therefore, no impairment loss has been recognised in the current or preceding years.

16) Property, plant and equipment

The Group's property, plant and equipment include right-of-use assets recognised on lease arrangements as follows:

	Group £m	Company £m
Property, plant and equipment owned by the Group	1.3	0.6
Right-of-use assets	6.0	2.0
Net book value at 30 June 2024	7.3	2.6

The movement in property, plant and equipment is provided below:

Group	2024 Property, plant and equipment £m	2023 Property, plant and equipment £m
Cost
At the beginning of the year	23.0	23.0
Additions	3.9	0.6
Retirement of right-of-use assets	(3.2)	-
Foreign exchange revaluation	(0.1)	(0.6)
At the end of the year	23.6	23.0
Accumulated depreciation
At the beginning of the year	16.5	13.9
Depreciation charge for the year	2.9	3.0
Retirement of right-of-use assets	(3.0)	-
Foreign exchange revaluation	(0.1)	(0.4)
At the end of the year	16.3	16.5
Net book value at 30 June	7.3	6.5

 

Company	2024 Property, plant and equipment £m	2023 Property, plant and equipment £m
Cost
At the beginning of the year	14.2	13.9
Additions	0.2	0.3
At the end of the year	14.4	14.2
Accumulated depreciation
At the beginning of the year	10.1	8.4
Depreciation charge for year	1.7	1.7
At the end of the year	11.8	10.1
Net book value at 30 June	2.6	4.1

Lease arrangements

The Group leases office space in various countries and enters into lease agreements on office premises with remaining lease periods of one to six years. Lease terms are negotiated on an individual basis and contain varying terms and conditions depending on location. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. The Group calculates the lease liabilities using the lessee's incremental borrowing rates that resulted in a weighted average incremental borrowing rate of 4.8% (FY2023: 4.9%).

The carrying value of right-of-use assets, lease liabilities and the movement during the year are set out below.

	Group		Company
	Right-of-use assets £m	Lease liabilities £m	Right-of-use assets £m	Lease liabilities £m
At 30 June 2022	7.6	8.0	4.4	4.6
Additions	0.2	0.1	-	-
Lease payments	-	(2.5)	-	(1.3)
Interest expense (note 8)	-	0.3	-	0.1
Depreciation charge	(2.4)	-	(1.2)	-
Foreign exchange revaluation through reserves	(0.1)	(0.1)	-	-
At 30 June 2023	5.3	5.8	3.2	3.4
Additions	3.1	3.1	-	-
Remeasurement	(0.2)	(0.2)	-	-
Lease payments	-	(2.5)	-	(1.3)
Interest expense (note 8)	-	0.3	-	0.1
Depreciation charge	(2.1)	-	(1.2)	-
Foreign exchange revaluation through reserves	(0.1)	(0.1)	-	-
At 30 June 2024	6.0	6.4	2.0	2.2

The contractual maturities on the minimum lease payments under lease liabilities are provided below:

	Group		Company
Maturity analysis - contractual undiscounted cash flows	30 June 2024 £m	30 June 2023 £m	30 June 2024 £m	30 June 2023 £m
Within 1 year	2.4	2.4	1.3	1.3
Between 1 and 5 years	3.9	3.9	1.0	2.3
Later than 5 years	0.9	-	-	-
Total undiscounted lease liabilities	7.2	6.3	2.3	3.6
Lease liabilities are presented in the balance sheet as follows:
Current	1.9	2.1	1.2	1.2
Non-current	4.5	3.7	1.0	2.2
Total lease liabilities	6.4	5.8	2.2	3.4
Amounts recognised under financing activities in the cash flow statement:
Payment of lease liabilities	2.2	2.2	1.2	1.2
Interest paid	0.3	0.3	0.1	0.1
Total cash outflow for leases	2.5	2.5	1.3	1.3

 

 

17) Trade and other receivables

	Group		Company
	2024 £m	2023 £m	2024 £m	2023 £m
Trade debtors	48.7	60.7	2.4	2.1
Prepayments	3.3	4.4	1.7	1.9
Amounts due from subsidiaries	-	-	31.3	10.4
Loans due from subsidiaries	-	-	319.7	266.4
Other receivables	8.3	5.3	6.9	3.6
Total trade and other receivables	60.3	70.4	362.0	284.4

Group trade debtors include accrued management and performance fees in respect of investment management services provided up to 30 June 2024. Management fees are received in cash when the funds' net asset values are determined, typically every month or every quarter. The majority of fees are deducted from the net asset values of the respective funds by independent administrators and therefore the credit risk of fee receivables is minimal. As at 30 June 2024, the assessed provision for expected credit losses was immaterial and the Group has not recognised any credit losses in the current year (30 June 2023: none).

Amounts due from subsidiaries for the Company represent intercompany trading balances that are repayable within one year.

Loans due from subsidiaries for the Company include an intercompany loan related to the provision of funding for seed capital investments and cash invested by subsidiaries in daily-traded investment funds. Loans due from subsidiaries included within non-current assets amounted to £196.3 million as at 30 June 2024 (30 June 2023: £167.8 million included within non-current assets). The intercompany loans are repayable on demand, accrue interest at market rates and the amounts classified as current are regularly settled during the year. In line with the Company's historical experience, and after consideration of current credit exposures, the Company does not expect to incur any credit losses and has not recognised any credit losses in the current year (30 June 2023: none).

18) Deferred taxation

Deferred tax assets and liabilities recognised by the Group and Company at year end are attributable to the following:

	2024			2023
Group	Other temporary differences £m	Share-based payments £m	Total £m	Other temporary differences £m	Share-based payments £m	Total £m
Deferred tax assets	6.3	12.6	18.9	11.0	12.9	23.9
Deferred tax liabilities	(8.9)	-	(8.9)	(9.3)	-	(9.3)
	(2.6)	12.6	10.0	1.7	12.9	14.6
	2024			2023
Company	Other temporary differences £m	Share-based payments £m	Total £m	Other temporary differences £m	Share-based payments £m	Total £m
Deferred tax assets	-	11.4	11.4	-	11.6	11.6

Deferred taxes at the balance sheet date reflected in these financial statements have been measured using the relevant enacted or substantively enacted tax rate for the year in which they are expected to be realised or settled. Deferred tax assets on share-based payments represent tax deductible amounts on shares expected to vest in future periods, and are measured based on the market value of shares as at 30 June 2024.

 

Movement of deferred tax balances

The movement in the deferred tax balances between the balance sheet dates has been reflected in the consolidated statement of comprehensive income as follows:

Group	Other temporary differences £m	Share-based payments £m	Total £m
At 30 June 2022	3.7	20.2	23.9
Credited/(charged) to the consolidated statement of comprehensive income	(1.8)	(7.3)	(9.1)
Foreign exchange revaluation	(0.2)	-	(0.2)
At 30 June 2023	1.7	12.9	14.6
Charged to the consolidated statement of comprehensive income	(3.8)	(0.3)	(4.1)
Foreign exchange revaluation	(0.5)	-	(0.5)
At 30 June 2024	(2.6)	12.6	10.0
Company	Other temporary differences £m	Share-based payments £m	Total £m
At 30 June 2022	-	18.2	18.2
Charged to the consolidated statement of comprehensive income	-	(6.6)	(6.6)
At 30 June 2023	-	11.6	11.6
Charged to the consolidated statement of comprehensive income	-	(0.2)	(0.2)
At 30 June 2024	-	11.4	11.4

19) Fair value of financial instruments

The Group has an established control framework with respect to the measurement of fair values. This framework includes committees that have overall responsibility for all significant fair value measurements. Each committee regularly reviews significant inputs and valuation adjustments. If third-party information is used to measure fair value, the committee assesses and documents the evidence obtained from the third parties to support such valuations. There are no material differences between the carrying amounts of financial assets and liabilities and their fair values at the balance sheet date.

Fair value hierarchy

The Group measures fair values using the following fair value levels that reflect the significance of inputs used in making the measurements, based on the degree to which the fair value is observable:

-	Level 1: Valuation is based upon a quoted market price in an active market for an identical instrument. This fair value measure relates to the valuation of quoted and exchange traded equity and debt securities.
-	Level 2: Valuation techniques are based upon observable inputs, either directly (i.e. as prices) or indirectly (i.e. derived from prices). This fair value measure relates to the valuation of quoted equity securities in inactive markets or in interests in unlisted funds whose net asset values are referenced to the fair values of the listed or exchange traded securities held by those funds. Valuation techniques may include using a broker quote in an inactive market or an evaluated price based on a compilation of primarily observable market information utilising information readily available via external sources.
-	Level 3: Fair value measurements are derived from valuation techniques that include inputs not based on observable market data.

For financial instruments that are recognised at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of the financial year.

The fair value hierarchy of financial instruments which are carried at fair value at year end is summarised below:

	2024				2023
	Level 1 £m	Level 2 £m	Level 3 £m	Total £m	Level 1 £m	Level 2 £m	Level 3 £m	Total £m
Financial assets
Investment securities	98.1	75.1	27.7	200.9	112.3	88.8	28.8	229.9
Financial assets at FVTPL - non-current	-	28.3	29.3	57.6	-	14.9	39.2	54.1
Financial assets at FVTPL - current	-	32.8	-	32.8	-	55.8	-	55.8
Derivative financial instruments	-	0.2	-	0.2	-	-	-	-
	98.1	136.4	57.0	291.5	112.3	159.5	68.0	339.8
Financial liabilities
Third-party interests in consolidated funds	24.9	4.0	10.5	39.4	36.0	9.6	10.6	56.2
Derivative financial instruments	-	-	-	-	-	0.2	-	0.2
	24.9	4.0	10.5	39.4	36.0	9.8	10.6	56.4

Financial instruments not measured at fair value

Financial assets and liabilities that are not measured at fair value include cash and cash equivalents, term deposits, trade and other receivables, and trade and other payables. The carrying value of financial assets and financial liabilities not measured at fair value is considered a reasonable approximation of fair value as at 30 June 2024 and 2023.

Transfers between levels

The Group recognises transfers into and transfers out of fair value hierarchy levels at each reporting date. There were no transfers between level 1, level 2 and level 3 of the fair value hierarchy during the year (FY2023: none).

Fair value measurements using significant unobservable inputs (level 3)

The following table presents the changes in level 3 financial assets and liabilities for the years ended 30 June 2024 and 2023:

	Investment securities £m	Financial assets at    FVTPL - non-current £m	Third-party interests in consolidated funds £m
At 30 June 2022	23.6	39.3	8.3
Additions	2.5	2.9	1.2
Disposals	(9.1)	(5.0)	(3.8)
Unrealised gains recognised in finance income	12.0	2.0	4.9
Unrealised losses recognised in foreign exchange reserve	(0.2)	-	-
At 30 June 2023	28.8	39.2	10.6
Additions	-	3.2	1.2
Disposals	(7.7)	(21.0)	(3.3)
Unrealised gains recognised in finance income	6.2	7.7	2.0
Unrealised gains recognised in foreign exchange reserve	0.4	0.2	-
At 30 June 2024	27.7	29.3	10.5

Valuation of financial assets measured at fair value on a recurring basis categorised within level 3

Investments valued using valuation techniques include financial investments which, by their nature, do not have an externally quoted price based on regular trades, and financial investments for which markets are no longer active as a result of market conditions, e.g. market illiquidity. The valuation techniques used include comparison to recent arm's length transactions, market approach making reference to other instruments that are substantially the same, discounted cash flow analysis, enterprise valuation and net assets approach. These techniques may include a number of assumptions relating to variables such as interest rate and price earnings multiples. Changes in assumptions relating to these variables could positively or negatively impact the reported fair value of these instruments. When determining the inputs into the valuation techniques used, priority is given to publicly available prices from independent sources when available, but overall the source of pricing is chosen with the objective of arriving at a fair value measurement that reflects the price at which an orderly transaction would take place between market participants on the measurement date.

The fair value estimates are made at a specific point in time, based upon available market information and judgements about the financial instruments, including estimates of the timing and amount of expected future cash flows. Such estimates could include a marketability adjustment to reflect illiquidity and/or non-transferability that could result from offering for sale at one time the Group's entire holdings of a particular financial instrument.

The following tables show the valuation techniques and the significant unobservable inputs used to estimate the fair value of level 3 investments as at 30 June 2024 and 2023, and the associated sensitivity to changes in unobservable inputs to a reasonable alternative.

Asset class and valuation technique	2024 Fair value £m		Significant unobservable inputs		Range of estimates		Sensitivity factor	Change in fair value £m
Unquoted securities
Market approach	5.8		EBITDA multiple		16x		+/- 1x	+/- 0.3
			Marketability adjustment		30%		+/- 5%	-/+ 0.7
Discounted cash flow	20.0		Discount rate		10%-18%		+/- 1%	-/+ 1.0
			Marketability adjustment		30%-54%		+/- 5%	-/+ 2.2
Unquoted funds
Net assets approach	31.2		NAV1		1x		+/- 5%	+/- 1.6
Total financial assets within level 3	57.0
Third-party interests in consolidated funds	(10.5)		NAV1		1x		+/- 5%	-/+ 0.5

 

 

Asset class and valuation technique	2023 Fair value £m		Significant unobservable inputs		Range of estimates		Sensitivity factor	Change in fair value £m
Unquoted securities
Market approach	6.4		EBITDA multiple		15x		+/- 1x	+/- 0.6
			Marketability adjustment		30%		+/- 5%	-/+ 0.7
Discounted cash flow	32.3		Discount rate		10%-17%		+/- 1%	-/+ 3.0
			Marketability adjustment		10%-54%		+/- 5%	-/+ 2.8
Unquoted funds
Net assets approach	29.3		NAV1		1x		+/- 5%	+/- 1.5
Total financial assets within level 3	68.0
Third-party interests in consolidated funds	(10.6)		NAV1		1x		+/- 5%	-/+ 0.5

1.                     NAV priced assets include seed capital investments whose value is determined by the fund administrator using unobservable inputs. The significant unobservable inputs applied include EBITDA, market multiples, last observable vendor price and discount rates.

The sensitivity demonstrates the effect of a change in one unobservable input while other assumptions remain unchanged. There may be a correlation between the unobservable inputs and other factors that have not been considered. It should also be noted that some of the sensitivities are non-linear, therefore larger or smaller impacts should not be interpolated or extrapolated from these results.

20) Seed capital investments

The Group considers itself a sponsor of an investment fund when it facilitates the establishment of a fund in which the Group is the investment manager. The Group ordinarily provides seed capital in order to provide initial scale and facilitate marketing of the funds to third-party investors. Aggregate interests held by the Group include seed capital, management fees and performance fees. The Group generates management and performance fee income from managing the assets on behalf of third-party investors.

The movements of seed capital investments and related items during the year are as follows:

Group	Financial assets at FVTPL - current £m	Investment  securities  (relating to  consolidated  funds) £m	Other (relating to consolidated  funds)1 £m	Third-party interests in consolidated funds £m	Financial assets at FVTPL - non-current2 £m	Total £m
Carrying amount at 30 June 2022	32.3	265.1	11.1	(73.0)	36.5	272.0
Additions	23.0	22.8	-	(1.4)	19.5	63.9
Disposals	-	(23.3)	-	3.7	(5.0)	(24.6)
Fair value movement	0.5	(34.7)	(0.5)	14.5	0.4	(19.8)
Carrying amount at 30 June 2023	55.8	229.9	10.6	(56.2)	51.4	291.5
Transfers from consolidated funds to FVTPL	18.1	(21.0)	-	2.9	-	-
Transfers from FVTPL to consolidated funds	(21.4)	23.4	-	(2.0)	-	-
Additions	9.5	-	-	(0.4)	4.2	13.3
Disposals	(33.4)	(29.0)	-	12.1	(18.4)	(68.7)
Fair value movement	4.2	(2.4)	(4.6)	4.2	20.1	21.5
Carrying amount at 30 June 2024	32.8	200.9	6.0	(39.4)	57.3	257.6

 

1.	Relates to cash and other assets in consolidated funds that are not investment securities, see note 20(c).
2.	Excludes £0.3 million (30 June 2023: £2.7 million) of other non-current financial assets measured at fair value that are not classified as seed capital.

a) Financial assets at FVTPL - current

Where Group companies invest seed capital into funds managed by the Group and the Group concludes it does not have control over the fund, the interests in the funds are recognised as financial assets and measured at FVTPL.

If the Group retains control over the fund in accordance with the requirements of IFRS 10, the seed capital investment will cease to be classified as a financial asset, and will be consolidated line by line after it is assessed and concluded that the Group has control over the investment fund.

Investments cease to be classified as consolidated funds when they are no longer controlled by the Group. A loss of control may happen through sale of the investment and/or dilution of the Group's holding. During the year two consolidated funds with an aggregate value of £18.1 million were transferred to the FVTPL category (FY2023: none). In addition, four funds with an aggregate value of £21.4 million were transferred from the FVTPL category to consolidated funds as they met the control requirements under IFRS 10.

 

FVTPL investments at 30 June 2024 comprise shares held in debt and equity funds as follows:

	2024 £m	2023 £m
Equity funds	23.5	29.6
Debt funds	9.3	26.2
Total	32.8	55.8

Included within finance income are gains of £4.7 million (FY2023: gains of £2.6 million) on the Group's financial assets measured at FVTPL.

b) Financial assets at FVTPL - non-current

Non-current financial assets include the Group's interests in funds that are expected to be realised by within a period longer than 12 months from the balance sheet date.

	2024 £m	2023 £m
Infrastructure funds	25.0	22.0
Debt funds	27.3	14.9
Other funds	5.0	14.5
Total1	57.3	51.4

 

1.	Excludes £0.3 million (30 June 2023: £2.7 million) of other non-current financial assets measured at fair value that are not classified as seed capital.

Included within finance income are gains of £19.1 million (FY2023: gains of £1.4 million) on the Group's non-current financial assets measured at fair value.

c) Consolidated funds

The Group has consolidated 18 investment funds as at 30 June 2024 (30 June 2023: 17 investment funds), over which the Group is deemed to have control (refer to note 25). Consolidated funds represent seed capital investments where the Group interest represents a controlling stake in the fund in accordance with IFRS 10. Consolidated fund assets and liabilities are presented line by line after intercompany eliminations. The table below sets out an analysis of the carrying amounts of fund assets and liabilities consolidated by the Group.

	2024 £m	2023 £m
Investment securities1	200.9	229.9
Cash and cash equivalents	6.1	10.3
Other2	(0.1)	0.3
Third-party interests in consolidated funds	(39.4)	(56.2)
Consolidated seed capital investments	167.5	184.3

 

1.	Investment securities represent trading securities held by consolidated investment funds and are measured at FVTPL. Note 25 provides a list of the consolidated funds by asset class, and further detailed information at the security level is available in the individual fund financial statements.
2.	Other includes trade receivables, trade payables and accruals.

The maximum exposure to loss is the carrying amount of the assets held. The Group has not provided financial support or otherwise agreed to be responsible for supporting any consolidated or unconsolidated funds financially.

Included within the consolidated statement of comprehensive income is net loss of £4.7 million (FY2023: net loss of £15.3 million) relating to the results of the consolidated funds for the year, as follows:

	2024 £m	2023 £m
Fair value losses on investment securities	(30.5)	(44.3)
Third-party interests' share of losses in consolidated funds	13.3	19.3
Net losses on investment securities	(17.2)	(25.0)
Investment income	13.9	11.0
Audit fees	(0.2)	(0.2)
Operating expenses	(1.2)	(1.1)
Net loss on consolidated funds	(4.7)	(15.3)

Included in the Group's cash generated from operations is £1.0 million cash utilised in operations (FY2023: £0.1 million cash utilised in operations) relating to consolidated funds.

As of 30 June 2024, the Group's consolidated funds were domiciled in Guernsey, Luxembourg, Indonesia and the United States.

 

21) Financial instrument risk management

Group

The Group is subject to strategic and business, client, investment, treasury and operational risks throughout its business, as discussed in the Risk management section. This note discusses the Group's exposure to and management of the following principal risks which arise from the financial instruments it uses: credit risk, liquidity risk, interest rate risk, foreign exchange risk and price risk. Where the Group holds units in investment funds, classified either as financial assets measured at FVTPL or non-current financial assets, the related financial instrument risk disclosures in the note below categorise exposures based on the Group's direct interest in those funds without looking through to the nature of underlying securities.

Risk management is the ultimate responsibility of the Board, as noted in the Risk management section.

Capital management

It is the Group's policy that all entities within the Group have sufficient capital to meet regulatory and working capital requirements and it conducts regular reviews of its capital requirements relative to its capital resources. The Group considers its share capital and reserves to constitute its total capital.

Ashmore reports under IFPR and applies the ICARA approach to the calculation of the capital and liquidity requirement for its UK regulated entity, AIML. The Board has determined that the capital required to support the Group's activities as at 30 June 2024, including its regulatory requirements, is £97.0 million (30 June 2023: £80.6 million).  

Ashmore holds total capital resources of £696.2 million as at 30 June 2024, providing an excess of £599.2 million over the Group capital requirement (30 June 2023: £704.8 million, providing an excess of £624.2 million over the Group capital requirement).

Credit risk

The Group has exposure to credit risk from its normal activities where the risk is that a counterparty will be unable to pay in full amounts when due.

Exposure to credit risk is monitored on an ongoing basis by senior management and the Group's Risk Management and Control function. The Group has a counterparty and cash management policy in place which, in addition to other controls, restricts exposure to any single counterparty by setting exposure limits and requiring approval and diversification of counterparty banks and other financial institutions. The Group's maximum exposure to credit risk is represented by the carrying value of its financial assets measured at amortised cost, excluding prepayments. The table below lists financial assets subject to credit risk.

	Notes	2024 £m	2023 £m
Cash and cash equivalents		308.0	478.6
Term deposits		203.8	-
Cash and deposits		511.8	478.6
Trade and other receivables	17	57.0	66.0
Total		568.8	544.6

The Group's cash and cash equivalents and term deposits are predominantly held with counterparties with credit ratings ranging from A to AAAm as at 30 June 2024 (30 June 2023: A- to AAAm). As at 30 June 2024, the Group held £213.2 million (30 June 2023: £56.8 million) in the Ashmore Global Liquidity Fund.

Term deposits have an average annual interest rate of 5.7% and average remaining maturity term of three months as at 30 June 2024.

All trade and other receivables are considered to be fully recoverable at year end. They include fee debtors that arise principally within the Group's investment management business. They are monitored regularly and, historically, default levels have been insignificant. There is no significant concentration of credit risk in respect of fees owing from clients.

Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with its financial liabilities that are settled by delivering cash or other financial assets.

The Group produces cash flow forecasts to assist in the efficient management of the receipt and payment of liquid assets and liabilities. The Group invests surplus cash held by the operating entities over and above the amounts required for working capital management in interest-yielding liquidity funds and term deposits. The Group ensures that liquid assets are maintained in all regulated subsidiaries to meet regulatory requirements. The Group does not have any debt as at 30 June 2024 (30 June 2023: none).

In order to manage liquidity risk, there is a Group liquidity policy to ensure that there is sufficient access to funds to cover all forecast committed requirements for the next 12 months.

The table below summarises the maturity profile of the Group's financial liabilities at 30 June 2024 and 30 June 2023 based on contractual undiscounted payments:

 

At 30 June 2024

	Within 1 year £m	1-5 years £m	More than 5 years £m	Total £m
Current trade and other payables	34.2	-	-	34.2
Lease liabilities	2.4	3.9	0.9	7.2
Total	36.6	3.9	0.9	41.4

At 30 June 2023

	Within 1 year £m	1-5 years £m	More than 5 years £m	Total £m
Current trade and other payables	24.2	-	-	24.2
Lease liabilities	2.4	3.9	-	6.3
Total	26.6	3.9	-	30.5

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in market interest rates.

The principal interest rate risk is the risk that the Group will sustain a reduction in interest income through adverse movements in interest rates. This relates to deposits with banks and liquidity funds held in the ordinary course of business. The Group has a cash management policy which monitors cash levels and returns within set parameters on a continuing basis.

The effective interest earned on bank balances and term deposits during the year is given in the table below:

	2024 %	2023 %
Deposits with banks and liquidity funds	5.18	3.22

At 30 June 2024, if interest rates over the year had been 50 basis points higher/lower with all other variables held constant, profit before tax for the year would have been £2.4 million higher/lower (FY2023: £2.5 million higher/lower), mainly as a result of higher/lower interest on cash balances.

In addition, the Group is indirectly exposed to interest rate risk where the Group holds seed capital investments in funds that invest in debt securities.

Foreign exchange risk

Foreign exchange risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in foreign exchange rates.

The Group's revenue is almost entirely denominated in US dollars, while the majority of the Group's costs are denominated in Sterling. Consequently, the Group has an exposure to movements in the GBP:USD exchange rate. In addition, the Group operates globally, which means that it may enter into contracts and other arrangements denominated in local currencies in various countries. The Group also holds a number of seed capital investments denominated mainly in US dollars, Colombian pesos and Indonesian rupiah.

The Group's policy is to hedge a proportion of the Group's revenue by using a combination of forward foreign exchange contracts and options for a period of up to two years forward. The Group also sells US dollars at spot rates when opportunities arise.

The table below shows the Group's sensitivity to a 5% exchange movement in the US dollar, Colombian peso, Indonesian rupiah, Saudi riyal and the Euro, net of hedging activities.

	2024		2023
Foreign currency sensitivity test	Impact on profit before tax £m	Impact on equity £m	Impact on profit before tax £m	Impact on equity £m
US dollar +/- 5%	1.6	17.1	2.0	12.5
Colombian peso +/- 5%	0.1	0.9	0.2	0.8
Indonesian rupiah +/- 5%	0.1	0.5	-	0.5
Saudi riyal +/- 5%	0.5	0.9	0.4	1.0
Euro +/- 5%	0.4	0.3	0.3	0.3

Price risk

Price risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of market changes.

Seed capital

The Group is exposed to the risk of changes in market prices in respect of seed capital investments. Such price risk is borne by the Group directly through interests in financial assets measured at fair value or through consolidation of underlying results, assets and liabilities of consolidated funds. Details of seed capital investments held are given in note 20.

The Group has procedures defined by the Board governing the appraisal, approval and monitoring of seed capital investments.

At 30 June 2024, a 5% movement in the fair value of these investments would have a £12.9 million (FY2023: £14.6 million) impact on profit before tax.

Management and performance fees

The Group is also indirectly exposed to price risk in connection with the Group's management fees, which are based on a percentage of value of AuM, and fees based on performance. Movements in market prices, exchange and interest rates could cause the AuM to fluctuate, which in turn could affect fees earned. Performance fee revenues could also be reduced depending upon market conditions.

Management and performance fees are diversified across a range of investment themes and are not measurably correlated to any single market index in Emerging Markets. In addition, the policy of having funds with year ends staged throughout the financial year has meant that in periods of steep market decline, some performance fees have still been recorded. The profitability impact is likely to be less than this, as cost mitigation actions would apply, including the reduction of the variable compensation paid to employees.

Using the year end AuM level of US$49.3 billion and applying the year's average net management fee rate of 39bps, a 5% movement in AuM would have a US$9.5 million impact, equivalent to £7.5 million using a year end exchange rate of 1.2641, on management fee revenues (FY2023: US$55.9 billion and applying the year's average net management fee rate of 38bps, a 5% movement in AuM would have a US$10.6 million impact, equivalent to £8.3 million using a year end exchange rate of 1.2714, on management fee revenues).

Hedging activities

The Group uses forward and option contracts to hedge its exposure to foreign currency risk. These hedges, which have been assessed as effective cash flow hedges as at 30 June 2024, protect a proportion of the Group's revenue cash flows from foreign exchange movements. The cumulative fair value of the outstanding foreign exchange hedges asset at 30 June 2024 was £0.1 million and is included within the Group's derivative financial instruments (30 June 2023: £0.2 million foreign exchange hedges asset included in derivative financial instruments).

The notional and fair values of foreign exchange hedging instruments were as follows:

	2024		2023
	Notional amount US$m	Fair value assets/ (liabilities) £m	Notional amount US$m	Fair value assets/ (liabilities) £m
Cash flow hedges
Foreign exchange nil-cost option collars	40.0	0.1	40.0	0.2
	40.0	0.1	40.0	0.2

The maturity profile of the Group's outstanding hedges is shown below.

Notional amount of option collars maturing:	2024 US$m	2023 US$m
Within 6 months	20.0	30.0
Between 6 and 12 months	20.0	10.0
Later than 12 months	-	-
	40.0	40.0

When hedges are assessed as effective, intrinsic value gains and losses are initially recognised in other comprehensive income and later reclassified to profit or loss as the corresponding hedged cash flows crystallise. Time value in relation to the Group's hedges is excluded from being part of the hedging item and, as a result, the net unrealised loss related to the time value of the hedges is recognised in profit or loss for the year.

No intrinsic value gain or loss (FY2023: £4.9 million gain) on the Group's hedges has been recognised through other comprehensive income in the year and a £0.1 million intrinsic value loss (FY2023: £0.5 million intrinsic value gain) was reported in profit or loss within finance exchange in the year.

Included within the net realised and unrealised hedging gain of £1.0 million (note 7) recognised at 30 June 2024 (30 June 2023: £4.4 million gain) are:

-	a £0.1 million loss in respect of foreign exchange hedges covering net management fee income for the financial year ending 30 June 2024 (FY2023: £0.5 million gain); and
-	a £1.1 million gain in respect of crystallised foreign exchange contracts (FY2023: £3.9 million gain).

 

Company

The risk management processes of the Company, including those relating to the specific risk exposures covered below, are aligned with those of the Group as a whole unless stated otherwise.

In addition, the risk definitions that apply to the Group are also relevant for the Company.

 

Credit risk

The Company's maximum exposure to credit risk is represented by the carrying value of its financial assets measured at amortised cost, excluding prepayments. The table below lists financial assets subject to credit risk.

	Notes	2024 £m	2023 £m
Cash and cash equivalents		20.1	327.7
Term deposits		202.0	-
Cash and deposits		222.1	327.7
Trade and other receivables	17	360.3	282.5
Total		582.4	610.2

The Company's cash and cash equivalents term deposits are held with counterparties which have credit ratings ranging from A to AAAm as at 30 June 2024 (30 June 2023: A- to AAAm).

Term deposits have an average annual interest rate of 5.6% and average remaining maturity term of three months as at 30 June 2024.

All trade and other receivables are considered to be fully recoverable and none were overdue at year end (30 June 2023: none overdue).

Liquidity risk

The Company's exposure to liquidity risk is not considered to be material and, therefore, no further information is provided.

Details on other commitments are provided in note 29.

Interest rate risk

The principal interest rate risk for the Company is that it could sustain a reduction in interest revenue from bank deposits held in the ordinary course of business through adverse movements in interest rates.

The effective interest earned on bank balances and term deposits during the year is given in the table below:

	2024 %	2023 %
Deposits with banks and liquidity funds	5.73	4.17

At 30 June 2024, if interest rates over the year had been 50 basis points higher/lower with all other variables held constant, profit before tax for the year would have been £1.4 million higher/lower (FY2023: £1.2 million higher/lower), mainly as a result of higher/lower interest on cash balances.

Foreign exchange risk

The Company is exposed primarily to foreign exchange risk in respect of US dollar cash balances and US dollar-denominated intercompany balances. However, such risk is not hedged by the Company.

At 30 June 2024, if the US dollar had strengthened/weakened by 5% against Sterling with all other variables held constant, profit before tax for the year would have increased/decreased by £16.5 million (FY2023: increased/decreased by £11.9 million).

22) Share capital

Authorised share capital

Group and Company	2024 Number of shares	2024 Nominal value £'000	2023 Number of shares	2023  Nominal value £'000
Ordinary shares of 0.01p each	900,000,000	90	900,000,000	90

Issued share capital - allotted and fully paid

Group and Company	2024 Number of shares	2024 Nominal value £'000	2023 Number of shares	2023  Nominal value £'000
Ordinary shares of 0.01p each	712,740,804	71	712,740,804	71

All the above ordinary shares represent equity of the Company and rank pari passu in respect of participation and voting rights.

At 30 June 2024, there were equity-settled share awards issued under the Omnibus Plan totalling 47,014,898 (30 June 2023: 39,389,867) shares that have release dates ranging from September 2024 to September 2028. Further details are provided in note 10.

23) Own shares

The Trustees of the Ashmore 2004 Employee Benefit Trust (EBT) acquire and hold shares in Ashmore Group plc with a view to facilitating the vesting of share awards. As at 30 June 2024, the EBT owned 49,481,410 (30 June 2023: 50,834,683) ordinary shares of 0.01p with a nominal value of £4,948 (30 June 2023: £5,083) and shareholders' funds are reduced by £149.5 million (30 June 2023: £164.2 million) in this respect. The EBT is periodically funded by the Company for these purposes.

 

24) Trade and other payables

	Group 2024 £m	Group 2023 £m	Company 2024 £m	Company 2023 £m
Current
Trade payables	15.5	13.3	3.4	3.0
Accruals and provisions	18.7	10.9	9.1	4.5
Amounts due to subsidiaries	-	-	11.1	20.5
Total trade and other payables	34.2	24.2	23.6	28.0

25) Interests in subsidiaries

Operating subsidiaries held by the Company

There were no movements in investment in subsidiaries held by the Company during the year.

Company	2024 £m	2023 £m
Cost
At 30 June 2024 and 2023	19.9	19.9

In the opinion of the Directors, the following subsidiary undertakings principally affected the Group's results or balance sheet at 30 June 2024. A full list of the Group's subsidiaries and all related undertakings is disclosed in note 33.

Name	Country of incorporation/ formation and principal place of operation	% of equity shares held by the Group
Ashmore Investments (UK) Limited	England	100.00
Ashmore Investment Management Limited	England	100.00
Ashmore Investment Advisors Limited	England	100.00
Ashmore Management Company Colombia SAS	Colombia	58.34
Ashmore CAF-AM Management Company SAS	Colombia	52.78
Ashmore Management Company Limited	Guernsey	100.00
Ashmore Investment Management India LLP	India	100.00
PT Ashmore Asset Management Indonesia Tbk	Indonesia	60.04
Ashmore Investment Management (Ireland) Limited	Ireland	100.00
Ashmore Japan Co. Limited	Japan	100.00
Ashmore Investments Saudi Arabia	Saudi Arabia	100.00
Ashmore Investment Management (Singapore) Pte. Ltd.	Singapore	100.00
Ashmore Investment Management (US) Corporation	USA	100.00
Ashmore Investment Advisors (US) Corporation	USA	100.00

Consolidated funds

The Group consolidated the following 18 investment funds as at 30 June 2024 (30 June 2023: 17 investment funds) over which the Group is deemed to have control:

Name	Type of fund	Country of incorporation/ principal place of operation	Proportion of ownership interest %
Ashmore Emerging Markets Debt and Currency Fund Limited	Alternatives	Guernsey	57.72
Ashmore SICAV Emerging Markets Corporate Debt ESG Fund	Corporate debt	Luxembourg	100.00
Ashmore SICAV Emerging Markets India Equity Fund	Equity	Luxembourg	100.00
Ashmore SICAV Emerging Markets Global Small-Cap Equity Fund	Equity	Luxembourg	48.01
Ashmore SICAV Emerging Markets Middle East Equity Fund	Equity	Luxembourg	83.46
Ashmore SICAV Emerging Markets Shariah Active Equity Fund	Equity	Luxembourg	78.29
Ashmore SICAV Emerging Markets Indonesian Equity Fund	Equity	Luxembourg	100.00
Ashmore SICAV Emerging Markets Investment Grade Total Return Fund	Blended debt	Luxembourg	100.00
Ashmore SICAV Emerging Markets Total Return Debt Fund 2	Blended debt	Luxembourg	100.00
Ashmore SICAV Emerging Markets Local Currency Bond Fund 2	Local currency	Luxembourg	100.00
Ashmore Dana USD Fixed Income	Local currency	Indonesia	85.76
Ashmore Dana Pasar Uang Syariah	Local currency	Indonesia	99.61
Ashmore Emerging Markets Local Currency Bond Fund	Local currency	USA	84.94
Ashmore Emerging Markets Active Equity Fund	Equity	USA	88.01
Ashmore Emerging Markets Equity ESG Fund	Equity	USA	100.00
Ashmore Emerging Markets Equity Ex China Fund	Equity	USA	100.00
Ashmore Emerging Markets Low Duration Select Fund	Corporate debt	USA	100.00
Ashmore Emerging Markets Debt Fund	Corporate debt	USA	100.00

26) Investment in associates

The Group held an interest in the following associate as at 30 June 2024, over which it continues to have significant influence:

Name	Type	Nature of business	Country of incorporation/ formation and principal place of operation	% of equity shares held by the Group
Taiping Fund Management Company	Associate	Investment management	China	5.23%

The movement in the carrying value of investment in associates for the year is provided below:

Associates	2024 £m	2023 £m
At the beginning of the year	2.3	2.1
Share of profit for the year	0.5	0.5
Foreign exchange revaluation	(0.1)	(0.3)
At the end of the year	2.7	2.3

The summarised financial information for the associate is shown below.

Associates	2024 £m	2023 £m
Total assets	59.7	53.2
Total liabilities	(7.5)	(10.0)
Net assets	52.2	43.2
Group's share of net assets	2.7	2.3
Revenue for the year	20.7	23.6
Profit for the year	9.6	9.6
Group's share of profit for the year	0.5	0.5

The carrying value of the investment in associates represents the cost of acquisition subsequently adjusted for share of profit or loss and other comprehensive income or loss. No permanent impairment is believed to exist relating to the associate as at 30 June 2024. The Group had no undrawn capital commitments (30 June 2023: £nil) to investment funds managed by the associate.

27) Interests in structured entities

The Group has interests in structured entities as a result of the management of assets on behalf of its clients. Where the Group holds a direct interest in a closed-ended fund, private equity fund or open-ended pooled fund such as a SICAV, the interest is accounted for either as a consolidated structured entity or as a financial asset, depending on whether the Group has control over the fund or not.

The Group's interest in structured entities is reflected in the Group's AuM. The Group is exposed to movements in AuM of structured entities through the potential loss of fee income as a result of client withdrawals. Outflows from funds are dependent on market sentiment, asset performance and investor considerations. Further information on these risks can be found in the Strategic report.

Considering the potential for changes in AuM of structured entities, management has determined that the Group's unconsolidated structured entities include segregated mandates and pooled funds vehicles. Disclosure of the Group's exposure to unconsolidated structured entities has been made on this basis.

The reconciliation of AuM reported by the Group within unconsolidated structured entities is shown below.

	Total AuM US$bn	Less: AuM within consolidated funds US$bn	AuM within unconsolidated structured entities US$bn
30 June 2023	55.9	0.3	55.6
30 June 2024	49.3	0.3	49.0

Included in the Group's consolidated management fees of £162.6 million (FY2023: £185.4 million) are management fees amounting to £161.9 million (FY2023: £184.2 million) earned from unconsolidated structured entities.

The table below shows the carrying values of the Group's interests in unconsolidated structured entities, recognised in the Group balance sheet, which are equal to the Group's maximum exposure to loss from those interests.

	2024 £m	2023 £m
Management fees receivable	37.6	37.7
Trade and other receivables	1.5	1.3
Seed capital investments*	90.0	107.2
Total exposure	129.1	146.2

 

*	Comprise financial assets measured at fair value and non-current financial assets measured at fair value (refer to note 20).

 

The main risk the Group faces from its beneficial interests in unconsolidated structured entities arises from a potential decrease in the fair value of seed capital investments. The Group's beneficial interests in seed capital investments are disclosed in note 20. Note 21 includes further information on the Group's exposure to market risk arising from seed capital investments.

28) Related party transactions

Related parties of the Group include key management personnel, close family members of key management personnel, subsidiaries, associates, Ashmore funds, the EBT and The Ashmore Foundation.

Key management personnel - Group and Company

The compensation paid to or payable to key management personnel is shown below:

	2024 £m	2023 £m
Short-term benefits	1.6	0.8
Defined contribution pension costs	-	-
Share-based payment benefits (note 10)	2.0	0.4
	3.6	1.2

Short-term benefits include salary and fees, benefits and cash bonus.

Share-based payment benefits represent the cost of equity-settled awards charged to the consolidated statement of comprehensive income.

Details of the remuneration of Directors are given in the Remuneration report.

During the year, there were no other transactions entered into with key management personnel (FY2023: none). Aggregate key management personnel interests in consolidated funds at 30 June 2024 were £32.2 million (30 June 2023: £44.5 million).

Transactions with subsidiaries - Company

Details of transactions between the Company and its subsidiaries are shown below:

	2024 £m	2023 £m
Transactions during the year
Management fees	57.0	59.7
Net dividends	99.6	145.2
Loans repaid by/(advanced to) subsidiaries	(53.3)	110.5

Amounts receivable or payable to subsidiaries are disclosed in notes 17 and 24 respectively.

Transactions with Ashmore funds - Group

During the year, the Group received £61.7 million of gross management fees and performance fees (FY2023: £64.0 million) from the
96 funds (FY2023: 104 funds) it manages and which are classified as related parties. As at 30 June 2024, the Group had receivables due from funds of £4.9 million (30 June 2023: £4.6 million) that are classified as related parties.

Transactions with the EBT - Group and Company

The EBT has been provided with an interest free loan facility to allow it to acquire Ashmore shares in order to satisfy outstanding unvested share awards. The EBT is included within the results of the Group and the Company. As at 30 June 2024, the loan outstanding was £138.4 million (30 June 2023: £150.7 million).

Transactions with The Ashmore Foundation - Group and Company

The Ashmore Foundation is a related party to the Group. The Foundation was set up to provide financial grants to worthwhile causes within the Emerging Markets countries in which Ashmore invests and/or operates with a view to giving back to the countries and communities. The Group donated £0.6 million to the Foundation during the year (FY2023: £0.5 million).

 

29) Commitments

The Group has undrawn investment commitments relating to seed capital investments as follows:

Group	2024 £m	2023 £m
Ashmore Andean Fund II, LP	0.1	0.1
Ashmore Avenida Colombia Real Estate Fund I (Cayman) LP	-	0.1
Ashmore I - CAF Colombian Infrastructure Senior Debt Fund	4.4	5.7
Fondo Ashmore Andino III - FCP	2.7	3.0
Total undrawn investment commitments	7.2	8.9

Company

The Company has undrawn loan commitments to other Group entities totalling £432.0 million (30 June 2023: £482.5 million) to support their investment activities but has no investment commitments of its own (30 June 2023: none).

30) Contingent assets and liabilities

The Company and its subsidiaries can be party to legal claims arising in the normal course of business. The Directors do not anticipate that the outcome of any such potential proceedings and claims will have a material adverse effect on the Group's financial position and at present there are no such claims where their financial impact can be reasonably estimated. There are no other material contingent assets or liabilities.

31) Non-controlling interests

The Group's material NCI as at 30 June 2024 was held in PT Ashmore Asset Management Indonesia Tbk (Ashmore Indonesia).

Set out below is summarised financial information and the amounts disclosed are before intercompany eliminations.

	40% NCI Ashmore Indonesia
Summarised balance sheet	2024 £m	2023 £m
Total assets	18.4	19.8
Total liabilities	(3.9)	(4.4)
Net assets	14.5	15.4
Non-controlling interests	5.8	6.1
Summarised statement of comprehensive income
Net revenue	10.3	10.9
Profit for the period	5.3	5.1
Other comprehensive loss	(1.2)	(0.9)
Total comprehensive income	4.1	4.2
Profit allocated to NCI	2.1	1.6
Dividends paid to NCI	1.9	2.3
Summarised cash flows
Cash flows from operating activities	5.4	4.6
Cash flows generated from investing activities	2.5	-
Cash flows used in financing activities	(5.2)	(6.3)
Net increase/(decrease) in cash and cash equivalents	2.7	(1.7)

During the year, the Group disposed of its 56% interest in Ashmore Avenida Investments (Real Estate) LLP and therefore derecognised the NCI carrying value of £5.5 million.

32) Post-balance sheet events

There are no post-balance sheet events that require adjustment or disclosure in the Group consolidated financial statements.

 

33) Subsidiaries and related undertakings

The following is a full list of the Ashmore Group plc subsidiaries and related undertakings as at 30 June 2024, along with the registered address and the percentage of equity owned by the Group. Related undertakings comprise significant holdings in associated undertakings and Ashmore sponsored public funds in which the Group owns greater than 20% interest.

Name	Classification	% voting interest	Registered address and place of incorporation
Ashmore Investments (UK) Limited1	Subsidiary	100.00	61 Aldwych, London WC2B 4AE United Kingdom
Ashmore Investment Management Limited	Subsidiary	100.00
Ashmore Investment Advisors Limited	Subsidiary	100.00
Aldwych Administration Services Limited (dormant)	Subsidiary	100.00
Ashmore Asset Management Limited (dormant)	Subsidiary	100.00
Ashmore Avenida Investments (Real Estate) LLP2	Subsidiary	56.00
Ashmore Investment Management (Ireland) Limited	Subsidiary	100.00	32 Molesworth Street, Dublin 2, D02 Y512, Ireland
Ashmore Investment Management India LLP	Subsidiary	100.00	Units 206, 207, 208 Ceejay House, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai 400 018, India
Ashmore India Equities Fund	Consolidated fund	83.02
Ashmore Investment Management (US) Corporation	Subsidiary	100.00	The Corporation Trust Center, 1209 Orange Street, Wilmington, DE 19801, USA
Ashmore Investment Advisors (US) Corporation	Subsidiary	100.00
Ashmore EM Blended Debt Fund GP, LLC	Subsidiary	100.00
Ashmore EM Active Equity Fund GP, LLC	Subsidiary	100.00
Ashmore EM Equity Fund GP, LLC	Subsidiary	100.00
Avenida Partners LLC2	Subsidiary	100.00	Cogency Global Inc., 850 New Burton Road, Suit 201, Dover, DE 19904, USA
Avenida CREF I Cayman Manager LLC2	Subsidiary	100.00
Avenida CREF I Manager LLC2	Subsidiary	100.00
Avenida A2 Partners LLC2	Subsidiary	100.00
Avenida Colombia Member LLC2	Subsidiary	83.30
Avenida CREF II Partners LLC2	Subsidiary	100.00
Avenida CREF II GP LLC2	Subsidiary	100.00
MCA Partners LLC2	Subsidiary	100.00

 

1.	Ashmore Investments (UK) Limited (registered number 3345198) is exempt from the requirements relating to the audit of accounts under section 479A of the UK Companies Act 2006.
2.	Ashmore Avenida Investments (Real Estate) LLP and its subsidiaries were disposed of effective 30 June 2024, certain completion formalities pending.

 

 

Name	Classification	% voting interest	Registered address and place of incorporation
Avenida REF Holding SA2	Subsidiary	100.00	Yamandu 1321, 11500 Montevideo, Uruguay
Avenida CREF II Manager SRL2	Subsidiary	99.99
Avenida CREF Partners SRL2	Subsidiary	99.99
Avenida CREF II GP SRL2	Subsidiary	85.09
Ashmore Avenida LatAm Energy Efficient Affordable Housing Fund III GP (in liquidation)	Subsidiary	100.00	10 rue du Château d'Eau, L-3364 Leudelange, Grand Duchy of Luxembourg
Ashmore Investment Management (Singapore) Pte. Ltd.	Subsidiary	100.00	1 George Street, #15-04, Singapore 049145
KCH Cairo Pte. Ltd (dormant)	Subsidiary	100.00
KCH Cairo S.A.E. (dormant)	Subsidiary	99.20	Zone (T) - Emaar, Up Town Cairo, Mokattam, Cairo, Egypt
PT Ashmore Asset Management Indonesia Tbk	Subsidiary	60.04	Pacific Century Place, 18th Floor, SCBD Lot 10, Jl. Jenderal. Sudirman Kav. 52-53 Jakarta 12190, Indonesia
Ashmore Dana Pasar Uang Syariah	Consolidated fund	99.61
Ashmore Dana USD Fixed Income	Consolidated fund	85.76
Ashmore Management Company Colombia SAS	Subsidiary	58.34	Carrera 7 No. 75-66, Office 701 & 702, Bogotá, Colombia
Ashmore-CAF-AM Management Company SAS	Subsidiary	52.78
Ashmore Holdings Colombia SAS	Subsidiary	100.00
Ashmore Investment Advisors S.A. Sociedad Fiduciaria	Subsidiary	100.00
Ashmore Backup Management Company SAS	Subsidiary	100.00
Avenida Colombia Management Company SAS2	Subsidiary	100.00
Ashmore Peru Backup Management	Subsidiary	100.00	Av. Circunvalación del Club Golf Los Incas No. 134, Torre 1, Of. 505, Surco. Lima, Perú
Ashmore Japan Co. Limited	Subsidiary	100.00	11F, Shin Marunouchi Building 1-5-1 Marunouchi, Chiyoda-ku, Tokyo 100-6511, Japan
Ashmore Investments (Colombia) SL	Subsidiary	100.00	c/o Hermosilla 11, 4ºA, 28001 Madrid, Spain
Ashmore Management (DIFC) Limited	Subsidiary	100.00	Unit L30-07, Level 30, ICD Brookfield Place, Dubai International Financial Centre, Dubai, UAE
Ashmore Investment Saudi Arabia	Subsidiary	100.00	3rd Floor Tower B, Olaya Towers, Olaya Main Street, Riyadh, Saudi Arabia
Ashmore AISA (Cayman) Limited	Subsidiary	100.00	PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands
AA Development Capital Investment Managers (Mauritius) LLC (in liquidation)	Subsidiary	55.00	Les Cascades Building, 33 Edith Cavell Street, Port Louis, Mauritius
Ashmore Investments (Holdings) Limited	Subsidiary	100.00

 

 

 

Name	Classification	% voting interest	Registered address and place of incorporation
Ashmore Management Company Limited	Subsidiary	100.00	Trafalgar Court, Les Banques, St Peter Port, GY1 3QL, Guernsey
Ashmore Global Special Situations Fund 3 (GP) Limited	Subsidiary	100.00
Ashmore Global Special Situations Fund 4 (GP) Limited	Subsidiary	100.00
Ashmore Global Special Situations Fund 5 (GP) Limited	Subsidiary	100.00
Ashmore Venezuela Recovery Fund 2 Ltd	Financial asset	40.00
Ashmore Emerging Markets Debt and Currency Fund Limited	Consolidated fund	57.72
Ashmore SICAV Emerging Markets Middle East Equity Fund	Consolidated fund	83.46	10, rue du Chateau d'Eau, L-3364 Leudelange, Grand-Duchy of Luxembourg
Ashmore SICAV Emerging Markets Total Return Debt Fund 2	Consolidated fund	100.00
Ashmore SICAV Emerging Markets Corporate Debt ESG Fund	Consolidated fund	100.00
Ashmore SICAV Emerging Markets India Equity Fund	Consolidated fund	100.00
Ashmore SICAV Emerging Markets Global Small-Cap Equity Fund	Consolidated fund	48.01
Ashmore SICAV Emerging Markets Investment Grade Total Return Fund	Consolidated fund	100.00
Ashmore SICAV Emerging Markets Indonesian Equity Fund	Consolidated fund	100.00
Ashmore SICAV Emerging Markets Local Currency Bond Fund 2	Consolidated fund	100.00
Ashmore SICAV Emerging Markets Shariah Active Equity Fund	Consolidated fund	78.29
Ashmore SICAV Emerging Markets Investment Grade Local Currency Fund	Consolidated fund	58.33
Ashmore SICAV Emerging Markets Equity ESG Fund	Financial asset	30.14
Ashmore Emerging Markets Equity Ex China Fund	Consolidated fund	100.00	50 South LaSalle Street, Chicago, Illinois 60603, USA
Ashmore Emerging Markets Debt Fund	Consolidated fund	100.00
Ashmore Emerging Markets Active Equity Fund	Consolidated fund	88.01
Ashmore Emerging Markets Local Currency Bond Fund	Consolidated fund	84.94
Ashmore Emerging Markets Equity ESG Fund	Consolidated fund	100.00
Ashmore Emerging Markets Low Duration Select Fund	Consolidated fund	100.00

Cautionary statement regarding forward-looking statements

It is possible that this document could or may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could or other words of similar meaning.

Undue reliance should not be placed on any such statements because, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. There are several factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or dispositions. The Group undertakes no obligation to revise or update any forward-looking statements contained within this document, regardless of whether those statements are affected as a result of new information, future events or otherwise.

 

Statutory accounts

The financial information set out above does not constitute the Group's statutory accounts for the years ending 30 June 2024 or 30 June 2023. Statutory accounts for 2023 have been delivered to the registrar of companies. The statutory accounts for 2024 will be delivered in due course and the auditors have reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 in respect of the accounts for 2024.

Alternative Performance Measures

 

Ashmore discloses APMs to assist shareholders' understanding of the Group's operational performance during the accounting period and to allow consistent comparisons with prior periods.

The calculation of APMs is consistent with the financial year ended 30 June 2023. Historical disclosures relating to APMs, including explanations and reconciliations, can be found in the respective interim financial reports and Annual Reports and Accounts.

Net revenue

As shown in the CSCI, net revenue is total revenue less distribution costs and including FX. This provides a comprehensive view of the revenues recognised by the Group in the period.

	Reference	FY2024 £m	FY2023 £m
Total revenue	CSCI	189.0	193.2
Distribution costs	CSCI	(2.2)	(2.2)
FX	CSCI	2.5	5.4
Net revenue		189.3	196.4

Net management fees

The principal component of the Group's revenues is management fees, net of associated distribution costs, earned on AuM.

	Reference	FY2024 £m	FY2023 £m
Management fees	CSCI	162.6	185.4
Distribution costs	CSCI	(2.2)	(2.2)
Net management fees		160.4	183.2

Net management fee margin

The net management fee margin is defined as the ratio of annualised net management fees to average AuM for the period, in US dollars since it is the primary currency in which fees are received and matches the Group's AuM disclosures. The average AuM excludes assets where fees are not recognised in revenues, for example AuM related to associates. The margin is a principal measure of the firm's revenue-generating capability and is a commonly used industry performance measure.

		FY2024	FY2023
Net management fee income (US$m)		202.1	220.6
Average AuM (US$bn)		51.9	57.7
Net management fee margin (bps)		39	38

Variable compensation ratio

The linking of variable annual pay awards to the Group's profitability is one of the principal methods by which the Group controls its operating costs. The charge for VC is a component of personnel expenses and comprises share-based payments and performance-related cash bonuses, and has been accrued at 31.0% of EBVCT (FY2023: 21.6%).

EBVCT is defined as profit before tax excluding the charge for VC, charitable donations, share of profit from associate, realised gains on disposal of investments and unrealised seed capital-related items; and including net seed capital gains realised in the period on a life-to-date basis. The unrealised seed capital items are net gains or losses on investment securities, expenses in respect of consolidated funds and net unrealised gains or losses in finance income.

The variable compensation ratio is defined as the charge for VC divided by EBVCT. In prior periods, the VC was accrued as a percentage of EBVCIT, which excluded interest income, seed capital-related items and tax (FY2023: 25.0% of EBVCIT).

	Reference	FY2024 £m	FY2023 £m
Profit before tax	CSCI	12.1	111.8
Remove:
Seed capital-related (gains)/losses	CSCI, note 20	(21.7)	8.3
Realised gains on disposal of investments	Note 8	(5.2)	-
Share of profit from associate	CSCI	(0.5)	(0.5)
Variable remuneration		52.9	34.8
Charitable donations		0.6	0.5
Add:
Realised life-to-date seed capital gains		16.1	6.3
EBVCT		170.3	161.2

 

Adjusted net revenue, adjusted operating costs and adjusted EBITDA

Adjusted figures exclude items relating to FX translation and seed capital. Management assesses the Group's operating performance by excluding the volatility associated with these items.

Earnings before interest, tax, depreciation and amortisation (EBITDA) provides a view of the operating performance of the business before certain non-cash items, financing income and charges, and taxation.

	Reference	FY2024 £m	FY2023 £m
Net revenue	CSCI	189.3	196.4
Remove:
FX translation (gains)/losses	Note 7	(1.5)	(1.0)
Adjusted net revenue		187.8	195.4
	Reference	FY2024 £m	FY2023 £m
Personnel expenses	CSCI	(85.1)	(66.2)
Other expenses	CSCI	(29.8)	(27.8)
Remove:
Other expenses in consolidated funds	Note 20	1.4	1.3
Add:
VC % on FX translation	Note 7	0.5	0.3
Adjusted operating costs		(113.0)	(92.4)
	Reference	FY2024 £m	FY2023 £m
Operating profit	CSCI	57.2	77.4
Remove:
Depreciation & amortisation		3.1	3.2
EBITDA		60.3	80.6
Remove:
FX translation	Note 7	(1.5)	(1.0)
Seed capital-related (gains)/losses	CSCI, note 20	18.6	26.3
VC % on FX translation	Note 7	0.5	0.3
Adjusted EBITDA		77.9	106.2

Adjusted EBITDA margin

The ratio of adjusted EBITDA to adjusted net revenue. This is an appropriate measure of the Group's operational efficiency and its ability to generate returns for shareholders.

Adjusted diluted EPS

Diluted EPS excluding items relating to FX translation and seed capital, as described above, and the related tax impact.

	Reference	FY2024 pence	FY2023 pence
Diluted EPS	CSCI	13.6	12.2
Remove:
FX translation	Note 7	(0.2)	(0.1)
Tax on FX translation		0.1	-
Seed capital-related (gains)/losses	CSCI, note 7, note 20	(3.2)	1.2
Tax on seed capital-related items		0.2	(0.6)
Adjusted diluted EPS		10.5	12.7

Conversion of operating profits to cash

This compares cash generated from operations, excluding consolidated funds, to adjusted EBITDA, and is a measure of the effectiveness of the Group's operations in converting profits to cash flows for shareholders. Excluding consolidated funds also ensures consistency between the cash flow and adjusted EBITDA.

	Reference	FY2024 £m	FY2023 £m
Cash generated from operations	Consolidated cash flow statement	112.5	111.6
Remove:
Cash flows relating to consolidated funds	Note 20	1.0	0.1
Operating cash flow		113.5	111.7
Adjusted EBITDA		77.9	106.2
Conversion of operating profits to cash		146%	105%

 

Capital resources

Ashmore has calculated its capital resources in a manner consistent with the IFPR. Note that goodwill and intangible assets include associated deferred tax liabilities and deferred acquisition costs, and foreseeable dividends relate to the proposed final dividend of 12.1 pence per share.

	Reference	30 June 2024 £m	30 June 2023 £m
Total equity	Balance sheet	882.6	898.8
Deductions:
Goodwill and intangible assets		(79.3)	(80.0)
Deferred tax assets	Balance sheet	(18.9)	(23.9)
Foreseeable dividends	Note 14	(85.1)	(85.1)
Investments in financial sector entities		(3.1)	(5.0)
Capital resources		696.2	704.8