Slide 1: Ashmore Group plc Investor presentation
Ashmore Group plc Investor presentation March 2025 www.ashmoregroup.com
Slide 2: Contents
Contents Ashmore Group plc Page Emerging Markets Page Ashmore ‘at a glance’ 3 Superior growth 17 Capitalising on the Emerging Markets opportunity 4 Structural reforms 18 Three-phase growth strategy 5 Diversification provides opportunities 19 Active investment processes 9 Active vs passive investing
Slide 3: Ashmore 'at a glance'
Ashmore ‘at a glance’ • A specialist Emerging Markets manager with USD 48.8 bn AuM AuM: diversified by investment theme & client type (31 December 2024) diversified across asset classes Alternatives, 3% External debt, Equities, 14% 15% • Active investment management delivered by committee-based inve
Slide 4: Capitalising on the Emerging Markets opportunity
Capitalising on the Emerging Markets opportunity Emerging Markets offer superior growth, supported by reforms and diversification • Superior GDP growth vs Developed Markets • Structural reforms support growth & provide resilience • Diversification with more than 70 emerging countries • Dominant shar
Slide 5: Three-phase growth strategy
Three-phase growth strategy • Developed world investors hold more than USD 100 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 contin
Slide 6: Strategy phase 1: Establish Emerging Markets asset classes
Strategy phase 1: Establish Emerging Markets asset classes Convergence: GDP per capita (indexed 1980 = 100) • Ashmore’s specialist focus means it is well-placed to exploit the significant growth potential as emerging nations develop 2023 EM = US$15,250 DM = US$66,000 • Large investable markets acros
Slide 7: Strategy phase 2: Diversify assets under management
Strategy phase 2: Diversify assets under management AuM development (USD bn) • Diversification mitigates impact of cyclical factors on 100 revenues, and includes asset classes, products and 90 clients (type & location) 80 • Focus on increasing scale of equities & alternatives 70 AuM, and growing IG
Slide 8: Strategy phase 3: Mobilise Emerging Markets capital
Strategy phase 3: Mobilise Emerging Markets capital • Investable capital pools in Emerging Markets are growing faster Increasing contribution from local offices than in Developed Markets 8.0 20% 18% 7.0 16% • AuM growth of +2% in H1 2025 to US$7.6 billion, now 16% of 6.0 14% Group 5.0 12% 4.0 10% •
Slide 9: Active investment processes
Active investment processes • Specialist, active investment management is required to exploit inefficiencies in Emerging Markets • Investment committees oversee experienced teams with collective responsibility for strategies in each theme ˗ No ‘star’ culture • ~100 investment professionals covering
Slide 10: Investment themes
Investment themes FIXED INCOME ALTERNATIVES (USD 40.3bn) (USD 1.5bn) EQUITIES (USD 7.0bn) Local Corporate External Debt Blended Debt THEME Currency Debt (USD 7.1bn) (USD 11.3bn) (USD 17.3bn) (USD 4.6bn) GLOBAL • Broad • Bonds • Broad • Blended • EM Active • EM equity • EM frontier • Private equity S
Slide 11: Investment performance
Investment performance One year: 43% outperforming Three years: 58% outperforming Five years: 57% outperforming 100% 100% 100% 90% 90% 90% 80% 80% 80% 70% 70% 70% 60% 60% 60% 50% 50% 50% 40% 40% 40% 30% 30% 30% 20% 20% 20% 10% 10% 10% 0% 0% 0% June 2024: 40% June 2024: 59% June 2024: 62% Outperformi
Slide 12: Investment performance
Investment performance 1yr 3yr 5yr 31st December 2024 Ashmore Benchmark Ashmore Benchmark Ashmore Benchmark External debt Broad 7.5% 6.5% -1.4% -0.9% -1.4% 0.1% Sovereign 7.5% 6.5% 1.8% -0.9% 0.6% 0.1% Sovereign IG 0.1% 0.3% -3.9% -4.8% -1.0% -1.6% Local currency Bonds -4.5% -2.4% 1.0% -1.0% -0.5% -
Slide 13: Remuneration philosophy aligns interests
Remuneration philosophy aligns interests • Consistent philosophy aligned with cyclical profits and protects Linking pay & performance returns to shareholders through market cycles 100% • Applies to all Group employees, underpins strong team-based 80% culture and employee retention 60% • RemCo determ
Slide 14: Delivering returns for shareholders through market cycles
Delivering returns for shareholders through market cycles • High-quality revenues and flexible cost base Substantial & liquid financial resources ˗ Strong bias to recurring management fee income ˗ Disciplined control of operating costs ˗ Profit-based variable remuneration 347.9 ˗ Relatively high ope
Slide 15: Sustainability
Sustainability Approach to sustainability centred on three pillars Consistent, coherent approach across the Group • ESG Committee oversees implementation of all ESG and responsible investment issues; includes front office, middle office & support functions; reports to the plc Board Corporate • Annua
Slide 16: Emerging Markets
Ashmore Emerging Markets eee
Slide 17: Superior growth supported by reforms & diversification
Superior growth supported by reforms & diversification • Superior growth delivered by powerful economic Emerging Markets’ superior growth & dominant share of resources convergence trends with the developed world 8.0 6.0 • Emerging Markets have a dominant share of 4.0 economic resources, but underrep
Slide 18: Structural reforms
Structural reforms • Most important development of past few decades is the Structural shift to local currency funding (US$trn) shift from external to local currency funding 25 ‒ Supported by improvements in quality & effectiveness of monetary & fiscal policymaking, and 20 ‒ Growth in institutional i
Slide 19: Diversification provides opportunities
Diversification provides opportunities • Diverse equity & fixed income asset classes representing Large and diverse benchmark indices more than 70 countries Index Value Countries Issuers ˗ No country is more than 5% of EMBI GD (US$bn) ˗ GBI-EM GD country weights capped at 10% EMBI GD 1,270 72 162 GB
Slide 20: Active versus passive investing
Active versus passive investing Large investment universe, low index representation • EM fixed income and equity markets are inefficient − Benchmark indices are unrepresentative of the US$41.6trn US$39.4trn 17% investment opportunity 19% − Active management is critical • Structural developments, e.g
Slide 21: Historical valuations relative to Developed Markets
Historical valuations relative to Developed Markets External debt Local currency 800 8.00 EMBI GD spread over UST, bps GBI-EM GD yield (%) Difference: GBI-EM vs GBI global (%) 700 7.00 600 6.00 500 5.00 400 4.00 300 3.00 200 2.00 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2014 2015
Slide 22: Emerging Markets: 2025 outlook
Emerging Markets: 2025 outlook Robust fundamentals, consistently superior growth (%) • Robust fundamentals across major emerging countries ‒ Consistently superior GDP growth vs DM, across all EM Region GDP CPI 2024 2025 2026 2024 2025 2026 regions EM 4.1 3.9 3.8 4.5 3.4 2.8 ‒ Effective monetary poli
Slide 23: Summary of recent financial performance: H1 2025
Ashmore Group plc Summary of recent financial performance: H1 2025
Slide 24: Financial performance overview
Financial performance overview • Adjusted net revenue -14% H1 2025 H1 2024 ‒ Comparable performance fees, impact of lower average AuM £m £m YoY Average AuM (US$bn) 50.1 53.3 -6% • Adjusted operating costs reduced by 9% Adjusted net revenue 79.9 93.4 -14% ‒ Disciplined control of expenses ‒ VC accrue
Slide 25: Quarterly net flows
Quarterly net flows +8.0 +6.0 +4.0 +2.0 USD billion +0.0 -2.0 -4.0 -6.0 -8.0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 25
Slide 26: Assets under management
Assets under management • AuM broadly unchanged over the period at c.US$49bn AuM development (US$bn) • Strong market performance in Q1 offset by impact of US election in Q2 3.2 0.4 2.6 • Higher subscriptions YoY (US$4.1 billion vs US$3.0 billion) 0.7 • Redemptions continue to decline with improving
Slide 27: Revenues
Revenues • Net management fees -17% YoY H1 2025 H1 2024 − Average AuM -6% £m £m YoY − Higher average GBP:USD rate, -2% impact Net management fee margin (bps) 36 39 -3bps − Lower net management fee margin Net management fees 68.3 82.6 -17% Performance fees 7.9 8.0 -1% • Margin 36bps, -3bps YoY Other
Slide 28: Operating costs
Operating costs • Effective & efficient operating model reduced costs by 9% H1 2025 H1 2024 £m £m YoY ‒ FX impact +1% Staff costs (15.8) (16.1) +2% ‒ Non-VC costs reduced by 5% Other operating costs (11.1) (12.4) +10% D&A (1.6) (1.6) - • Staff costs reduced by 2% Operating costs before VC (28.5) (30
Slide 29: Seed capital
Seed capital • Total value of c.£367 million comprises: Diversified investments to support strategic ‒ Market value of investments (£347.9 million) initiatives (% of market value) ‒ Commitments (£19.3 million) 19% • Invested £89.9m to underpin AuM growth 26% External debt ‒ Established new funds in
Slide 30: Other P&L items
Other P&L items • Interest income of £11.8 million H1 2025 H1 2024 ‒ Achieved consistent yield of c.5% £m £m YoY ‒ Lower average cash balances during the period Interest income 11.8 12.8 -8% Profit before tax 49.9 74.5 -33% • Effective tax rate 21.6% ‒ Below UK rate of 25.0% due to geographic mix of
Slide 31: Financial resources
Financial resources • Operating cash flow supports returns to shareholders and Financial resources facilitate continued investment allows investment for future growth − Seasonal impact in H1: final dividend and cash 28.4 11.1 87.7 505.7 bonuses relating to FY2024 27.1 − Significant net seed capital
Slide 32: Net management fee margins
Net management fee margins 161 H1 2024 H1 2025 123 55 54 43 39 36 34 32 32 31 29 29 26 Group External debt Local currency Corporate debt Blended debt Equities Alternatives Fixed income: 29bps (H1 2024: 33bps) 32
Slide 33: Foreign exchange
Foreign exchange • GBP:USD rate Currency exposure of cash and deposits(1) − Period-end rate moved from 1.2641 to 1.2524 31 December 2024 % 30 June 2024 % £m £m − Average rate 1.2876 vs 1.2572 in H1 2024 US dollar 120.3 35 223.8 44 Sterling 189.4 55 241.8 48 • P&L FX effects in H1 2025: Other 32.6 10
Slide 34: Appendix
Ashmore Appendix eee
Slide 35: Disclosures
Disclosures Page 11: − 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 31 December 2024 and with a performance benchmark are included, which specifically exc
Slide 36: 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 37: Investor relations contact
Investor relations contact Paul Measday Telephone: +44 (0) 203 077 6278 Email: paul.measday@ashmoregroup.com Website: ir.ashmoregroup.com 37