Ashmore Group plc
Annual Report
for the year ended 30 June 2008  1 ASHMORE GROUP PLC ANNUAL REPORT 2008 1 ASHMORE GROUP PLC ANNUAL REPORT 2008
Ashmore Group plc (“Ashmore”, the “Group”, the “Company”) is one
of the world’s leading emerging market investment managers with a
history of consistently outperforming the market. Ashmore specialises
in a number of emerging market investment themes: dollar debt, local
currency, special situations, equity and corporate high yield. More
information is available in the business review and on the Group’s
website www.ashmoregroup.com
2 Financial highlights
Operational highlights
4 Chairman’s statement
5 Chief Executive Officer’s statement
Assets under Management (“AuM”) 
and financial performance
Operational delivery
Strategic positioning
Investor allocations to emerging markets
Local currency debt and local asset
management operations
Special situations: 
Opportunities and performance fees
Our people and culture
August 2008 annual performance fees
Outlook statement
12 Key events in the year
14 Business review
Key performance indicators
Assets under Management
Investor profile
Investment theme reviews
Multi-strategy funds, permanent capital
vehicle and liquidity fund
Management fee margins and 
performance fees
Operating costs and operating margin
Taxation
Balance sheet and cash flow
Dividend
Foreign exchange and treasury
management
Risk
24 Board of directors
25 Directors’ report
28 Corporate governance report
34 Report from the Chairman of the 
Audit Committee
35 Remuneration report
40 Independent auditors’ report
42 Consolidated income statement
43 Consolidated statement of 
changes in equity
44 Consolidated balance sheet
45 Consolidated cash flow statement
46 Company balance sheet
47 Company cash flow statement
48 Company statement of changes in
equity
49 Notes to the financial statements
74 Five-year summary
75 Information for shareholders
About Ashmore
Contents 2 ASHMORE GROUP PLC ANNUAL REPORT 2008
Financial highlights
US$37.5 billion
Assets under Management (AuM)
Assets under Management (AuM) of US$37.5 billion
at 30 June 2008, up US$5.9 billion, 19% in the year
£182.0 million
Net management fees
Net management fees of £182 million, 44% higher
than for the year ended 30 June 2007
£44.7million
Performance fees
Performance fees of £44.7 million (£20.4 million for
the year ended 30 June 2007)
76%
Operating margin 
Operating margin of 76% (2007: 76%)
£196.2 million
Profit before tax
Profit before tax of £196.2 million, up 49%
21.0 p
Basic eps
Basic eps up 53% to 21.0p (2007: 13.7p) and diluted
eps of 19.9p (2007: 12.9p)
8.34 p
Final dividend
A final dividend of 8.34p per share will be paid on 
5 December 2008, giving a total dividend for the year of
12.0p (2007: 9.0p)
Ashmore launched its fifth
investment theme in October
2007, emerging corporate high
yield, which offers investors a
risk return profile distinct from
other segments of emerging
market fixed income.
The launch of a permanent
capital vehicle in December
2007 (Ashmore Global
Opportunities Limited) through
which €500 million was raised.
This provides a broader access
to the special situations via a
listed vehicle with daily liquidity
and pricing.
A dedicated Brazilian local
currency fund was launched in
January 2008, managed by our
newly established fund
management subsidiary in Sao
Paulo. This was followed in April
by the launch of a Brazilian
onshore local currency fund
targeting domestic institutional
investors.
The fourth Global Special
Situations Fund (GSSF4) closed
in October 2007 with
commitments of US$1.4 billion.
At 30 June 2008 it was 70%
drawn down and it has since
become fully drawn. Marketing
began in June 2008 for the next
special situations fund GSSF5.
Significant infrastructure
initiatives have been put in
place, aimed at providing the
Group with development,
continuity and expansion to
enable the execution of
strategic plans.
Operational
highlights 3 ASHMORE GROUP PLC ANNUAL REPORT 2008
The Group results for the year ended 30 June 2008 are satisfactory from
a number of perspectives. Firstly in absolute financial terms they
demonstrate the further progress made against the results of prior
periods and our own forecasts. Secondly we have continued to make
progress from an operational point of view with fund launches, further
product innovation and the implementation of significant infrastructural
initiatives aimed at developing an even more robust platform for the
Group’s continued development.
08
37.5
07
31.6
06
20.1
05
11.0
04
5.9
Assets under Management (AuM) US$bn
+19%
Profit before tax £m
+49%
196.2
131.4
103.9
48.4
47.8
08 07 06 05 04
Net management fees £m
+44%
182.0
126.4
78.5
39.9
23.8
08 07 06 05 04
Earnings per share (basic) pence
+53%
08 07 06 05 04
21.0
13.7
10.8
4.9
4.7 4 ASHMORE GROUP PLC ANNUAL REPORT 2008
Chairman’s Statement 
A review of the Group’s financial and
operational highlights demonstrate a
year of excellent progress. The profit
before tax was £196.2 million against
£131.4 million for the previous year ,
an increase of 49%. These results are
highly satisfactory , particularly as they
have been achieved against a
background of extreme volatility in the
global financial markets.
The Group’s core capabilities of
product innovation, asset raising,
delivering good investment performance
and excellent client service have again
continued to be demonstrated. During
this period we have worked extensively
on building a stronger infrastructure
platform for the further development of
the business going forward. In addition,
in line with our strategy , we are
beginning to develop a local asset
management presence on the ground in
a number of the key emerging markets
in which we participate to enable the
Group to benefit from the development
of these markets. All of these areas will
be expanded upon further in the Chief
Executive Officer’s Statement and
Business Review that follows.
Recognising the continued strong
progress and our confidence in the
Group’s prospects, the directors are
recommending a final dividend of 8.34p
for the year ended 30 June 2008 and,
subject to shareholder approval, this will
be paid on 5 December 2008 to all
shareholders who are on the register on
7 November 2008. This makes a total
dividend of 12.0p for the year (2007:
9.0p) an increase on last year of 33%.
We were delighted to welcome Graeme
Dell to the Board in December as
Group Finance Director . Graeme has
brought with him significant listed
company experience and has made an
immediate contribution to the Board and
its governance processes. Additionally
we were pleased that Jonathan Asquith
joined our Board on 1 September 2008
as an independent non-executive
director . Jonathan has a wealth of
experience in our industry having been
Vice Chairman and Chief Financial
Officer at Schroders plc and has also
held a number of senior positions in the
investment banking sector . I have no
doubt that he will be a considerable
asset to our Board. The Group expects
to further strengthen the Board by the
appointment of additional non-executive
directors and continues to be actively
engaged in this process. Jon Moulton,
who has served on our Board since
1999, will retire and not seek re-election
at the AGM and on behalf of the Board
I would like to express our gratitude for
his service and counsel over this period.
To build a first class asset manager
requires a team of the highest calibre
committed to delivering consistently
good investment performance and client
service. This year’s results confirm my
belief that Ashmore has such a team.
In addition, the Group’s strategic
position, focusing exclusively on
emerging markets combined with the
team’s long history of managing these
assets through many periods of
extreme market volatility , represents a
significant opportunity . Whilst the
markets may present further challenges
I am confident that the Group is ready
to meet them and to deliver on its
strategy .
Michael Benson
Chairman
The Group’s core capabilities of
product innovation, asset raising,
delivering good investment
performance and excellent client
service have again continued to be
demonstrated.
A review of the Group’s financial and
operational highlights demonstrate a year of
excellent progress.
07
08
+53%
13.7
Earnings per share (basic) pence
21.0
+49%
07
08
196.2
131.4
Profit before tax £m 5 ASHMORE GROUP PLC ANNUAL REPORT 2008
Chief Executive Officer’s statement
The Group results for the year ended 
30 June 2008 are satisfactory from a
number of perspectives. Firstly in
absolute financial terms they
demonstrate the further progress made
against the results of prior periods and
our own forecasts. Secondly we have
continued to make progress from an
operational point of view with fund
launches, further product innovation 
and the implementation of significant
infrastructural initiatives aimed at
developing an even more robust
platform for the Group’s continued
development. Finally , we have
undertaken further steps to begin to
develop a network of local asset
management operations in some of the
world’s key emerging markets. This has
all taken place in global financial market
conditions judged by many
commentators to be as difficult as any
they can remember which have both
made the execution of an active style of
investment management a greater
challenge and generally reduced
investor appetite for risk. I will expand
upon these in my report and then
outline the strategic rationale and some
of the emerging market dynamics that
we believe position the Group well for
future success.
Assets under Management
(“AuM”) and financial
performance
At the end of the previous financial year ,
30 June 2007, AuM stood at US$31.6
billion. Through net subscriptions of
US$3.0 billion and investment
performance of US$2.9 billion we have
reached a closing level for AuM at 
30 June 2008 of US$37.5 billion.
As we forecast the AuM growth has been
strongest in our local currency theme
where overall levels of AuM were 70%
higher (at US$8.5 billion at the end of
the period) than a year earlier , followed
by special situations where AuM have
grown by 62% to US$5.5 billion over the
period. The AuM growth within these
two themes is in line with our view of the
significant future opportunity they
present. Our dollar debt theme has
seen gross subscriptions exactly
matched by redemptions so growth in
this theme arises from investment
performance of US$1.5 billion, and,
as anticipated and targeted several of
the redemptions in this theme have
been prompted by reallocation into local
currency mandates where there are
opportunities for higher returns.
The equity theme has completed a
difficult year in line with global equity
markets and whilst the investment
performance has been flat, there have
been redemptions as investors have
allocated away from equities resulting in
a US$1.2 billion reduction in AuM.
The overall growth in AuM has driven
the Group’s 44% increase in net
management fee income to 
£182.0 million in the year to 30 June
2008 (year ended 30 June 2007: £126.4
million). The Group remains focused on
the delivery of a high proportion of its
The Group results for the year ended 30 June 2008
are satisfactory from a number of perspectives.
07
08
+19%
31.6
AuM US$bn
37.5
Dollar debt
+7%
Local currency
+70%
07
08
22.7
21.2
07
08
8.5
5.0
AuM US$bn
Special
situations 
+62%
Equity
-60%
07
08
5.5
3.4
07
08
0.8
2.0
37.5
2.9
2.4 0.6
31.6
Growth in AuM US$bn
13
16
AuM at June 2007
Net subscriptions – existing funds
Net subscriptions – new funds
Performance
AuM at June 2008 6 ASHMORE GROUP PLC ANNUAL REPORT 2008
Chief Executive Officer’s statement continued
overall revenue from high margin
management fees. Performance fee
income has also increased significantly
to £44.7 million, an increase of 119%
from £20.4 million in the previous year
which has been delivered across all our
investment themes.
These two principle sources of revenue
together with other income result in
strong growth in our overall net revenue
by 50% to £240.0 million (year ended
30 June 2007: £159.8 million).
After costs of £58.8 million (year ended
30 June 2007: £38.1 million) and
interest income of £15.0 million (year
ended 30 June 2007: £9.7 million) this
results in a profit before tax of £196.2
million, an increase of 49% in the year
(year ended 30 June 2007: £131.4
million). Basic earnings per share for
the year was 21.0p (2007: 13.7p), a
53% increase in the year .
Operational delivery
From an operational perspective in the
area of fund launches and product
innovation the year began with the
launch of our fourth global special
situations fund (“GSSF4”) which closed
with commitments totalling US$1.4
billion. Thereafter , developments in
emerging markets corporate debt,
following significant repricing in these
markets, provided Ashmore with the
opportunity to launch a dedicated
corporate high yield fund and establish
it as a new investment theme in October
2007 offering enhanced levels of return
with a low correlation to the dollar debt
theme. We expect this to grow over time
as the credit markets stabilise.
In December 2007 we completed the
launch of a permanent capital vehicle
Ashmore Global Opportunities Limited
through which we raised €500 million via
a listing on the London Stock Exchange.
This fund was established to focus on
the special situations theme enabling a
new client base to invest in this theme
via a listed vehicle with daily liquidity
and pricing. It contributed US$250
million of the GSSF4 commitments and
will be provided allocations in future
special situations funds.
In January 2008 we launched a
dedicated Brazilian local currency fund
domiciled in Guernsey managed by our
newly established fund management
subsidiary in Sao Paulo. This was
followed in April by the launch of a
Brazilian onshore local currency fund
targeting domestic institutional investors
which, in line with the strategy
+44%
07
08
182.0
126.4
Net management fees £m
07
08
+50%
159.8
Net revenue £m
240.0
07
08
+119%
20.4
Performance fees £m
44.7
The Group remains focused on the delivery of a
high proportion of its overall revenue from high
margin management fees. 7 ASHMORE GROUP PLC ANNUAL REPORT 2008
previously outlined, the Group seeded
in the amount of BRL49.3 million 
(£15.1 million).
Investment activity within the special
situations theme had resulted in GSSF4
being 70% drawn down at 30 June
2008 and it has since become fully
drawn. Given the significant ongoing
investment opportunities within this
theme, we announced in June 2008 the
beginning of marketing the next special
situations fund GSSF5 which we expect
to close in the new financial year .
The year has also been a busy one in
the area of infrastructure projects, the
implementation of a new fund
accounting system, the migration of
fund administration services for the
Group’s global public funds to a single
service provider and in May 2008 the
relocation of the entire London based
staff to a new office. In all cases these
projects were executed following
months of planning by multi-disciplinary
teams and are aimed at providing the
Group with development, continuity and
expansion to enable us to execute our
strategic plans.
Strategic positioning
The Group’s strategy remains
consistent; to deliver long term
investment outperformance; generate
and diversify net management fee
income through the attraction of net
subscriptions across an increasing
variety of investment themes; and
develop the Ashmore brand and
business. In evaluating our progress
toward the achievement of our strategic
goals and evaluating the future
opportunity available we consider all of
these across three phases of
development – establishment,
diversification and emerging market
capital mobilisation.
The first of these phases is largely
completed: establishing the emerging
market fixed income asset class;
educating the investor base; refining the
The Group’s strategy remains consistent; to deliver
long term investment outperformance; generate
and diversify net management fee income through
the attraction of net subscriptions across an
increasing variety of investment themes; and
develop the Ashmore brand and business.
Number of funds (30 June)
06
2
12
13
9
07
3
14
16
8
08
3
16
24
7
36
41
50
White label/dual branded
Segregated
Structured
Ashmore sponsored
50
The Group now manages 50
funds across its five investment
themes.
The year has also been a busy one in the area of
infrastructure projects, the implementation of a
new fund accounting system and in May 2008 the
relocation of the entire London based staff to a
new office. 8 ASHMORE GROUP PLC ANNUAL REPORT 2008
Chief Executive Officer’s statement continued
investment processes and creating the
performance track record to attract the
investment of developed world capital
into the emerging markets.
The second phase continues to apply
to the management of developed world
capital into emerging markets as we
grow our AuM diversifying by
investment themes, product structures,
investor type, investor geography and
distribution route. This is an ongoing
process where we have a great deal
more to do in all areas and which offers
much potential for growth.
The third phase of our strategy
diversifies the origin of funds that we
manage looking toward the capital pools
that we consider will grow the most and
we believe can be mobilised within the
emerging markets themselves. In this
phase we first use the existing Ashmore
central investment processes and funds
to manage capital from the largest
emerging world sources of capital cross
border into other emerging markets.
Initially this comes from central banks,
governments/reserve managers and
sovereign wealth funds and gradually
expand to other domestic institutions.
Thereafter we expect to progressively
establish local asset management
operations in a number of the world’s
key emerging economies using our
expertise, investment processes and
track record to manage domestic
capital within these markets. This will
enable us to participate in the significant
long term growth opportunity available
in these markets both by investing funds
from offshore but also developing
onshore investment management by
Ashmore and its subsidiaries.
Investor allocations to emerging
markets
Whilst the first phase – establishment –
is largely complete, there is significant
future potential for strong growth in the
second - diversification - phase.
One of the major driving forces of
future growth is the macro one, based
on the low allocations that investors
from the developed world have so far
made to emerging markets, and how
these will change in the future as those
markets outgrow the developed world.
We believe that an average institutional
investor may currently have an
emerging market allocation across
investment themes anywhere in the
broad range of five to fifteen percent
whilst a progressive investor may have
an allocation at double these levels.
This compares with the emerging
markets contribution to the global
economy at between fifteen and 
twenty-five percent when measured by
either GDP , equity or bond market
capitalisation levels. Over the next ten
years or so we would expect the
emerging market contribution to
increase to over 50% of the overall
global economy by all these measures
so the opportunity for current and 
future allocations to grow dramatically 
is very clear . We are well positioned to
benefit from this allocation shift as we
have a long history of total focus on
emerging markets across all available
asset classes and a commitment to
broaden our capability in these and
new asset classes.
Another driver for growth in this second
– diversification - phase is the
development of the local currency
One of the major driving forces of future growth is
the macro one, based on the low allocations that
investors from the developed world have so far
made to emerging markets, and how these will
change in the future as those markets outgrow the
developed world.
Over the next ten years or
so we would expect the
emerging market
contribution to increase to
over 50% of the overall
global economy by all these
measures so the
opportunity for current and
future allocations to grow
dramatically is very clear .
Within 
10 years
Current
contribution
>50%
Estimation of emerging market 
contribution to the overall global 
economy
> 50%
15 - 25% 9 ASHMORE GROUP PLC ANNUAL REPORT 2008
Ashmore’s local currency theme AuM is
undergoing the strongest absolute growth of any
of our themes. We believe that this is set to
continue and should establish it as our largest
theme by volume within three years.
markets, and this is also one of the
principal areas we see having a
significant impact upon the pace with
which emerging markets capital
mobilisation – our third phase - is
progressing.
Local currency debt and local
asset management operations
Ashmore’s local currency theme AuM
are undergoing the strongest absolute
growth of any of our themes. We
believe that this is set to continue and
should establish it as our largest theme
by volume within three years. In fact, we
continue to encourage our dollar debt
investors to diversify with us into this
theme. The underlying local currency
debt markets are believed to total over
US$6 trillion at the end of 2007 –
already five times the size of the
external debt market in which
Ashmore’s dollar debt theme invests. As
local currency markets mature and their
liquidity and duration measures
increase we expect to see increased
international investment into these
markets coming from both developed
world investors and intra-emerging
market flows. These latter flows typically
form the first part of our mobilisation 
of emerging markets capital phase.
As highlighted above, the earliest
movers in this phase are the largest
sources of capital from central banks,
reserve managers and sovereign wealth
funds. Ashmore is already managing
local currency funds for a number of
such organisations and we see further
growth in the number and scale of
these mandates in the future. Thereafter
we would expect this trend to develop
to include the larger institutions and
pension funds in these economies.
In order to capitalise on this trend,
we believe that local asset management
operations on the ground in a number of
key emerging markets represent the
other key to participating in the growth
and development of the local currency
and other markets.
Our operations now include subsidiaries
in Turkey and India that are active in the
local mid-market private equity markets.
During this year we have established a
subsidiary operation in Brazil managing
offshore and onshore local currency
funds. Immediately after the financial
year ended in July we received final
stage approval in Turkey from the
Capital Markets Board to establish and
operate a regulated portfolio
management business which began
operations on 1 August 2008. Whilst 
the financial impact of these operations
was not material in context of the 
overall Group result for the year ended
30 June 2008, we believe going 
forward that the contribution from the
local asset management operations 
that the Group establishes will gradually
and progressively contribute
meaningfully to the Group’s results 
and valuation.
Special situations: Opportunities
and performance fees
Ashmore’s team were investing in the
special situations asset class, in both
distressed debt and private equity
forms, even before the Group’s first fund
was established in 1992, and the
investment into this theme from all
funds, where the investment mandate
allows, has continued ever since.
Our operations now include
subsidiaries in Turkey and
India in the local mid-market
private equity markets and
in Brazil, managing offshore
and onshore local currency
funds. 10 ASHMORE GROUP PLC ANNUAL REPORT 2008
Chief Executive Officer’s statement continued
This long history , resultant specialist
transaction experience and network of
relationships throughout the emerging
markets are keys to our strength in the
area. As I have described above, the
financial year ended 30 June 2008 saw
the closing, drawing down and
deployment of our fourth global special
situations fund (GSSF4) and the launch
of fundraising for our fifth global fund
(GSSF5). The investment opportunity
presented for this asset class going
forward is very strong with a significant
pipeline of attractive potential
transactions, and particularly following
the broad reduction of easy credit in 
the market.
Our first global special situations fund
(GSSF) matured after the financial year
ended in July five years after its closing
in July 2003, and the mechanics of the
fund wind up are underway with first
stage payments made to fund
shareholders. As a result of strong
investment returns the fund has
generated a performance fee of
between £15.6 million and £21.0 million
which will be recognised in the 
financial year ended 30 June 2009,
the final level being determined by the
finalisation of the few remaining asset
realisations.
Our people and culture
The operational highlights described in
this report share many common
features. Most striking amongst these is
the role of the team at Ashmore, spread
broadly throughout the organisation,
in making the business a success.
At 30 June 2008 the Group’s headcount
stood at 93, an increase of 24 or 35%
on the figure a year earlier , with
additions across the Group’s global
functions in London, and in particular
within local asset management
operations. The Group places a
tremendous focus on the process of
recruiting like minded individuals from
different backgrounds with a common
desire to specialise in their field within
the emerging markets. This takes time
but is critical to our success. I should
like to add my own thanks to those
expressed in the Chairman’s report for
the dedication and commitment that all
those already in the Ashmore team have
made into making the year and the
business a success.
Now we move onto next year and as the
Group grows we continue to work hard
in ensuring that this growth occurs in a
controlled manner . Part of this is
achieved through the recruitment of a
broad team of varying talents and the
The operational highlights
described in this report
share many common
features. Most striking
amongst these is the role of
the team at Ashmore,
spread broadly throughout
the organisation, in making
the business a success.
The Group places a tremendous focus on the
process of recruiting like minded individuals from
different backgrounds with a common desire to
specialise in their field within the emerging markets. implementation of initiatives and
systems aimed at further strengthening
our processes and controls. This is
ongoing. At the heart of the organisation
I believe that we retain and develop the
Ashmore culture and work ethos which
will enable us to execute on and benefit
from the significant strategic
opportunities that lie ahead. We have
much to do, and execution will always
be the key , but we continue to look
forward to the challenges ahead.
August 2008 annual performance
fees
Unaudited annual performance fees for
the funds with annual performance years
ended 31 August 2008 (including EMLIP
and LCD) were £31.0 million (August
2007: £17.6 million) which will be
recognised in the financial year ended
30 June 2009 in addition to the GSSF fee
detailed above.
Outlook statement
The world has not been the most
comfortable place this year . The general
market outlook continues to be difficult,
deleveraging has been significant and
continues and many investors are doing
what they often do in times of stress....
as little as possible, as a precursor to
working out where to allocate their
capital as things settle down.
Against this market backdrop, since the
year end the Group has experienced
slightly lower subscription activity and
some redemptions which, coupled with
negative market performance, has
resulted in a modest reduction in AuM.
Given the margin profile of these assets,
we remain confident that the revenue
impact of this has been offset by the
increased levels of fees elsewhere
including those performance fees
already recorded, demonstrating the
Group’s robust business model.
It is these dynamics which provide us
with both challenges and our major
opportunity . We have more value and
transactional scope available to us to
invest for strong medium term returns
over the next 12-24 months than at any
time over the previous 5 years. Our task
is to continue persuading investors to
allocate us capital and allow us to
execute strategies to capture that value
particularly from local currency , in our
special situations theme (in both
distressed debt and private equity) and
in corporate high yield as well as in our
local asset management businesses.
Mark Coombs
Chief Executive Officer
We have more value and transactional scope
available to us to invest for strong medium term
returns over the next 12-24 months than at any time
over the previous 5 years.
11 ASHMORE GROUP PLC ANNUAL REPORT 2008 12 ASHMORE GROUP PLC ANNUAL REPORT 2008
Key events in the year  
September
GSSF4, a US$1.4 billion
special situations fund, launched   
August
Corporate High Yield fund
established
July
AuM at beginning of year stands
at US$31.6 billion
May
Ashmore Local
Currency Debt portfolio
reaches US$3.0 billion,
having been established in
March 1997
April
Brazil onshore local currency
fund launched
January
Brazil offshore local currency
fund launched
2007
2008 13 ASHMORE GROUP PLC ANNUAL REPORT 2008
June
AuM at 30 June 2008 reaches
US$37.5 billion
GSSF5 launch
announcement of
commencement of marketing
GSSF4: 70% drawn at 30 June
2008, remaining 30% drawn in
July 2008
October
Standard & Poor’s
“AAAm” rated fund
launched to manage liquidity
requirements of underlying
Ashmore funds
Corporate High Yield
established as a new
investment theme
The year ended 30 June 2008 was a busy one in
the area of fund launches, as the overall number
of funds increased from 41 to 50 and AuM
increased from US$31.6 billion at 30 June 2007 to
US$37.5 billion at 30 June 2008.
November
Turkish Debt Fund
launched
December
AuM at 31 December 2007
reaches US$36.5 billion
Ashmore Global
Opportunities Limited
permanent capital vehicle lists on
Stock Exchange raising €500
million 14 ASHMORE GROUP PLC ANNUAL REPORT 2008
Business Review
As these figures highlight, the Group has
continued to win good absolute levels of
gross subscriptions through the period.
Gross redemptions are clearly significantly
higher than for the previous period.
Measured as a percentage of average
AuM, excluding intra-investment theme
flows by the Group’s multi strategy fund,
this represents an increase to 20%, which
we believe represents a long run industry
average for an institutional fund 
management business. Whilst ahead of
the levels we had seen over recent periods
(2007: 8%; 2006: 13%; 2005: 18%), given
the extraordinary events in the global
markets this had been anticipated.
The number of funds and levels of AuM
can be analysed according to the type of
fund or mandate as outlined below.
These changes demonstrate the
continued product innovation and a
further breakdown of these are provided
in the investment theme reviews.
The financial and operational highlights outlined
clearly demonstrate a year of further substantial
progress towards the Group’s strategic goals.
In addition the Chief Executive Officer’s statement
provides an outline of the significant future
opportunities for the Group. The financial and
business review section that follows will provide a
detailed account of the Group’s activities and their
financial impact.
Segregated
Structured product
White label/dual branded
Ashmore sponsored
24
8
14
3 16
16
3
7
Number of Accounts (30 June)
Percentage of AuM (30 June)
08
(50)
07
(41)
9
52
10
6
32
56
4
31
08
%
07
%
Year  Year
ended ended
30 June  30 June
Key performance indicators 2008 2007
Year end AuM US$37.5bn US$31.6bn
Average AuM US$35.3bn US$26.4bn
Net management fee margins (basis points) 103bp 93bp
Operating profit margin 76% 76%
Compensation/revenue ratio 19.9% 20.4%
Variable compensation (“vc”)/ebvcit 18.2% 18.4%
Year-end head count 93 69
Year Year Year Year 
ended ended ended ended
30 June 30 June 30 June 30 June
2008 2008 2007 2007
Assets under Management US$bn US$bn US$bn US$bn
Opening AuM 31.6 20.1
Gross subscriptions 11.0 10.4
Gross redemptions (8.0) (2.1)
Net subscriptions 3.0 8.3
Investment performance 2.9 3.2
Closing AuM 37.5 31.6
Key performance indicators 
Progress towards achieving the Group’s strategic objectives is monitored with
reference to a number of key performance indicators. These are set out below:
Assets under Management  
As a result of further growth during the year , the Group’s AuM as at 30 June 2008 had
reached the level of US$37.5 billion, the development of which is broken down as
follows:- 15 ASHMORE GROUP PLC ANNUAL REPORT 2008
Investor profile
There are a broad range of investors in
the funds managed by the Group.
The funds which Ashmore manage
remain predominately sourced from
institutional investors. As at 30 June
2008, 88% of the Group’s AuM was
institutional (2007: 85%) and 12% was
high net worth individuals/retail (2007:
15%). The institutional investor profile
includes pension plans, government
agencies, financial institutions and
corporates. The institutional segment
showed an increase in the proportion of
government investors (up from 12% to
15%). Public pension plan investors and
corporate pension investors showed
steady growth in the year and remained
proportionately constant at 18% and
16% respectively .
The geographical profile of the Group’s
investors remains diversified. During the
year there was strong growth in the
Middle East, with US$1.5 billion of
subscriptions from this region. Europe
also continued to show robust growth,
with significant growth in the UK in
particular .
The AuM by investment theme under
which the fund or mandate is organised
is shown below:-
AuM AuM
30 June 30 June Increase/
2008 2007 (Decrease)
US$bn US$bn Percentage
Dollar debt 22.7 21.2 7%
Local currency 8.5 5.0 70%
Special situations 5.5 3.4 62%
Equity 0.8 2.0 (60%)
T otal 37.5 31.6 19%
The investment theme classification into
dollar debt, local currency , special
situations and equity is based upon the
theme under which the principal asset
class of the funds is organised and this
is represented by percentage of total
AuM below. The majority of dollar debt
mandates have cross over capacity
which represents the ability to invest a
proportion of the funds within certain
limits into individual assets within the
local currency , corporate high yield 
and special situations themes.
Therefore to obtain a more
representative picture of the asset
classes into which the Group was
actually invested at 30 June 2008,
we provide below the breakdown after
taking into account the actual amounts
invested in this manner .
In line with the strong levels of growth
within the local currency and special
situations themes the Group’s dollar
debt theme is reducing significantly as
a proportion of overall AuM classified by
theme. When this is viewed in terms of
invested asset class after taking cross
over investment into account the dollar
debt percentage is less than half of the
Group’s AuM.
Investment theme reviews
The following reviews of each of the
principal investment themes provide
details of the AuM development,
investment performance, management
fee income, management fee margin
levels and performance fees:–
Banks
Public pension plans
Corporate pension plan
Fund of funds
Governments
Insurance
Other
Permanent capital
HNWI/retail
Fund/Sub advisor
AuM % by investor type
17
7
12
18
7
5
3
15 16
07
%
      Institutional 85%
16
16
18
15
6
6
5
4
2
12
08
%
      Institutional 88%
Local currency
Special situations
Equity
Corporate high yield
Dollar debt
3
AuM % as invested by asset class
2
00
6
16
24
54 49
20
26
08
%
07
%
AuM % by theme AuM % as invested
30 June 30 June 30 June 30 June
2008 2007 2008 2007
Dollar debt 60 67 49 54
Local currency 23 16 26 24
Special situations 15 11 20 16
Equity 2 6 2 6
Corporate high yield – – 3 –
AuM % by geography
Americas
Asia
Middle East
Other
Europe
UK
34
12
11
2
19
22
07
%
35
22 13
16
13
08
%
1
60
6
16
11
67
23
15
2
AuM % by theme by asset class
08
%
07
% 16 ASHMORE GROUP PLC ANNUAL REPORT 2008
Business Review continued
Dollar Debt
The dollar debt investment theme comprises principally
US dollar and other hard currency denominated
instruments, which may include derivatives, investing
mainly in sovereign bonds.
Year Year Year Year 
ended ended ended ended
30 June 30 June 30 June 30 June
2008 2008 2007 2007
AuM opening (US$bn) 21.2 15.2
Subscriptions (US$bn) 4.8 5.9
Redemptions (US$bn) (4.8) (1.8)
Net subscriptions (US$bn) (0.0) 4.1
Performance (US$bn) 1.5 1.9
Closing AuM (US$bn) 22.7 21.2
Net management fees (£m) 91.0 71.9
Management fee margins (bps) 82 76
Performance fees (£m) 17.1 5.8
AuM US$bn
Dollar debt
04 05 06 07 08
4.7
8.4
15.2
21.2
22.7
AuM at 30 June 2008 were US$22.7
billion, an increase of US$1.5 billion
(7%) from 30 June 2007, which was
solely attributed to performance
achieved in the year . The subscriptions
of US$4.8 billion include a new
segregated mandate won from a
European pension fund.
Net management fees showed strong
growth, with an increase of £19.1 million
(27%) from the previous year as the
theme’s margin also increased to 82
basis points, from 76 basis points in the
financial period to 30 June 2007,
continuing the trend of high and stable
net management fee margins.
Performance fees achieved increased
by £11.3 million (195%) compared to
the previous financial year . This was
predominantly due to the August 2007
annual performance fee delivered by
EMLIP of £8.2 million (August 2006;
£0.3 million) The remaining performance
fees arose from the annual performance
fees of the other dollar debt funds and
crystallised fees following redemptions
during the performance year . 17 ASHMORE GROUP PLC ANNUAL REPORT 2008
There has been strong demand for the Group’s local
currency products with subscriptions in the period of
US$4.2 billion, an increase of 147% from the previous
year . The number of funds within the local currency
theme has increased this financial year , with five
additional funds introduced to capitalise on the
opportunities the theme presents.
Local Currency
The local currency investment theme comprises local
currency and local currency denominated debt instruments,
principally sovereign in nature, and it may include derivatives.
Year Year Year Year 
ended ended ended ended
30 June 30 June 30 June 30 June
2008 2008 2007 2007
AuM opening (US$bn) 5.0 3.0
Subscriptions (US$bn) 4.2 1.7
Redemptions (US$bn) (1.6) (0.3)
Net subscriptions (US$bn) 2.6 1.4
Performance (US$bn) 0.9 0.6
Closing AuM (US$bn) 8.5 5.0
Net management fees (£m) 38.8 21.4
Management fee margins (bps) 119 108
Performance fees (£m) 17.2 3.1
AuM at 30 June 2008 were US$8.5
billion, an increase of US$3.5 billion
(70%) from 30 June 2007. Good
investment performance in this theme
contributed US$0.9 billion.
There has been strong demand for the
Group’s local currency products with
subscriptions in the period of US$4.2
billion, an increase of 147% from the
previous year . The number of funds
within the local currency theme has
increased this financial year , with five
additional funds introduced to capitalise
on the opportunities the theme
presents. Firstly , a Turkish debt fund was
launched in November 2007, accessing
local currency funds. During 2008 two
Brazilian funds have also been
established by the Group’s local asset
management subsidiary to manage
offshore and onshore local currency
funds. Finally , two segregated mandates
were won, one from an emerging
market central bank.
Strong growth was achieved within net
management fees, as these increased
from £21.4 million in the year ended 30
June 2007 to £38.8 million (81%) in the
year ended 30 June 2008. Management
fee margins continued the trend of
steady growth from the previous year ,
moving from 108 basis points to 119
basis points.
Performance fees achieved in the year
increased by £14.1 million (455%)
compared to the previous financial year .
This was primarily due to the annual
performance fee delivered by LCD of
£9.4 million (2007: £ nil). Additionally ,
annual performance fees from other
local currency funds and crystallised
fees following redemptions during the
performance year contributed towards
the remaining performance fees that
were attained.
AuM US$bn
Local currency
04 05 06 07 08
22.7
0.6
1.2
3.0
5.0
8.5 18 ASHMORE GROUP PLC ANNUAL REPORT 2008
Business Review continued
Special Situations
The special situations (distressed debt/private equity) theme
comprises investments in debt and/or equity or other
instruments focusing on situations usually involving specialist
corporate investments and/or projects and including
distressed assets or distressed sellers of assets, often
incorporating restructuring, reorganisations and/or a private
equity approach.
Year Year Year Year 
ended ended ended ended
30 June 30 June 30 June 30 June
2008 2008 2007 2007
AuM opening (US$bn) 3.4 1.3
Subscriptions (US$bn) 1.8 1.8
Redemptions (US$bn) (0.2) 0.0
Net subscriptions (US$bn) 1.6 1.8
Performance (US$bn) 0.5 0.3
Closing AuM (US$bn) 5.5 3.4
Net management fees (£m) 42.6 25.9
Management fee margins (bps) 184 171
Performance fees (£m) 7.2 7.5
AuM US$bn
Special situations
04 05 06 07 08
0.5
1.2
1.3
3.4
5.5
AuM at 30 June 2008 were US$5.5
billion, an increase of US$2.1 billion
(62%). Net subscriptions were US$1.6
billion, predominantly comprised of the
Ashmore Global Special Situations Fund
4 (“GSSF4”) which was launched with
commitments totalling US$1.4 billion.
As at 30 June 2008, 70% of this
commitment had been drawn down,
with 100% drawn down by July 2008.
In June 2008 marketing began for the
fifth Global Special Situations Fund
(“GSSF5”). Additionally the Group
completed funding of an Indian fund,
which is active in the local mid-market
private equity markets.
Net management fees increased by
£16.7 million (64%) to £42.6 million,
following the GSSF4 fund launch and
the growth in AuM within the Asian
Recovery Fund (“ ARF”). Management
fee margins continued the trend of
steady growth from the previous period,
moving from 171 basis points to 184
basis points, reflecting the increased
proportion of special situations funds
with a 2% management fee.
Performance fees attained of £7.2m
arose principally from the annual
performance fee of the ARF fund. In the
majority of special situations funds,
performance fees accrue over the full
fund life.
The Group’s strong network continues
to source a significant pipeline of
attractive potential transactions within
this asset class. 19 ASHMORE GROUP PLC ANNUAL REPORT 2008
Equity
The equity investment theme comprises public equity and
equity-related securities. The instruments invested in by the
funds can include equities, convertibles, warrants and
equity derivatives.
Corporate High Yield
The corporate high yield investment theme comprises
investments in corporate debt within emerging markets.
Year Year Year Year 
ended ended ended ended
30 June 30 June 30 June 30 June
2008 2008 2007 2007
AuM opening (US$bn) 2.0 0.6
Subscriptions (US$bn) 0.2 1.4
Redemptions (US$bn) (1.4) (0.4)
Net subscriptions (US$bn) (1.2) 1.0
Performance (US$bn) 0.0 0.4
Closing AuM (US$bn) 0.8 2.0
Net management fees (£m) 9.6 7.2
Management fee margins (bps) 119 100
Performance fees (£m) 3.2 4.0
AuM at 30 June 2008 were US$0.8
billion, a decrease from the previous
year of US$1.2 billion. This was as a
result of significant allocations away
from the equity theme. Following the
reduction of funds, equity now
represents 2% of the Group’s overall
AuM. The Group remains committed to
growing this theme to represent a more
significant proportion of overall AuM.
Net management fees grew by 33% in
the year , with net management fee
margins increasing in this area by 19%.
£3.2 million of performance fees were
achieved (2007: £4.0 million), principally
from the annual performance fees from
AREF and AEEP of £1.9 million.
Additionally , annual performance fees
from other equity funds and crystallised
fees following redemptions during the
performance year contributed towards
the remaining performance fees
achieved.
During the 2008 financial year , Ashmore
launched its fifth investment theme,
emerging corporate high yield with the
launch of the Ashmore Emerging
Markets Corporate High Yield fund
(“ AEMCHY”). This launch recognised
the fact that the asset class can offer
investors a risk return profile distinct
from other segments of emerging
market fixed income. At the end of the
financial year , AEMCHY had AuM of
US$0.5 billion drawn principally from
funds within the dollar debt theme.
AuM US$bn
Equity
04 05 06 07 08
0.1
0.2
0.6
2.0
0.8 20 ASHMORE GROUP PLC ANNUAL REPORT 2008
Business Review continued
In addition, Ashmore was appointed
investment manager following the
launch of a newly incorporated publicly
listed closed-ended investment
company , Ashmore Global
Opportunities Limited (“ AGOL”), This
source of permanent capital raised
€500 million upon listing on the Main
Market of the London Stock Exchange
on 12 December 2007. These funds are
now invested across the Group’s
investment themes and multi strategy
fund. AGOL provides the Group with a
new point of access for an investor
class to gain access to Ashmore’s
investment themes within a listed fund
vehicle with a stated focus on the
special situations investment theme, in
line with which, AGOL has invested
US$250 million into GSSF4.
Additionally , during the year , a liquidity
fund was launched offering a Standard
& Poor’s “ AAAm” rated fund. This is able
to manage the cash components of the
underlying Ashmore funds, retained by
the funds for liquidity purposes, with a
view to enhancing the absolute return
received on this cash and to attract
external funds in due course. The level
of funds at year end was US$2.2 billion
drawn from across the investment
themes and funds.
Management fee margins and
performance fees
The year on year improvements in
management fee margins detailed in
each of the investment theme reviews
above have resulted in the achievement
of an overall average management fee
margin of 103bp across the themes
(2007: 93bp). This is in line with the
Group’s strategy of maintaining high
and stable management fee margins.
The Group’s strategy is also to maintain
a balance between funds able to earn
performance fees and those that are
management fees only . At the year end
the Group was able to earn
performance fees on 65% of AuM
(2007: 64%). Within this a further
proportion of the AuM did not earn
performance fees in the year because
either such fees are earned at the end
of the multi year fund life or; are subject
to rebate agreements. The overall
performance fee income was £44.7
million for the year ended 30 June 2008
(2007: £20.4 million).
Operating costs and operating
margin
The Group’s cost structure, with a low
proportion of tightly controlled recurring
costs and a large proportion of variable
performance related costs, is at the
core of the Group’s philosophy .
The majority of the Group’s costs are
made up of personnel expenses. The
Group continues to invest to support the
future growth of the business through
recruitment. Headcount increased by
35%, from 69 at 30 June 2007 to 93 at
30 June 2008, in line with which wages
and salaries increased to £5.3 million
(2007: £3.8 million). The Group’s
variable compensation represents the
majority of the overall personnel
expenses. This includes performance
related bonuses, share based payments
and associated social security costs
and is calculated as a percentage of
profit before tax, interest and variable
compensation. In the year ended 30
June 2008 the percentage of variable
compensation was 18.2% (2007:
18.4%).
The Group continues to undertake
infrastructure initiatives to support the
development of the business. In line
with this and the headcount growth, the
overall total for other expenses for the
year ended 30 June 2008 was £11.1
million (2007: £5.5 million) which
included a number of new and one off
costs. Firstly £1.2 million of deferred
acquisition costs related to the Group
meeting the underwriting expenses of
04 05 06 07 08
Growth in employee numbers 
Infrastructure staff
Investment professionals
11
22
33
40
49
69
93
14
26
17
32
25
44
32
61
Year Year Year Year 
ended ended ended ended
30 June 30 June 30 June 30 June
Multi-strategy funds 2008 2008 2007 2007
AuM opening (US$bn) 2.6 0.6
Subscriptions (US$bn) 1.2 1.8
Redemptions (US$bn) (1.1) 0.0
Net subscriptions (US$bn) 0.1 1.8
Performance (US$bn) 0.3 0.2
Closing AuM (US$bn) 3.0 2.6
Multi-strategy funds, permanent capital vehicle and liquidity fund
The five core investment themes for the Ashmore product range are supplemented
by the multi-strategy funds where Ashmore makes the asset allocation decisions
across the investment themes. As at 30 June 2008, the total AuM within the five
themes arising from the multi strategy funds and included within the theme AuM
totals above was US$3.0 billion, an increase of 15% from the previous year . 21 ASHMORE GROUP PLC ANNUAL REPORT 2008
the AGOL launch were charged in the
year . This will result in an annualised
charge going forward of £2.1 million for
seven years from December 2007.
Secondly the Group completed the
lease of a new London office, from
January 2008 with an annualised
increase in operating lease and other
premises costs of £1.0 million, and a
£0.3 million one off charge in relation to
the office move. Finally the cost base
included amounts of £1.2 million (2007:
£0.1 million) in the subsidiary local
asset management operations in India,
Turkey and Brazil, together with
additional professional fees associated
with the establishment of these and
other potential local asset management
ventures.
As a result, the operating profit margin
for the year ended 30 June 2008 was
76% (2007: 76%).
Taxation
The vast majority of the Group’s profit is
subject to UK taxation and typically the
Group has a limited number of non-tax
deductible expenses. Consequently the
Group’s effective tax rate has historically
tracked close to the 30% UK
corporation tax rate. The introduction of
a 28% UK corporation tax rate from 
1 April 2008 has resulted in a small
beneficial impact on the Group’s
effective corporation tax rate in the
financial year to 30 June 2008 (overall
blended corporation tax rate of 29.5%),
with the full-year benefit coming through
in the following financial year .
There is a £13.8 million deferred tax
asset on the Group’s balance sheet at
30 June 2008. This is largely due to
cash tax deductions which will arise
over the next six or so years in respect
of share price appreciation on share
based payments awards. In addition
there is also a deferred tax liability on
the Group’s balance sheet of £3.8
million. This is in respect of the deferred
acquisition costs associated with the
launch of AGOL which will be charged
over seven years to the Group’s income
statement.
Balance sheet and cash flow
The Group’s strategy is to maintain a
strong balance sheet in order to
support regulatory capital requirements,
to meet the commercial demands of
current and prospective investors and
to fulfil the development needs across
the business. These needs include
funding the establishment costs of local
asset management ventures, seeding
new funds and other strategic initiatives.
In line with this strategy during the
period, the Group invested £14.6 million
in meeting the underwriting costs of the
AGOL fundraising. In accordance with
International Accounting Standards,
these underwriting costs are recognised
in the balance sheet as deferred
acquisition costs which are charged to
the income statement as the related
revenue is recognised. Additionally ,
during April 2008, the Group invested
BRL49.3 million (£15.1 million) of seed
capital in the initial launch of an
onshore Brazilian local currency fund,
managed by the Brazilian asset
management subsidiary .
The Group continues to generate
significant cash from operations which
totalled £195.5 million in the year (year
to 30 June 2007: £132.3 million). After
the payments of the deferred
acquisition costs and seed capital
investment and, after taking account for
taxation, property , plant and equipment
purchases, dividend payments and
interest received the overall cash has
increased by £61.2 million during the
year ended 30 June 2008 to £279.2
million (30 June 2007: £218.0 million).
As at 30 June 2008, total equity
attributable to shareholders of the
parent was £271.8 million compared to
£195.9 million at 30 June 2007. There is
no debt on the Group’s balance sheet.
Dividend
Recognising the continued strong
progress and the Board’s confidence in
the Group’s prospects, subject to
shareholder approval, a final dividend of
8.34p per share is proposed to be paid
on 5 December 2008 (2007: 6.7p) to
shareholders on the register on 
7 November 2008. An interim dividend
for the six-month period to 31
December 2007 of 3.66p (2007:2.3p)
was paid on 25 April 2008. This would
result in a full-year dividend of 12.0p
(2007: 9.0p). The Company’s intention is
for its dividend policy to be progressive.
Foreign exchange and treasury
management
The Group’s revenue is almost entirely
denominated in US dollars, whilst the
Group’s cost base is largely Sterling
based. Consequently , the Group has an
exposure to movements in the US$/£
exchange rate. The results for the year
ended 30 June 2008 were achieved
against the backdrop of a weaker US$/£
exchange rate and this has impacted on
the Group’s reported profit. Reported
profit before tax increased by £64.8
million, a 49% increase over the prior
year . In constant exchange rate terms,
profit before tax increased by £68.9
million, an increase of 54% in the year .
This was after restating the prior year
figures at the current year’s average
+28%
07
08
279.2
218.0
Cash balance £m
07
08
+33%
12.0
9.0
Dividend pence 22 ASHMORE GROUP PLC ANNUAL REPORT 2008
Business Review continued
US$/£ exchange rate (2008: US$/£2.01;
2007: US$/£1.95). This resulted in the
following restatements to the prior year
numbers: lower net revenue in Sterling
terms (£5.1 million), net hedging gains
excluded (£2.7 million), and a notional
reworking of the variable compensation
cost to reflect the above items (a £1
million reduction). In the current year ,
net hedging gains of £3.2 million were
excluded. On this basis, the net impact
of the movement in the US$/£ exchange
rate on the reported increase in profit
before tax in the year of £64.8 million
was £4.1 million.
The Group’s policy is to hedge its net
foreign exchange exposure by using a
combination of forward foreign exchange
contracts and options for up to two
years forward. The Group also sells US
dollars at spot rates when opportunities
arise. As at the date of this report, the
Group has hedged 67% of its forecast
US dollar based net management fee
revenue for the remainder of this
financial year at US$/£1.95. Based on
the current year’s net management fee
revenue, a +/-10 cent exchange rate
movement would have a £3.9 million/
£4.3 million impact on unhedged net
management fees.
The Group’s cash balances are invested
with the objective of optimising returns
within a strict framework which
emphasises capital preservation,
security , liquidity and counterparty risk.
Cash is invested only in institutions with
an A or better credit rating. Typically ,
during the financial year , investments
have been in short-term cash deposits.
Based on the level of cash balances at
30 June 2008, a 1% change in UK
interest rates would have a £2.8 million
impact on the Group’s profit before tax.
Risk
Risk is inherent in all businesses and is
therefore present within the Group’s
activities. The Group seeks to effectively
identify , monitor and manage each of its
risks and actively promotes a risk
awareness culture throughout the
organisation. During the year , and having
appointed a new Head of Risk, the
Group’s risk control framework has been
significantly enhanced with specific
focus on the development of the Group
risk matrix, which seeks to identify the
key risks of the Group as well as 
current mitigants and future action plans.
In addition, in conjunction with the
investment management teams, there
has been specific focus to proactively
manage counterparty exposures both at
the Group level and also within the funds
as well as to closely review the valuation
of all hard to value investments held in
the respective funds.
The significant risks that face the Group
can be summarised into three main
categories: strategic and business,
investment and operational with
reputational risk being a common
characteristic in all categories.
The ultimate responsibility for risk
management rests with the Board.
From a practical perspective some of
this activity is delegated. On an ongoing
basis, the Group’s Board and the Chief
Executive Officer manage the strategic
and business risk, the Group’s
investment committee manages
investment risk and delegates further
daily responsibilities to senior investment
professionals. The Group’s risk
committee manages operational, credit
and market risk and delegates further
responsibility to senior operational
management.
Strategic and business
The risks in this category revolve around
the medium and longer-term profitability
of the Group being adversely impacted
by the failure to identify the correct
strategy , or failure to implement the
correct strategy , and to react to
changes in the business environment.
Strategic and business risks include:
– long-term downturn in the
fundamental and technical dynamics
of emerging markets;
– downturn in investment performance
– capacity constraints of the market
constraining growth;
– emergence ofincreased competition;
– maintaining marketing and
distribution.
The Group’s strategy to be the leading
emerging markets investment manager
and the strategic objectives that
underpin the achievement of this are
well understood throughout the
organisation. Progress against these
objectives forms an important part of
the regular Board reporting.
Diversification of the Group’s AuM is an
important mitigating factor of business
risk and this diversification is achieved
by investment theme, fund structure,
investor type and investor geography .
The Group’s predominantly ‘top down’
investment approach creates a highly
scalable business model.
Investment
A key strategic objective is the delivery of
long term investment outperformance to
ensure the Group can attract new AuM
inflows, retain existing AuM and maintain
investment management margins.
A key strategic objective is the delivery of long term
investment outperformance to ensure the Group
can attract new AuM inflows, retain existing AuM
and maintain investment management margins. 23 ASHMORE GROUP PLC ANNUAL REPORT 2008
Investment risks could include:
– unavailability of suitable trading
counterparties;
– inadequate due diligence regarding
privately held investments;
– inability to fairly price assets; and  
– downturn in investment performance.
The Group’s core investment approach
has remained broadly unchanged for
many years and the structure of the
investment committee has been refined
to incorporate a central investment
committee meeting as well as sub-
committees for the different investment
themes where appropriate. The central
investment committee meets at least
weekly and is provided with
comprehensive papers covering all the
relevant details on investments. The
core investment management team has
remained unchanged over the year
except for the addition of further hires to
increase investment management
strength in most investment themes in
line with the policy for building the next
generation of Ashmore investment
professionals. The exclusive focus on
emerging markets and the expectation
that the investment professionals
continually research and regularly visit
these markets is a further feature of the
investment approach. A significant
proportion of investment professionals’
remuneration is linked to performance
and has a long-term equity component.
Currently , for the proportion of the
Group’s AuM which cannot be readily
externally valued, typically in the
Group’s special situations theme,
appropriate valuation procedures and
processes are in place. Oversight of the
methodologies used for valuation of
these assets is the responsibility of the
Group’s Pricing Methodology
Committee (PMC) which meets monthly
to review the current valuation
methodology of each of these
investments and to propose an updated
valuation methodology where
appropriate.
Operational
The risks within this category are broad
in nature and inherent in all businesses
and would typically encompass events
such as execution and process
management, client related business
practice, fraud, business disruption and
systems, damage to physical assets
and health and safety , each of which
could result in a loss to the business.
Operational risk forms one of the key
areas of focus of the Risk Committee in
its regular monthly meeting. In order to
provide the committee with the optimum
structure for reviewing these risks, the
range of operational risk Key Risk
Indicators (“KRIs”) was refined and
extended during the course of the year
to 30 June 2008.
Risk management and control
Risk management and control is one
element of the Group’s overall system 
of internal controls within its corporate
governance framework. Further details
of the Group’s internal control
environment are described in the
Corporate Governance report on 
pages 31 to 33.
Graeme Dell
Group Finance Director
The Group’s core investment approach has
remained broadly unchanged for many years and
the structure of the investment committee has been
refined to incorporate a central investment
committee meeting as well as sub-committees for
the different investment themes. 24 ASHMORE GROUP PLC ANNUAL REPORT 2008
Board of directors
The Hon. Michael Benson 
Non-executive Chairman (Age 65)
Michael was appointed to the Board as non-executive
Chairman on 3 July 2006. He is Chairman of the Company’s
nominations committee. Michael began his career in the City in
1963 and, after a series of senior positions in the investment
management industry, was, from 2002 to March 2005,
Chairman of Invesco and Vice Chairman of Amvescap plc.
Prior to that he was CEO of Invesco Global (1997-2002).
Michael is a non-executive director of Morse plc, and Border
Asset Management Limited, and is a director of Community
Foundation Network.
A, N, R 
Mark Coombs 
Chief Executive Officer (Age 48)
Mark Coombs was appointed a director on the incorporation of
the Company in December 1998, and has served as its Chief
Executive Officer since then. He held a number of positions at
Australia and New Zealand Banking Group (ANZ) and led
Ashmore’s buyout from ANZ in early 1999. He is Co-Chair of
EMTA, the trade association for emerging markets having been
on the Board since 1993. Mark has an MA in law from
Cambridge University .
Graeme Dell
Group Finance Director (Age 42)
Graeme Dell was appointed to the Board as Group Finance
Director in December 2007. Prior to joining Ashmore Graeme
was Group Finance Director of Evolution Group plc from 2001
to 2007, where he had group-wide responsibility for finance,
operations, technology, compliance, risk and HR which
included playing a significant role in the foundation and
development of Evolution's Chinese securities business.
Graeme previously worked for Deutsche Bank and Goldman
Sachs in a range of business management, finance and
operations roles both in Europe and in Asia Pacific. Graeme
qualified as a chartered accountant with Coopers & Lybrand
and is a graduate of Hertford College, Oxford University .
Nick Land
Senior independent non-executive director (Age 60)
Nick Land was appointed to the Board as senior independent
non-executive director and Chairman of the audit committee
on 3 July 2006. He is a qualified accountant and was a partner
of Ernst & Y oung LLP from 1978 to June 2006 and its Chairman
from 1995 to June 2006.
Nick is a non-executive director of Royal Dutch Shell plc, BBA
Aviation plc, Alliance Boots GmbH and Vodafone Group plc.
He is Chairman of the Practice Advisory Board of the Institute
of Chartered Accountants in England and Wales, a member of
the Finance and Audit Committees of the National Gallery and
is Chairman of the Board of Trustees of Farnham Castle.
A, N, R 
Jon Moulton 
Non-executive director (Age 57)
Jon Moulton has been a non-executive director of the
Company since February 1999 and he is Chairman of the
remuneration committee. He is Managing Partner of Alchemy
Partners LLP .
Jon formerly headed the MBO team at Apax Partners (1994-
1996), founded and ran Schroder Ventures as Managing
Partner (1985-1994) and worked with Citicorp Venture Capital
in London and New York (1980-1985). He has led some 50
buyouts in a wide variety of industries. He is a graduate
chemist and chartered accountant. Jon is currently a director
of several private companies.
A, N, R 
Jonathan Asquith
Non-executive director (Age 51)
Jonathan Asquith joined the Board on 1 September 2008. He
was formerly Vice Chairman of Schroders plc and held the
position of Chief Financial Officer between 2002 and 2007.
During his time at Schroders he also had responsibility within
the investment function for fixed income, emerging market
debt, commodities and property and oversaw their investment
capital and private equity interests. Prior to that he worked for
Morgan Grenfell and was appointed as Chief Financial Officer
of Deutsche Morgan Grenfell in 1995 and Chief Operating
Officer in 1997. In 2001 he joined Barclays Private Bank, where
he was head of UK private banking until his move to Schroders
in 2002.
A
Key to membership of committees
A: audit    N: nominations    R: remuneration 25 ASHMORE GROUP PLC ANNUAL REPORT 2008
Directors’ report
The directors present their annual report and financial
statements for the year ended 30 June 2008. The Company,
formerly registered as a private company and named Ashmore
Group Limited, was re-registered as a public limited company
on 3 October 2006, changing its name on that date to Ashmore
Group plc. The Company was admitted to the Official List of
the London Stock Exchange (Admission) on 17 October 2006.
The financial statements have been prepared in accordance
with International Financial Reporting Standards as adopted
by the EU (IFRS).
Principal activity and business review
The principal activity of the Group is the provision of
investment management services. The Company is required to
set out in this report a fair review of the business of the Group
during the financial year ended 30 June 2008 and of the
position of the Group at the end of that financial year and a
description of the principal risks and uncertainties facing the
Group (referred to as the business review). The information
that fulfils the requirements of the business review can be
found in the financial highlights on pages 2 and 3, the 
Chief Executive Officer’s statement on pages 5 to 11, the
business review on pages 14 to 23 and the corporate
governance report on pages 28 to 33.
The principal risks facing the business are detailed in the
business review on pages 14 to 23 and in the corporate
governance statement, internal control, on pages 31 and 32.
Results and dividends
The results of the Group for the year are set out in the
consolidated income statement on page 42.
The directors recommend a final dividend of 8.34p per share
which, together with the interim dividend of 3.66 p per share
already declared, makes a total for the year ended 30 June 2008
of 12.0p per share (2007: 9.0p). Details of the interim dividend
payment are set out in note 8 to the financial statements.
Subject to approval at the annual general meeting, the final
dividend will be paid on 5 December 2008 to shareholders 
on the register on 7 November 2008 (ex-dividend date being 
5 November 2008).
Related party transactions
Details of related party transactions are set out in note 22 to
the financial statements.
Post balance sheet events
As set out in note 25 to the financial statements there were no
post balance sheet events.
Directors
The members of the Board together with biographical details
are shown on page 24. Michael Benson, Mark Coombs, Nick
Land and Jon Moulton served as directors throughout the year .
Jim Pettigrew was appointed a director on 7 August 2006 and
resigned on 31 October 2007. Graeme Dell was appointed to
the Board on 19 December 2007 and Jonathan Asquith was
appointed to the Board on 1 September 2008.
Details of the service contracts of the current directors are
shown in the remuneration report on page 35.
The Company’s Articles require the newly appointed directors
Graeme Dell and Jonathan Asquith to retire from office at the
first annual general meeting following their appointment.
Additionally, excluding new directors, a minimum of one third
of the Board is required to retire by rotation annually . Nick Land
will retire by rotation at the forthcoming annual general
meeting. All directors being eligible offer themselves for re-
election.
Any directors who have held office for a period of 9 years or
more (other than executive office) shall also be subject to 
re-election Accordingly, John Moulton will be subject to
retirement but will not be offering himself for re-election at the
annual general meeting.
Details of the constitution and powers of the Board and its
committees are set out in the corporate governance report on
pages 28 to 33. The corporate governance report also
summarises the Company’s rules concerning appointment
and replacement of directors.
Directors’ interests
The interests of directors in the Company’s shares and in
options over the Company’s shares are shown on page 39
within the remuneration report.
Significant agreements with provisions applicable to
a change in control of the company
Save as described there are no agreements in place
applicable to a change in control of the company .
Resolution 12 in the Notice of Annual General Meeting will
seek approval from shareholders to a waiver of the provisions
of Rule 9 of the Takeover Code in respect to the obligation that
could arise for Mark Coombs to make a mandatory offer for
the company in the event that the company exercises the
authority to make market purchases of its own shares. Further
details are contained in the separate Notice of AGM.
Restrictions on transfer of shares
Employees of the Company who held ordinary shares in the
Company or who held options in respect of ordinary shares at
the time of Admission are, subject to certain exceptions,
restricted by lock-in arrangements from selling, pledging or
otherwise disposing of their holding of or options in respect of
such shares at the time immediately following Admission
(Lock-in Shares). The restriction is lifted in respect of one third
of the relevant person’s holding of Lock-in Shares on the date
of publication of each of the full-year results of the Company
in 2007, 2008 and 2009.
Dealings in the Company’s ordinary shares by persons
discharging managerial responsibilities, employees of the
Company and, in each case, their connected persons, are
subject to the Group’s Dealing Code which adopts the Model
Code of the Listing Rules contained in the Financial Services
Authority’s Handbook.
Certain restrictions, customary for a listed company, apply to
transfers of shares in the Company . 26 ASHMORE GROUP PLC ANNUAL REPORT 2008
The Board may, in its absolute discretion, decline to register
any transfer of a share which is not fully paid or where there
are more than four joint holders.
In the case of certificated shares, registration of a transfer may
also be refused where (i) the instrument of transfer is not duly
stamped (unless exempt from stamping); (ii) insufficient
evidence of title is produced in respect of a transfer; and (iii) the
transferor has been served with a restriction notice (as defined
in the Articles) after failure to provide the Company with
information concerning interests in those shares required to be
provided under the Companies Acts, unless the transfer is
shown to the Board to be pursuant to an arm’s length sale.
Registration of a transfer of shares may be refused in the case
of uncertificated shares in the circumstances set out in the
Uncertificated Securities Regulations (as defined in the Articles).
Substantial shareholdings
At 16 September 2008 the Company had been notified of
the following significant interests (over 3%), other than those of
the directors, in the Company’s ordinary shares of 0.01p each:
Share capital
The Company has a single class of share capital which is
divided into ordinary shares of 0.01 pence each of which rank
pari passu in respect of participation and voting rights.
The shares are in registered form.
Details of structure of and changes in share capital are set out
in note 14 to the financial statements.
Restrictions on voting rights
A member shall not be entitled to vote at any general meeting
or class meeting in respect of any share held by him if any call
or other sum then payable by him in respect of that share
remains unpaid or if a member has been served with a
restriction notice (as defined in the Articles) after failure to
provide the Company with information concerning interests in
those shares required to be provided under the Companies
Acts. Votes may be exercised in person or by proxy.
The Articles currently provide a deadline for submission of
proxy forms of 48 hours before the meeting.
Purchase of own shares
The Company is, until the date of the next annual general
meeting, generally and unconditionally authorised to buy back
up to 70,892,500 of its own issued shares. No purchases were
made in the year under review. The Company is seeking
renewal of this authority at the 2008 annual general meeting.
Power to issue and allot shares
The directors are generally and unconditionally authorised to
allot unissued shares in the Company up to a maximum
nominal amount of £19,107.50.
A further authority has been granted to the directors to allot the
Company’s shares for cash, up to a maximum nominal amount
of £3,544.62, without regard to the pre-emption provisions of
the Companies Acts. No such shares have been issued or
allotted under these authorities, nor is there any current
intention to do so, other than to satisfy outstanding obligations
under the employee share schemes.
These authorities are valid until the date of the next annual
general meeting. A resolution for the renewal of such authorities
will be proposed at the 2008 annual general meeting.
Amendment of Articles of Association
Any amendments to the Articles of the Company may be made
in accordance with the provisions of the Companies Acts 
by way of a special resolution of the Company’s shareholders.
The Notice of AGM contains a resolution recommending a
number of amendments to the Articles to bring them into line
with recent changes in the law and best practice.
Employees
Details of the Company’s employment practices (including the
employment of disabled persons) can be found in the
corporate governance report on page 33.
Carey Pensions and Benefits Limited as trustee of the Ashmore
2004 Employee Benefit Trust (the EBT) has discretion as to the
exercise of voting rights over shares which it holds in respect of
employee share options that have not vested and other
restricted share awards. The current arrangement is that the
EBT considers the Company’s recommendation(s) before
voting such shares at a general meeting of the Company,
subject to an overriding duty to act in the interests of the EBT .
Corporate governance
The Company is governed according to the applicable
provisions of company law and by the Company’s Articles. As
a listed company, the Company must also comply with the
Listing Rules and the Disclosure and Transparency Rules
issued by the United Kingdom Listing Authority (UKLA). Listed
companies are expected to comply as far as possible with the
Financial Reporting Council’s Combined Code on Corporate
Governance, and to state how its principles have been
applied. A report on corporate governance and compliance
with the provisions of the Combined Code is set out on pages
28 to 33.
Directors’ report continued
Number of Number of Percentage
Shares Options interest
Jerome Paul Booth 42,250,000 3,500,000 6.45
FMR Corp 34,466,601 – 4.86
Carey Pensions and Benefits 
Limited as Trustee of the 
Ashmore 2004 Employee 
Benefit Trust 34,012,500 4.80
Lone Pine Capital LCC
and Stephen F Mandel Jr 29,068,057 – 4.10
Julian Redvers Green 26,775,000 3.78
Seumas Dawes 21,440,000 3.02
Note: In addition to the interests in the Company’s ordinary shares referred to
above, each director and senior manager who is an employee of the Group has an
interest in the Company’s ordinary shares held by Carey Pensions and Benefits
Limited under the terms of the Ashmore 2004 Employee Benefit Trust. 27 ASHMORE GROUP PLC ANNUAL REPORT 2008
Charitable and political contributions
During the year, the Group made charitable donations of
£30,000 (2007: £nil). Note 3 to the financial statements refers
to charitable donations that will be made in the year to 
June 2009. The work of the Ashmore Foundation is described
further below in the Corporate Social Responsibility section of
this report. It is the Group’s policy not to make contributions for
political purposes.
Creditor payment policy
The Group’s policy and practice in the UK is to follow its
suppliers’ terms of payment and to make payment in
accordance with those terms subject to receipt of satisfactory
invoicing. Unless otherwise agreed payments to creditors are
made within 30 days of receipt of an invoice. At 30 June 2008,
the amount owed to the Group’s trade creditors in the UK
represented approximately 30 days’ average purchases from
suppliers (2007: 30 days).
Auditors and the disclosure of information 
to auditors
The directors who held office at the date of approval of this
directors’ report confirm that, so far as they are each aware,
there is no relevant audit information of which the Company’s
auditors are unaware, and each director has taken all the steps
that they ought to have taken as directors to make themselves
aware of any relevant audit information and to establish that
the Company’s auditors are aware of that information.
Resolutions will be proposed at the annual general meeting to
reappoint KPMG Audit Plc as auditors and to authorise the
directors to agree their remuneration. Note 4 to the financial
statements sets out details of the auditors’ remuneration.
2008 annual general meeting
The 2008 annual general meeting of the Company will be held
at 9.00 am on Thursday 30 October 2008 at Kingsway Hall,
66 Great Queen Street, London WC2B 5BX. Details of the
resolutions to be proposed at the annual general meeting are
given in the separate circular and notice of meeting.
Statement of directors’ responsibilities 
The directors are responsible for preparing the Annual Report,
the remuneration report and the financial statements in
accordance with applicable law and regulations.
UK company law requires the directors to prepare financial
statements for each financial year .
Under that law the directors have prepared the Company and
the Group financial statements in accordance with IFRS.
The financial statements are required by law to give a true and
fair view of the state of affairs of the Company and the Group
and of the profit or loss of the Group for that period.
In preparing those financial statements, the directors are
required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and estimates that are reasonable and
prudent;
• state that the financial statements comply with IFRS as
adopted by the EU; and
• prepare the financial statements on the going concern
basis, unless it is inappropriate to presume that the
Company and the Group will continue in business.
The directors confirm that they have complied with the above
requirements in preparing the financial statements.
The directors are responsible for keeping proper accounting
records that disclose with reasonable accuracy at any time the
financial position of the Company and the Group and to enable
them to ensure that the financial statements and the
remuneration report comply with the Companies Acts and, as
regards the Group financial statements, Article 4 of the IAS
Regulation. They are also responsible for safeguarding the
assets of the Company and the Group and hence for taking
reasonable steps for the prevention and detection of fraud and
other irregularities.
The directors are responsible for the maintenance and integrity
of the Company’s website. Legislation in the United Kingdom
governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Going concern
After making enquiries, the directors are satisfied that the
Company and the Group have adequate resources to continue
to operate for the foreseeable future and confirm that the
Company and the Group are going concerns. For this reason
they continue to adopt the going concern basis in preparing
these financial statements.
Companies Act 2006
This directors’ report on pages 25 to 27 inclusive has been
drawn up and presented in accordance with and in reliance on
English company law and the liabilities of the directors in
connection with that report shall be subject to the limitations
and restrictions provided by such law.
References in this directors’ report to the financial highlights,
the business review, the corporate governance report and the
remuneration report are deemed to be included by reference
in this directors’ report.
Approved by the Board and signed on its behalf by
Michael Perman
Company Secretary
16 September 2008 28 ASHMORE GROUP PLC ANNUAL REPORT 2008
Section 1 of the June 2006 Financial Reporting Council (FRC)
Combined Code on Corporate Governance (the 2006 Code),
which supersedes the 2003 Code, applies to listed companies
with reporting years beginning on or after 1 November 2006.
The Company has adopted the principles of the 2006 Code
since its admission to listing on the London Stock Exchange on
17 October 2006 (Admission).
The Company has been in compliance with the 2006 Code
since that date, except where the directors consider that 
in particular limited circumstances departure is justified.
Such departures are fully explained below.
This report describes the Company’s corporate governance
arrangements, explaining how it has applied the principles of
the 2006 Code.
Directors
The Board of directors comprises two executive directors and
four non-executive directors. The two executive directors are
Mark Coombs the Chief Executive Officer, and Graeme Dell
the Group Finance Director. The non-executive directors are
Michael Benson, Chairman, Nick Land, the Senior
Independent Director , Jon Moulton, and Jonathan Asquith.
Michael Benson, Mark Coombs Nick Land and Jon Moulton
served as directors throughout the year. Jim Pettigrew
submitted his resignation which became effective on 
31 October 2007. He was replaced by Graeme Dell, who was
appointed to the Board on 19 December 2007. Additionally
Jonathan Asquith joined the Board on 1 September as a non-
executive director . Jon Moulton will retire from the Board at the
annual general meeting on 30th October 2008.
The Board has a schedule of matters specifically reserved to 
it for decision and approval, which include but are not limited to:
• the Group’s long-term commercial objectives and strategy;
• major acquisitions, disposals and investments;
• the Group’s annual and interim reports and financial
statements;
• interim dividend and recommendation of final dividend;
• annual budgets and forecast updates;
• significant capital expenditure; and
• effectiveness of internal controls.
The roles of the Chairman and Chief Executive Officer are
separate, clearly defined and have been approved by the
Board. The Chairman is responsible for the effective conduct
of the Board, while the Chief Executive Officer is responsible
for execution of strategy and for the day-to-day management
of the Group.
In considering non-executive director independence, the
Board has taken into consideration the guidance provided by
the 2006 Code. The Board considers Michael Benson, Nick
Land and Jonathan Asquith to be independent. Nick Land is
the senior independent director . Article A.3.2 Combined Code
also says that half the Board excluding the Chairman should
consist of independent directors.
Jon Moulton is not an independent director as he is a
substantial shareholder and has served as a director of the
company since February 1999. The effect of this is that the
Group did not comply during the year with the 2006 Code
requirement that at least half of the Board are independent
directors (excluding the Chairman). During the year the Board
instigated a formal search process with the objective of making
an additional appointment of an independent director with
relevant experience in order to bring the company into
compliance with the Code which resulted in the appointment of
Jonathan Asquith on 1 September 2008. Upon the retirement of
Jon Moulton on 30 October 2008 the Company will be in
compliance with the Article A.3.2 of the Combined Code.
Biographical details of the directors are given on page 24.
During the year under review the Board met six times to
review financial performance and strategy and to follow the
formal schedule of matters reserved for its decision.
Comprehensive Board papers, comprising an agenda and
formal reports and briefing papers are sent to directors in
advance of each meeting. Throughout their period in office
directors are continually updated, by means of written and
verbal reports from senior executives and external advisers,
on the Group’s business and the competitive and regulatory
environments in which it operates, as well as on legal,
corporate governance, corporate social responsibility and
other relevant matters.
In addition to its formal business, the Board received a
number of briefings and presentations from executive
management during the year covering a wide range of topics
across the range of the Group’s business. All directors have
access to independent professional advice, if required, at the
Company’s expense as well as to the advice and services of
the Company Secretary. New directors appointed to the
Board will receive advice as to the legal and other duties and
obligations arising from the role of a director of a UK listed
company within a full, formal and tailored induction
programme. The Company Secretary, under the direction of
the Chairman, is responsible for maintaining an adequate
continuing education programme, reminding the directors of
their duties and obligations on a regular basis, ensuring good
information flow between the Board, its committees and
management and assisting with directors’ continuing
professional development needs.
The Company’s nominations committee considers the
appointment and replacement of directors subject to the rules
set out in the Articles, a summary of which is set out below.
Under the Articles, the minimum number of directors shall be
two and the maximum shall be nine. Directors may be
appointed by the Company by ordinary resolution or by the
Board. A director appointed by the Board must offer himself
for election at the next annual general meeting of the
Company following his appointment but he is not taken into
account in determining the directors or the number of
directors who are to retire by rotation at that meeting. In line
Corporate governance report 29 ASHMORE GROUP PLC ANNUAL REPORT 2008
with the requirements of the 2006 Code, a minimum of one-
third of the directors must retire by rotation at every annual
general meeting of the Company . The directors to retire must
be those who held office at the time of the two preceding
annual general meetings and did not retire at either of them.
The office of director shall be vacated in other circumstances,
including where (i) that director resigns or is asked to resign;
(ii) he is or has been suffering from mental ill health; (iii) he is
absent without permission of the Board from meetings of the
Board for six consecutive months; (iv) he becomes bankrupt
or compounds with his creditors generally; or (v) he is prohibited
by law from being a director.
Powers of the directors
Subject to the Company’s memorandum of association, the
Articles, the Companies Acts and any directions given by the
Company by special resolution, the business of the Company
is managed by the Board, who may exercise all powers of the
Company , whether relating to the management of the business
of the Company or not.
Performance evaluation
The Board has established a formal process, led by the
Chairman, for the annual evaluation of the performance of the
Board, its appointed committees and each director, to ensure
that they continue to act effectively and efficiently and to fulfil
their respective duties, and to identify any training
requirements.
Meetings were held between the Chairman and each
individual director in which issues and developments over the
year were discussed and performance was considered by
reference to the objectives of the Board and its committees.
The responses were collated by the Company Secretary and
the results and issues raised were subsequently discussed by
the Board. The Board also evaluated the Chairman’s
performance.
Board and committee attendance
The table below sets out the number of pre-scheduled
meetings of the Board and its committees and individual
attendance by current directors.
Board committees
The Board has appointed audit, remuneration and
nominations committees to assist in the execution of its
duties:
All of these committees operate on written terms of reference,
which are reviewed annually and were updated by the Board
in August 2008. The chairman of each committee reports
regularly to the Board.
Each of the committees is authorised, at the Company’s
expense, to obtain external legal or other professional advice
to assist in carrying out its duties. Only the members of each
committee are entitled to attend its meetings but others, such
as senior management and external advisers, may be invited
to attend as appropriate.
Current membership of the committees is shown in the
relevant sections below. The composition of these committees
is reviewed annually, taking into consideration the
recommendations of the nominations committee. Jon Moulton
will step down from all Board committees on his retirement
from the Board on 30th October 2008.
Audit committee
The audit committee comprises four non-executive directors.
Nick Land is Chairman with Michael Benson, Jon Moulton and
Jonathan Asquith as members. Nick Land, Michael Benson
and Jon Moulton served on the committee throughout the year .
Jonathan Asquith joined the audit committee on his
appointment to the Board on 1 September 2008.
The Board is satisfied that Nick Land, Jon Moulton and
Jonathan Asquith have recent and relevant commercial and
financial knowledge and experience to satisfy the provisions
of the 2006 Code. Nick Land and Jon Moulton are both
chartered accountants and Jonathan Asquith has previously
served as Chief Financial Officer of Schroders plc and
Deutsche Morgan Grenfell.
As Jon Moulton is not an independent director as referred to
above, the Group did not comply during the year with the 2006
Code requirement that the audit committee should consist of at
least three independent non-executive directors.
Nominations Audit Remuneration
Board committee committee committee
Total number of meetings between
1 July 2007 and 30 June 2008 6 4 25
Michael Benson 100% 100% 100% 100%
Mark Coombs 100% – – –
Graeme Dell
1
100% – – –
Nick Land 100% 100% 100% 100%
Jon Moulton 100% 100% 100% 100%
Notes
1 Graeme Dell was appointed to the Board on 19 December 2007 and attendance is calculated from this date. 30 ASHMORE GROUP PLC ANNUAL REPORT 2008
Corporate governance report continued
A report on the activities of the committee is set out on page 
30. The terms of reference for the committee take into account
the requirements of the Combined Code 2006 and are
available for inspection at the registered office, at the annual
general meeting and can also be found on the company
website at www.ashmoregroup.com. The terms of reference for
the committee include:
• monitoring the integrity of the financial statements of the
Company, any formal announcements relating to the
Company’s financial performance and any significant
financial issues and judgements contained in them;
• reviewing the Group’s draft annual financial statements and
interim results statement prior to discussion and approval
by the Board and reviewing the external auditors’ detailed
reports thereon;
• reviewing the external auditors’ plan for the audit of the
Group’s financial statements, receiving and reviewing
confirmations of auditor independence and approving the
terms of engagement and proposed fees for the audit;
• making recommendations to the Board for a resolution to be
put to shareholders to approve the re-appointment of the
external auditors;
• reviewing the level and amount of external auditor non audit
services;
• reviewing management’s annual report on the Group’s
system of internal control and its effectiveness, reporting to
the Board on the results of this review and receiving
updates on key risk controls;
• considering whether the Group should have an internal
audit department, recommending to the Board whether this
is appropriate and to give the reasons for the absence of
such a function; and
• reviewing the committee’s terms of reference, carrying out
an annual performance evaluation exercise and noting the
satisfactory operation of the committee.
The committee has requested and received reports from
management to enable it to fulfil its duties under its terms of
reference.
The audit committee also has responsibility for reviewing the
Company’s arrangements on whistle-blowing, ensuring that
appropriate arrangements are in place for employees to be
able to raise, in confidence, matters of possible impropriety,
with suitable subsequent follow-up action.
The committee has the authority to seek any information it
requires to perform its duties from any employee of the
Company and to obtain outside legal or other independent
professional advice as appropriate.
The number of committee meetings and their attendance 
by the directors are set out in the table on page 29.
Representatives of KPMG Audit Plc the Chief Executive Officer
and the Group Finance Director attend each meeting as a
matter of practice and presentations are made by the
executive management as required.
Remuneration committee
The remuneration committee comprises three non-executive
directors. Jon Moulton is Chairman with Michael Benson and
Nick Land as members. All have served on the committee
throughout the year .
As Jon Moulton is not an independent director as referred to
above, the Group did not comply during the year under review
with the 2006 Code requirement that the remuneration
committee should consist of at least three independent non-
executive directors.
A report on the activities of the committee is included in the
Remuneration Report on pages 35 to 39. The terms of
reference for the committee take into account the requirements
of the Combined Code 2006 and are available for inspection
at the registered office, at the annual general meeting and 
can also be found on the company website at
www.ashmoregroup.com.
The terms of reference for the committee include:
• reviewing the ongoing appropriateness and relevance of
the remuneration policy;
• reviewing the design of all share incentive plans for
approval by the board and shareholders;
• ensuring that members of the executive management of
the company are provided with appropriate incentives to
encourage enhanced performance;
• making recommendations to the Board as to the
Company’s framework or broad policy for the remuneration
of the Chairman, the executive directors and the Company
Secretary and to determine their total individual
remuneration packages including bonuses, incentive
payments and share options or other share awards;
• ensuring that a significant proportion of executive directors’
remuneration is structured so as to link rewards to
corporate and individual performance; and,
• ensuring that contractual terms on termination, and any
payments made, are fair to the individual, and the company ,
that failure is not rewarded and that the duty to mitigate loss
is fully recognised.
Details of the activities of the remuneration committee are set
out in the remuneration report on pages 35 to 39. 31 ASHMORE GROUP PLC ANNUAL REPORT 2008
The number of committee meetings and their attendance by
the directors are set out in the table on page 29. In addition,
and in accordance with its requirements under the terms of
reference, the members of the committee were also consulted
on a range of issues during the year , including specific matters
related to recruitment.
Nominations committee
The nominations committee comprises three non-executive
directors. Michael Benson is Chairman with Nick Land and 
Jon Moulton as members. All have served on the committee
throughout the year .
The terms of reference for the committee take into account the
requirements of the Combined Code 2006 and are available
for inspection at the registered office, at the annual general
meeting and can also be found on the company website at
www.ashmoregroup.com. The terms of reference for the
committee include:
• reviewing the structure, size and composition (including the
skills, knowledge and experience) of the Board and its
committees;
• reviewing annually the time required from each non-
executive director, using performance evaluation to assess
whether the non-executive director is giving sufficient
commitment to the role;
• giving full consideration to succession planning in the
course of its work, taking into account the challenges and
opportunities facing the Company and what skills and
expertise are needed on the Board in the future; and
• ensuring that on appointment to the Board, non-executive
directors receive a formal letter of appointment setting out
clearly what is expected of them in terms of time
commitment, committee service and involvement outside
board meetings.
During the year the activities of the committee have included
the engagement of external recruitment consultants for the
purposes of reviewing the names of potential independent
non-executive candidates for appointment to the Board,
proposals for rotation and re-election of directors at the annual
general meeting, discussing the results of the annual
performance evaluation exercise (and noting the satisfactory
operations of the committee), and reviewing its terms of
reference. The number of committee meetings and their
attendance by the directors are set out in the table on page 29.
Relations with shareholders
The Company places great importance on communication with
its investors and aims to keep shareholders informed by means
of regular communication with institutional shareholders,
analysts and the financial press throughout the year .
Annual and interim reports and trading updates are widely
distributed to other parties who may have an interest in the
Group’s performance. These documents are also made
available on the Company’s website where formal Regulatory
Information Service announcements are also posted. The
Chief Executive Officer and Group Finance Director make
regular reports to the Board on investor relations and on
specific discussions with major shareholders and the Board
receives copies of all research published on the Company .
The 2008 annual general meeting will be attended by all
directors, and the chairmen of the audit, nominations and
remuneration committees will be available to answer questions.
Private investors are encouraged to attend the annual general
meeting.
The senior independent director is available to shareholders if
they have concerns, if contact through the normal channels of
Chairman, Chief Executive Officer or Group Finance Director
has failed to resolve or for which such contact is inappropriate.
The Company continues to offer major shareholders the
opportunity to meet any or all of the Chairman, the senior
independent director and any new directors.
The Group will announce via a regulatory information service
the number of proxy votes cast on resolutions at the annual
general meeting and any other general meetings.
Internal control
Within the Group’s over-arching corporate governance
framework, an internal control framework has been
established, against which the company is able to assess the
effectiveness of its system of internal controls. In accordance
with the principles of the 2006 Code, the Board is ultimately
responsible for the Group’s system of internal control and for
reviewing its effectiveness.
The internal control framework provides an ongoing process
for identifying, evaluating and managing the Group’s
significant risks, and has been in place for the year under
review and up to the date of approval of the annual report and
accounts. The process is regularly reviewed by the Board, and
accords with the guidance in the document “Internal Control:
Revised Guidance for Directors on the Combined Code,
October 2005” (“T urnbull Guidance”) published by the Financial
Reporting Council.
The systems and their review are designed to manage rather
than eliminate the risk of failure to achieve business objectives,
and can only provide reasonable and not absolute assurance
against material misstatement or loss.
The Group’s system of internal control is embedded within 
the routine operations of the Group, and a strong control
culture is combined with clear management responsibility 
and accountabilities for individual control. On a day to day 32 ASHMORE GROUP PLC ANNUAL REPORT 2008
Corporate governance report continued
basis, the executive directors oversee the key risks and
controls and the risk management process. The Group’s Risk
and Compliance Committee, comprising senior management
members, which meets at least monthly, is responsible 
for maintaining a sound internal control environment and 
for assessing the impact of the Group’s ongoing activities on
its regulatory and operational exposures. Responsibility 
for risk identification is shared amongst senior management
personnel, with each individual manager being 
responsible for day-to-day control of risk in their business
area.
The Board through the Audit Committee has conducted an
annual review and assessment of the effectiveness of the
internal control system, which covers all significant identified
internal and external operational, financial, compliance and
other risks, including the Group’s ability to comply with all
applicable laws, regulations and clients’ requirements.
In conducting the review of the effectiveness of internal
control, the Audit Committee has considered the periodic
reports received throughout the year on internal control,
compliance and risk matters, and an annual report on internal
control processes from the Risk and Compliance Committee.
The overall assessment of the control framework is satisfactory ,
acknowledging that there are specific areas for improvement
where action plans are now in place.
No significant failings or weaknesses were identified during
this review, but should such issues arise in future, appropriate
remedial action would be taken.
The main features of the Group’s internal control system are as
follows:
• a defined operational framework and organisational
structure with appropriate delegation of authority with
accountability that has regard to acceptable levels of risk;
• a matrix of principal risks identifies key business,
operational, financial and compliance risks, including
consideration of the likelihood of those risks crystallising
and the resultant impact. The inherent risk within each
business activity has been identified, with the adequacy
and mitigating effect of existing processes being assessed
to determine a current residual risk level for each such
activity. On the basis that further mitigants may be
employed over time, a target residual risk for each activity
after one or to two years has been defined;
• key risk indicator (KRI) statistics are reported to and
analysed by the Risk and Compliance Committee. The
KRI’s indicate trends in the group’s risk profile, assist in the
reduction of errors and potential financial losses and seek
to prevent exposure by proactively dealing with a potential
risk situation before an event actually occurs;
• secure information and communication systems capable of
capturing relevant and up to date information by relevant
personnel;
• strong financial controls for accurate accounting for
transactions, appropriate authorisation limits to contain
exposures, and to ensure reliability of data processing and
integrity of information generated;
• an in-depth annual budget is reviewed and approved by the
Board and is regularly subject to update through a formal
re-forecasting process;
• Board members receive monthly management accounts
which highlight actual financial performance against
budget/forecast and prior year period;
• a detailed investment report is prepared and discussed at
the weekly meetings of the Group’s investment committee
with following actions agreed and implemented within a
strict operational framework;
• oversight of the valuation methodologies used for clients’
fund investments that cannot be readily externally priced is
the responsibility of the Group’s Pricing Methodology
Committee (PMC) which meets monthly to review the
current valuation methodology for each of these
investments and to propose an updated valuation
methodology where appropriate;
• the Group’s compliance function, which has responsibility
for ensuring that the Group at all times meets its regulatory
obligations, monitors client mandate risk on a real-time
basis facilitated by technology;
• the compliance function also undertakes an ongoing
compliance monitoring programme of all the relevant 
areas of the Group’s operations, including a quarterly
senior management systems and controls review which 
is undertaken with the Group Finance Director, and in 
which the Chief Executive Officer participates at least
annually;
• the Group commissions regular independent review reports
prepared pursuant to the Statement of Auditing Standards
No. 70, type II (SAS 70); and
• the Board, through the Audit Committee, receives half-yearly
updates from the Group’s external auditors which include
any control matters that have come to their attention.
The Group does not currently have an internal audit function
and in this respect is not in compliance with the 2006 Code.
The Board believes that given the current size, nature and
business and operational model of the Group, the relevant
assurances are more effectively obtained via the internal
control framework described herein and by the commissioning
of the regular SAS 70 reports. 33 ASHMORE GROUP PLC ANNUAL REPORT 2008
The internal control environment will continue to be monitored
and reviewed by the Risk and Compliance Committee, and
status reports provided periodically to the Board.
Improvements, where necessary , will be implemented.
Corporate social responsibility 
The Group recognises the importance of Corporate Social
Responsibility (CSR) incorporating transparency, fairness,
accountability and integrity and believes that these principles
are fundamental to the Group’s operations. The Group
continues to monitor developments in all relevant areas of
CSR, including environmental management, employees, health
and safety , suppliers and the community to ensure that it meets
best practice.
The Ashmore Foundation
Consistent with the Group’s commitment to responsible
corporate citizenship The Ashmore Foundation was 
created last year and funded by bonus sacrifices from 
certain employees of the Group. It is registered with the
Charities Commission and aims in general to provide financial
grants to worthwhile causes within the emerging markets 
in which the Group operates, principally focused on health and
education.
Employees
The Group recognises that the involvement of its employees is
key to the future success of the business and adopts a
practice of keeping employees informed on significant matters
affecting them, via email and in meetings arranged for the
purpose. The Group has consistently operated a remuneration
strategy that recognises both corporate and individual
performance.
The Group is also committed to following good practice in
employment matters, recognising the part this plays in
attracting and retaining staff. The Group promotes the
importance of high ethical standards to all employees and
staff have the opportunity to voice any concerns they may
have, either direct with management or on a confidential basis
via the whistleblowing process.
Equal opportunities
The Group is committed to ensuring that all employees are
treated fairly and with dignity and respect. This commitment 
is reflected in the Staff Handbook that all employees receive
on joining.
The policies and practices in place within the Group to deter
acts of harassment and discrimination are regularly monitored.
It is the Group’s policy that no employee shall be treated less
favourably on the grounds of their sex, sexual orientation, race,
religion, nationality, marital status or on the grounds of
disability. This policy applies, without limitation, to promotion,
training, placement, transfer, dismissal, remuneration,
grievance and disciplinary procedures and decisions. This
policy also applies to persons from outside the workplace and
the treatment of contract workers.
The Group seeks to ensure that the workforce reflects, as far
as is practicable, the diversity of the many communities in
which it operates, and this is reflected in the wide-ranging
nationalities of its employees.
Health and safety
The Group has in place a global health and safety policy which
can be accessed by all staff via an internal database. The aim
of this policy is to provide both staff and visitors with a safe
and healthy working environment. The Group is committed to
adhering to the high standards of health and safety set out by
its policies and procedures and to providing training as
necessary .
Environment
As an investment manager, Ashmore has a limited direct
impact upon the environment and there are few environmental
risks associated with the Group’s activities. Nevertheless, as
part of its ongoing commitment to the environment, Ashmore
throughout its operations, has adopted policies and
programmes to promote energy conservation and the
avoidance of waste through a number of initiatives, such as the
recycling of paper, glass and other waste and the use of
‘green’ energy .
By order of the board
Michael Perman
Company Secretary 34 ASHMORE GROUP PLC ANNUAL REPORT 2008
Report from the Chairman of the Audit Committee
The composition and Terms of Reference of the Audit
Committee are set out on pages 29 and 30.
The principal activities of the audit committee through the year
were as follows:
Financial statements 
The audit committee reviewed the 2008 Annual Report, Interim
Results, Preliminary Results and reports from the external
auditors, KPMG Audit plc, on the outcome of their reviews and
audits in 2008.
External auditors 
The committee met with the external auditors during the year
to review the scope of their audit and findings thereon for the
interim and year end financial statements.
The committee received a comprehensive presentation from
the auditors demonstrating to its satisfaction how their
independence and objectivity is maintained when providing
non-audit services.
The committee has agreed the types of permitted and non-
permitted service and those which require explicit prior
approval. Permitted non-audit services include the provision of
tax compliance services and acting as reporting accountant in
appropriate circumstances, provided there is no element of
valuation work involved. The provision of tax advisory services,
due diligence/transaction services and litigation services may
be permitted with the committee’s prior approval. The provision
of internal audit services, valuation work and any other activity
that may give rise to any possibility of self-review are not
permitted under any circumstance.
The committee recommended to the board that a resolution be
put to shareholders for the re-appointment of the auditors, and
their remuneration and terms of engagement, at the annual
general meeting of the company .
From time to time during the year the non-executives met with
the external auditors without the executive directors being
present.
Internal controls 
The committee reviewed and evaluated the system of internal
controls and risk management operated within the company.
A detailed report on internal control can be found on pages 31
and 32.
The committee considered the need for an internal audit
function and concluded that the Company does not presently
require such a function. Further details relating to the
background and rationale for this conclusion are set out on
pages 31 and 32.
Audit committee effectiveness
The members of the committee conducted a review of its
effectiveness and concluded that it was working effectively .
Nick Land
Chairman of the Audit Committee
16 September 2008 35 ASHMORE GROUP PLC ANNUAL REPORT 2008
Unaudited information
Introduction
This report has been prepared on behalf of the board in
accordance with the Directors’ Remuneration Report Regulations
2002 under the Companies Acts and the Combined Code 2006
(the 2006 Code). This report sets out the Company’s
remuneration policy and gives details of the compensation of
directors for the year ended 30 June 2008.
Remuneration committee
The remuneration committee comprises three non-executive
directors. Jon Moulton Is Chairman with Michael Benson and
Nick Land as members. All have served on the committee
throughout the year .
The remuneration committee meets as often as required to
discharge its duties and met five times during the period from
1 July 2007 to 30 June 2008. There was full attendance at all
meetings. The Chief Executive Officer , Group Finance Director ,
Company Secretary and the Head of Human Resources
attended all or part of the meetings at the invitation of the
remuneration committee but took no part in the determination
of their own remuneration.
The primary role of the remuneration committee is to make
recommendations to the board as to the Company’s framework
or broad policy for the remuneration of the Chairman, the
executive directors of the board and the Company Secretary,
as well as decide on total individual remuneration packages for
these positions.
Remuneration policy
The key objectives of the Company’s remuneration policy
remain unchanged and are to ensure that:
• levels of remuneration are relative to the Company’s market
and sufficient to attract and retain executive directors of the
quality required to run the Company successfully;
• the executive directors and the Company Secretary receive
sufficient incentives to motivate enhanced performance; and
• executive directors and the Company Secretary are fairly
rewarded for their individual contributions to the Company’s
overall performance.
In determining this policy, the remuneration committee takes
into account a broad range of factors including the interests of
the shareholders and the financial and commercial health of
the Company .
The terms of reference of the remuneration committee are
available on the Company website at www.ashmoregroup.com.
Advisors
The remuneration committee has appointed Mercer Limited to
provide advice on compensation matters when considered
appropriate. The Company participates in the McLagan
Partners compensation survey from which relevant data is
provided to the remuneration committee.
Neither of the above has any connection with the Company
other than providing compensation advice and/or information.
Service agreements
Each executive director has entered into a service agreement
with the Company . The service agreements do not have a fixed
term but include provisions for termination on 12 months’
notice by either party. Service agreements contain no
contractual entitlement to receive bonus payments or to
participate in the Company’s share schemes. Participation in
these arrangements is discretionary and subject to approval
by the remuneration committee.
Non-executive directors are appointed for an initial three year
period. Their continued engagement is subject to the
requirements of the Company’s Articles relating to the
retirement of directors by rotation.
The Company has maintained directors’ and officers’ liability
insurance cover throughout the period.
The table below provides details of the directors’ service
agreements/letters of appointment.
Remuneration report
Date appointed Contract Notice Expiry/
director date period review date
Executive directors
Mark Coombs 3 December 1998 21 September 2006 1 year Rolling
Graeme Dell 19 December 2007 3 December 2007 1 year Rolling
Jim Pettigrew 
1 
7 August 2006 26 June 2006 1 year Rolling
Non-executive directors
Michael Benson – Chairman 3 July 2006 3 July 2006 1 month 2 July 2009
Nick Land 3 July 2006 3 July 2006 1 month 2 July 2009
Jon Moulton 24 February 1999 11 October 2006 1 month 16 October 2009
1 Jim Pettigrew submitted his resignation on 3 July 2007 and his contract terminated on 31 October 2007.
Directors’ service contracts 36 ASHMORE GROUP PLC ANNUAL REPORT 2008
Executive directors are permitted to serve as non-executive
directors of other companies where there is no competition to
the Company’s business activities and where these duties do
not interfere with the individual’s ability to perform his duties for
the Company . In the reporting year Mark Coombs did not hold
any non-executive directorships. In the reporting year Graeme
Dell did not hold any non-executive directorships.
Executive remuneration components
The Company rewards exceptional performance and so
emphasises the variable components of the package.
Fixed compensation
Fixed compensation components comprise basic salary and
benefits in kind. Basic salaries are set low in comparison to the
market with a cap currently operated on maximum annual
salary of £100,000 as it is the Company’s policy to maintain its
fixed cost base at a low level.
Variable compensation
The Company’s variable compensation provides for both an
annual cash bonus and deferred share awards. The total
variable compensation is determined by reference to the
individual’s performance against agreed criteria, the
profitability of the Company and the external market.
Performance criteria are established appropriate to the
individual’s role, to include growth in assets under
management (“AuM”) and profitability where appropriate and
other key areas of individual responsibility .
The Company’s intention is to pay to members of staff an
amount in total of up to 25% of profit before tax, interest and
variable compensation in respect of its total variable
compensation comprising cash bonus, including national
insurance obligations thereon, and share based payments,
including fair value and national insurance costs in this respect.
For the financial year ending 30 June 2008 the provision for
variable compensation is at 18.2% of EBIT before variable
compensation. In view of the stringent salary controls which the
group operates the remuneration committee does not consider
it necessary or appropriate to set a cap on discretionary bonus
awards, although such awards will be made within the overall
provision for variable compensation as set out above.
Mark Coombs waived his right to receive any cash bonus
awarded to him in excess of £3,500,000 in respect of his
performance in this financial year and also waived his right to
any share awards that may otherwise have been awarded to
him in respect of this financial year . He asked the remuneration
committee to consider an appropriate equivalent donation to
be made to a charity or charities nominated by him and the
remuneration committee has agreed to this.
Mark Coombs’s performance measures include targets for
EBIT and AuM growth as well as the progression of strategic
opportunities and operational development. The committee is
fully satisfied that these performance measurements were met
or exceeded in the year ended 30 June 2008 with the
exception of AuM growth which was 4.6% below target. Similar
measurements will be applied in the financial year ending 30
June 2009.
Graeme Dell’s performance measurements are a basket of
operational, strategic and compliance related targets
pertaining to his areas of responsibility, including finance,
investor relations, compliance and operations. The committee
is satisfied that key targets were met in the year ended 30 June
2008. Similar performance measures will be applied to the
financial year ending 30 June 2009.
The balance between the fixed and variable elements of total
compensation for each of the executive directors is shown in
the table below.
Long-term share award schemes
The Company operates three share award schemes,
summarised below.
The Ashmore First Discretionary Share Option Scheme
(Option Scheme) was established on 23 October 2000.
Subsequent to the Company’s Admission in October 2006, it
is not intended to issue any further options under this scheme.
The Company Executive Omnibus Incentive Plan (Omnibus
Plan) was adopted on 11 October 2006 and provides for a
variety of option and share awards.
The Company Approved Share Option Plan (CSOP) was
adopted on 11 October 2006 and approved by HMRC on 1
June 2007. The CSOP provides for the granting of options up
to a market value limit of £30,000 to each individual on the date
of grant.
All employees including executive directors are eligible to
receive awards under the share award schemes. During the
financial year share awards over 272,480 shares were granted
to Graeme Dell from the Omnibus Plan. No performance
measures were attached to these awards which were granted
in relation to Graeme Dell joining the Company .
No share awards were made to Mark Coombs in the financial
year .
No grants were made from the CSOP scheme.
As a business which is completely reliant upon the intellectual
capital of its people the board considers it essential to have in
place share incentive arrangements which provide a
significant element of “at risk” compensation and which are
designed to attract, motivate and retain highly qualified
executives, investment management professionals, and other
Total Variable – Variable –
compensation Fixed cash Deferred Total
Mark Coombs 2.5% 97.5% – 100%
Graeme Dell 5.0% 57.0% 38.0% 100%
Remuneration report continued 37 ASHMORE GROUP PLC ANNUAL REPORT 2008
key employees who are critical to the Group’s long-term
success and to align the interests of employees with our
clients and shareholders. The overall limits which were
established prior to the listing of the company are designed to
fulfil these objectives. At any time the number of shares which
may be issued in aggregate under the Omnibus Plan and the
CSOP and any other employee share plan of the Company
over any ten-year period following Admission is limited to 15%
of the Company’s issued share capital at that time. The
Omnibus Plan and the CSOP can operate over newly issued
shares in the Company or shares purchased in the market by
the trustees of an employee benefit trust.
The Omnibus Plan includes individual limits in respect of
option and share awards made to executive directors in any
annual period whereby an award will be limited and take effect
so that (a) no participant who is an executive director of the
Company is granted Market Value Options, Discounted
Options or Premium Cost Options in any annual period over
more than 2,000,000 ordinary shares of 0.01 pence each, and
(b) no participant who is an executive director of the Company
is granted Share Awards in any annual period over more than
1,000,000 ordinary shares of 0.01 pence each. If there are
exceptional circumstances that the remuneration committee
considers justify making Awards in excess of these limits, the
remuneration committee may, in respect of the relevant
participant, apply double the limits above. These individual
limits were amended in 2007 from a multiple of base salary to
a number of shares as the salary cap that the company
operates was unduly restrictive on the quanta of share awards
permissible. This change was approved by shareholders at the
2007 AGM.
Total shareholder return (TSR) 
performance measure
The remuneration committee has established a comparator
group against which to measure TSR performance in respect
of future share awards to executive directors under CSOP and
the Omnibus Plan. Share awards will not vest at below median
performance. 25% of share awards will vest for median
performance rising to full vesting at upper quartile
performance, with straight-line proportionate vesting between
these two points.
TSR is considered appropriate as a well established and
recognised performance measure which aligns the interests of
the executive directors with that of the shareholders. In the
absence of any other dedicated emerging markets investment
management companies, a comparator group of 16
companies has been selected from global investment
management companies of a similar size that are established
and actively trading on stock markets. This comparator group
has reduced by 2 following the takeover and delisting of two of
the original comparator group companies.
Share performance graph
The graph below shows the growth in the Company’s share
price since Admission against the FTSE 250. The FTSE 250
index has been selected as the index in which the Company
is currently listed.
£80
£90
£100
£110
£120
£130
£140
£150
£160
£170
£180
Value of £100 invested on 11 October 2006
  
Ashmore Group
11 October 2006 30 June 2007 30 June 2008
FTSE 250
Source: Graph provided by Mercer Limited using a methodology compliant
with the requirements of Schedule 7A to the Companies Act 1985. 38 ASHMORE GROUP PLC ANNUAL REPORT 2008
Audited information
Pensions
Executive directors are entitled to join the Ashmore Group plc
Retirement and Death Benefit Scheme (“Pension Scheme”)
under which the Company makes contributions at 7% of basic
salary. There is no mandatory requirement for executive
directors, or any employees, to contribute. Following the
changes to pensions legislation introduced from 6 April 2006,
Mark Coombs has elected for employer contributions to cease
and equivalent taxable cash payments have been made to him
in lieu. Graeme Dell is a member of the Pension Scheme.
Other benefits
Executive directors are entitled to a lump sum death-in-service
benefit of four times basic salary. In addition, executive
directors are entitled to membership of the Company medical
insurance scheme and an annual health check.
Remuneration report continued
Directors’ remuneration
The remuneration of the directors of the Company for the year ended 30 June 2008 was as follows:
Year ended Year ended
30 June 30 June
Cash 2008 2007
Salaries Fees Benefits bonus Total Total
Notes££££ £ £
Executive directors
Mark Coombs 1, 8 100,000 – 8,816 4,200,000 4,308,816 5,108,607
Graeme Dell 2, 9 58,333 – 4,243 720,000 782,576 –
Jim Pettigrew 3 33,333 _ 2,333 250,000 285,666 248,495
Non-executive directors 10
Michael Benson 4, 5 – 100,000 – – 100,000 85,513
Nick Land 4, 6 – 30,000 – – 30,000 25,654
Jon Moulton 4, 7 – 15,000 – – 15,000 21,638
1. Mark Coombs’s cash bonus includes £700,000 that he has waived with a request that an equivalent amount be paid to a charity or charities nominated by him, and
which the Company will pay in the financial year ending 30 June 2009.
2. Graeme Dell commenced employment on 3 December 2007. His variable compensation is made up of 60% cash bonus and 40% deferred share awards. He may
waive up to 50% of his cash bonus in favour of an equivalent amount of bonus share awards and an equivalent value in matching share awards. All share awards will
be reported in the Directors’ share awards table in the year of grant.
3. Jim Pettigrew ceased employment on 31 October 2007.
4. Michael Benson, Nick Land and Jon Moulton are each members of the remuneration committee, the audit committee and the nominations committee. They do not
receive any additional fees for these committee memberships.
5. With effect from 1 July 2008 the Board approved an increase in Michael Benson’s fee to £125,000 per annum. Michael Benson has waived his right to this increase
and asked that an equivalent amount is paid to a charity or charities of his choice.
6. With effect from 1 July 2008 Nick Land’s fee has been increased to £50,000 per annum.
7. With effect from 1 January 2008 Jon Moulton has waived his director’s fee and asked that an equivalent amount be paid into a charity or charities of his choice.
8. Mark Coombs’ benefits include payment in lieu of pension equivalent to 7% of basic salary in the “Salaries” column. His benefits also include membership of the
Company medical scheme.
9. Graeme Dell’s benefits include a pension contribution of 7% of basic salary in the “Salaries” column. His benefits also include membership of the Company medical
scheme.
10. The appointment letters for non-executive directors refer to an annual review of fees and such a review was undertaken resulting in the amendments indicated above.
This review used comparison data provided by leading audit and consultancy firms. 39 ASHMORE GROUP PLC ANNUAL REPORT 2008
30 June 2008 30 June 2007
Executive directors
Mark Coombs 303,324,200 303,324,200
Graeme Dell 272,480 _
Non-executive directors
Michael Benson 29,000 29,000
Nick Land 29,000 29,000
Jon Moulton 30,511,700 30,511,700
Number of options Number of options
at beginning of period at end of period Exercise price First exercise date Last exercise date
Jim Pettigrew 687,600 Nil £0.2424 N/A - lapsed N/A - lapsed
Directors’ share awards
The Ashmore First Discretionary Share Option Scheme
Number of Number of
restricted shares at restricted shares Market price at
beginning of period at end of period date of grant Date of grant Release date
Jim Pettigrew 200,000 Nil £2.50 13 December 2006 N/A - lapsed
Graeme Dell Nil 272,480 £2.7525 3 December 2007 2 December 2012
The Company Executive Omnibus Incentive Plan
No share awards have been made to non-executive directors.
Directors’ interests in ordinary shares of Ashmore Group plc
The market price of the Company’s shares as at 30 June 2008 was £2.1650. The highest share price during the financial year was
£3.1625. The lowest share price was £2.0400 per share.
By order of the board
Jon Moulton
Chairman of the remuneration committee
16 September 2008 40 ASHMORE GROUP PLC ANNUAL REPORT 2008
Independent auditors’ report 
to the members of Ashmore Group plc
We have audited the group and parent company financial
statements (the “financial statements”) of Ashmore Group plc
for the year ended 30 June 2008 which comprise the
Consolidated Income Statement, the Consolidated and Parent
Company Balance Sheets, the Consolidated and Parent
Company Cash Flow Statements, the Consolidated and
Parent Company Statements of Changes in Equity and the
related notes. These financial statements have been prepared
under the accounting policies set out therein. We have also
audited the information in the Directors’ Remuneration Report
that is described as having been audited.
This report is made solely to the company’s members, as a
body, in accordance with section 235 of the Companies Act
1985. Our audit work has been undertaken so that we might
state to the company’s members those matters we are
required to state to them in an auditor’s report and for no other
purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the
company and the company’s members as a body , for our audit
work, for this report, or for the opinions we have formed.
Respective responsibilities of directors 
and auditors
The directors’ responsibilities for preparing the Annual Report
and Accounts, the Directors’ Remuneration Report and the
financial statements in accordance with applicable law and
International Financial Reporting Standards (IFRSs) as
adopted by the EU are set out in the Statement of Directors’
Responsibilities on page 27.
Our responsibility is to audit the financial statements and the
part of the Directors’ Remuneration Report to be audited in
accordance with relevant legal and regulatory requirements
and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial
statements give a true and fair view and whether the financial
statements and the part of the Directors’ Remuneration
Report to be audited have been properly prepared in
accordance with the Companies Act 1985 and, as regards the
group financial statements, Article 4 of the IAS Regulation. We
also report to you whether in our opinion the information given
in the Directors’ Report is consistent with the financial
statements. The information given in the Directors’ Report
includes that specific information presented in the Financial
Highlights and Business review that is cross referred from the
Principal Activity and Business Review section of the
Directors’ Report.
In addition we report to you if, in our opinion, the company has
not kept proper accounting records, if we have not received
all the information and explanations we require for our audit,
or if information specified by law regarding directors’
remuneration and other transactions is not disclosed.
We review whether the Corporate Governance Statement
reflects the company’s compliance with the nine provisions of
the 2006 Combined Code specified for our review by the
Listing Rules of the Financial Services Authority, and we
report if it does not. We are not required to consider whether
the Board’s statements on internal control cover all risks and
controls, or form an opinion on the effectiveness of the
group’s corporate governance procedures or its risk and
control procedures.
We read the other information contained in the Annual Report
and Accounts and consider whether it is consistent with the
audited financial statements. We consider the implications for
our report if we become aware of any apparent misstatements
or material inconsistencies with the financial statements. Our
responsibilities do not extend to any other information.
We read the other information contained in the Annual Report
and consider whether it is consistent with the audited financial
statements. We consider the implications for our report if we
become aware of any apparent misstatements or material
inconsistencies with the financial statements. Our responsibilities
do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International
Standards on Auditing (UK and Ireland) issued by the
Auditing Practices Board. An audit includes examination, on a
test basis, of evidence relevant to the amounts and
disclosures in the financial statements and the part of the
Directors’ Remuneration Report to be audited. It also includes
an assessment of the significant estimates and judgments
made by the directors in the preparation of the financial
statements, and of whether the accounting policies are
appropriate to the group’s and company’s circumstances,
consistently applied and adequately disclosed. 41 ASHMORE GROUP PLC ANNUAL REPORT 2008
We planned and performed our audit so as to obtain all the
information and explanations which we considered
necessary in order to provide us with sufficient evidence to
give reasonable assurance that the financial statements and
the part of the Directors’ Remuneration Report to be audited
are free from material misstatement, whether caused by fraud
or other irregularity or error. In forming our opinion we also
evaluated the overall adequacy of the presentation of
information in the financial statements and the part of the
Directors’ Remuneration Report to be audited.
Opinion
In our opinion:
• the group financial statements give a true and fair view, in
accordance with IFRSs as adopted by the EU, of the state
of the group’s affairs as at 30 June 2008 and of its profit
for the year then ended;
• the parent company financial statements give a true and
fair view, in accordance with IFRSs as adopted by the EU
as applied in accordance with the provisions of the
Companies Act 1985, of the state of the parent company’s
affairs as at 30 June 2008;
• the financial statements and the part of the Directors’
Remuneration Report to be audited have been properly
prepared in accordance with the Companies Act 1985
and, as regards the group financial statements, Article 4
of the IAS Regulation; and
• the information given in the Directors’ Report is consistent
with the financial statements.
KPMG Audit Plc 
Chartered Accountants
One Canada Square
London E14 5AG
Registered Auditor
16 September 2008 42 ASHMORE GROUP PLC ANNUAL REPORT 2008
Consolidated income statement
Year ended 30 June 2008
2008 2007
Notes £m £m
Management fees 186.7 130.2
Performance fees 44.7 20.4
Other revenue 2 13.3 13.0
Total revenue 244.7 163.6
Less: Distribution costs (4.7) (3.8)
Net revenue 240.0 159.8
Personnel expenses 3 (47.7) (32.6)
Other expenses 4 (11.1) (5.5)
Operating profit 181.2 121.7
Interest expense 15.0 9.7
Profit before tax 196.2 131.4
Tax expense 5 (55.2) (39.9)
Profit for the year 141.0 91.5
Attributable to:
Equity holders of the parent 140.8 91.4
Minority interest 0.2 0.1
Profit for the year 141.0 91.5
Earnings per share:
Basic 6 21.0p 13.7p
Diluted 6 19.9p 12.9p 43 ASHMORE GROUP PLC ANNUAL REPORT 2008
Consolidated statement of changes in equity
Total equity
attributable
to equity
Issued Share Retained holders of Minority Total
capital premium earnings the parent interest equity
£m £m £m £m £m £m
Balance at 1 July 2006 – 0.3 96.3 96.6 – 96.6
Profit for the year – – 91.4 91.4 0.1 91.5
Share based payments – – 6.5 6.5 – 6.5
Current tax related to 
share based payments – – 4.2 4.2 – 4.2
Deferred tax related to 
share based payments – – 11.6 11.6 – 11.6
Sale of own shares held – – 1.1 1.1 – 1.1
Dividends – – (15.5) (15.5) – (15.5)
Balance at 30 June 2007 – 0.3 195.6 195.9 0.1 196.0
Profit for the year – – 140.8 140.8 0.2 141.0
Issue of share capital –––– 1.2 1.2
Share based payments – – 8.8 8.8 – 8.8
Current tax related to 
share based payments – – (1.3) (1.3) – (1.3)
Deferred tax related to 
share based payments – – (2.7) (2.7) – (2.7)
Net gains on available-for-sale 
financial assets – – 0.4 0.4 – 0.4
Dividends – – (70.1) (70.1) – (70.1)
Balance at 30 June 2008 – 0.3 271.5 271.8 1.5 273.3 44 ASHMORE GROUP PLC ANNUAL REPORT 2008
Consolidated balance sheet
As at As at
30 June 30 June
2008 2007
Notes £m £m
Assets
Property, plant and equipment 13 3.3 0.2
Intangible assets 9 4.1 4.1
Deferred acquisition costs 15 13.4 –
Other receivables 12 – 0.1
Deferred tax assets 18 13.8 14.4
Total non-current assets 34.6 18.8
Trade and other receivables 12 34.7 27.2
Derivative financial instruments 1.2 0.5
Cash and cash equivalents 279.2 218.0
Total current assets 315.1 245.7
Non-current assets held for sale 14 16.4 –
Total assets 366.1 264.5
Equity
Issued capital 16 – –
Share premium 0.3 0.3
Retained earnings 271.5 195.6
Total equity attributable to equity holders of the parent 271.8 195.9
Minority interest 1.5 0.1
Total equity 273.3 196.0
Liabilities
Deferred tax liabilities 18 3.8 –
Total non-current liabilities 3.8 –
Current tax 24.5 15.7
Derivative financial instruments 0.7 –
Trade and other payables 19 63.7 52.8
Total current liabilities 88.9 68.5
Non-current liabilities held for sale 14 0.1 –
Total liabilities 92.8 68.5
Total equity and liabilities 366.1 264.5
Approved by the Board on 16 September 2008 and signed on its behalf by:
Mark Coombs Graeme Dell
Chief Executive Officer Group Finance Director 45 ASHMORE GROUP PLC ANNUAL REPORT 2008
Consolidated cash flow statement
Year ended 30 June 2008
2008 2007
Notes £m £m
Operating activities
Cash receipts from customers 242.8 164.6
Cash paid to suppliers and employees (47.3) (32.3)
Cash generated from operations 195.5 132.3
Taxes paid (46.5) (39.2)
Net cash from operating activities 149.0 93.1
Investing activities
Interest received 15.4 9.5
Purchase of non-current assets held for sale (15.1) –
Purchase of deferred acquisition costs 15 (14.6) –
Purchase of property, plant and equipment 13 (3.5) (0.1)
Net cash from investing activities (17.8) 9.4
Financing activities
Dividends paid 8 (70.1) (15.5)
Net cash used in financing activities (70.1) (15.5)
Effect of exchange rate changes on cash and cash equivalents 0.1 (1.7)
Net increase in cash and cash equivalents 61.2 85.3
Cash and cash equivalents at beginning of year 218.0 132.7
Cash and cash equivalents at end of year 279.2 218.0
Cash and cash equivalents comprise:
Cash at bank and in hand as shown in balance sheet 279.2 218.0
279.2 218.0 46 ASHMORE GROUP PLC ANNUAL REPORT 2008
Company balance sheet
As at As at
30 June 30 June
2008 2007
Notes £m £m
Assets
Property, plant and equipment 13 3.1 0.2
Intangible assets 9 4.1 4.1
Investment in subsidiaries 21 1.0 1.0
Deferred tax assets 18 13.8 14.4
Total non-current assets 22.0 19.7
Trade and other receivables 12 23.2 5.1
Cash and cash equivalents 174.6 167.5
Total current assets 197.8 172.6
Total assets 219.8 192.3
Equity
Issued capital 16 – –
Share premium 0.3 0.3
Retained earnings 177.2 152.7
Total equity attributable to equity holders of the company 177.5 153.0
Liabilities
Current tax 4.6 –
Trade and other payables 19 37.7 39.3
Total current liabilities 42.3 39.3
Total liabilities 42.3 39.3
Total equity and liabilities 219.8 192.3
Approved by the Board on 16 September 2008 and signed on its behalf by:
Mark Coombs Graeme Dell
Chief Executive Officer Group Finance Director 47 ASHMORE GROUP PLC ANNUAL REPORT 2008
Company cash flow statement
Year ended 30 June 2008
2008 2007
Notes £m £m
Operating activities
Cash receipts from customers 46.5 55.7
Cash paid to suppliers and employees (39.2) (31.1)
Cash generated from operations 7.3 24.6
Taxes paid – (5.5)
Net cash from operating activities 7.3 19.1
Investing activities
Interest received 10.2 4.5
Dividends received from subsidiaries 78.0 79.0
Purchase of property, plant and equipment 13 (3.2) (0.1)
Net cash from investing activities 85.0 83.4
Financing activities
Dividends paid 8 (70.1) (15.5)
Loan to subsidiary company (15.1) –
Net cash used in financing activities (85.2) (15.5)
Net increase in cash and cash equivalents 7.1 87.0
Cash and cash equivalents at beginning of year 167.5 80.5
Cash and cash equivalents at end of year 174.6 167.5
Cash and cash equivalents comprise:
Cash at bank and in hand as shown in balance sheet 174.6 167.5
174.6 167.5 48 ASHMORE GROUP PLC ANNUAL REPORT 2008
Company statement of changes in equity
Total equity
attributable
to equity
Issued Share Retained holders of
capital premium earnings the parent
£m £m £m £m
Balance at 1 July 2006 – 0.3 61.3 61.6
Profit for the year – – 83.5 83.5
Share based payments – – 6.5 6.5
Deferred tax related to share based payments – – 11.6 11.6
Current tax related to share based payments – – 4.2 4.2
Sale of own shares – – 1.1 1.1
Dividends – – (15.5) (15.5)
Balance at 30 June 2007 – 0.3 152.7 153.0
Profit for the year – – 89.8 89.8
Share based payments – – 8.8 8.8
Deferred tax related to share based payments – – (2.7) (2.7)
Current tax related to share based payments – – (1.3) (1.3)
Dividends – – (70.1) (70.1)
Balance at 30 June 2008 – 0.3 177.2 177.5 49 ASHMORE GROUP PLC ANNUAL REPORT 2008
1) Significant accounting policies
The following accounting policies have been applied consistently to all years presented in dealing with items which are considered
material in relation to the Group and Company financial statements.
(a) Basis of preparation – Group and Company
The financial information has been prepared in accordance with IFRS as adopted by the EU, as applied in accordance with the
provisions of the Companies Act 1985. Based on these adopted IFRS, the directors have selected the accounting policies to be
applied, which are set out below.
The financial information has been prepared under the historical cost convention, except that derivative financial instruments are
stated at fair value.
The Company is taking advantage of the exemption in section 230 of the Companies Act 1985 not to present its individual income
statement and related notes that form part of the financial statements.
(b) Basis of consolidation 
(i) Subsidiaries
Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to
govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential
voting rights that presently are exercisable or convertible are taken into account. The financial statements of subsidiaries are
included in the consolidated financial statements from the date that control commences until the date that control ceases.
The Group has seed capital investments in funds where it is in a position to be able to control these funds. These funds would
be consolidated line by line unless the criteria set out in policy (s) below are met, in which case they are designated as being
held for sale and accounted for in accordance with that policy.
(ii) Transactions eliminated on consolidation
Intragroup balances and any unrealised gains and losses or income and expenses arising from intragroup transactions, are
eliminated in preparing the consolidated financial statements.
(c) Foreign currency translation 
(i) Foreign currency transactions
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies at the balance sheet date are translated to Sterling at the foreign exchange rate
ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement. Non-monetary
assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at
the date of the transaction.
(ii) Financial statements of foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, are
translated to Sterling at foreign exchange rates ruling at the balance sheet date. The revenues and expenses of foreign operations
are translated to Sterling at rates approximating to the foreign exchange rates ruling at the dates of the transactions. Foreign
exchange differences arising on translation are recognised directly in a separate component of equity .
(d) Financial instruments
(i) Derivatives
The Group uses foreign exchange forward contracts to manage its foreign currency exposures.
Derivatives are initially recognised at cost on the date on which a contract is entered into unless fair value at acquisition is
different to cost, in which case the fair value is recognised. Subsequently they are measured at fair value with gains and losses
recognised in the income statement. Transaction costs are recognised immediately in the income statement. The Group does
not apply hedge accounting. The fair value of the derivatives is their quoted market price at the balance sheet date.
All derivatives are carried as current assets when the fair value is positive and as current liabilities when the fair value is
negative.
Notes to the financial statements 50 ASHMORE GROUP PLC ANNUAL REPORT 2008
1) Significant accounting policies continued
(d) Financial instruments continued
(ii) Financial assets
For available-for-sale financial assets, gains and losses arising from changes in fair value are recognised directly in equity, until
the security is disposed of or is impaired, at which time the cumulative gain or loss previously recognised in equity is taken to the
income statement for the accounting period.
(iii) Trade and other receivables and payables
Trade and other receivables and payables are initially recorded at fair value plus transaction costs. The fair value on acquisition
is normally the cost. Impairment losses with respect to the estimated irrecoverable amount are recognised through the income
statement when there is appropriate evidence that trade and other receivables is impaired. However, if a longer-term loan or
receivable carries no interest, the fair value is estimated as the present value of all future cash payments or receipts discounted
using the prevailing market rates. The resulting adjustment is recognised as interest expense or interest income.
Subsequent to initial recognition these assets and liabilities are measured at amortised cost.
(e) Property, plant and equipment
Property, plant and equipment includes leasehold improvements and office equipment. Items of property, plant and equipment
are stated at cost less accumulated depreciation and impairment losses.
Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of each part of an item
of property, plant and equipment. The useful lives are estimated to be five years. The residual values and useful lives of assets
are reviewed at least annually .
(f) Intangible assets – goodwill
Goodwill represents the difference between the cost of the acquisition and the fair value of the net identifiable assets acquired.
Goodwill is tested annually for impairment and stated at cost less any accumulated impairment losses.
(g) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and short-term deposits with an original maturity of three months
or less. For the purposes of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined
above.
(h) Impairment
The carrying amounts of the Group’s assets are reviewed at each balance sheet date to determine whether there is any indication
of impairment. If any such indication exists, the asset’s recoverable amount is estimated. For goodwill, the recoverable amount is
estimated at each balance sheet date.
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses
are recognised in the income statement.
The recoverable amount of assets is the greater of their fair value less costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely
independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, an impairment loss is reversed if there has
been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that
the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or
amortisation, if no impairment loss had been recognised.
Notes to the financial statements continued 51 ASHMORE GROUP PLC ANNUAL REPORT 2008
1) Significant accounting policies continued
(i) Dividends payable
Interim dividends are recognised when paid and final dividends when approved by shareholders.
(j) Employee benefits
Defined contribution plans
Obligations for contributions to defined contribution pension plans are recognised as an expense in the income statement as
incurred.
(k) Share based payments 
The Group issues share awards to its employees under the share based compensation plans. The awards have been classified
as equity settled under IFRS 2.
The fair value of the amounts payable to employees is recognised as an expense with a corresponding increase in equity.
The fair value is measured at grant date and spread over the vesting period. The fair value is measured using an appropriate
valuation model, taking into account the terms and conditions upon which the instruments were granted.
(l) Own shares
Own shares are held by an Employee Benefit Trust (EBT) which acts as an agent for the purpose of the employee share based
compensation plans. The holding of the EBT comprises own shares that have not vested unconditionally to employees of the
Group. In both the Group and Company own shares are recorded at cost and are deducted from retained earnings.
(m) Revenue
Revenue comprises management fees, performance fees and other revenue. Revenue is recognised in the income statement as
and when the related services are provided. Revenue is recognised to the extent that it is probable that the economic benefits
will flow to the Group and the revenue can be reliably measured. Specific revenue recognition policies are:
(i) Management fees
Management fees are accrued over the period for which the service is provided. Where management fees are received in
advance these are recognised over the period of the provision of the asset management service, which is estimated based on
experience of average holding periods for investments.
(ii) Performance fees
Performance fees relate to the performance of funds managed during the period and are recognised at the balance sheet date
when the quantum of the fee can be estimated reliably and it is probable that the fee will crystallise. This is usually at the end of
the performance period.
(iii) Other revenue
Other revenue includes transaction, structuring and administration fees, and reimbursement by funds of costs incurred by the
Group. This revenue is recognised when the related services are provided. Other revenue also includes foreign exchange gains
and losses on translation of transactions in foreign currencies. The accounting policy on foreign currency translation is described
in note 1(c).
(n) Distribution costs
Distribution costs are cost of sales payable to third parties and are recognised over the period for which the service is provided.
(o) Operating leases 
Payments payable under operating leases are recognised in the income statement on a straight-line basis over the term of the
lease. Lease incentives received are recognised on a straight-line basis over the lease term and are recorded as a reduction in
premises costs. 52 ASHMORE GROUP PLC ANNUAL REPORT 2008
Notes to the financial statements continued
1) Significant accounting policies continued
(p) Interest income and interest expense
Interest income is calculated using an effective interest rate method. Interest income comprises interest receivable on the Group’s
cash and cash equivalents, and on funds invested.
(q) Taxation 
(i) Income tax
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the income statement
except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity .
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at
the balance sheet date, and any adjustment to tax payable in respect of previous years.
(ii) Deferred tax
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following
differences are not provided for: goodwill not deductible for tax purposes, and differences relating to investments in subsidiaries
to the extent that they will probably not reverse in the foreseeable future.
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of
assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.
Deferred tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity , in which
case it is recognised in equity .
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which
the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit
will be realised.
(r) Segment reporting
A segment is a distinguishable component of the Group that is engaged either in providing products or services (business segment),
or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and
rewards that are different from those of other segments.
Currently, management consider that its services comprise one business segment (being provision of investment management
services) and that it operates in a market that is not geographically segmented.
(s) Non-current assets held for sale
Non-current assets (and disposal groups) acquired exclusively with a view to subsequent disposal through sale or dilution are
classified as held for sale and measured at the lower of their carrying amount and fair value less costs to sell. Where measurement
and re-measurement is outside the scope of IFRS 5, the relevant policy is set out in (d) Financial instruments.
(t) Deferred acquisition costs
Costs that are directly attributable to securing an investment management contract are deferred if they can be identified
separately and measured reliably and it is probable that they will be recovered. Deferred acquisition costs represent the
contractual right to benefit from providing investment management services and are charged as the related revenue is
recognised. 53 ASHMORE GROUP PLC ANNUAL REPORT 2008
1) Significant accounting policies continued
(u) Accounting estimates and judgements
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of
assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future
periods if the revision affects both current and future periods.
Judgements made by management in the application of IFRS that have significant effect on the financial statements and
estimates with a significant risk of material adjustment are described in note 26.
(v) Adopted IFRS not yet applied
The following Standards and Interpretations relevant to the Group were in issue but not yet effective:
• IFRIC 10: Interim Financial Reporting and Impairment
• IFRS 3 (Amended): Business combinations
• IFRS 8: Operating segments
• IAS 1 (Amended): Presentation of Financial Statements
• IAS 27 (Amended): Consolidation and Separate Financial Statements
The directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on the
financial statements of the Group.
Company
In addition to the above accounting policies, the following specifically relate to the Company .
Investment in subsidiaries 
Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to
govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential
voting rights that presently are exercisable or convertible are taken into account.
Investments in subsidiaries are stated at cost less, where appropriate, provisions for impairment.
Financial guarantees
Where the Company enters into financial guarantee contracts to guarantee the indebtedness of other companies within its group,
the Company considers these to be insurance arrangements, and accounts for them as such. In this respect, the Company treats
the guarantee contract as a contingent liability until such time as it becomes probable that the Company will be required to make
a payment under the guarantee or that guarantee expires for any reason. 54 ASHMORE GROUP PLC ANNUAL REPORT 2008
Notes to the financial statements continued
2) Other revenue
Year ended Year ended
30 June 30 June
2008 2007
£m £m
Included in other revenue:
Net foreign exchange gains 3.2 2.7
Transaction, structuring and other fees 10.1 10.3
13.3 13.0
Net foreign exchange gains in the year ended 30 June 2008 comprise £3.1m (2007: £4.4m) of realised and unrealised hedging
gains relating to the management of the Group’s US dollar denominated revenue. In addition there was a £0.1m gain (2007: £1.7m
loss) representing the impact of foreign exchange movements on the Group’s non-Sterling denominated net assets.
3) Personnel expenses
Number of employees
The number of employees of the Group (including directors) during the reporting years, analysed by category, was as follows:
Average for Average for
the year the year
ended ended At At
30 June 30 June 30 June 30 June
2008 2007 2008 2007
Number Number Number Number
Investment management 80 59 93 69
Total employees 80 59 93 69
Analysis of employee benefits expense
Year ended Year ended
30 June 30 June
2008 2007
£m £m
Wages and salaries 5.3 3.8
Performance-related bonuses 23.5 18.0
Share based payments 10.0 5.7
Social security costs 7.3 4.2
Pension costs 0.3 0.2
Other costs 1.3 0.7
Total employee benefits 47.7 32.6
Performance-related bonuses included in the above table in the year ended 30 June 2008 include a total of £1.2m (2007:£8.7m)
of bonuses that have been waived by directors and employees with an equivalent amount to be paid to charity in the financial
year to 30 June 2009. 55 ASHMORE GROUP PLC ANNUAL REPORT 2008
4) Other expenses
Other expenses
Year ended Year ended
30 June 30 June
2008 2007
£m £m
Travel 2.5 1.7
Professional fees 2.2 0.6
Information technology and communications 1.4 1.0
Deferred acquisition costs charges 1.2 –
Operating leases 1.0 0.4
Premises related costs 0.6 0.3
Insurance 0.5 0.3
Auditors’ remuneration 0.7 0.2
Depreciation of property, plant and equipment 0.3 0.1
Other expenses 0.7 0.9
Total other expenses 11.1 5.5
Auditors’ remuneration
Year ended Year ended
30 June 30 June
2008 2007
£m £m
Statutory audit services:
– Fees payable to the Company’s auditors for the audit of the Company’s accounts 0.1 0.1
Other non-audit services:
– tax services 0.1 0.1
– other services 0.5 –
Total services 0.7 0.2 56 ASHMORE GROUP PLC ANNUAL REPORT 2008
Notes to the financial statements continued
5) Taxation
Year ended Year ended
30 June 30 June
2008 2007
£m £m
Current tax:
Corporation tax on profits of the year 56.5 38.1
Adjustments in respect of prior years (3.0) 3.1
Total current tax 53.5 41.2
Deferred tax arising from origination and reversal of temporary differences:
Current year (see note 18) 1.7 (1.3)
Total tax charge for the year 55.2 39.9
Year ended Year ended
30 June 30 June
2008 2007
£m £m
Current tax on share based payments (1.3) 4.2
Deferred tax on share based payments (see note 18) (2.7) 11.6
Tax charge/(credit) recognised in equity (4.0) 15.8
Factors affecting tax charge for the year
Year ended Year ended
30 June 30 June
2008 2007
£m £m
Profit before tax 196.2 131.4
Profit before tax multiplied by corporation tax at the UK blended tax rate of 29.5% (2007: 30%) 57.8 39.4
Effects of:
Expenses not deductible 0.2 0.6
Deduction in respect of exercised options (Schedule 23 Finance Act 2003) (0.1) (0.2)
Other – (3.0)
Adjustments in respect of prior years
Current tax (3.0) 3.1
Deferred tax 0.3 –
Total tax charge for the year 55.2 39.9 57 ASHMORE GROUP PLC ANNUAL REPORT 2008
6) Earnings per share
Basic earnings per share is calculated by dividing the profit for the financial year attributable to equity holders of the parent of
£140.8m (2007: £91.4m) by the weighted average number of ordinary shares in issue during the year .
Diluted earnings per share is calculated as for basic earnings per share with a further adjustment to the weighted average number
of ordinary shares to reflect the effects of all dilutive potential ordinary shares.
There is no difference between the profit for the year attributable to equity holders of the parent used in the basic and diluted
earnings per share calculations.
Reconciliation of the figures used in calculating basic and diluted earnings per share:
Year ended Year ended
30 June 30 June
2008 2007
Weighted average number of ordinary shares used in calculation
of basic earnings per share 669,671,683 667,467,808
Effect of dilutive potential ordinary shares – share options 38,322,426 38,827,815
Weighted average number of ordinary shares used in calculation
of diluted earnings per share 707,994,109 706,295,623
7) Share based payments
Group and Company share based compensation plans
The following share based compensation plans were in operation during the reporting year .
The Ashmore First Discretionary Share Option Scheme (“Option Scheme”)
The Option Scheme was set up in October 2000. Options issued under the Option Scheme typically have a life of 10 years and
vest after 5 years from date of grant. The fair value of options at each reporting year end have been accounted for on an equity-
settled basis. No further options will be issued under the Option Scheme.
The Executive Omnibus Incentive Plan (“Omnibus Plan”)
The Omnibus Plan was introduced prior to the Company listing in October 2006 and provides for the grant of share awards, market
value options, premium cost options, discounted options, linked options and/or nil cost options. The Plan will also allow bonuses to
be deferred in the form of Share awards with or without Matching Shares. These elements can be used singly or in combination.
The Approved Company Share Option Plan (“CSOP”)
The CSOP was also introduced prior to the Company listing in October 2006 and is an option scheme providing for the grant of
market value options to employees with the aggregate value of outstanding options not exceeding £30,000 per employee.
The CSOP qualifies as a UK tax approved company share option plan and approval has been obtained from HMRC. As at 30 June
2008 there have been no awards made under the CSOP .
Share based payments through the income statement
Group and Company
Year ended Year ended
30 June 30 June
2008 2007
£m £m
Option Scheme 0.3 0.3
Omnibus Plan 9.7 5.4
Total expense 10.0 5.7 58 ASHMORE GROUP PLC ANNUAL REPORT 2008
7) Share based payments continued
Group and Company
Year ended Year ended
30 June 30 June
Year of grant 2008 2007
£m £m
2004 0.1 0.1
2005 0.1 0.1
2006 0.8 0.9
2007 1.4 4.6
2008 7.6 –
Total expense 10.0 5.7
Share options outstanding
Share options outstanding under share based compensation plans were as follows:
Group and Company
As at As at
30 June Weighted 30 June Weighted
2008 average 2007 average
Number of exercise Number of exercise
options price options price
p p
At beginning of year 38,152,921 15.84 46,225,000 13.24
Granted –– 2,021,671 36.96
Exercised (4,712,500) 1.38 (10,000,000) 8.10
Forfeited (769,475) 23.99 (93,750) 13.24
At end of year 32,670,946 16.96 38,152,921 15.84
Options exercisable 1,575,000 1.30 1,393,750 0.52
The weighted average share price on the date options were exercised during 2008 was 240.83p (2007: 159.0p).
Weighted average remaining contractual life of outstanding options
Group and Company
Year ended Year ended
30 June 30 June
2008 2007
Outstanding options 32,670,946 38,152,921
Weighted average exercise price 16.96p 15.84p
Weighted average remaining contracted life (Years) 6.92 7.65
Range of exercise prices for share options outstanding at the end of the year 0.52p-170.00p 0.52p-170.00p
Notes to the financial statements continued 59 ASHMORE GROUP PLC ANNUAL REPORT 2008
7) Share based payments continued
Fair values of share based compensation plans
The fair value amounts for the options outstanding on each reporting date were determined using the Black Scholes option
pricing method, using the following assumptions:
Group and Company
2008 2007
Equity-settled Equity-settled
(awards granted (awards granted
in period) in period)
Dividend yield (%) – 5.50
Expected volatility (%) – 31.00-34.00
Risk free interest rate (%) – 5.12
Expected life (Years) – 7
Weighted average share price – 186.10p
Exercise price – 36.96p
Weighted average fair value of options granted during the year – 10.92p
There were no new share option awards granted during the year ended 30 June 2008.
Share awards outstanding
Share awards outstanding under the Omnibus plan were as follows:
Group and Company
As at As at
30 June 30 June 
2008 Weighted 2007 Weighted
Number of average Number of average
shares subject share shares subject share
to awards price to awards price
£ £
Restricted share awards
At beginning of year 2,009,522 £2.33 ––
Granted 2,498,596 £2.75 2,009,522 £2.33
Forfeited (217,316) £2.48 ––
At end of year 4,290,802 £2.56 2,009,522 £2.33
Bonus share awards
At beginning of year – – ––
Granted 761,076 £2.75 ––
At end of year 761,076 £2.75 ––
Matching share awards
At beginning of year – – ––
Granted 761,076 £2.75 ––
At end of year 761,076 £2.75 ––
Where the grant of share awards is linked to the annual bonus process the fair value of the awards is spread over a period
including the current financial year and the subsequent five years to their release date when the grantee becomes
unconditionally entitled to the underlying shares. Of the restricted share awards of 4,290,802 as at 30 June 2008 the amount of
3,962,942 were granted as part of the annual variable compensation process. The fair value of the remaining awards is spread
over the period from date of grant to the release date. 60 ASHMORE GROUP PLC ANNUAL REPORT 2008
Notes to the financial statements continued
8) Dividends
An analysis of dividends is as follows:
Group and Company
Year ended Year ended
30 June 30 June
2008 2007
Interim dividend £24.9m £15.5m
Dividend per share 3.66p 2.30p
Final dividend £57.0m £45.2m
Dividend per share 8.34p 6.70p
Dividends are recognised in the accounts in the year in which they are paid, or in the case of a final dividend when approved by
the shareholders.
On 16 September 2008 the Board proposed a final dividend of 8.34p per share for the year ended 30 June 2008. This has not
been recognised as a liability of the Group at the year end as it has not yet been approved by shareholders. Based on the number
of shares in issue at the year end which qualify to receive a dividend, the total amount payable would be £57.0m (2007:£45.2m).
9) Intangible assets – goodwill
Group and Company
The goodwill balance of £4.1m (2007: £4.1m) relates to the acquisition of the business from ANZ in 1999.
An annual impairment review of goodwill has been undertaken. The business of the Group is managed as a single unit and
therefore no further split into smaller cash generating units is possible. Therefore, impairment testing of goodwill is carried out for
the Group as a whole.
The recoverable amounts of the business are determined based upon future forecast profitability and cash flow projections.
The key assumptions on which management has based their projections are the expected fund flows and growth of AuM, which
determine management and performance fee income. There has been no gross impairment of goodwill to date.
10) Fair value of financial instruments
There is no material difference between the carrying amounts of financial assets and liabilities at the balance sheet date and their
fair values.
The fair value of forward foreign exchange contracts are determined by reference to published price quotations. 61 ASHMORE GROUP PLC ANNUAL REPORT 2008
11) Financial instrument risk management
Group
The Group is subject to business and strategy, investment and operational risk throughout its business as discussed in the
business review. Specific areas of financial instrument risk include credit, liquidity, interest rate, foreign exchange and price risk.
The effectiveness of the Group’s risk management process is, therefore, critical to its soundness and profitability and
considerable resources are dedicated to this area.
Risk management is the direct responsibility of the Group’s senior management. The Ashmore Group Risk Management and
Control department and the Group’s Risk and Compliance Committee (“RCC”) are responsible for monitoring the overall risk
environment. The Group has established a control environment that ensures risks are reviewed regularly and that all risk controls
operating throughout the Group are in accordance with regulatory requirements. In addition as a regulated business the Group
is responsible for maintaining appropriate capital and performing regular calculations of capital requirements, including the
development of an Internal Capital Adequacy Assessment Process (“ICAAP”), based upon the Financial Services Authority’s
methodologies under the Capital Requirements Directive.
• Credit risk
The Group has exposure to credit risk from its normal activities where the risk is that a counterparty will be unable to pay in full
amounts when due. The Group’s maximum exposure to credit risk is represented by the carrying value of its financial assets.
Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis.
Trade and other receivables at amortised cost
Financial assets at amortised cost principally comprise fee debtors.
Fee debtors arise principally within the Group’s investment management business and amounts are monitored regularly.
Historically, default levels have been insignificant, and, unless a client has withdrawn funds, there is an ongoing relationship
between the Group and the client. There is no significant concentration of credit risk in respect of fees owing from clients.
The Group’s fee debtors are less than 90 days.
Financial assets – available for sale
Such assets comprise cash and cash equivalents and debt instruments in a seeded fund.
The Group’s cash and cash equivalents are liquid short term deposits with banks which have credit ratings ranging from 
AA- to A1+.
Financial assets and liabilities held at fair value
Such assets comprise derivative financial instruments with positive and negative fair values.
• Liquidity risk
Liquidity risk is the risk that the Group cannot meet its obligations as they fall due or can only do so at a cost. The liquidity policy
is to ensure that the Group has sufficient access to funds to cover all forecast committed requirements for the next 12 months.
The Group’s financial liabilities are less than 90 days in maturity.
• Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in
market interest rates.
The Group’s interest rate risk is limited. The principal interest rate risk is the risk that the Group will sustain a reduction in interest
revenue through adverse movements in interest rates. This relates to bank deposits held in the ordinary course of business.
At 30 June 2008, if interest rates had been 200 basis points higher/lower with all other variables held constant, post-tax profit
for the year would have been £3.6 million higher/lower (2007: £2.4 million higher/lower), mainly as a result of higher/lower interest
on cash balances.
The assumption that the fair values of assets and liabilities will not be affected by a change in interest rates was used in the
model to calculate the effect on post-tax profits. 62 ASHMORE GROUP PLC ANNUAL REPORT 2008
Notes to the financial statements continued
11) Financial instrument risk management continued
Effective interest rates applicable to financial instruments are as follows:
Year ended Year ended
30 June 30 June
2008 2007
% %
Deposits with banks 5.84 5.57
Year ended Year ended
30 June 30 June
2008 2007
£m £m
Items repricing within one year or less:
Deposits with banks 279.2 218.0
Items repricing in more than one year but not more than two years:
Loans included within “Trade and other receivables” – 0.1
• Foreign exchange risk
Foreign exchange risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes
in foreign exchange rates.
The Group’s revenue is almost entirely denominated in US dollars, while the Group’s cost base is largely Sterling based.
Consequently , the Group has an exposure to movements in the US$/£ exchange rate.
The Group’s policy is to hedge this net foreign exchange exposure by using a combination of forward foreign exchange contracts
and options for up to two years forward. The Group also sells US dollars at spot rates when opportunities arise. The Group does
not adopt hedge accounting.
At 30 June 2008, if the US dollar had strengthened/weakened by 10 cents against Sterling with all other variables held constant,
profit before tax for the year would increase/decrease by £6.9/£6.2 million respectively (2007: £0.8/£0.7 million).
The Group also holds a seed capital investment denominated in Brazilian Real where a relatively small amount of foreign exchange
risk arises when non-Sterling denominated funds are seeded. At 30 June 2008, if the Brazilian Real had strengthened/weakened
by one per cent against Sterling with all other variables held constant, net assets and net revenue for the year would
increase/decrease by £0.1 million/£0.2 million.
• Price risk
Price risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of market changes.
Price risk relates to the Group’s AuM and its associated management fees which are diversified across a range of investment
themes and not correlated to any single market indices in emerging markets. Therefore price risk sensitivity is not presented.
In addition, the Group also holds debt instruments in a seed capital portfolio where price risk is relatively small.
• Capital management
Equity as referred to in the Group’s balance sheet is the capital for the business. There are no other assets managed which are
considered capital of the Group. As referred to above, the Group monitors its regulatory capital in order to meet the financial
resources requirement of the Financial Services Authority . 63 ASHMORE GROUP PLC ANNUAL REPORT 2008
11) Financial instrument risk management continued
Company
The risk management processes of the Company are aligned with those of the Group as a whole. The Company’s specific risk
exposures are explained below.
• Credit risk
The Company has exposure to credit risk from its normal activities where the risk is that a counterparty will be unable to pay in full
amounts when due. The Company’s counterparties are predominately its subsidiaries and therefore there is no external credit risk
exposure.
The Company’s cash and cash equivalents are liquid short term deposits with banks which have credit ratings ranging from 
AA- to A1+.
• Liquidity risk
Liquidity risk is the risk that Ashmore cannot meet its obligations as they fall due or can only do so at a cost. The liquidity policy
is to ensure that the Company has sufficient access to funds to cover all forecast committed requirements for the next 12 months.
The Company does not have any financial liabilities which are greater than 90 days in maturity.
• Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in
market interest rates.
The Company’s interest rate risk is limited. The principal interest rate risk is the risk that the Company will sustain a reduction in
interest revenue through adverse movements in interest rates. This relates to bank deposits held in the ordinary course of
business.
At 30 June 2008, if interest rates had been 200 basis points higher/lower with all other variables held constant, post-tax profit
for the year would have been £2.2 million higher/lower (2007: £1.3 million higher/lower), mainly as a result of higher/lower interest
on cash balances; other components of equity would have been unaffected.
The assumption that the fair values of assets and liabilities will not be affected by a change in interest rates was used in the
model to calculate the effect on post-tax profits.
• Foreign exchange risk
Foreign exchange risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes
in foreign exchange rates. Other than intercompany balances in relation to seed capital investments, the Company has no
significant exposure to foreign exchange risk.
• Price risk
Price risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of market changes.
The Company has no exposure in this area. 64 ASHMORE GROUP PLC ANNUAL REPORT 2008
Notes to the financial statements continued
12) Trade and other receivables
Group Company
As at As at As at As at
30 June 30 June 30 June 30 June
2008 2007 2008 2007
£m £m £m £m
Current
Trade debtors 33.3 24.5 0.8 1.0
Prepayments and accrued income 0.7 0.7 0.7 0.7
Loan to subsidiary – – 15.1 –
Other receivables 0.7 2.0 6.6 3.4
34.7 27.2 23.2 5.1
Non-current
Other receivables – 0.1 – –
– 0.1 – – 65 ASHMORE GROUP PLC ANNUAL REPORT 2008
13) Property, plant and equipment
Group 
2008 2007
Fixtures, Fixtures,
fittings and fittings and
equipment equipment
£m £m
Cost
At 1 July 0.7 0.6
Additions 3.5 0.1
Disposals (0.5) –
At 30 June 3.7 0.7
Accumulated depreciation
At 1 July 0.5 0.4
Depreciation charge for year 0.3 0.1
Disposals (0.4) –
At 30 June 0.4 0.5
Net book value at 30 June 3.3 0.2
Company 
2008 2007
Fixtures, Fixtures,
fittings and fittings and
equipment equipment
£m £m
Cost
At 1 July 0.7 0.6
Additions 3.2 0.1
Disposals (0.5) –
At 30 June 3.4 0.7
Accumulated depreciation
At 1 July 0.5 0.4
Depreciation charge for year 0.2 0.1
Disposals (0.4) –
At 30 June 0.3 0.5
Net book value at 30 June 3.1 0.2 66 ASHMORE GROUP PLC ANNUAL REPORT 2008
Notes to the financial statements continued
14) Non-current assets and non-current liabilities held for sale
From time to time, Group companies inject capital into funds operated by the Group (seed capital). Where the Group holds more
than 50 percent of the fund in which it is investing and where voting rights are attached to the holding, the Group technically
controls the fund and it becomes a subsidiary of the Group. Where the Group is actively seeking to reduce its holding, the fund
is classified as being held for sale as it is considered highly probable that the fund will not remain under the control of the Group
one year after the original investment is made. If the Group still retains control of the fund after this time, the fund ceases to be
classified as held for sale and is consolidated line by line.
2008 2007
£m £m
Non-current assets held for sale 16.4 –
Non-current liabilities held for sale (0.1) –
Seed capital classified as being held for sale 16.3 –
In the year to 30 June 2008, an investment in a Brazilian onshore local currency fund was classified as non-current assets held
for sale.
The Group’s maximum exposure to credit risk is represented by the carrying amount of the assets.
15) Deferred acquisition costs 
2008 2007
£m £m
Cost 14.6 –
Accumulated charge (1.2) –
13.4 –
During the year ended 30 June 2008 deferred acquisition costs of £14.6m were incurred. These were directly attributable to
securing the investment management contract for a permanent capital vehicle Ashmore Global Opportunities Limited, a newly
incorporated investment company, which was listed on the London Stock Exchange. £1.2m was charged during the year and
recognised in other expenses. 67 ASHMORE GROUP PLC ANNUAL REPORT 2008
16) Share capital
Group and Company
(a) Share capital authorised
As at As at As at As at
30 June 30 June 30 June 30 June
2008 2008 2007 2007
Number of Nominal value Number of Nominal value
shares £’000 shares £’000
Ordinary shares of 0.01p each 900,000,000 90 900,000,000 90
(b) Share capital issued
Allotted, called up and fully paid equity shares: As at As at As at As at
30 June 30 June 30 June 30 June
2008 2008 2007 2007
Number of Nominal value Number of Nominal value
shares £’000 shares £’000
Ordinary shares of 0.01p each 708,925,000 70 708,925,000 70
All the above ordinary shares represent equity of the Company and rank pari passu in respect of participation and voting rights.
At 30 June 2007 there were 38,152,921 options in issue with contingent rights to the allotment of ordinary shares of 0.01p in the
Company . The exercise period for these options ranges from December 2005 to December 2016 and the allotment price ranges
from 0.52p to 170p. There are also restricted share awards issued under the Omnibus scheme totalling 2,009,522 shares that
have a release date in November 2011.
At 30 June 2008 there were 32,670,946 options in issue with contingent rights to the allotment of ordinary shares of 0.01p in the
Company . The exercise period for these options ranges from December 2005 to December 2016 and the allotment price ranges
from 0.52p to 170p. There are also share awards issued under the Omnibus scheme totalling 5,812,954 shares that have release
dates ranging from November 2011 to January 2013.
17) Own shares
The Ashmore 2004 Employee Benefit Trust (EBT) was established to encourage and facilitate the acquisition and holding of
shares in the Company by the employees of the Company with a view to facilitating the recruitment and motivation of the
employees of the Company . As at the period end, the EBT owned 34,012,500 (2007: 38,725,000) ordinary shares of 0.01p with
a nominal value of £3,401.25 (2007: £3,872.50) and shareholders’ funds are reduced by £5.4m (2007: £5.9m) in this respect.
It is the intention to make these shares available to employees by way of sale through the share option scheme. 68 ASHMORE GROUP PLC ANNUAL REPORT 2008
Notes to the financial statements continued
18) Deferred taxation
Deferred tax assets and liabilities recognised by the Group and Company are attributable to the following:
Group 
Other temporary Share based
differences payments Total
£m £m £m
At 30 June 2007
(Assets) (0.3) (14.1) (14.4)
Net (0.3) (14.1) (14.4)
At 30 June 2008
(Assets) – (13.8) (13.8)
Liabilities 3.8 – 3.8
Net 3.8 (13.8) (10.0)
Company
Other temporary Share based
differences payments Total
£m £m £m
At 30 June 2007
(Assets) (0.3) (14.1) (14.4)
Net (0.3) (14.1) (14.4)
At 30 June 2008
(Assets) – (13.8) (13.8)
Net – (13.8) (13.8) 69 ASHMORE GROUP PLC ANNUAL REPORT 2008
18) Deferred taxation continued
Movement in temporary differences between the balance sheet dates has been reflected in equity or the income statement as follows:
Group 
Other temporary Share based
differences payments Total
£m £m £m
At 1 July 2006 (0.8) (0.7) (1.5)
Charged/(credited) to the consolidated income statement (see note 5) 0.5 (1.8) (1.3)
Credit taken to equity – (11.6) (11.6)
At 30 June 2007 (0.3) (14.1) (14.4)
Charged/(credited) to the consolidated income statement (see note 5) 4.1 (2.4) 1.7
Charge taken to equity – 2.7 2.7
At 30 June 2008 3.8 (13.8) (10.0)
Company
Other temporary Share based
differences payments Total
£m £m £m
At 1 July 2006 (0.9) (0.7) (1.6)
Charged/(credited) to the consolidated income statement 0.6 (1.8) (1.2)
Credit taken to equity – (11.6) (11.6)
At 30 June 2007 (0.3) (14.1) (14.4)
Charged/(credited) to the consolidated income statement 0.3 (2.4) (2.1)
Charge taken to equity – 2.7 2.7
At 30 June 2008 – (13.8) (13.8) 70 ASHMORE GROUP PLC ANNUAL REPORT 2008
Notes to the financial statements continued
19) Trade and other payables
Group Company
As at As at As at As at
30 June 30 June 30 June 30 June
2008 2007 2008 2007
£m £m £m £m
Current
Accruals and deferred income 63.7 52.8 37.7 39.3
63.7 52.8 37.7 39.3
20) Leases
Operating leases
The Group has entered into certain property leases. The leases have no escalation clauses or renewal or purchase options and
no restrictions imposed on them.
The obligations under these non-cancellable operating leases fall due as follows:
As at As at
30 June 30 June
2008 2007
£m £m
Within one year 1.2 –
Over one year but not more than five years 4.5 0.4
Over five years 6.0 –
Total 11.7 0.4
21) Subsidiaries
Company
Investment in subsidiaries
As at As at
30 June 30 June
2008 2007
£m £m
Cost 1.0 1.0
Ashmore Group plc is the ultimate parent company of the Group.
The directly held subsidiary of the parent Company is:
Country of
incorporation/
formation and As at
principal 30 June
place of 2008
operation % owned
Ashmore Investments (UK) Limited England 100.00 71 ASHMORE GROUP PLC ANNUAL REPORT 2008
21) Subsidiaries continued
The principal indirectly held subsidiaries are as follows:
Country of
incorporation/
formation and As at
principal 30 June
place of 2008
operation % owned
Ashmore Investment Management Limited England 100.00
Ashmore Management Company Limited Guernsey 100.00
Ashmore Investment Management (Singapore) Pte. Ltd. Singapore 100.00
Ashmore Global Special Situations Fund 3 (GP) Limited Guernsey 100.00
Ashmore Global Special Situations Fund 4 (GP) Limited Guernsey 100.00
Ashmore Investments (Turkey) NV Netherlands 65.00
Ashmore Investments (Brasil) Limited Guernsey 87.50
Ashmore Russian Opportunities Fund 1 (GP) Limited Guernsey 100.00
Ashmore Private Equity Turkey Management Limited Guernsey 70.00
AA Development Capital Investment Managers (Mauritius) LLC Mauritius 55.00
All shares held are ordinary .
22) Related party transactions
Transactions with key management personnel – Group and Company
Related party transactions are in respect of relationships with key management personnel. The compensation of key management
personnel was as follows:
Year ended Year ended
30 June 30 June
2008 2007
£m £m
Short-term employee benefits 11.8 16.3
Share based payment benefits 0.1 0.1
Total 11.9 16.4
The figures in the above table include a total of £0.7m (2007:£8.3m) of bonuses that have been waived by key management
personnel with an equivalent amount to be donated to charity.
Share based payment benefits represents the fair value charge to the income statement of share awards. 72 ASHMORE GROUP PLC ANNUAL REPORT 2008
Notes to the financial statements continued
22) Related party transactions continued
Transactions with subsidiaries – Company 
Details of transactions between the Company and its subsidiaries, which are related parties of the Company are shown below:
Year ended Year ended
30 June 30 June
2008 2007
£m £m
Management fees received 62.1 38.8
Net dividends received 78.0 63.5
As at As at
30 June 30 June
2008 2007
£m £m
Amounts due from subsidiaries 20.9 0.3
Amounts due to subsidiaries 0.1 4.1
A final dividend receivable from subsidiaries of £45.5m in respect of the year ending 30 June 2008 (2007: nil) will be received
and recognised in the year ending 30 June 2009.
Details of transactions between the Group and Company and post employment benefit plans are disclosed below.
Transactions with post employment benefit plans – Group and Company 
The Group and Company operate and participate in a post employment benefit plan. The Group and Company contributed the
following amounts to a defined contribution scheme and had amounts outstanding at 30 June each year as follows:
2008 2007
£m £m
Employer contributions to a defined contribution scheme 0.3 0.2
23) Exchange rates
The only foreign exchange rate which has a material impact on the reporting of the Group’s results is the US dollar.
Closing rate Closing rate Average rate Average rate
as at as at year ended year ended
30 June 30 June 30 June 30 June
2008 2007 2008 2007
US dollar 1.9923 2.0088 2.0119 1.9466 73 ASHMORE GROUP PLC ANNUAL REPORT 2008
24) Directors’ remuneration
Disclosures of Directors’ remuneration as required by the Companies Act 1985 are as follows:
Year ended Year ended
30 June 30 June
2008 2007
£m £m
Aggregate emoluments 5.5 5.5
5.5 5.5
In the year ended 30 June 2008 the figures include £0.7m (2007: £3.0m) of cash bonus that has been waived by Mark Coombs
with an equivalent amount to be donated to charity.
There are retirement benefits accruing to two directors under a defined contribution scheme (2007: one).
Directors’ emoluments
This information is included in the Remuneration report on page 38.
25) Post balance sheet events
There are no post balance sheet events for the year ended 30 June 2008.
26) Accounting estimates and judgements
Estimates and judgements used in preparing the financial statements are continually evaluated and are based upon
management’s assessment of current and future events. The principal estimates and judgements that have a significant affect
on the carrying amounts of assets and liabilities are discussed below:
The Group tests goodwill annually for impairment. The recoverable amount is determined based upon value in use calculations
prepared on the basis of management’s assumptions and estimates.
The Group assesses the recognition of performance fees to determine whether receipt of the fees is considered probable and
the amount reliable. The assessment is made using management’s judgement of the circumstances relevant to each
performance fee entitlement.
The calculation of fair value in respect of options requires a number of estimates to derive the fair value, further details of which
are provided in note 7 above. 74 ASHMORE GROUP PLC ANNUAL REPORT 2008
UK GAAP IFRS
2004 2005 2006 2007 2008
£m £m £m £m £m
Management fees 25.4 41.2 80.8 130.2 186.7
Performance fees 38.1 23.2 54.2 20.4 44.7
Other revenue 3.4 2.8 2.9 13.0 13.3
Total revenue 66.9 67.2 137.9 163.6 244.7
Less: Distribution costs (1.6) (1.3) (2.3) (3.8) (4.7)
Net revenue 65.3 65.9 135.6 159.8 240.0
Personnel expenses (2.7) (3.4) (4.0) (5.2) (7.4)
Variable compensation (13.1) (13.9) (30.4) (27.4) (40.3)
Other operating expenses (3.7) (3.8) (6.5) (5.5) (11.1)
Total operating expenses (19.5) (21.1) (40.9) (38.1) (58.8)
Operating profit 45.8 44.8 94.7 121.7 181.2
Net interest 2.0 3.6 6.4 9.7 15.0
Gain on sale 0.0 0.0 2.8 0.0 0.0
Profit before tax 47.8 48.4 103.9 131.4 196.2
Tax (13.5)(16.0)(32.3)(39.9) (55.2)
Profit for the year 34.3 32.4 71.6 91.5 141.0
Eps (basic) 4.7p 4.9p 10.8p 13.7p 21.0p
Other operating data (unaudited)
AuM at period end (US$bn) 5.9 11.0 20.1 31.6 37.5
AuM at period end (£bn) 3.2 6.1 10.9 15.7 18.8
Average AuM (£bn) 2.8 4.5 9.4 13.6 17.7
Average £:US$ exchange rate for the year 1.74 1.86 1.78 1.95 2.01
Period end £:US$ exchange rate for the year 1.83 1.82 1.84 2.01 1.99
Five-year summary 75 ASHMORE GROUP PLC ANNUAL REPORT 2008
Information for shareholders
Ashmore Group plc
Registered in England and Wales. Company No. 3675683
Registered office
61 Aldwych
London WC2B 4AE
Tel: +44 (0) 20 3077 6000
Fax: +44 (0) 20 3077 6001
Principal UK trading subsidiary
Ashmore Investment Management Limited.
Registered in England and Wales, Company No. 3344281.
Business address and registered office as above.
Further information on Ashmore Group plc can be found on
the Company’s website: www.ashmoregroup.com.
Financial calendar
Announcement of results for 
year ended 30 June 2008 16 September 2008
First quarter AuM statement 16 October 2008
Annual general meeting 30 October 2008
Ex-dividend date 5 November 2008
Record date 7 November 2008
Final dividend payment date 5 December 2008
Second quarter AuM statement January 2009
Announcement of unaudited 
interim results for the six months 
ended 31 December 2008 February 2009
Announcement of results for 
the year ended 30 June 2009 September 2009
Registrar
Equiniti Registrars
Aspect House
Spencer Road
West Sussex
BN99 6DA
UK shareholder helpline: 0871 384 2030 
International shareholder helpline: +44 121 415 7047
Further information about the Registrar is available on their
website www.equiniti.com.
Up to date information about current holdings on the register
is also available at www.shareview.co.uk.
Shareholders will need their reference number (account
number) and postcode to view information on their own holding.
Share price information
Share price information can be found at www .ashmoregroup.com
or through your broker.
Share dealing
Shares may be sold through a stockbroker or share dealing
service. There are a variety of services available. Equiniti
Registrars offer a secure, free and easy-to-use internet-based
share dealing service known as Shareview Dealing.
You can log on at www.shareview.co.uk/dealing to access this
service, or contact the helpline on 0845 603 7037 to deal by
telephone.
You may also use the Shareview service to access and
manage your share investments and view balance movements,
indicative share prices, information on recent dividends,
portfolio valuation and general information for shareholders.
Shareholders must register at www.shareview.co.uk entering
the shareholder reference on the share certificate and other
personal details.
Having selected a personal PIN, a user ID will be issued by
the Registrar . 76 ASHMORE GROUP PLC ANNUAL REPORT 2008
Electronic copies of the 2008 Annual Report and
financial statements and other publications
Copies of the 2008 Annual Report and financial statements,
the notice of annual general meeting, other corporate
publications, press releases and announcements are
available on the Company’s website at www .ashmoregroup.com.
Sharegift
Shareholders with only a small number of shares whose value
makes them uneconomic to sell may wish to consider donating
to charity through Sharegift, an independent charity share
donation scheme.
For further information, please contact either the Registrar or
Sharegift: Telephone +44 (0) 20 7828 1151, or see the website
at www.sharegift.org.
Frequent shareholder enquiries
Enquiries and notifications concerning dividends, share
certificates or transfers and address changes should be sent
to the Registrar; the Company’s governance reports, corporate
governance guidelines and the terms of reference of the
Board committees can be found on the Company’s website at
www.ashmoregroup.com.
Notifying the Company of a change of address
You should notify Equiniti Registrars in writing.
If you hold shares in joint names, the notification to change
address must be signed by the first-named shareholder.
You may choose to do this on-line, by logging on to
www.shareview.co.uk. You will need your shareholder
reference number to access this service – this can be found
on your share certificate or from a dividend counterfoil.
You will be asked to select your own PIN and a user ID will be
posted to you.
Notifying the Company of a change of name
Y ou should notify Equiniti Registrars in writing of your new name
and previous name. You should attach a copy of your marriage
certificate or your change of name deed, together with your
share certificates and any uncashed dividend cheques in your
old name, so that the Registrar can reissue them.
Dividend payments directly into bank or 
building society accounts
We recommend that all dividend payments are made directly
into a bank or building society account. Dividends are paid 
via BACS, providing tighter security and access to funds 
more quickly. To apply for a dividend mandate form, contact
the Registrar, or you can find one by logging on to
www.shareview.co.uk (under Frequently Asked Questions) or
by calling the helpline on 0870 600 3970.
Transferring Ashmore Group plc shares
Transferring some or all of your shares to someone else (for
example your partner or a member of your family) requires
completion of a share transfer form, which is available from
Equiniti Registrars. The form should be fully completed and
returned with your share certificate representing at least the
number of shares being transferred. The Registrar will then
process the transfer and issue a balance share certificate to
you if applicable. The Registrar will be able to help you with
any questions you may have.
Lost share certificate(s)
Shareholders who lose their share certificate(s) or have their
certificate(s) stolen should inform Equiniti Registrars immediately
by calling the shareholder helpline on 0871 384 2030.
Disability helpline
For shareholders with hearing difficulties a special text phone
number is available: 0871 384 2255.
Information for shareholders continued Designed and produced by Weber Shandwick Financial Design
The paper used for this report is sourced from virgin wood fibre from sawmill residues, forest thinnings and sustainable forests.
It is recyclable and bio-degradable. Ashmore Group plc
61 Aldwych 
London WC2B 4AE 
United Kingdom
www.ashmoregroup.com