Ashmore Group plc Investor presentation

March 2025

www.ashmoregroup.com

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

20

Remuneration philosophy

13

Index valuations

21

Delivering returns for shareholders

14

Outlook

22

Sustainability

15

Summary of recent financial performance

23

Appendix

34

Contact details

37

2

Ashmore 'at a glance'

  • A specialist Emerging Markets manager with USD 48.8 bn AuM (31 December 2024) diversified across asset classes
  • Active investment management delivered by committee-based investment processes with 30 years' experience; not a 'star culture'
  • Three-phasestrategy to capitalise on structural growth and convergence trends across Emerging Markets
  • Remuneration philosophy aligns interests, provides cost flexibility and delivers employee loyalty (~38% equity owned by employees)
  • 284 employees in 11 countries, with global operating hubs complemented by operations in emerging countries
  • Relatively high operating margin (42%) supported by scalable operating platform
  • Well-capitalised,liquid balance sheet with c.£650m financial resources including c.£340m cash

Source: Ashmore, AuM charts as of 31 December 2024

AuM: diversified by investment theme & client type

Alternatives, 3%

External debt,

Equities, 14%

15%

Blended debt,

23%

Local currency,

36%

Corporate debt,

9%

Foundations /

Intermediary retail endowments

4%

1%

Funds / sub-

advisers

Central banks

9%

24%

Corporates /

financial

institutions

20%

Sovereign wealth

funds

23%

Pension plans

18%

Governments

1%

3

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 share: FX reserves (72%) & population (84%), underrepresented in global index weights of 10% to 30%

Consistent strategy to deliver meaningful AuM growth in each phase

Phase 1: Long-term growth from increasing institutional & retail target allocations from underweight levels

Phase 2: Diversify through growth in equities, adding alternatives, deeper retail market penetration

Phase 3: Add scale & diversity through local markets

Established business model adapts to market cycles

  • Scalable platform
  • Efficient model delivers high EBITDA margin relative to industry
  • Meaningful cash generation
  • Strong, liquid balance sheet enables investment for future growth and generates profits
  • Aligns employees through the cycle with flexible remuneration structure
  • Deliver returns to shareholders through ordinary dividends

Source: United Nations, IMF, MSCI, JP Morgan, Ashmore

4

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 continues to grow and diversify, and Ashmore strives to be at the forefront of accessing new market opportunities as they arise

• Diversifying revenue streams provides greater stability through market cycles

• Industry AuM in Emerging Markets is growing twice as fast as the developed world

• This presents a significant growth opportunity in local asset management platforms, as well as cross-border Emerging Markets opportunities over the longer term

Source: United Nations, IMF, MSCI, JP Morgan, Ashmore, as of December 2023

5

Strategy phase 1:

Establish Emerging Markets asset classes

  • Ashmore's specialist focus means it is well-placed to exploit the significant growth potential as emerging nations develop
  • Large investable markets across fixed income, currencies, equities and illiquid assets
  • Institutional allocations are underweight and rising steadily
    • Typically mid-single digit % target allocation to Emerging Markets, increasing over time on a growing pool of capital
    • MSCI All Cap World index has 11% EM weight
    • JP Morgan GBI-Agg Diversified index has 32% EM weight
  • Allocations will increase as Emerging Markets are increasingly viewed as mainstream asset classes

Ashmore's specialism, expertise, experience and distribution model enable it to grow AuM by participating in rising investor allocations to Emerging Markets

Source: IMF, MSCI, JP Morgan, Ashmore, as of December 2023

Convergence: GDP per capita (indexed 1980 = 100)

2023

EM = US$15,250

DM = US$66,000

1980

EM = US$1,600

DM = US$10,200

1980

1985

1990

1995

2000

2005

2010

2015

2020

2025f

Developed Markets

Emerging Markets

Significant growth opportunity from higher allocations (%) 1

8.88.8

6.2

5.0

4.7

4.3

3.8

2.5

2.0

n/a

2005

2010

2015

2020

2022

Equity

Fixed income

  1. Ashmore, target allocations disclosed in annual reports of representative European and US pension funds collectively responsible for more than US$750 billion of assets

6

Strategy phase 2:

Diversify assets under management

  • Diversification mitigates impact of cyclical factors on revenues, and includes asset classes, products and clients (type & location)
  • Focus on increasing scale of equities & alternatives AuM, and growing IG strategies
  • Cyclical opportunities in intermediary retail channels
  • Ashmore continues to evolve as Emerging Markets provide additional risk/return opportunities

AuM by client location

Americas

Middle East &

11%

Africa

31%

Europe

31%

Asia Pacific

23%

UK 4%

AuM development (USD bn)

100

90

80

70

60

50

40

30

20

10

0

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

H1

External debt

Local currency

Corporate debt

Blended debt

Equities

Alternatives

Focus on further diversification by growing:

  • Equities (14% AuM)
  • Intermediary retail (4% AuM)
  • Alternatives (3% AuM)
  • IG strategies (10% AuM)

Source: Ashmore, as of 31 December 2024

7

Strategy phase 3:

Mobilise Emerging Markets capital

  • Investable capital pools in Emerging Markets are growing faster than in Developed Markets
  • AuM growth of +2% in H1 2025 to US$7.6 billion, now 16% of Group
  • Diversification benefits
    • AuM growth increase despite global macro headwinds
    • Further growth available
    • Opportunities in most regions to develop network further

Increasing contribution from local offices

8.0

20%

7.0

18%

6.0

16%

14%

5.0

12%

4.0

10%

3.0

8%

2.0

6%

4%

1.0

2%

0.0

0%

2010

2020

H1 2025

AuM (US$bn, lhs)

AuM % Group (rhs)

Attributable profit % Group (rhs)

% of Group

FY2010

FY2020

H1 2025

AuM

1%

6%

16%

Revenues

3%

9%

29%

EBITDA

1%

7%

39%

EBITDA margin (%)

33%

48%

56%

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 38% today

8

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 global EM fixed income & equities and local asset management
  • Proprietary research including ESG scoring for all portfolios
  • No prescribed house view, but insights shared between global and local investment teams

9

Investment themes

THEME

GLOBAL STRATEGIES

REGIONAL / COUNTRY STRATEGIES

FIXED INCOME

(USD 40.3bn)

External Debt

Local

Corporate

Currency

Debt

(USD 7.1bn)

(USD 17.3bn)

(USD 4.6bn)

Broad

Bonds

Broad

Sovereign

Bonds (Broad)

High yield

Sovereign,

FX+

Investment

investment

Investment

grade

grade

grade

Short duration

Short duration

Volatility-

Income

ESG

managed bonds

ESG

Cash

Overlay

management

ESG

Indonesia

Indonesia

Asia high yield

Saudi Arabia

ALTERNATIVES

(USD 1.5bn)

EQUITIES

(USD 7.0bn)

Blended Debt

(USD 11.3bn)

Blended

EM Active

EM equity

• EM frontier

Private equity

Investment

EM Shariah

EM ex China

- Healthcare

grade

Multi-asset

EM ESG

Infrastructure

Absolute return

EM small cap

Special

Frontier

situations

ESG

Distressed debt

Impact

Real estate

Andean

Africa

Andean

India

Middle East

Middle East

Indonesia

Qatar

(GCC)

Indonesia ESG

South and East

Saudi Arabia

Asia

  • Saudi Arabia Shariah

10

Attachments

Disclaimer

Ashmore Group plc published this content on March 06, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 06, 2025 at 14:59:02.587.