Ashmore : ANNUAL REPORT FOR YEAR ENDING 30.6.2017

Annual Report and Accounts 2017

DELIVERING Emerging Markets

Contents
Strategic report	Governance	Financial statements
Ashmore at a glance	2	Board of Directors	45	Independent Auditor's report	80
Investment themes	4	Chairman's statement	46	Consolidated financial statements	86
Business model	8	Corporate governance	47	Company financial statements	90
Chief Executive's review	10	Audit and Risk Committee report	50	Notes to the financial statements	93
Ashmore's strategy	12	Nominations Committee report	54	Five-year summary	129
Key performance indicators	14	Remuneration report	55	Information for shareholders	130
Market review	18	Statement of Directors'
Business review	24	responsibilities	74
Risk management	32	Directors' report	75
Corporate social responsibility	38

2017 Financial overview

Assets under management (AuM)

US$58.7bn

2016: US$52.6bn

Profit before tax

£206.2m

2016: £167.5m

Net revenue

£257.6m

2016: £232.5m

2013	77.4	2013	257.6	2013	355.5
2014	75.0	2014	171.6	2014	262.9
2015	58.9	2015	181.3	2015	283.3
2016	52.6	2016	167.5	2016	232.5
2017	58.7	2017	206.2	2017	257.6

Diluted EPS

23.7p

2016: 18.1p

Adjusted EBITDA margin

65%

2016: 62%

Dividends per share

16.65p

2016: 16.65p

2013	28.7	2013	70	2013	16.10
2014	18.6	2014	67	2014	16.45
2015	19.3	2015	67	2015	16.65
2016	18.1	2016	62	2016	16.65
2017	23.7	2017	65	2017	16.65

More information

Non-GAAP alternative performance measures are defined on page 29 and a reconciliation to GAAP measures is provided on page 24. Five-year comparatives for other alternative performance measures are included in the five-year summary on page 129.

For the online version of the annual report, other announcements and details of upcoming events, please visit the Investor Relations section of the Ashmore Group plc website at www.ashmoregroup.com

Strategic report

Emerging Markets are delivering

strong economic growth, built on

the foundations of some of the world's most advanced technologies and manufacturing processes and increasing export trade.

Ashmore's unrelenting focus on Emerging Markets seeks to

capitalise on these trends to deliver investment performance for clients and value for shareholders.

Ashmore Group plc | Annual Report and Accounts 2017 1

Ashmore at a glance

An Emerging Markets specialist delivering strong performance Focused on Emerging Markets

Ashmore has a strong investment track record established over 25 years of focusing on the opportunities available in Emerging Markets.

Attractive long-term investment returns

Index 1992=100

3,500

2,500

1,500

External debt	23%
Local currency	23%
Corporate debt	11%
Blended debt	25%
Equities	6%
Alternatives	2%
Multi-asset	2%
Overlay/liquidity	8%

500

A unique investment approach

Ashmore's eight investment themes cover the full spectrum of liquid and illiquid return opportunities. Superior performance is delivered through the consistent implementation of rigorous investment processes.

Group AuM by investment theme

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

100 US$58.7bn

EMLIP net EMBI GD S&P 500

Cumulative monthly returns since October 1992 Source: Ashmore, Bloomberg, JP Morgan

• Emerging Markets account for the majority of the world's population (87%) and GDP (58%) yet only a small proportion (20%) of the world's debt

• The structural growth opportunity is therefore substantial and inefficient asset classes mean specialist, active management is key to delivering superior investment returns

Extensive worldwide network

Ashmore has established a network of offices across 11 countries, providing global investment management capabilities together with local asset management platforms.

Emerging Markets invested Ashmore presence

• Deep understanding of Emerging Markets underpins active, value-based investment philosophy

• Processes add risk when markets have been oversold relative to fundamentals

• Investment committees mean no individual manages funds and there is not a star culture

• Track record extends more than 25 years

Highly diversified client base

Ashmore has a high-quality, diversified client base with a growing AuM contribution from retail clients.

Group AuM by investor type

Central banks 17%

Sovereign wealth funds 9%

Governments 13%

Pension plans 29%

Corporates/financial institutions 15%

Funds/sub-advisers 3%

Third-party intermediaries 12%

Foundations/endowments 2%

• Institutional clients represent 88% of Group AuM

• Growing contribution from retail clients accessed through third-party intermediaries

• One-third of AuM sourced from clients domiciled in Emerging Markets

See page 16 for more on Emerging Markets performance See pages 6 & 22 for Ashmore's unique, diversified approach

2 Ashmore Group plc | Annual Report and Accounts 2017