Ashmore Group plc. December Investor presentation.

Transcription

1 Ashmore Group plc Investor presentation December

2 A specialist active manager of Emerging Markets assets EMERGING MARKETS FUNDAMENTALS UNDERPIN LONG-TERM GROWTH EM accounts for majority of world s population (85%), FX reserves (66%), GDP (59%) 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 CHARACTERISTICS LONG-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 more than 25 years DIVERSIFIED CLIENT BASE Global client base diversified by type and location Retail markets accessed through intermediaries 1/3 rd 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 (109% since IPO) Scalable operating platform, 253 employees in 10 countries Network of local EM fund management platforms Strong balance sheet supports commercial and strategic initiatives, e.g. seed capital AuM of USD 76.4bn diversified across eight investment themes Strong investment performance, 94% of AuM outperforming benchmarks over three years High EBITDA margin (66%) Well-capitalised, liquid balance sheet with 480m of excess capital Alignment of interests between clients, employees and shareholders; employees own ~46% of equity Progressive dividend policy, more than 1bn returned to shareholders since IPO 2

3 Emerging Markets Current views

4 Emerging Markets fundamentals are positive Emerging nations had the ability and willingness to respond to the market environment of significant macro adjustments very few defaults, demonstrating resilience leading to positive economic trends EM fundamentals are strong and in better shape than in 2013 EM FX is more competitive Central banks raised rates and successfully targeted inflation External balances are stronger Reforms e.g. China, India, Indonesia and across Latin America Capital markets have continued to grow and to diversify GDP growth is accelerating YoY and versus developed markets Higher US interest rates are priced in to markets Elections typically increase volatility but provide opportunities Active managers have significant investment firepower Emerging Markets fundamentals continue to improve GDP growth +5.1% +5.1% Inflation +4.6% +5.5% Current account (GBI-EM countries, % GDP) 0% -3% Share of world GDP 59% 56% LC bonds outstanding (US$trn) % of total EM bonds 87% 85% Real LC yield 3% 1% ED spread over US Treasuries 3.6% 2.8% EMBI GD countries GBI-EM GD countries

5 Local currency bonds real yield (%) so recent price moves creates attractive opportunities Profit-taking after strong Emerging Markets returns in 2016 & 2017 e.g. local currency bonds +26%, equities +53% Attractive local currency real yields 6.00 Markets affected by Developed Markets events (e.g. Italian politics) and strong USD, the drivers of which are likely to be temporary New Fed chair Powell establishing credibility Unfunded tax cut boosted GDP growth Protectionism / tariffs USD was weak vs EUR since end-2016 Emerging Markets sentiment influenced by small number of countries with particular issues e.g. Turkey, Argentina Valuations reset to end-2016 levels, immediately after US election e.g. local currency bonds real yield of ~3%, high in absolute terms, relative to history and relative to DM sovereign bonds of equivalent quality & duration Elections eg Brazil typically increase volatility but provide opportunities 5

6 Yield (%) Asset classes: valuations External debt Index: 68 countries, 152 issuers, 663 bonds EMBI GD spread over UST, bps Local currency Index: 19 countries, 19 issuers, 219 bonds 12.0% 7.00% 10.0% 6.00% 8.0% 5.00% 4.00% 6.0% 3.00% 4.0% 2.00% 2.0% 1.00% 0.0% 0.00% JPM GBI Global (lhs) JPM GBI-EM GD (lhs) Yield difference: GBI-EM vs GBI Global (rhs) Corporate debt Index: 50 countries, 644 issuers, 1,416 bonds Equities CEMBI BD spread over UST, bps EM vs DM growth premium (IMF, %, lhs) MSCI EM vs DM total return (Dec2010=100, rhs) 6

7 Volatility risk Active management can exploit value created by volatile prices in inefficient markets 12m alpha when entering markets during +10pts VIX spikes Strategy Alpha Active returns Passive returns History (years) Significant alpha can be generated versus passive (index) exposure Bond yields provide substantial reward for risk taken, based on actual defaults Fixed Income 3.0% 11% 8% External Debt (EMBI GD) 2.3% 12% 9% 24 Corporate Debt (CEMBI BD) 3.0% 10% 7% 16 Local Currency Bonds (GBI EM GD) 2.5% 10% 8% 15 Stocks 2.5% 7% 5% Equities (MSCI EM) 3.8% 7% 4% 24 EM Small Cap (MXEFSC Index) 5.0% 9% 4% 24 Frontier Equities (MXFM Index) -1.3% 5% 6% 16 EMBI yield and defaults 1,400 1,200 Yield net of defaults (bps) Estimated loss from default in EMBI GD (bps) 1,

8 US$ trillion Active versus passive investing in Emerging Markets EM fixed income and equity markets are inefficient Benchmark indices are unrepresentative of the investment opportunity Active management is critical Structural developments, e.g. removal of capital controls, will increase index representation over the long term Based on JP Morgan data, EM ETFs represent: 11% of fixed income mutual funds; only 2% of index market cap and 0.2% of total universe 26% of equity mutual funds; only 6% of index market cap and 1.1% of total universe Large investment universe, low index representation US$1.2trn 46% External sovereign US$2.0trn 23% External corporate Mkt cap included in benchmark US$10.3trn 9% Local sovereign US$10.9trn 2% Local corporate US$24.3trn 9% Fixed income Mkt cap not included in benchmark Wide range of returns available (12m to June 2018) US$28.9trn 19% Equities +11% EMBI GD index -1.6% -39% Source: BIS, JP Morgan, Bloomberg 8

9 Ashmore Group plc

10 Consistent three-phase strategy to capitalise on Emerging Markets growth trends 1. Establish Emerging Markets asset class Ashmore is recognised as an established specialist Emerging Markets manager, and is therefore well positioned to capture investors rising allocations to the asset classes Recent developments Investor allocations to Emerging Markets are increasing, and Ashmore s AuM grew 26% in FY2017/18 with record gross and net subscriptions 2. Diversify developed world capital sources and themes Ashmore is diversifying its revenue mix to provide greater revenue stability through the cycle. There is particular focus on growing intermediary, equity and alternatives AuM Ashmore continues to develop products and capabilities within its eight investment themes. Retail AuM increased by 47% in FY2017/18 and represents 14% of total AuM 3. Mobilise Emerging Markets capital Ashmore s growth will be enhanced by accessing rapidly growing pools of investable capital in Emerging Markets 33% of Group AuM has been sourced from clients domiciled in the Emerging Markets and AuM managed by local platforms increased 26% in FY2017/18 to US$4.9 billion 10

11 f 2020f 2022f Strategy phase 1: Establish Emerging Markets asset classes Ashmore s proven investment expertise, specialist focus and scalable distribution model mean it is well-placed to exploit the growth opportunities across Emerging Markets GDP per capita (indexed 1980 = 100) 2017 EM = US$11,800 DM = US$49,100 Huge structural growth opportunity as nations develop and Emerging Markets increasingly viewed as mainstream asset classes 1980 EM = US$1,500 Diversification is important: not a single asset class. There is a wide range of risk & return profiles and large investable markets across fixed income, currencies, equities and illiquid assets Emerging Markets Developed Markets Significant growth opportunity from higher allocations (%) Institutional allocations are underweight and rising steadily 6.4 Typically low/mid single digit % allocation to Emerging Markets JP Morgan GBI-Agg Diversified index has 22% EM weight Ashmore s specialism, expertise, experience and distribution model enable it to capture rising investor allocations to Emerging Markets n/a Equity Fixed income (1) Ashmore, annual reports of representative European and US pension funds collectively responsible for more than US$750 billion of assets 11

12 Strategy phase 2: Diversify assets under management Ashmore s broad distribution capabilities deliver AuM diversified by investment theme, client type and client location AuM by client type 1% 14% 15% Central bank Sovereign wealth fund AuM development (USD bn) 4% 8% Government Pension plan % 14% Corporate/financial institution Fund/sub-adviser 60 Retail % Foundation/endowment AuM by client location % 25% Americas Asia Pacific External debt Local currency Corporate debt Blended debt Equities Alternatives Multi-asset Overlay/liquidity 10% Europe ex UK UK Ashmore s immediate priorities are to grow AuM (absolute and as proportion of Group) in equities, alternatives and from retail clients 25% 22% Middle East & Africa Data as at 30 Sep

13 Strategy phase 3: Mobilise Emerging Markets capital (local office network) Investable capital pools in Emerging Markets are growing 3x faster than in Developed Markets (+11% CAGR over past decade) Broad network of local asset management platforms Ashmore s local offices participate in this growth trend and provide further diversification Business model and ownership structure tailored to each market opportunity but with some common features seek local employees/partners with cultural fit and alignment of interests through equity include independent investment committees and appropriate distribution and middle office/support functions benefit from the resources of a global firm, e.g. common IT and provision of seed capital support, while providing competitive advantages through local knowledge make a positive and growing contribution to Group profits, with significant operating leverage as AuM increase Ashmore s global clients access the local investment management capabilities with dedicated single-country mandates Ashmore will continue to develop its network of local businesses, and target larger EM institutions, to increase proportion of AuM from EM-domiciled clients from 33% today Global asset management platform Local asset management platform Distribution office Ashmore Group, 30 Sep 2018 Local Global AuM (USD billion) Countries 7 4 Employees Local employees include 19 in Avenida project management 13

14 Ashmore has a robust and flexible business model Structural growth opportunities Distinctive business model characteristics Delivering value through the cycle 14

15 Eight Emerging Markets investment themes, numerous constantly evolving sub-themes External Debt (USD 15.5bn) Local Currency (USD 17.2bn) Corporate Debt (USD 10.6bn) Equities (USD 4.0bn) Alternatives (USD 1.7bn) Overlay/ Liquidity (USD 6.0bn) Global Emerging Markets Sub-themes Broad Sovereign Sovereign, investment grade Short duration Bonds Bonds (Broad) FX+ Investment grade Broad High yield Investment grade Local currency Private Debt Short duration Global EM Equity Active Equity Global Small Cap Global Frontier Private Equity Healthcare Infrastructure Special Situations Distressed Debt Real Estate Overlay Hedging Cash Management Blended Debt (USD 20.4bn) Investment grade Blended Absolute return Regional / Country focused Sub-themes Indonesia Indonesia Asia Latin America Africa India Indonesia Latin America Middle East Saudi Arabia Andean Middle East (GCC) Multi-Asset (USD 1.0bn) Global 15

16 Index 1992=100 Over 25 years of successful investing in Emerging Markets EMLIP launched in October 1992 Annualised net return +13.5% Substantial outperformance versus benchmark (EMBI +10.0% annualised) and S&P (+9.8% annualised) EMLIP s long-term track record delivered by: Deep knowledge of diverse, inefficient Emerging Markets asset classes Specialist, active investment processes Value-based philosophy and rigorous credit/company analysis Superior long-term performance 3,100 2,600 2,100 1,600 1, EMLIP net EMBI GD S&P

17 Ashmore fixed income investment committee process Long investment track record: consistent process since 1992 Weekly meeting to implement the investment philosophy Investment Committee (IC) Global macro overview Country / corporate updates Risk call Market exposure: add vs reduce Long-term and tactical views Updated credit views Country and corporate credit review Impact on credit risk, FX and interest rates ESG integration Six IC members - Chairman - Deputy Chairman - Theme desk heads - Head of research - Head of multi-asset All fixed income investment team members can participate (31 in total) Collective responsibility, not a star culture Sub-committee meetings Local Currency External Debt Corporate Debt Blended Debt Multi-asset Trading / execution Theme relative value Portfolio construction Instrument selection Execution process Theme allocation Risks and opportunities across themes: External vs local currency Corporate vs sovereign Changes to model portfolios Changes in target exposures (credits, FX, duration) across model portfolios Revision of theme allocation, cash and leverage where appropriate Investment decisions Buy and sell decisions on specific assets Execution Significant involvement of local office teams (21 investment professionals) Timely execution (within 24 hours of IC meeting) with review in subsequent IC meeting 17

18 External Local Corporate Blended Equities Multi-asset Group External Local Corporate Blended Equities Multi-asset Group External Local Corporate Blended Equities Multi-asset Group Delivering long-term investment performance for clients Long-term investment performance One year Three years Five years 100% 100% 100% 80% 80% 94% 80% 89% 60% 73% 60% 60% 40% 40% 40% 20% 20% 20% 0% 0% 0% Investment theme alpha through cycles % External debt Local currency Corporate debt Blended debt (5.0) (11.3) (8.3) (7.6) (0.7) 1.9 (3.8) (1.2) 1.2 (0.7) 2014 (6.5) 0.9 (6.7) (0.6) (4.5) YTD AuM-weighted Investment performance relative to benchmarks is gross of fees, annualised for periods greater than one year, as at 30 June YTD is to 30 September 18

19 Investment performance 1yr 3yr 5yr 30 September 2018 Ashmore Benchmark Ashmore Benchmark Ashmore Benchmark External debt Broad -2.6% -1.9% 9.5% 6.0% 6.3% 5.4% Sovereign -2.4% -1.9% 7.5% 6.0% 6.1% 5.4% Sovereign IG 0.0% -0.8% 5.9% 5.0% 4.8% 4.6% Local currency Bonds -7.2% -7.4% 6.9% 5.2% -0.6% -1.7% Corporate debt Broad -0.1% -0.9% 9.6% 5.4% 5.5% 4.8% HY 1.3% -1.2% 11.2% 8.1% 5.1% 5.6% IG -0.5% -0.7% 4.6% 3.7% 4.6% 4.2% Blended debt Blended -3.7% -3.4% 8.9% 5.2% 3.5% 2.0% Equities Global EM equities 0.0% -0.8% 19.1% 12.4% 5.1% 3.6% Global EM small cap -5.0% -4.2% 11.2% 7.4% 4.0% 2.7% Frontier markets -8.0% -7.7% 9.5% 5.3% 5.3% 2.9% 19

20 Global distribution model Comprehensive coverage of a diversified client base Global teams in London, New York and Singapore hubs Local distribution Sales office in Tokyo Product management aligned with asset classes Sovereign fixed income Corporate debt Equities Long-term, direct relationships Global distribution team structure Institutional Intermediary Marketing Product management Headcount Increasing tenure of AuM 60% 50% 40% 30% 20% Total Scalable team and infrastructure 10% 0% <3yrs 3yrs-7yrs >7yrs AuM managed in segregated accounts or white label products As at December 20

21 US$ billion % of Group AuM Strong retail AuM growth, now 14% of Group AuM Strong growth in retail AuM sourced through intermediaries, consistent with Ashmore s diversification strategy Total retail AuM of ~US$10bn increased 47% in FY2017/18 Strong net inflows of +US$3.7 billion Scalable mutual fund platforms 26 SICAV funds in Europe with US$12.1bn AuM 40-Act platform in US has eight funds with AuM of US$2.0bn Strong growth in intermediary AuM % 14% 12% 10% 8% 6% 4% 2% 0.0 0% Jun 2018 Retail AuM (lhs) Retail AuM as % Group (rhs) US Europe Asia Diversified intermediary AuM Intermediaries Wirehouses Private banks RIAs Trusts Sub-advisers Private banks Platforms Wealth managers Fund of funds Sub-advisers Private banks Wealth managers UK 22% Americas 36% Product demand Blended debt Specialist equities Short duration Short duration Blended debt Local currency Fixed duration Multi-asset Europe (ex UK) 25% Asia Pacific 17% 21

22 Simple, distinctive and effective remuneration philosophy delivering retention and alignment of interests Principal features: salaries capped to minimise fixed costs single profit-based VC pool, capped at 25% of pre-bonus profit mandatory equity component with ability to increase equity exposure by voluntarily commuting cash further alignment through significant deferral: five-year cliff vest, with ordinary dividend eligibility Employee Benefit Trust (EBT) purchases shares to mitigate dilution Strong link between performance and variable remuneration 100% 80% 60% 40% 20% 0% -20% -40% Average length of senior employee service in Global businesses is 10 years -60% Revenues YoY Bonus pool YoY Equity incentivisation (based on VC of 100) Variable compensation as % of EBVCIT* Initial Cash 18% 18% 19% 18% 20% 20% 18.5% 20% 21% 21.5% Restricted shares 14% Switch & match Bonus and matching shares from commuted cash * Earnings before variable compensation, interest and tax 22

23 Fees as % total fees Business model delivers through market cycles Revenues driven by recurring diversified management fee income, representing >90% of fee income Adjusted EBITDA margin increased to 66% in FY2017/18 High-quality revenues and increase in profitability 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% % 65% 60% 55% 50% Net management fees (lhs) Performance fees (lhs) Adj EBITDA margin (rhs) Figures stated on an adjusted basis, excluding FX translation and seed capital-related items 23

24 Cumulative, m Strong cash generation Business model converts operating profits to cash (110% cumulative conversion since IPO) Consistent conservative balance sheet structure Cash balance has been broadly stable, average balance of 375 million over past nine years Principal uses of cash flow are: ordinary dividends to shareholders share purchases to satisfy employee equity awards taxation seed capital investments M&A Progressive dividend policy since 2007, 1.1 billion returned to shareholders through ordinary dividends equivalent to 68% of attributable profits over the period Cash excluding consolidated funds ( m) Seed capital (market value, m) Progressive capital distribution via ordinary dividends 1,800 1,600 1,400 1,200 1, Attributable profit Dividends paid 24

25 Balance sheet strength Strong, liquid balance sheet benefits clients and shareholders through the cycle Substantial financial resources 700 no debt high-quality financial resources liquid assets represent 79% of total balance sheet capacity to invest in seed capital for future growth confers strategic flexibility, e.g. to consider M&A progressive dividend policy Regulatory capital Total Pillar 2 requirement ( m) Excess capital ( m) Ashmore is supervised on a consolidated basis under a P3 licence the Group s two principal FCA-regulated entities are both limited licence BIPRU 50k firms Operational risk Credit risk Regulatory capital requirement is determined annually through the ICAAP Ashmore assesses how much regulatory capital it requires Pillar 3 disclosures provide detailed information Market risk Source: Pillar 3 disclosures and Group consolidated financial statements 25

26 Assets under management (US$m) Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Active seed capital programme creating value Active seeding supports Ashmore s strategy through: Creating a marketable investment track record Establishing new distribution conduits Providing additional scale to an existing fund to enhance its marketability Supporting initial development of local asset management platforms Active management of seed capital investments 640m 455m 228m Substantial balance sheet resources committed to seed capital investments over past nine years: 640 million invested 455 million successfully recycled to date (71% of invested cost) 14% of Group AuM (US$10 billion) in funds that have been seeded, e.g. short duration strategies have delivered significant AuM growth and represent 5% of Group AuM 103 million contribution to profits before tax over past nine years Seed capital outstanding Cumulative seed redeemed Cumulative seed invested Short duration strategies 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 Seed investments: US$60m USD 20m USD 40m USD 2m Successful redemptions: US$70.5m USD 8.5m USD 60m Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 26

27 Recent financial performance AuM +26% over the year to 30 June 2018 Record net flows +US$16.9 billion, investment performance -US$1.4 billion Q1 19 AuM +3% to US$76.4 billion; net inflows of +US$1.9 billion and market performance of +US$0.3 billion Operating revenues +11% to million Net management fees +13% to million driven by diversified AuM growth Performance fees of 21.9 million generated across a range of investment themes Maintained focus on cost efficiency Adjusted EBITDA +14%, margin increased to 66% Strong cash generation Operating cash flow of million, equivalent to 114% of adjusted EBITDA Profit before tax -7% Impacted by lower contribution from seed capital and FX translation FY2017/18 m FY2016/17 m YoY % AuM (US$bn) Operating revenues Adjusted operating costs (99.7) (94.2) 6 Adjusted EBITDA margin 66% 65% - EBITDA Seed capital gains (75) Profit before tax (7) Diluted EPS (p) (10) DPS (p) Figures stated on an adjusted basis exclude FX translation and seed capital-related items; see Appendix 1 27

28 Appendix FY2017/18 financial results

29 US$ billion % of Group AuM Client flows and products Global distribution team delivering flows diversified by investment theme, client type and client geography Strategic initiatives delivering strong AuM growth Retail Net flows (US$bn) 17.0 Overlay/liquidity 15.0 Equities 13.0 Blended debt Corporate debt Middle East & Africa Europe (ex UK) UK Foundations Fund/sub-advisers Central banks Sovereign wealth funds Corporates/financial institutions Third-party intermediaries Intermediary relationships established and strengthened 7.0 Americas Net inflows of US$3.7 billion with demand for short duration, blended debt and specialist equities, driven principally by Europe and Asia AuM +47% YoY, and now 14% of Group Local currency External debt Multi-asset Asia Pacific Governments Pension plans Local platforms AuM +26% YoY to US$4.9 billion, 7% of Group Significant diversification benefits, through domestic client base and differentiated asset classes Alternatives Acquired majority stake in Colombian real estate manager in July 2018, with ~US$300 million AuM Growth in retail AuM Jun 2018 Retail AuM (lhs) Retail AuM as % Group (rhs) 16% 14% 12% 10% 8% 6% 4% 2% 0% 29

30 Financial results Revenues Net management fees +13%, driven by AuM growth Higher net management fee income 6% headwind from higher average GBP:USD rate Net management fee margin 49bps bps lower YoY attributable to growth in large segregated accounts Retail AuM growth (+0.5bps) offset other effects including competition Performance fees delivered across investment themes Estimated performance fees from August year-end funds are not significant (August 2017: 1.4 million) FY2016/17 AuM growth Large mandates Retail Other FX FY2017/18 Figures stated on an adjusted basis, excluding FX translation and seed capital-related items; see Appendix 1 FY2017/18 m FY2016/17 m YoY % Net management fees Performance fees (23) Other revenue FX: hedges 1.8 (2.8) nm Operating revenues

31 Financial results Operating costs Consistent operating model Ongoing focus on fixed operating costs Variable compensation provides strong alignment of client/shareholder/employee interests through the cycle Non-VC operating costs reduced by 4% Stable Group headcount Local employees increased 16% YoY, now 29% of Group FY2016/17 Fixed staff costs Other operating costs FY2017/18 VC at 21.5% of EBVCIT (FY2016/17: 21%) Figures stated on an adjusted basis, excluding FX translation and seed capital-related items; see Appendix 1 FY2017/18 m FY2016/17 m YoY % Fixed staff costs (24.2) (24.8) 2 Other operating costs (21.5) (22.5) 4 Depreciation & amortisation (5.0) (5.5) 9 Operating costs before VC (50.7) (52.8) 4 Variable compensation (48.6) (43.0) (13) - adjustment for FX translation (0.4) 1.6 nm Adjusted operating costs (99.7) (94.2) (6) 31

32 Adjusted profits reconciliation Adjusted FY2017/18 m Adjusted FY2016/17 m YoY % Net revenue FX translation 2.0 (7.8) nm Operating revenues Operating costs ex consolidated funds (94.3) (90.3) (4) VC on FX translation (0.4) 1.6 nm Adjusted operating costs (94.7) (88.7) (7) Adjusted EBITDA EBITDA margin 66% 65% Depreciation and amortisation (5.0) (5.5) 9 Total adjusted operating costs (99.7) (94.2) (6) Net finance income Associates and joint ventures (0.4) 0.8 nm Seed capital-related items (75) Foreign exchange translation net of VC (1.6) 6.2 nm Profit before tax (7) 32

33 Financial results Seed capital Seed capital movement ( m) Market value million (30 June 2017: million) Undrawn commitments of 32.5 million Profit contribution of 10.1 million, of which 5.0 million realised Investment return of 14.0 million Mark-to-market FX loss of 3.9 million as Sterling strengthened New investments of 65.0 million, with investments made in alternatives and global equity products to support growth initiatives 30 June 2017 Investments Realisations Market movement 30 June 2018 Successful realisations of 55.8 million, from reaching product scale in frontier equity strategies (SICAV and 40-Act) and local mutual funds in Indonesia Frontier AuM US$0.2 billion (+33% YoY) Indonesia AUM US$1.6 billion (+52% YoY) Diversified across themes (% of market value) 8% 3%4% External debt 4% Local currency 19% Corporate debt 32% Blended debt Equities Alternatives 30% Multi-asset 33

34 Appendix 5 Foreign exchange Sterling was stronger against the US dollar over the 12-month period and compared to the prior financial year Period-end rate moved from to Average rate vs in FY2016/17 P&L FX effects in FY2017/18: Translation of net management fees million Translation of non-sterling balance sheet items million Net FX hedges million Seed capital million FX sensitivity: ~ 8.0 million PBT for 5c movement in GBP:USD rate 6.5 million for cash deposits (in foreign exchange ) 1.5 million for seed capital (in finance income ) Currency exposure of cash (1) 30 June 2018 m (1) Excludes consolidated funds. See Appendix for reconciliation to statutory consolidated cash flow statement % 30 June 2017 m US dollar Sterling Other Total Currency exposure of seed capital 30 June 2018 m % 30 June 2017 m US dollar Colombian peso Other % % Total

35 Appendix 2b Management fee margins FY2016/17 FY2017/ Group External debt Local currency Corporate debt Blended debt Equities Alternatives Multi-asset Overlay Fixed income: 48bps (FY2016/17: 50bps) 35

36 Disclosures Page 18: - Gross performance is shown, weighted by fund AuM, to provide a representative view to analysts and shareholders of Ashmore s investment performance over relevant time periods - Only funds at 30 June 2018 and with a performance benchmark are included, which specifically excludes funds in the alternatives and overlay/liquidity investment themes - 83% of Group AuM at 31 December 2017 is in such funds with a one year track record; 74% with three years; and 55% with five years - Reporting of investment performance to existing and prospective fund investors is specific to the fund and the investor s circumstances and objectives and may, for example, include net as well as gross performance Page 19: Source: Ashmore (un-audited), JP Morgan, Morgan Stanley - Returns gross of fees, dividends reinvested. - Annualised performance shown for periods greater than one year. - Within each investment theme category, all relevant Ashmore Group managed funds globally that have a benchmark reference point have been included. Benchmarks External debt Broad JPM EMBI GD External debt Sovereign JPM EMBI GD External debt Sovereign IG JPM EMBI GD IG Local currency Bonds JPM GBI-EM GD Blended debt 50% EMBI GD, 25% GBI-EM GD. 25% ELMI+ Corporate debt Broad JPM CEMBI BD Corporate debt HY JPM CEMBI BD NIG Corporate debt IG JPM CEMBI BD IG Global EM equities MSCI EM net Global EM small cap MSCI EM Small Cap net Frontier markets MSCI Frontier net 36

37 Disclaimer IMPORTANT INFORMATION This document does not constitute an offer to sell or an invitation to buy shares in Ashmore Group plc or any other invitation or inducement to engage in investment activities. Certain statements, beliefs and opinions in this document are forward-looking, which reflect the Company's current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The value of investments, and the income from them, may go down as well as up, and is not guaranteed. Past performance cannot be relied on as a guide to future performance. Exchange rate changes may cause the value of overseas investments or investments denominated in different currencies to rise and fall. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on any forward-looking statements, which speak only as of the date of this document. 37