Ashmore : ANNUAL REPORT FOR YEAR ENDING 30.6.2021

EQUITIES

PEOPLE

INVESTED IN ASHMORE

LOCAL

ESG

DIVERSITY

ANNUAL REPORT

AND ACCOUNTS 2021

Contents

Strategic report

Strategy	2
Business model	4
Investment processes	6
Invested in equities	9
Culture	10
Invested in people	11
Chief Executive's review	12
KPIs	16
Invested locally	18
Market review	19
Invested in diversity	24
Investment themes	25
Business review	28
Risk management	36
Section 172 statement	42
Climate risks and opportunities	46
Invested in ESG	50
Sustainability	51

Governance

Board of Directors	67
Corporate governance report	69
Audit and Risk Committee report	77
Nominations Committee report	81
Remuneration report	83
Directors' Remuneration policy	98
Annual Report on Remuneration	105
Statement of Directors' Responsibilities	116
Directors' report	117

Financial statements

Independent auditor's report	124
Consolidated financial statements	131
Company financial statements	135
Notes to the financial statements	138
Five-year summary	179
Information for shareholders	180

2021 highlights

Assets under management (AuM)

US$94.4bn

2020: US$83.6bn

+13% YoY

AuM outperforming benchmarks (3 years)

57%

2020: 17%

Net revenue

£291.7m

2020: £330.5m -12% YoY

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

More information

Non-GAAP alternative performance measures are described on page 35.

Five-year comparatives for other alternative performance measures are included in the five-year summary on page 179.

Adjusted EBITDA margin

66%

2020: 68%

Profit before tax

£282.5m

2020: £221.5m +28% YoY

Diluted EPS

34.2p

2020: 25.7p +33% YoY

Dividends per share

16.9p

2020: 16.9p

Ashmore's purpose, as a specialist Emerging Markets investment manager, is to deliver long-term investment outperformance for clients and generate value for shareholders through market cycles. In pursuing these objectives, Ashmore aims to ensure that its culture and working practices recognise its broader set of stakeholders.

Find more information on how Ashmore's purpose aligns with and benefits its stakeholders in the Section 172 statement on page 42.

EQUITIES

PEOPLE

INVESTED IN ASHMORE

LOCAL

ESG

DIVERSITY

STATEMENTS FINANCIAL GOVERNANCE REPORT STRATEGIC

Ashmore's specialist approach to investing allows it to take full advantage of the substantial long-term growth opportunities across the large and diverse Emerging Markets asset classes.

Invested	Invested	Invested	Invested	Invested
in equities	in people	locally	in diversity	in ESG
page 9	page 11	page 18	page 24	page 50

Ashmore Group plc Annual Report and Accounts 2021

1

STRATEGY

A STRATEGY FOR

GROWTH

Ashmore's strategy is aligned with the significant growth opportunities available across the broad range of Emerging Markets asset classes. Consistent with the Group's purpose, the three distinct phases are focused on growing and diversifying Ashmore's business and creating value for clients and shareholders.

1

2

Establish Emerging Markets asset classes

Ashmore is recognised as an established specialist Emerging Markets manager, and is therefore well positioned to capture investors' rising allocations

Diversify investment themes and developed world capital sources

Ashmore is diversifying its revenue mix to provide greater revenue stability through market cycles. There is particular focus on growing intermediary retail, equity and alternatives AuM

3	Mobilise Emerging Markets capital
Ashmore's growth is enhanced through accessing rapidly
growing pools of investable capital in Emerging Markets

2 Ashmore Group plc Annual Report and Accounts 2021

Opportunity

• Developed world investors hold more than US$80 trillion of assets and are profoundly underweight Emerging Markets: target allocations are less than 10% compared with global benchmark weights of approximately 10% to 30%

• The Emerging Markets investment universe continues to grow and diversify, and Ashmore strives to be at the forefront of accessing new market opportunities as they arise
• Diversifying revenue streams provides greater stability through the cycle

• Industry AuM in Emerging Markets is growing twice as fast as the developed world
• This presents a significant growth opportunity in local asset management platforms, as well as cross-border Emerging Markets opportunities over the longer term

See pages 19-27 for Ashmore's market and investment themes review

Progress in 2021

• As global markets recover from the COVID-19 pandemic, Ashmore's clients are reverting to their long-term trend of raising allocations to Emerging Markets
• Approximately 80% of institutional net flows were from existing clients increasing allocations within existing mandates or broadening their Emerging Markets investments
• There is good momentum in Ashmore's equities business, with AuM growth of 61% YoY and including net inflows of US$0.9 billion
• Ashmore expanded its dedicated ESG fund range with the launch of sovereign and corporate funds
• Risk aversion resulted in proportion of AuM sourced through intermediary retail channels dropping from 11% to 8%
• Local asset management operations account for US$7.2 billion, 8% of the Group's total AuM
• More than a quarter (26%) of Group AuM is sourced from clients in the Emerging Markets

See pages 28-35 for Ashmore's business review

Potential sources of risk

• Sentiment towards, and fundamental performance of, Emerging Markets
• Long-terminvestment performance

• Potential constraints on longer-term growth such as competition

• Managing the development of local asset management platforms in Emerging Markets

See pages 36-41 for Ashmore's principal risks

STATEMENTS FINANCIAL GOVERNANCE REPORT STRATEGIC

Ashmore Group plc Annual Report and Accounts 2021

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