Ashmore : Annual Report

A n n u a l R e p o r t a n d A c c o u n t s 2 0 2 3

Contents

Strategic report

Strong foundations	2
Ashmore at a glance	4
Powerful convergence	6
Business model	8
CEO review	10
Specialist understanding	12
Three-phase strategy	14
The Emerging Markets story	16
Investment philosophy	18
Market review	22
Key performance indicators	26
Business review	28
Risk management	35
Section 172 statement	42
People & culture	46
Sustainability	50
TCFD	56

Governance

Board of Directors	62
Corporate governance report	64
Audit and Risk Committee report	72
Nominations Committee report	76
Remuneration report	78
Directors' Remuneration policy	81
Annual Report on Remuneration	102
Statement of Directors' responsibilities	112
Directors' report	113

Financial statements

Independent auditor's report	118
Consolidated financial statements	126
Company financial statements	130
Notes to the financial statements	133
Five-year summary	175
Alternative performance measures	176
Information for shareholders	179
Glossary	181

Front cover - Mount Ama Dablam, Nepal

2023 highlights

AuM	AuM outperforming
	benchmarks (3 years)
US$55.9bn	69%
2022: US$64.0bn	2022: 28%
-13% YoY
Net revenue	Adjusted EBITDA
	margin
£196.4m	54%
2022: £262.5m	2022: 64%
-25% YoY%
Profit before tax	Diluted EPS
£111.8m	12.2p
2022: £118.4m	2022: 12.6p
-6% YoY	-4% YoY
Dividends per
share
16.9p
2022: 16.9p

Pages 2 to 61 constitute the Strategic report which was approved by the Board on 5 September 2023.

Mark Coombs

Chief Executive Officer

5 September 2023

Ashmore's purpose, as a specialist Emerging Markets investment manager, is to deliver long-term investment outperformance for clients and to generate value for shareholders over market cycles.

Strong	Powerful	Specialist
foundations	convergence	understanding
Ashmore has managed	Emerging Markets are	The size, scale and
investments in	following powerful and	diversity of Emerging
Emerging Markets on	well-established trends	Markets are often
behalf of its clients for	of economic, political	misunderstood and
more than 30 years,	and social convergence	underappreciated.
and has witnessed the	with the developed	This creates investment
development of a large,	world. These provide	opportunities, requiring a
diversified and highly	superior growth and	specialist, active approach
attractive investment	many investment	to exploit inefficiency
universe.	opportunities.	and to deliver long-term
+ Read more on pages 2-3	+ Read more on pages 6-7	investment performance.

+ Read more on pages 12-13

Strong

foundations...

Ashmore has managed investments in Emerging Markets on behalf of its clients for more than 30 years, and has witnessed the development of a large, diversified and highly attractive investment universe.

Emerging Markets represent a highly diverse set of more than 70 countries, with in excess of US$75 trillion of tradable equity and fixed income securities.

One of the most significant developments of the past few decades is the growth of local currency markets, allowing governments and companies to fund in their domestic currency and providing protection against external shocks. In total, bonds issued in local currencies represent 88% (equivalent to US$34 trillion) of the total Emerging Markets fixed income investment universe.

The underlying economies have delivered strong growth over the past three decades, resulting in emerging nations now generating more than half of the world's GDP.

Allocations to Emerging Markets are at levels significantly below global benchmark weights, providing for substantial AuM growth as investors recognise the superior growth, attractive returns and diverse investment opportunities available across the asset classes.

Emerging Markets' rising share of world GDP (%)

70

60

50

40

30

1990

2000

2010

2020

Emerging Markets

Developed Markets

Source: IMF WEO database (PPP basis)