Ashmore : Current investor presentation

Ashmore Group plc

Investor presentation

March 2021

www.ashmoregroup.com

A specialist active manager of Emerging Markets assets

EMERGING MARKETS FUNDAMENTALS UNDERPIN LONG-TERM GROWTH

• • EM accounts for majority of world's population (84%), FX reserves (75%), GDP (60%)

• • High growth potential: social, political and economic convergence trends with DM

• • Large, liquid, diverse investment universe

• • Investors are underweight, typically <10% allocations vs 10%-20% EM weight in global indices

ASHMORE CHARACTERISTICSLONG-STANDING INVESTMENT APPROACH DELIVERS OUTPERFORMANCE

• • Deep understanding of EM underpins an active, value-based investment philosophy

• • Inefficient markets mean volatile prices, but significant alpha opportunities

• • Investment committees, not a star culture

• • Performance track record extends over 28 years

DIVERSIFIED CLIENT BASE

• • Global client base diversified by type and location

• • Retail markets accessed through intermediaries

• • 26% of AuM sourced from EM-domiciled clients

DISTINCTIVE STRATEGY & EFFECTIVE BUSINESS MODEL

• • Three phase strategy to capture value from long-term EM growth trends

• • Remuneration philosophy aligns interests and provides flexibility through profit cycles

• • Disciplined cost control delivers a high profit margin

• • High conversion of operating profits to cash (110% since IPO)

• • Scalable operating platform, 309 employees in 11 countries

• • Network of local EM fund management platforms

• • Strong balance sheet supports commercial and strategic initiatives, e.g. seed capital

• • AuM of USD 93.0bn diversified across eight investment themes

• • Consistent investment approach delivers long-term investment performance

• • High EBITDA margin (68%)

• • Well-capitalised, liquid balance sheet with £580m of excess capital

• • Strong alignment of interests between clients, employees and shareholders; employees own ~40% of equity

• • More than £1bn of ordinary dividends paid to shareholders since IPO

Emerging Markets

Emerging Markets outlook

• • COVID vaccination programmes critical to further worldwide economic & social progress in 2021

• • Extraordinary stimulus by DM governments/central banks

  • ˗ underpinned by US election result

  • ˗ supportive for markets in near term

  • ˗ but medium term impact on growth and potentially leads to currency devaluation, especially US dollar

• • EM countries have lower debt/GDP and higher real interest rates, so fiscal & monetary stimulus is manageable

• • EM growth premium is intact and fixed income and equity markets offer highly attractive valuations relative to DM

• • Macro backdrop is therefore supportive of capital flows to EM as investors seek higher growth and investment returns

GDP growth outlook consistently favours EM over DM (%)

8.0

6.0

(2.0)

(4.0)

4.0

2.0

0.0

(6.0)

(8.0)

2018

Source: IMF, Ashmore

2019

2020f

2021fDeveloped Markets

2022f

2023fEmerging Markets

2024f

2025f