Ashmore Group plc · LSE:ASHM
Ashmore — Goldman Sachs Diversified Financials Symposium 2009
28 slides from Ashmore's conference presentation, Nov 24, 2009
Slide 1: Ashmore Group plc
Ashmore Group plc Goldman Sachs, Diversified Financials Symposium - 24 November 2009 Citibank, Investor Day – 30 November 2009
Slide 2: Contents
Contents • Q1 interim management statement • Financial highlights and AuM • Strategy • Update on themes, fund and investor diversification • Financial results 1
Slide 3: Q1 interim management statement
Q1 interim management statement • The quarter saw assets under management increase 25% to US$31.1 billion • The drivers of this were net inflows of US$3.6 billion and positive performance of US$2.6 billion • Inflows have been earliest and strongest in the external debt theme, now beginning to resume
Slide 4: Q1 interim management statement
Q1 interim management statement US$31.1bn US$24.9bn 3
Slide 5: Investment performance - public funds
Assets under management Investment performance - public funds Annualised Performance Launch Since Theme Fund Date AuM US$M (1) 1m (2) 3m (2) 6m (2) 1 Year (2) 3 Year (2) 5 Year (2) Launch (2) EMLIP Oct-1992 3,413.4 6.6% 14.7% 27.3% 6.6% 6.9% 12.3% 21.9% Benchmark (EMBI GD) 4.9% 10.4% 23.0% 18.7% 7.4
Slide 6: Strategy
Strategy …capitalising on increasing investor allocations into, and between, emerging markets 5
Slide 7: Slides & information from FY2009 presentation
Slides & information from FY2009 presentation
Slide 8: Financial highlights
Financial highlights • Total FY2009 net revenue of £203.5 million, a decrease of 15% from FY2008 (£240.0 million) − Net management fees(1) up by 1% to £183.2 million − Performance fees of £52.5 million (FY2008: £44.7 million) − Foreign exchange hedging cost of £42.4 million, of which £4.1 million re
Slide 9: Assets under management: subscriptions and redemptions
Assets under management Subscriptions and redemptions …marked contrast between two halves in FY09, followed by recovery in Q1 10 8
Slide 10: Update on themes: External debt
Update on themes External debt Theme premise • Ashmore’s longest established and largest theme • Principally US Dollar and other hard currency denominated instruments, which may include derivatives, investing in mainly sovereign bonds Facts • Launched 1992 • Management fees(1) £74.5m (FY2008: £85.1m
Slide 11: Update on themes: Local currency
Update on themes Local currency Theme premise • Local currency and local currency denominated debt instruments, which may include derivatives, investing in FX and mainly sovereign bonds Facts • Launched 1997 • Management fees(1) £36.1m (FY2008: 28.3m) • Average mgmt fee margin: 106 bps (FY2008: 114
Slide 12: Update on themes: Special situations
Update on themes Special situations Theme premise • Investments in debt and / or other instruments, typically focusing on situations involving corporate distressed for control investments or restructuring, distressed assets or distressed sellers of assets, and often with a private equity approach Fa
Slide 13: Update on themes: Equity
Update on themes Equity Theme premise • Public equity and equity-related securities • Can include equities, convertibles, warrants and equity derivatives Facts • Launched 2000 • Management fees(1) £1.4m (FY2008: £3.5m) • Average mgmt fee margin: 124 bps (FY2008: 115 bps) • Performance fees: £0.1m (F
Slide 14: Update on themes: Corporate high yield
Update on themes Corporate high yield Theme premise • Investments in corporate debt within emerging markets Facts • Launched 2007 • Management fees(1) £4.9m (FY2008: £4.1m) • Average mgmt fee margin: 183 bps (FY2008: 165 bps) • Performance fees: £0.1m (FY2008: nil) • 1 public fund 30 JUNE 2009 • AuM
Slide 15: Update on themes: Multi-strategy
Update on themes Multi-strategy Theme premise • Supplements the core product range, investing into the 5 core themes and any new themes where appropriate • Includes Ashmore Global Opportunities Limited, a permanent capital vehicle, which listed on the LSE on 12 December 2007 Facts • Launched 2003 •
Slide 16: Update on themes: Other
Update on themes Other Theme premise • New themes developed in line with strategy to diversify capabilities and investor base Facts Existing • Fund of third party funds • Liquidity management In development • Overlay/hedging strategies 30 JUNE • Infrastructure 2009 • Real estate Current markets / op
Slide 17: Fund diversification: New funds and classification
Fund diversification New funds and classification • 4 public funds launched: − Global Special Situations Fund 5 (US$0.1 billion) − Global Consolidated Recovery Fund (US$0.1 billion) − 2 Brazilian equity funds, 1 onshore, 1 offshore • 3 dual branded funds launched: − Turkish mutual funds, specialisin
Slide 18: Investor analysis: Investor type and geography
Investor analysis Investor type and geography Institutional (1) 30 JUNE 30 JUNE 2009 91% (88%) 2009 …investor diversification maintained (1) Prior period parenthesised. 17
Slide 19: Income statement
Financial results Income statement Year ended Year ended Variance 30 June 2009 30 June 2008 As reported £m £m £m Net management fees 183.2 182.0 1.2 Performance fees 52.5 44.7 7.8 Other revenue 6.4 10.1 (3.7) Foreign exchange (38.6) 3.2 (41.8) Net revenue 203.5 240.0 (36.5) Personnel expenses 11.5 7
Slide 20: Revenue margins (basis points)
Financial results Revenue margins (basis points) • Principal component remains management fees • Performance fees diversified and provide upside opportunity • FX impacted total net revenue in FY08/09 …revenue margins maintained 19
Slide 21: Performance fees
Financial results Performance fees Year Year ended 30 ended 30 June 2009 June 2008 £m £m External debt 17.5 17.0 30 JUNE Local currency 16.0 16.2 2009 Special situations(1) 16.4 7.2 Equity 0.1 3.2 Corporate high yield 0.1 - Multi-strategy 2.4 1.1 Other - - Total performance fees 52.5 44.7 • H1: £48.
Slide 22: Personnel
Financial results Personnel • Headcount grown as planned in FY2009 including: − expansion of local asset management subsidiaries − investment in infrastructure platform for next growth phase • Employee cost increases for FY2009: − total personnel cost of £36.0 million (FY2008: £47.7 million) − fixed
Slide 23: Cash flow & balance sheet
Financial results Cash flow & balance sheet Year Year Year Year ended ended ended 30 ended 30 30 June 30 June June June 2009 2008 2009 2008 £m £m £m £m Cash from operations 150.9 195.5 Total assets 399.4 366.1 Deferred acquisition costs - (14.6) Net liabilities 88.9 92.8 Acquisition of subsidiary (3
Slide 24: Appendices
Appendices Ashmore
Slide 25: Net management fees
Financial results Net management fees Year ended Year ended GBP net management fees 30 June 2009 30 June 2008 Variance £m £m % External debt 74.5 85.1 (12) Local currency 36.1 28.3 28 Special situations 44.3 37.3 19 Equity 1.4 3.5 (60) Corporate high yield 4.9 4.1 20 Multi-strategy 21.6 23.7 (9) Oth
Slide 26: Foreign exchange - the impact
Financial results Foreign exchange - the impact (1) …majority of FX now realised (1) Analysed as £4.5m loss in respect of forward foreign exchange contracts for FY09/10 and £0.4m gain on options in respect of FY10/11 25
Slide 27: Disclaimer
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 refle
Slide 28: Ashmore
Ashmore
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