Ashmore Group plc
Annual Report
for the year ended 30 June 2007 1 Financial highlights
2 Chairman’s statement
3 Chief Executive Officer’s review
8 Business review 
20 Board of directors
21 Directors’ report 
25 Corporate governance report
31 Remuneration report
36 Independent auditors’ report
38 Consolidated income statement
39 Consolidated statement of changes in equity
40 Consolidated balance sheet
41 Consolidated cash flow statement
42 Company balance sheet
43 Company cash flow statement
44 Company statement of changes in equity
45 Notes to the financial statements
66 Five-year summary
67 Information for shareholders
Definitions (inside back cover)
Ashmore 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 denominated debt, local
currency and local currency debt, special situations,
incorporating distressed debt/private equity, and
public equity. More information is available in the
business review and on the Group’s website
www.ashmoregroup.com
Contents 1 ASHMORE GROUP PLC ANNUAL REPORT 2007
Financial highlights
2003
£12.7m
2004
£47.8m
2005
£48.4m
2007 2006
£103.9m
£131.4m
Profit before tax
In the above charts 2003 to 2004 is reported under UK GAAP , 2005 to 2007 under IFRS
2003
US$3.3bn
2004
US$5.9bn
2005
US$11.0bn
2007 2006
US$20.1bn
US$31.6bn
AuM
2003
1.1p
2004
4.7p
2005
4.9p
2007 2006
10.8p
13.7p
Earnings per share (basic)
£11.9m
£23.8m
£39.9m
2003 2004 2005 2007 2006
£78.5m
£126.4m
Net management fees
• Assets under management (AuM) of US$31.6 billion at 30 June 2007,
up US$11.5 billion, 57% in the year
• Net management fees of £126.4 million, 61% higher than for the year ended 
30 June 2006
• Performance fees of £20.4 million (£54.2 million for the year ended 30 June 2006)
• Profit before tax of £131.4 million, up 26% (a 36% increase at constant
exchange rates – see note below)
• Basic eps of 13.7p (2006: 10.8p) and diluted eps of 12.9p (2006: 10.4p)
• A final dividend of 6.7p per share will be paid on 7 December 2007,
giving a total dividend for the year of 9.0p
Note: The increase in profit before tax at constant exchange rates is calculated by restating the prior year at the current year’s average US$/£ exchange rate. 2 ASHMORE GROUP PLC ANNUAL REPORT 2007
Chairman’s statement
In its first year of trading as a plc the 
Ashmore Group has delivered strong financial
results and has enhanced further the solid
foundations on which the Company has been
built since it was established in 1998.
It is pleasing to be able to report a good set of
results for the twelve months ended 
30 June 2007. Despite some periods of market
volatility which were encountered during the
year , the Group exceeded the financial targets
set at the beginning of the year and, during that
time, continued to develop its brand and
business model. The Group also continued to
invest in the necessary resources to support the
future growth of the business.
AuM increased from the level of US$20.1 billion
at the start of the financial year to stand at
US$31.6 billion as at 30 June 2007, an increase
of 57%. The Group’s net management fees rose
from £78.5 million to £126.4 million, an increase
of 61%. The profit before tax was £131.4 million 
against £103.9 million for the previous year ,
an increase of 26%.
These results demonstrate the underlying
strength of the Group founded on the twin
pillars of first-rate investment performance 
and professional client service. In his review,
on pages 3 to 7 of this report, Mark Coombs,
the Group’s Chief Executive Officer, sets out
the market dynamics and the vision and
business strategy of the Group going forward.
The directors are recommending a final dividend
of 6.7p for the year ended 30 June 2007 and,
subject to shareholder approval, this will be paid
on 7 December to all shareholders who are on
the register on 9 November . This makes a total
dividend of 9.0p for the year .
I would like to take this opportunity of thanking
Jim Pettigrew, the Group’s Chief Operating and
Financial Officer , who will be leaving Ashmore,
for all the support he has given the Group while
he has been with us. We wish him every
success in his new endeavours.
The ultimate success of any investment
company rests with the people who are in it 
and their ability to deliver the highest level of
investment performance and client service.
The results for the year demonstrate that the
team within Ashmore is of an exceptional
calibre and I would like to thank each member
of the team personally for their considerable
efforts and dedication. The global financial
markets are currently experiencing another
period of volatility: I am confident that the 
Group will meet robustly the challenges that 
the markets may produce.
Michael Benson
Chairman 3 ASHMORE GROUP PLC ANNUAL REPORT 2007
Chief Executive Officer’s review 
During the year we continued to make significant
advances towards our strategic goal to be the
leading emerging markets investment manager
by maintaining a market-leading investment track
record, growing and diversifying earnings,
efficiently supporting AuM and revenue growth,
and developing further the Ashmore brand and
business model.
Strategy
The Group’s strategy – to be the leading emerging
markets investment manager – has remained
consistent for many years. There are four major
areas of focus as part of the drive to deliver on 
this strategy .
•the maintenance of a market leading investment
track record
The Group’s investment process, which has remained
unchanged since 1992, is centred on an internally
developed top-down macro investment approach,
coupled with a bottom-up approach for corporate 
and special situations/distressed opportunities,
both executed through a broad variety of financial
products such as debt, equity and foreign exchange
products and instruments, with a particular emphasis
placed on liquidity . Our aim is to achieve consistently
upper quartile investment performance.
• the delivery of growth and diversification of the
Group’s earnings
At Ashmore we aim to continue to grow AuM across
multiple investment themes and product structures.
We believe this will be achieved by the further
development of our marketing and distribution
capabilities through a number of sources including
external consultants, third-party agreements and
strategic alliances and by growing Ashmore’s product
range. An important aspect of the drive to diversify 
the Group’s earnings is the promotion of existing and
new investment themes under existing and future
product structures to new investors, and the promotion
of multiple themes to the existing investor base.
• the need to support the growth of the business in
a controlled manner
At all times Ashmore seeks to develop its infrastructure
so that it can effectively support current and future
business activity levels, thus enabling the business to
grow with appropriate operational controls within a
high quality infrastructure.
• the further development of the Ashmore brand
and business model
The Group will continue to identify and develop a
variety of investment themes and, by offering a full
range of emerging market investment products,
we will be able to cater for a wide range of investors
with a variety of risk return appetites. Looking 
further ahead we aim to play a significant part 
in the mobilisation of capital within emerging
markets, including managing the growing domestic
capital pools within the economies of the emerging
markets.
Progress in the year against our objectives
During the year we made significant progress against
our strategic objectives. It has been another year of
good investment performance across the Group’s
investment themes. The generation of ‘alpha’ within the
Group’s funds continues to come from a number of
sources including management of country risk,
exchange rates, volatility , credit, instrument maturity
and interest rates. We have increased the number of
investment professionals within the Group from 17 to 25
as part of the ongoing process of building the next
generation of Ashmore investment professionals.
It was a very busy year for new fund launches, including,
in April 2007, a retail multi-strategy fund for the
Japanese market (US$1.0 billion), in February 2007 
a new segregated fund in the Group’s global US$ 
theme (US$0.4 billion) and a private equity fund
investing in Turkey (US$0.1 billion). During the first half
of the financial year GSSF 3, a special situations fund
(US$1.4 billion), was launched, a new local currency
debt fund within the Ashmore SICAV initially funded at 4 ASHMORE GROUP PLC ANNUAL REPORT 2007
Chief Executive Officer’s review continued
US$0.1 billion, a new structured alpha product in the
global US$ theme initially funded at US$0.2 billion,
and two new segregated equity funds (raising a total of
US$0.8 billion) were launched. Additionally , there were
a number of new mandate successes in the year
including the HSBC UK pension fund (US$670 million)
multi-strategy mandate which was secured in
November 2006. The Group’s multi-strategy funds,
which invest across the Group’s investment themes,
also had a successful year with AuM, which benefited
from the new fund targeting Japanese retail investors
and the HSBC mandate win mentioned earlier ,
increasing by 333% in the year to US$2.6 billion at 
30 June 2007. All of the above clearly demonstrate 
the vibrancy and innovation within our business and
highlight the continuing growth and diversification of
the Group’s AuM. The Group now manages 41 funds/
segregated accounts across its four investment themes.
We have continued to develop the Group’s
infrastructure capabilities. The Group’s present
technology arrangements more than adequately
support current business activity levels. However ,
following an extensive review, we have started a 
two-year programme to upgrade the Group’s IT
infrastructure. This project will cost some £2 million
and, in the main, the project costs will be amortised 
to the income statement over a five-year period.
Once completed, the Group will have systems
architecture in place which is scaleable to support
the anticipated growth in business activity levels 
and which will improve further the efficiency of its
middle and back office operations.
During the year , the number of employees within 
the Group increased from 49 at 30 June 2006 to 
69 at 30 June 2007 reflecting our commitment to grow
the business in a controlled manner and to bring
together a team of like-minded people who believe
passionately in the long-term strategic objectives 
of the Group. The continuing development of the
Group’s marketing, distribution and client relationship
capabilities remains an area of key focus. We have
increased our resources in this area and we continue
to develop and broaden the Group’s various
distribution channels. In particular , we continue to seek
strategic alliances with market leading financial
services providers in their home markets to access
new pools of capital for our products through new
distribution channels efficiently leveraging other’s
infrastructure. For this reason, we are delighted to have
launched our multi-strategy fund for the Japanese
retail market with Nikko.
Turning to the future, there remains much to achieve
and we continue to research new opportunities to
diversify further and to continue to grow the Group’s
investment themes and earnings streams, and to
access the growing domestic capital pools within
selected emerging markets. This may result in the
Group utilising a proportion of its capital resources
as seed capital for new fund launches/initiatives.
Emerging market dynamics
The case for emerging markets remains well supported
by strong macro-economic, demographic and political
factors. GDP growth rates in emerging market
economies are generally forecast to be higher than
developed countries and debt to GDP ratios continue 
to reduce. However , many of these developing countries
suffer from low production efficiencies due to a lack 
of access to capital. The size and the potential of
the emerging market universe, over 60 countries,
is probably best illustrated by the fact that it represents
approximately 85% of the world’s population.
Global liquidity levels remain relatively high and, by
historic standards, there is a greater recognition that
investors are increasingly seeking to access enhanced
returns and to potentially benefit from diversification
and lower overall volatility through investments in
emerging markets. Perhaps more important, an
increasing amount of that liquidity is being generated
within emerging market economies themselves,
gradually decreasing their reliance on offshore capital.
This is a trend we expect to continue. 5 ASHMORE GROUP PLC ANNUAL REPORT 2007
Innovation and diversification
The emerging market universe of over 60 countries represents approximately
85% of the world’s population.
The Group now manages 41 funds and segregated accounts across its four
investment themes.
Number of funds (30 June)
2005
3
8
12
3
2006
2
12
13
9
2007
3
14
16
8
26
36
41
Ashmore sponsored
Structured
Segregated
White label/dual branded
Breakdown of AuM
2007 (2006)
Global US$ 
67% (76%)
Special 
situations 
11% (6%)
Local 
currency 
16% (15%)
Equity 
6% (3%)
AuM by fund account classification
2007 (2006)
Ashmore 
sponsored 
funds
52% (50%)
Structured
products 
6% (6%)
Segregated
accounts 
32% (34%)
White label/
dual branded 
10% (10%) 6 ASHMORE GROUP PLC ANNUAL REPORT 2007
Chief Executive Officer’s review continued
As an asset class, emerging market debt is rapidly
maturing with a more developed institutional 
investor base which is investing strategically for 
the medium to long term. Against this backdrop,
with over 60 emerging market countries, this 
provides diversification based on different economic
and political dynamics, with reduced risk of
contagion that financial problems in one country
could affect others. Tradeable emerging market 
debt increased in 2006 by 28% to US$5.5 trillion,
with particularly strong growth in corporate and local
currency debt.
At Ashmore, we believe that the favourable economic
growth dynamics of emerging market economies,
the structural inefficiencies within them and the
tendency , in many cases, for their shares to trade at 
a discount to developing markets, all point to strong
growth potential.
The Group’s special situations/distressed investment
theme continues to provide opportunities to 
exploit the natural diversification resulting from
different unrelated dynamics to provide low
correlation to other asset classes. New opportunities
for investment in special situations/distressed
investments are emerging in eastern Europe and
Latin America in addition to the existing depth of
opportunities in Asia.
Outlook
The Group remains focused on delivering long-term
investment out-performance, generating net
management fee income through the attraction of net
subscriptions across its investment themes and
developing the Ashmore brand and business model.
Despite recent market volatility, trading conditions
across the Group’s investment themes during the 
last quarter of the 2007 financial year and into the
start of the 2008 financial year remain satisfactory.
The Group continues to believe that strong macro-
economic, demographic and political factors,
together with enhanced liquidity, index weighting 
and credit worthiness in the Group’s markets will
continue to underpin long-term growth across
emerging market classes.
These factors, together with Ashmore’s experience
and expertise in emerging markets investment
management, position the Group well to benefit from
further demand for emerging market investment
management products and to continue its growth
momentum into the 2008 financial year .
Mark Coombs
Chief Executive Officer 7 ASHMORE GROUP PLC ANNUAL REPORT 2007
August        2006 –GSSF 3, a US$1.4 billion special situations fund, launched
– a new local currency fund launched in the Group’s      
SICAV, initially funded at US$0.1 billion.
October      2006   –Group lists on London Stock Exchange
December   2006 – a new structured alpha product in the Group’s global 
US$ theme, initially funded at US$0.2 billion              
–AuM at 31 December 2006 reaches US$26.8 billion,
a 33% increase since 30 June 2006
January    2007 – an 18% increase in AuM in the Group’s multi-strategy 
fund reported in the six months to 31 December 2006
February    2007 –launch of a new private equity fund investing in Turkey ,
initially funded at US$0.1 billion
March       2007 –AuM in the quarter to 31 March 2007 increased by 
9% to US$29.2 billion
April          2007 –launch of a new multi-strategy fund for the Japanese 
retail market raising US$1.0 billion
June          2007 –AuM rose to US$31.6 billion at 30 June 2007,
an 8% increase in the quarter and a 57% increase 
during the financial year
Key events in the year 8 ASHMORE GROUP PLC ANNUAL REPORT 2007
Business review contents
9 Results for 2007
9 Key performance indicators
10 Operations and investment theme review
12 Net management fee margins
14 Cost management
14 Operating profit margin
14 Taxation
14 Cash flow and balance sheet
14 Dividend
16 Diversification of product offering
16 Investor profile
16 Treasury management
16 Risk
19 Internal control
19 Annual performance fees for August 2007 
fund year ends
19 The new financial year 9 ASHMORE GROUP PLC ANNUAL REPORT 2007
Business review
The Group reported a very strong financial
performance and, in what has been a busy year,
implemented a number of operational and 
risk initiatives that will enhance the Group’s
platform to support the future growth of the
business.
Results for 2007
The 2007 financial year represented another
successful stage in the development of the Group.
Significant year-on-year increases in AuM, revenue,
profit and eps were reported, exceeding the financial
targets the Group set itself at the beginning of the
financial year .
Key highlights were:
• AuM of US$31.6 billion at 30 June 2007,
up US$11.5 billion, 57% in the year;
• net management fees of £126.4 million,
61% higher than for the year ended 30 June 2006;
• performance fees of £20.4 million (£54.2 million
for the year ended 30 June 2006);
• profit before tax of £131.4 million, up 26% 
(a 36% increase at constant exchange rates);
• basic eps of 13.7p (2006: 10.8p) and diluted eps
of 12.9p (2006: 10.4p);
• a final dividend of 6.7p per share, giving a total
dividend for the year of 9.0p.
The key driver of profit growth in the year was the
substantial (61%) increase in net management fees,
which was achieved across the Group’s investment
themes.
Performance fees were £20.4 million in the year
ended 30 June 2007 compared to £54.2 million in 
the prior year . This was predominantly due to a
reduction in the performance fee delivered by EMLIP
(the Group’s US$5 billion global US$ fund) for which
investment performance was ahead of the peer group
and relevant benchmarks, but in line with its hurdle
rate. In the previous year , investment performance for
EMLIP was in excess of the hurdle rate.
Other revenue was substantially up on the prior year 
at £13.0 million (2006: £2.9 million) reflecting a higher
level of transaction based corporate finance fees
generated in the year .
The Group’s overall net revenue for the twelve months
ended 30 June 2007 was £159.8 million, an increase
of £24.2 million, 18%, over the prior year.Reported
costs were £2.8 million lower than for the prior year
and net interest income was £3.3 million higher ,
reflecting the combination of a higher UK interest rate
environment and the Group’s larger cash balances.
Profit before tax for the twelve months ended 
30 June 2007 was £131.4 million, a £27.5 million
(26%) increase over the prior year’s profit before tax
of £103.9 million which included a £2.8 million gain
on the sale of the Group’s administration business.
Basic eps was 13.7p, an increase of 27% over the
prior year.Diluted eps was 12.9p (2006: 10.4p).
Key performance indicators
Progress towards achieving the Group’s strategic
objectives, articulated in the Chief Executive Officer’s
review on pages 3 and 4, is monitored with reference
to a number of key performance indicators. These are
set out below:
Financial year Financial year
Key performance indicators 2006/07 2005/06
Net management fee margins (basis points) 93bp 83bp
Average AuM US$26.4bn US$16.8bn
Year end AuM US$31.6bn US$20.1bn
Operating profit margin 76% 70%
Compensation/revenue ratio 20.4% 25.4%
Variable compensation/ebit 18.4% 24.3%
Year-end head count 69 49 10 ASHMORE GROUP PLC ANNUAL REPORT 2007
Business review continued
The Group’s net management fee margin increased 
by 10 basis points, a 12% increase, reflecting the
increases in net subscriptions arising in the local
currency and special situations themes, both of which
have higher net management fee margins. The increase
in some net management fee rates in the Group’s
public funds was also a factor , together with the impact
in the prior year of a higher proportion of lower margin
segregated accounts in that year’s net subscriptions.
Strong inflows during the year resulted in a 57%
increase in AuM at 30 June 2007 to US$31.6 billion,
compared to US$20.1 billion as at 30 June 2006.
Average AuM for the year was also 57% higher
compared to the prior year’s average.
The Group’s variable compensation (including IFRS
share-based payments charge) as a percentage of
profit before tax, interest and variable compensation
was 18.4% for the twelve months to 30 June 2007.
At the time of the IPO, the Group indicated that in
the current financial year this ratio could potentially
be at the bottom of or even slightly below its medium
term target range of 20% to 25%. In future years,
to increase flexibility , the intention is to pay up to 25%
of the Group’s profit before tax, interest and variable
compensation as variable compensation.
The Group’s operating profit margin for the twelve
months to 30 June 2007 was 76% (twelve months to
30 June 2006: 70%) as it benefited from the lower
variable compensation ratio.
Operations and investment theme review
The investment philosophy and process that has been
in place at Ashmore for many years remains
unchanged. Ashmore follows an active, value-driven
and mainly top-down investment approach. The Group
also selects credits and certain investments through
bottom-up analysis, particularly for those funds where
corporate and special situations/distressed assets 
are more significant.
As at 30 June 2007, the Group managed 
41 funds/segregated accounts, diversified across
four investment themes.
AuM increased by US$11.5 billion (57%) from
US$20.1 billion at 30 June 2006 to US$31.6 billion 
at 30 June 2007. Net subscriptions in the same 
period were US$8.3 billion (2006: US$7.9 billion),
consisting of gross subscriptions of US$10.4 billion
(2006: US$10.1 billion) and redemptions of US$2.1 billion
(2006: US$2.2 billion). These gross flows exclude
US$0.4 billion of intra-investment theme flows by the
Group’s multi-strategy fund. On a net subscriptions
basis there were US$4.3 billion of net inflows into
existing funds and fund raisings into new products and
funds of US$4.0 billion in the financial year . Investment
performance contributed a total of US$3.2 billion.
Global US$
The global US$ investment theme comprises 
US dollar and other hard currency denominated
instruments which may include derivatives, investing
principally in sovereign bonds but with a growing
corporate debt element.
AuM at 30 June 2007 were US$21.2 billion, an
increase of US$6.0 billion (39%) from 30 June 2006.
Net subscriptions in the year were US$4.1 billion
representing 49% of the Group’s net inflows in the
year.Performance contributed US$1.9 billion.
During the year , there were strong inflows into the
theme’s public open-ended funds, with two new fund
launches: a new structured product initially funded
at US$0.2 billion in the first half of the financial year
and a new US$0.4 billion segregated account in the
second half. In November 2006, one small segregated
fund was merged into a public fund.
AuM as at AuM as at
30 June Net 30 June
2006  subscriptions  Performance 2007
Investment themes US$bn US$bn US$bn US$bn
Global US$ 15.2 4.1 1.9 21.2
Local currency 3.0 1.4 0.6 5.0
Special situations 1.3 1.8 0.3 3.4
Equity 0.6 1.0 0.4 2.0
Total 20.1 8.3 3.2 31.6 11 ASHMORE GROUP PLC ANNUAL REPORT 2007
Another year of strong growth in AuM
0
5
10
15
20
25
30
35
US$bn
AuM at June
2006
Net subscriptions
– existing funds
Net subscriptions
– new funds
Performance AuM at June
2007
31.6
3.2
4.0
4.3
20.1
2003
0.1
2004
0.1
2005
0.2
2007 2006
0.6
2.0
Equity
2003
2.6
2004
4.7
2005
8.4
2007 2006
15.2
21.2
Global US$
2003
0.4
2004
0.6
2005
1.2
2007 2006
3.0
5.0
Local currency
0.2
0.5
1.2
2003 2004 2005 2007 2006
1.3
3.4
Special situations
During the year AuM increased by US$11.5 billion building on the Group’s track record of AuM growth
across the Group’s investment themes.
AuM in US$ billion 12 ASHMORE GROUP PLC ANNUAL REPORT 2007
Business review continued
While the global US$ investment theme continued to
generally outperform the relevant benchmarks it has
not been a particularly strong investment return year .
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.
AuM at 30 June 2007 were US$5.0 billion; an increase of
US$2.0 billion (67%) from 30 June 2006. There has been
strong demand for the Group’s local currency products
with net subscriptions in the period of US$1.4 billion.
As part of the process of accessing the increasing
European appetite for the local currency theme, a new
targeted SICAV fund was launched in the first half of
the financial year and this was initially funded at
US$0.1 billion. Theme performance in the period
contributed US$0.6 billion.
Generally , it has been a good investment performance
year for the theme, assisted during most of the year
by the relative strength of local currencies against the
US dollar . The local currency markets continue to
deepen, with gradually improving liquidity and the
extension of duration.
Special situations (distressed debt/private equity)
The special situations (distressed debt/private
equity) theme comprises investments in debt and/or
equity or other instruments focussing 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.
AuM at 30 June 2007 were US$3.4 billion, an
increase of US$2.1 billion (162%). Net subscriptions
were US$1.8 billion, with performance contributing
US$0.3 billion.
Included within net subscriptions is the Group’s
GSSF 3 fund which was launched in August 2006.
This represented US$1.4 billion of the total net
subscriptions in the period. As at 6 September 2007,
100% of the US$1.4 billion commitment had been
drawn down. A new private equity fund investing in
Turkey was launched in the second half of the
financial year initially funded at US$0.1 billion.
It has been another positive year from the
perspectives of investment performance, deal
opportunities and realisations. The Group’s network
continues to source an attractive pipeline of deals.
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.
AuM at 30 June 2007 were US$2.0 billion, an increase
of US$1.4 billion (233%) from 30 June 2006. Net
subscriptions were US$1.0 billion, with performance
contributing US$0.4 billion.
Net subscriptions benefited by US$0.8 billion as a result
of two new segregated funds that were launched in the
first half of the financial year .Two small segregated
funds were closed in the second half of the financial
year (US$0.2 billion in total).
It was a good year from an investment return point 
of view. The theme continues to be characterised 
by the relative movement of global liquidity from 
US equities to emerging market equities.
Multi-strategy funds
Net subscriptions into the Group’s multi-strategy
funds, where Ashmore is making the asset allocation
decision across the Group’s investment themes,
were US$1.8 billion and represented 22% of the
Group’s total net subscriptions in the year of
US$8.3 billion. This includes a new fund launched 
in April 2007 for the Japanese retail market which
raised US$1.0 billion.
Net management fee margins
As well as the growth in absolute levels of net
management fees, net management fee margins are
a key area of management focus. The Group’s net
management fee margin increased to 93 basis points
in the financial year to 30 June 2007 from 83 basis
points in the prior year , continuing the Group’s 
five-year track record of high and stable net
management fee margins.
Increases in the year in net management fee margins
were achieved across the Group’s investment themes
with the exception of equity where two new lower
margin segregated accounts were taken on. 13 ASHMORE GROUP PLC ANNUAL REPORT 2007
A high net management fee margin business
The Group’s net management fee margin increased to 93 basis points
from 83 basis points as it benefited from a higher margin in its global US$
theme and higher growth rates in AuM in local currency and special
situations, the Group’s higher growth and margin investment themes.
Net management fee margins
Year to Year to 
30 June 30 June
2007 2006 
Investment themes (basis points) (basis points) 
Global US$ 76 72 
Local currency 108 89 
Special situations 180 171 
Equity 100 117 
Group net management fee margin 93 83 
Net management fees by theme
Year ended Year ended
30 June 30 June  
2007 2006 Increase against prior year
£m £m £m %
Global US$ 71.9 52.2 19.7 38
Local currency 21.4 11.3 10.1 89
Special situations/distressed 25.9 11.9 14.0 118
Equity 7.2 3.1 4.1 132
Group net management fees
(1)
126.4 78.5 47.9 61
(1)  Net of distribution costs 14 ASHMORE GROUP PLC ANNUAL REPORT 2007
Business review continued
Cost management
The Group continues to manage its cost base in an
efficient and effective manner. Against the backdrop
of substantial AuM and revenue growth, the Group
continues to invest to support the future growth of
the business.
There were a number of one-off costs in the year 
to 30 June 2006: professional fees associated with
the Company’s IPO (£2.0 million) and a share-based
payments charge in respect of the change from a
cash to equity-settled basis (£4.9 million). Excluding
these items and the costs of the Group’s administration
business (£0.4 million), which was disposed of in
December 2005, costs increased by £4.5 million,
a 13% increase in the year .
The largest component of the cost base is variable
compensation, including share-based payments,
which was 18.4% of profit before tax, interest 
and variable compensation for the year ended 
30 June 2007 (2006: 24.3%).
As part of the process of supporting the growth of
the business, the Group’s headcount increased by
41%, from 49 at 30 June 2006 to 69 at 30 June 2007.
Operating profit margin
An operating profit margin of 76% was achieved 
in the financial year to 30 June 2007 (70% in 2006),
with the current year’s margin benefiting from the
lower variable compensation ratio. The Group continues
to plan the development of its activities as a relatively
high margin investment management business.
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 statutory tax rate. The introduction of a 28%
corporation tax rate from 1 April 2008 will have a small
beneficial impact on the Group’s effective corporation
tax rate in the financial year to 30 June 2008, with the 
full-year benefit in the following financial year .
There is a £14.4 million deferred tax asset on 
the Group’s balance sheet at 30 June 2007.
This is largely due to cash tax deductions which 
will arise over the next seven or so years in respect
of share price appreciation on share-based
payments awards.
Cash flow and balance sheet
The Group has strong cash generative characteristics
as demonstrated by the £85.3 million increase 
in the Group’s cash balances during the year .
As at 30 June 2007, the Group had £218.0 million 
of cash and cash equivalents. The needs for a 
strong balance sheet remain to support regulatory
capital requirements, to meet the commercial
demands of current and prospective investors,
and the development needs of the business 
including seeding of new funds/initiatives. As part 
of the process of developing its presence in local
emerging markets, a certain proportion of the
Group’s capital resources may be utilised for such
purposes.
The Group’s policy remains that, should the Group
accumulate cash which is surplus to that required 
to meet its continuing obligations and to fund future
growth, consideration will be given to returning
surplus cash and capital to shareholders in an
appropriate manner . As at 30 June 2007, total equity
was £196.0 million compared to £96.6 million at 
30 June 2006. There is no debt on the Group’s
balance sheet.
Dividend
As a result of the highly cash generative nature of
the business, subject to shareholder approval,
a final dividend of 6.7p per share is proposed to be
paid on 7 December 2007 to shareholders on the
register on 9 November 2007. An interim dividend 
for the six-month period to 31 December 2006 
of 2.3p was paid on 27 April 2007. This would 
result in a full-year dividend of 9.0p. The Company’s 
intention is for its dividend policy to be 
progressive. 15 ASHMORE GROUP PLC ANNUAL REPORT 2007
Team-based approach to support growth
As part of the process of supporting the growth of the business,
the Group’s headcount has increased by 41% from 49 at 30 June 2006 
to 69 at 30 June 2007.
2003
16
10
2004
22
11
2005
26
14
2006
32
17
2007
44
26
33
40
49
69
25
Growth in employee numbers (30 June)
Infrastructure staff Investment professionals 16 ASHMORE GROUP PLC ANNUAL REPORT 2007
Business review continued
Diversification of product offering
There were eight new fund launches during the year
and, after taking account of two small segregated
account closures and one fund merger , by 30 June 2007
the Group was managing 41 funds/segregated
accounts. These funds are spread across the Group’s
four investment themes, highlighting the diversification
of the Group’s AuM. The global dollar debt theme
represented 67% of the Group’s AuM in June 2007
compared to 76% in June 2006. Furthermore, the
Group’s AuM is diversified by type of account:
52% of AuM is in Ashmore sponsored funds,
32% in segregated accounts, 10% in white label and
6% in structured products.
As at 30 June 2007, 64% of funds by AuM can
generate performance fees (2006: 57%).
These funds, totalling 22 in number (2006: 17),
are spread across the Group’s investment themes.
Only 46% of AuM can make use of leverage and,
where a fund can use leverage, it is usually
restricted to a maximum of 50% of a fund’s AuM,
and never more than 75%. Typically a fund’s
leverage capacity is not fully utilised.
Investor profile
There is a broad range of investors in the funds
managed by the Group.
The funds which Ashmore manages remain
predominately sourced from institutional investors,
including pension plans, government agencies, financial
institutions and corporates. As at 30 June 2007, 85% of
the Group’s AuM was institutional (2006: 89%) and
15% (2006: 11%) was high net worth individuals/retail.
The increase in high net worth individuals/retail reflects,
in part, the new fund launched in the year targeting
Japanese retail investors. The investor profile within the
institutional segment showed an increase in the
proportion of government investors (up from 9% to 12%)
and a decline in bank investors (22% to 17%). Public
pension plan investors increased from 16% to 18%
while the proportion of corporate pension investors
reduced from 22% to 16%.
The geographic profile of the Group’s investors
remains diversified. During the year there was strong
asset gathering in Europe, including a number of
significant mandate wins in the UK.
Treasury management
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$/£ exchange rate.
The results for the year ended 30 June 2007 were
achieved against the backdrop of a weaker US$/£
exchange rate and this has impacted on the Group’s
reported profit. Reported profit before tax increased
by £27.5 million, a 26% increase over the prior year .
In constant exchange rate terms, profit before tax
increased by £34.1 million, an increase of 36% in 
the year . This was after restating the prior year figures
at the current year’s average US$/£ exchange rate
(2007: US$/£1.95; 2006: US$/£1.78). This resulted in
the following restatements to the prior year numbers:
lower net revenue in sterling terms (£11.4 million),
net hedging gains excluded (£0.9 million), and a
notional reworking of the variable compensation cost 
to reflect the above items (a £3.0 million reduction).
In the current year , net hedging gains of £2.7 million
were excluded. On this basis, the net impact of
the movement in the US$/£ exchange rate on the
reported increase in profit before tax in the year 
of £27.5 million was £6.6 million. Based on the
current year’s net revenue, at current exchange rates,
a 10 cent movement would have an £8 million 
impact on net revenue. This exposure would be
mitigated by the impact of the movement in net
revenue on variable compensation and by the Group’s
hedging activities.
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. As at the date of this report,
the Group has converted 100% of its July and 
August revenue at an average US$1.99 and has 
50% of its forecast US dollar based revenue for 
the remainder of the next financial year hedged 
at US$1.99.
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 2007,
a 1% change in UK interest rates would have a 
£2 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 
aware culture throughout the organisation.
During the year further progress has been made in
strengthening the Group’s risk control framework.
A new Head of Risk has recently been appointed 
and will drive the process of continuing to upgrade 
risk control standards. 17 ASHMORE GROUP PLC ANNUAL REPORT 2007
Diversification by investor type and geography
The funds which Ashmore manages are predominantly sourced from an
institutional investor base. In the year a new fund targeting Japanese retail
investors was launched. As at 30 June 2007, high net worth individuals/retail
represent 15% of AuM (2006: 11%).
AuM by investor type
2007 (2006)
AuM by geography
2007 (2006)
Europe 
46% (41%)
Other 
2% (2%)
Asia 
19% (21%)
Americas 
22% (27%)
Middle
East 
11% (9%)
Banks 
17% (22%)
Governments 
12% (9%)
Funds 
of funds 
7% (8%)
Insurance 
companies 
7% (5%)
High net worth
Individuals/retail 
15% (11%)
Other 
8% (7%)
Public pension
18% (16%)
Corporate 
pension
16% (22%)
Institutional 85% (89%)  18 ASHMORE GROUP PLC ANNUAL REPORT 2007
Business review continued
The significant risks that face the Group can be
summarised into three main categories: strategic
and business, investment and operational.
A common theme throughout these categories is
reputational risk which is a key consideration in 
the management of all the Group’s activities.
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;
– contraction of existing investment themes;
– expansion into unsuccessful new investment themes;
– capacity constraints of market, business 
counterparties and individuals;
– downturn in investment performance; and
– reduction in economic pricing power .
The case for emerging markets is set out in the 
Chief Executive Officer’s review. Progress against
strategic objectives is the subject of discussion and
review as a regular board agenda item. An important
business risk mitigating factor is the diversification 
of the Group’s AuM, by investment theme, fund
structure, investor and by geography . The Group’s
predominately ‘top down’ investment approach creates
a highly scaleable business model. Ensuring that the
Group’s infrastructure, marketing and distribution
capabilities keep pace with the Group’s revenue
growth and potential revenue pool is an ongoing key
area of executive management focus.
Investment
As highlighted above, a key strategic and business
risk would be a fundamental change in the Group’s
long-term track record of investment out-performance
and its impact on AuM retention and the Group’s
ability to maintain economic pricing power .
Investment risks could include:
– downturn in investment performance resulting 
in redemptions from funds and inability to attract
new subscriptions;
– market and/or asset liquidity;
– inability to fairly price assets; and 
– key-man risk.
The Group’s investment approach has remained
unchanged for many years. The investment committee
meets at least weekly and is provided with
comprehensive papers covering all the relevant details
on investments. The average years of experience in 
the industry of the Ashmore investment management
team is 14 years, with the senior portfolio managers
having an average of 22 years of industry experience.
A significant proportion of investment professionals’
remuneration is linked to performance and has a 
long-term equity component. The Group has an active
recruitment policy for building the next generation of
Ashmore investment professionals.
Currently, only a relatively small amount of the
Group’s AuM cannot be readily externally priced and
in such situations, typically in the Group’s special
situations theme, appropriate valuation procedures
and processes are in place.
Operational
The risks within this category are broad in nature
and inherent in all businesses and would typically
encompass events such as IT failure, human error
and fraud, each of which could result in a loss to 
the business.
From an Ashmore perspective, losses that could
arise from operational risk include:
– processing failures, including breaches of
investment mandates;
– technology and infrastructure failing to keep pace
with asset growth;
– non-compliance with regulations; 19 ASHMORE GROUP PLC ANNUAL REPORT 2007 19 19 19 19 19 19 19 19
– poor management of the core services provided
by third parties such as custodians, administrators
and distributors; and
– lack of a business continuity plan.
All these risks, and many more detailed operational
risks faced by the Group, are managed within the
internal control framework summarised in the next
section on internal control. The Group reviews these
risks through its risk committee on a regular basis.
The Group’s Head of Risk monitors mandate risk 
on a real-time basis facilitated by technology;
it is also subject to daily monitoring by the Group’s
compliance function. A key responsibility of the
Group’s compliance function is ensuring that the
Group at all times meets all of its regulatory
requirements. The Group’s Head of Operations
manages the relationship with the Group’s
administrators and custodians through regular
formal meetings and ad hoc ones as required.
The Group has a documented business continuity
plan in place that was tested during the year .
Following this test a number of improvements to 
the process are currently being put in place.
The Group’s board, through the audit committee 
in June 2007, reviewed a risk map of the significant
risks faced by the business as part of the annual
review of the effectiveness of internal controls
exercise. It is intended that, in the future, this 
review will be undertaken at least twice each
financial year .
Internal control
The board is ultimately responsible for the Group’s
system of internal control and for reviewing its
effectiveness. The board, through the audit committee,
conducts an annual review of the effectiveness of
the system of internal controls including financial,
operational and compliance controls and risk
management systems. Such a system of internal
control is 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 main features of the Group’s internal control
system are as follows:
– an operational framework and organisational
structure with clearly defined board approved
delegated authorities is in place;
– 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;
– the Group’s risk committee meets on a monthly
basis to review the Group’s operational, credit and
market risks;
– 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;
– the Group’s compliance function undertakes an
ongoing compliance monitoring programme of all
the relevant areas of the Group’s operations,
including a quarterly senior management systems
and controls (SYSC) review which is undertaken
with the Chief Executive Officer;
– a SAS70 control review process is in place; 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.
Annual performance fees for August 2007 
fund year ends
Annual performance fees (unaudited) for the funds
with year ends at 31 August 2007 (EMLIP , LCD and
ARD) were £17.6 million (2006: £0.3 million) and
these will be recognised within revenue in the six
months to 31 December 2007.
The new financial year
At the start of the 2007/2008 financial year , the
Group has in place the solid foundations of a strong
financial position with robust operational and risk
disciplines. Consequently Ashmore is well placed to
support the future growth strategy and dynamics of
the business.
Jim Pettigrew
Chief Operating and Financial Officer 20 ASHMORE GROUP PLC ANNUAL REPORT 2007
Board of directors
The Hon. Michael Benson 
Non-executive Chairman (Age 64)
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 Invesco Global (1997-2002).
Michael is a non-executive director of Morse plc,
of Invesco Japan Discovery Trust plc and of
Border Asset Management Limited, and is a director
of Community Foundation Network.
A, N, R 
Mark Coombs 
Chief Executive Officer (Age 47)
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 .
Jim Pettigrew
Chief Operating and Financial Officer (Age 49)
Jim joined Ashmore as Chief Operating and 
Financial Officer in July 2006. He was previously the
Group Finance Director of ICAP plc. Prior to ICAP ,
Jim spent ten years at Sedgwick Group plc in a
number of senior roles including Group Treasurer 
and Deputy Group Finance Director . He is a
chartered accountant, has an LLB from the University
of Aberdeen, a post-graduate Diploma in 
Accounting from the University of Glasgow, and is a
member of the Association of Corporate Treasurers.
He is a non-executive director of Edinburgh Investment
Trust plc and CMC Markets plc.
Nick Land
Senior independent non-executive director (Age 59)
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 & Young 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 and Vodaphone 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 of the
Advisory Board of the Judge Business School.
A, N, R 
Jon Moulton 
Non-executive director (Age 56)
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 
Key to membership of committees
A: audit    N: nominations    R: remuneration 21 ASHMORE GROUP PLC ANNUAL REPORT 2007
The directors present their annual report and financial
statements for the year ended 30 June 2007.
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. This is the Group’s
first annual report as a public limited company .
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 2007 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 page 1,
the Chief Executive Officer’s review on pages 3 to 7,
the business review on pages 8 to 19 and the
corporate governance report on pages 25 to 30.
The principal risks facing the business are detailed in
the business review on pages 16 to 19 and in the
corporate governance statement, internal control,
on pages 29 and 30.
Results and dividends
The results of the Group for the year are set out in 
the consolidated income statement on page 38.
The directors recommend a final dividend of 6.7p per
share which, together with the interim dividend of
2.3p per share already declared, makes a total for 
the year ended 30 June 2007 of 9.0p per share 
(2006: 8.33p). 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 7 December 2007 
to shareholders on the register on 9 November 2007 
(ex-dividend date being 7 November 2007).
Related party transactions
Details of related party transactions are set out in
note 20 to the financial statements.
Post balance sheet events
As set out in note 23 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 20. Mark Coombs and 
Jon Moulton both served as directors throughout the
year . Michael Benson and Nick Land were appointed
directors on 3 July 2006. Jim Pettigrew was appointed
director on 7 August 2006, but submitted his resignation
on 3 July 2007. His contractual termination date is 
2 July 2008, although an earlier termination date may 
be agreed.
Details of the service contracts of the current directors
are shown in the remuneration report on page 32.
The Company’s Articles require the newly appointed
directors, Michael Benson, Nick Land and 
Jim Pettigrew 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 . Accordingly , Mark Coombs and Jon Moulton
will retire by rotation at the forthcoming annual general
meeting. All directors being eligible offer themselves
for re-election.
Details of the constitution and powers of the board
and its committees are set out in the corporate
governance report on pages 25 to 30. 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 35 within the remuneration report.
Directors’ report 22 ASHMORE GROUP PLC ANNUAL REPORT 2007
Number of Number of Percentage
shares options interest
Jerome Paul Booth 42,250,000 3,500,000 6.45
Carey Pensions and
Benefits Limited as
Trustee of the Ashmore 
2004 Employee 
Benefit Trust 38,725,000 5.46
Seumas Dawes 28,440,000 4.01
FMR Corp 35,639,517 5.02
Julian Redvers Green 40,162,500 5.67
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.
Directors’ report continued
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 .
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 6 September 2007 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 23 ASHMORE GROUP PLC ANNUAL REPORT 2007
issued shares. No such purchase has been made or
is currently intended. The Company will seek renewal
of this authority at the 2007 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 under 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 2007
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 special resolution of
the Company’s shareholders.
Employees
Details of the Company’s employment practices
(including the employment of disabled persons) can be
found in the corporate governance report on page 30.
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 25 to 30.
Charitable and political contributions
During the year, the Group made no charitable
donations (2006: £nil). Note 3 to the financial
statements refers to charitable donations that will be
made in the year to June 2008.
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 2007, the amount
owed to the Group’s trade creditors in the UK
represented approximately 35 days’ average
purchases from suppliers (2006: 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. 24 ASHMORE GROUP PLC ANNUAL REPORT 2007
Directors’ report continued
2007 annual general meeting
The 2007 annual general meeting of the Company will
be held at 10.30am on Wednesday 31 October 2007
at the offices of UBS AG, 1 Finsbury Avenue,
London EC2M 2PP . Details of the resolutions to be
proposed at the annual general meeting are given in the
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 21 to 24 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
Mark Grimwood
Company Secretary
12 September 2007 25 ASHMORE GROUP PLC ANNUAL REPORT 2007
Section 1 of the June 2006 FRC Combined Code 
on Corporate Governance (the 2006 Code),
which supercedes the 2003 Code, applies to listed
companies with reporting years beginning on or 
after 1 November 2006. The Company has 
voluntarily 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 an experienced
team, headed by the non-executive Chairman,
Michael Benson, with two non-executive directors,
Nick Land and Jon Moulton, and two executive
directors, Mark Coombs the Chief Executive Officer,
and Jim Pettigrew the Chief Operating and 
Financial Officer.
Mark Coombs and Jon Moulton both served as
directors throughout the year. In order to meet the
requirements of the business as a public listed
company, additional directors were appointed during
the year. Michael Benson and Nick Land were
appointed directors on 3 July 2006. Jim Pettigrew
was appointed director on 7 August 2006, but
submitted his resignation on 3 July 2007.
His contractual termination date is 2 July 2008,
although an earlier termination date may be agreed.
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 and Nick Land to be independent.
Nick Land is the senior independent director.
Jon Moulton is not an independent director as he is
a substantial shareholder. The effect of this is that
the Group does not comply with the 2006 Code
requirement that at least half of the board are
independent directors (excluding the Chairman).
The board considers that its structure is consistent
with the principles underlying the 2006 Code and,
despite Jon Moulton’s non-independence, regard
his expertise to be of considerable value to the
board and the committees on which he serves, and
also considers that the board and its committees are
sufficiently well balanced to meet the current needs
of the Company .
Biographical details of the directors are given on
page 20.
The board met seven times between 1 July 2006 
and Admission and a further four times during the
period from Admission to 6 September 2007 to
review financial performance and strategy and to
follow a formal schedule of matters reserved for its
decision, which include the setting of Company
goals, objectives, budgets and other plans.
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.
Corporate governance report 26 ASHMORE GROUP PLC ANNUAL REPORT 2007
In addition to its formal business, the board received
a number of briefings and presentations from senior
executives and local 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 . During preparation
for the Company’s IPO, the directors received advice
as to the legal and other duties and obligations arising
from the role of director of a listed company .
Since then, they have met with relevant members of
senior management, in order to help them gain a
detailed understanding of the Group and its activities.
Going forward new directors appointed to the board
will receive similar advice 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 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.
Board and committee attendance 
The table below sets out the number of meetings 
of the board and its committees and individual
attendance by directors.
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 developments over the year
were discussed and performance was considered by
Corporate governance report continued
Audit Remuneration Nominations
Board committee committee committee
Total number of meetings between
1 July 2006 and 6 September 2007 11 4 42
Michael Benson 10/11 4/4 4/4 2/2
Mark Coombs 11/11 – – –
Nick Land 11/11 4/4 4/4 2/2
Jon Moulton 11/11 4/4 4/4 2/2
Jim Pettigrew 10/10 – – –
(appointed 7 August 2006) 27 ASHMORE GROUP PLC ANNUAL REPORT 2007 27 27
reference to the objectives of the board and its
committees. The responses were analysed and the
results and issues raised were subsequently
discussed at a meeting between the Chairman,
the other non-executive directors and the Chief
Executive Officer . This meeting also evaluated the
Chairman’s performance.
Board committees
The board has appointed the following committees
to assist in the execution of its duties:
• audit committee;
• remuneration committee;
• nominations committee.
All of these committees operate on written terms of
reference, which are reviewed annually and which are
available on the Company’s website, and 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.
Audit committee
The audit committee is chaired by Nick Land and he
is supported by the Chairman, Michael Benson, and
a non-executive director , Jon Moulton. All served on
the committee from Admission and continue to do so.
The board is satisfied that Nick Land and Jon Moulton
have recent and relevant commercial and financial
knowledge and experience to satisfy the provisions 
of the 2006 Code, by virtue of their having held
various executive and non-executive roles in 
investment management and business management.
Additionally , Nick Land and Jon Moulton are both
chartered accountants.
However , as Jon Moulton is not an independent
director as referred to above, the Group does not
comply with the 2006 Code requirement that the 
audit committee should consist of at least three
independent non-executive directors.
The committee’s normal duties are to assist the 
board in discharging its obligations and
responsibilities for financial reporting, internal 
control and risk management, and to oversee the 
relationship with the external auditors, including
approving their terms of engagement and their
remuneration. An additional role of the committee 
is to investigate any areas of concern as to financial
impropriety that may arise.The committee is also
responsible for reviewing the scope and results of
audit work and its cost effectiveness and the
independence and objectivity of the auditors.
From time to time during the year the non-executives
meet with the external auditors without the executive
directors being present.
The committee has 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 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.
During the year the committee discharged its
responsibilities, under its terms of reference, by:
• reviewing the Group’s transition to reporting in
accordance with IFRS;
• reviewing the appropriateness of the accounting
policies adopted by the Group in accordance
with IFRS; 28 ASHMORE GROUP PLC ANNUAL REPORT 2007
Corporate governance report continued
• reviewing the Group’s draft 2006 financial
statements to be included in the prospectus
associated with the Company’s IPO, prior to
discussion and approval by the board and
reviewing the external auditors’ detailed reports
thereon;
• reviewing the Group’s draft 2007 financial
statements and 2007 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 2007 financial statements, receiving
and reviewing confirmations of auditor
independence and approving the terms of
engagement and proposed fees for the 2007
audit;
• making recommendations to the board for a
resolution to be put to shareholders to 
approve the re-appointment of the external
auditors;
• 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 and recommending to
the board that this is not appropriate given the
current size, nature and business and operational
model of the Group; 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 number of committee meetings and their
attendance by the directors are set out in the table
above, with representatives of senior management
and KPMG Audit Plc in attendance at each meeting.
As a matter of practice, the Chief Executive Officer
and the Chief Operating and Financial Officer attend
each meeting. In the 2007 financial year , there was an
additional meeting, over and above the normal annual
schedule, the purpose of which was to review the
Group’s preparation for the transition to IFRS, and to
review the Group’s draft 2006 financial statements to
be included in the prospectus associated with the
Company’s IPO.
Remuneration committee
The remuneration committee is chaired by 
Jon Moulton and he is supported by the Chairman,
Michael Benson, and a non-executive director ,
Nick Land. All served on the committee from
Admission and continue to do so.
As Jon Moulton is not an independent director as
referred to above, the Group does not comply with
the 2006 Code requirement that the remuneration
committee should consist of at least three
independent non-executive directors.
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
and the Company Secretary and its cost.
The committee is also responsible for advising on any
major changes in employee benefit structures
throughout the Group and for recommending their
approval by the board and by shareholders. Details of
the activities of the remuneration committee are set
out in the remuneration report on pages 31 to 35.
The number of committee meetings and their
attendance by the directors are set out in the table
above. 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 is chaired by Michael
Benson and he is supported by the two non-executive
directors, Nick Land and Jon Moulton. All served on
the committee from Admission and continue to do so.
The committee is responsible for reviewing the
structure, size and composition of the board and for
recommending new members for appointment to the
board. The board as a whole has responsibility for 
the appointment of new directors and for nominating
them for election by shareholders at the first
opportunity following their appointment. 29 ASHMORE GROUP PLC ANNUAL REPORT 2007
The committee is also responsible for giving due
consideration to succession planning for the board of
directors and other senior executives, any matters
relating to the continuation in office of any director ,
including the suspension or termination of service of
an executive director as an employee of the Company ,
and for making appropriate recommendations to 
the board.
Since Admission the committee has reviewed the
proposals for rotation and re-election of directors at
the annual general meeting, discussed the results of
the annual performance evaluation exercise and
noted the satisfactory operations of the committee,
and reviewed its terms of reference. The number of
committee meetings and their attendance by the
directors are set out in the table above.
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 Stock Exchange
announcements are also posted. The Chief Executive
Officer and Chief Financial Officer 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 2007 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 Chief Financial Officer 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 the number of proxy votes
cast on resolutions at the annual general meeting
and any other general meetings.
Internal control
In accordance with the principles of the 2006 Code,
the board has overall responsibility for the Group’s
system of internal control and for reviewing its
effectiveness. The board is also responsible for the
management of significant risk. The Group’s internal
controls are designed to cover risks relating to the
achievement of the Group’s objectives including
business, operational, financial and compliance 
risks. The internal controls are designed to manage,
rather than eliminate, risk of failure to meet business
objectives and to provide reasonable, but not
absolute, assurance against material misstatement 
or loss. The 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 controls.
On a day-to-day basis the executive directors 
oversee the key risks and controls and the risk
management process. Responsibility for risk
identification is shared amongst senior management
personnel, with each individual manager being
responsible for control of risk in their business area.
Senior managers have direct reporting lines to the
Chief Executive Officer , encouraging communication
and early discussion to consider and effect change
as required. The Group’s risk committee meets on 
a monthly basis to review operational, credit and 
market risks. The Group’s compliance function
undertakes an ongoing compliance programme,
including a regular review of senior management
systems and controls which is undertaken with the
Chief Executive Officer .
The key internal controls are supported by a 
detailed risk assessment with key control weakness
indicators designed to identify major operational,
regulatory and financial exposures. This risk
management framework, which covers all material
parts of the Group, provides a continuous
improvement process for the Group’s internal 
controls. In addition, the Group commissions regular
independent review reports prepared pursuant to 
the Statement of Auditing Standards No. 70,
type II (SAS 70). 30 ASHMORE GROUP PLC ANNUAL REPORT 2007
Corporate governance report continued
A summary of significant risks, key internal controls
and findings is reported annually in a formal risk
management and control report to the board together
with a risk map. Additionally , in the financial year to 
30 June 2007, significant risks were reviewed as part 
of the Company’s IPO process. Identifying, evaluating
and managing the Group’s significant risks is an
ongoing process which has been in place throughout
the year to 30 June 2007 and up to the date of
approval of these financial statements.
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 risk management framework
referred to above and by the commissioning of regular
SAS 70 reports.
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.
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, but 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
The Group continues to promote energy efficiency 
and the avoidance of waste throughout its operations
and a number of initiatives, such as the recycling of
paper , glass and other waste and the use of ‘green’
energy , are encouraged.
By order of the board
Mark Grimwood
Company Secretary 31 ASHMORE GROUP PLC ANNUAL REPORT 2007
Remuneration report
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)
applied voluntarily . This report sets out the 
Company’s remuneration policy and gives details 
of the compensation of directors for the year 
ended 30 June 2007.
Remuneration committee
The members of the remuneration committee,
unchanged since its establishment on 3 July 2006,
are:
Jon Moulton (Chairman)
Michael Benson
Nick Land
The board considers that Michael Benson and 
Nick Land are non-executive directors who are
independent of management and free from any
business or other relationship that could materially
interfere with the exercise of their independent
judgement. Jon Moulton has been a non-executive
director of the Company for eight years. He is also 
a substantial shareholder in the Company and 
therefore is not considered to be independent 
under the 2006 Code definitions.
The remuneration committee meets as often 
as required to discharge its duties and met 
four times during the period from 1 July 2006 to 
6 September 2007. There was full attendance at all
meetings. The Chief Executive Officer ,
Chief Operating and Financial Officer , 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 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’s website.
Advisors
The remuneration committee has appointed Mercer
Human Resource Consulting 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. 32 ASHMORE GROUP PLC ANNUAL REPORT 2007
The Company has maintained directors’ and officers’
liability insurance cover throughout the period.
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 . Executive directors are permitted to retain
any fees earned for these non-executive directorships.
In the reporting year Mark Coombs did not hold any
non-executive directorships. In the reporting year 
Jim Pettigrew held non-executive directorships at
Edinburgh Investment Trust plc and CMC Markets plc,
earning fees of £24,292 and £50,000 respectively .
Executive remuneration policy
The Company rewards exceptional performance 
and so emphasises the variable components of the
package.
Salaries
Salaries are set low in comparison to the market. It is
the Company’s policy to maintain its fixed cost base at
a low level and to link the value of cash bonuses and
share awards to the Company’s profitability .
Variable compensation
The Company provides both an annual cash bonus
and long-term incentive share plans. The bonus and
share awards are determined by reference to the
individual’s performance against agreed criteria, the
profitability of the Company and the external market.
The Company’s intention in future years is to pay to
members of staff an amount 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.
Mark Coombs waived his right to receive any cash
bonus awarded to him in excess of £2,000,000 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 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.
Annual bonus
Performance criteria are established appropriate to 
the individual’s role, to include growth in AuM and
profitability where appropriate and other key areas of
individual responsibility .
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 constraints of
profitability as set out above.
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 2007 and similar
measurements will be applied in the financial year
ending 30 June 2008.
Jim Pettigrew’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 2007, and he was
Remuneration report continued
Date appointed Contract Notice Expiry/
director dateperiod review date
Executive directors
Mark Coombs 3 December 1998 21 September 2006 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 contractual termination date is therefore 2 July 2008, although an earlier date
may be agreed. He will continue to be paid his salary up until termination.
The table below provides details of the directors’ service agreements/letters of appointment.
Directors’ service contracts 33 ASHMORE GROUP PLC ANNUAL REPORT 2007
paid a cash bonus of £150,000 during the year . Similar
performance measures would apply to the financial
year ending 30 June 2008.
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 options over 687,600 shares
were granted to Jim Pettigrew from the Option Scheme
prior to Admission. In addition 200,000 restricted
shares were granted to Jim Pettigrew under the
Omnibus Plan, of which 80,000 were long-term share
awards, 60,000 related to his election to forego the
cash bonus equivalent and an additional 60,000 
were matched by the Company . No performance
measures were attached to these awards which 
were granted in relation to Jim Pettigrew joining 
the Company .
No share awards were made to Mark Coombs in 
the financial year .
No grants were made from the CSOP scheme.
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 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. These limits are set by
reference to multiples of the director’s base salary .
In view of the low base salaries, when compared with
those of directors of equivalent investment
management companies, the individual limits severely
restrict the value of awards that can be granted to an
executive director . The remuneration committee
believes that this will have an adverse impact on the
ability of the Company to attract and retain high
quality individuals. The remuneration committee is
therefore considering an amendment to the Omnibus
Plan to be recommended at the Company’s 2007
annual general meeting to allow the grant of more
appropriate awards.
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
18 companies has been selected from global
investment management companies of a similar 
size that are established and actively trading on 
stock markets.
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.
£200
£180
£160
£140
£120
£100
£80
£60
£40
£20
£0
October 2006 June 2007
Ashmore FTSE 250
Value of £100 invested on 11 October 2006
Source: Graph provided by Mercer Human Resource Consulting
Limited using a methodology compliant with the requirements of
Schedule 7A to the Companies Act 1985. 34 ASHMORE GROUP PLC ANNUAL REPORT 2007
Directors’ remuneration
The remuneration of the directors of the Company for the year ended 30 June 2007 was as follows:
Year ended Year ended
30 June 30 June
Cash 2007 2006
Salaries Fees Benefits bonus Total Total
Notes £ £ £ £ £ £
Executive directors
Mark Coombs 1, 7 100,000 – 8,607 5,000,000 5,108,607 2,500,000
Jim Pettigrew 2, 7 92,051 _ 6,444 150,000 248,495 –
Non-executive directors
Michael Benson 3, 6 – 85,513 – – 85,513 –
Nick Land 4, 6 – 25,654 – – 25,654 –
Jon Moulton 5, 6 – 21,638 – – 21,638 2,000
1 Mark Coombs’s cash bonus includes £3 million 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 2008.
2 Jim Pettigrew commenced employment on 31 July 2006. This cash bonus was paid prior to his resignation on 3 July 2007.
3 Michael Benson was appointed as Chairman on 3 July 2006. His fees were initially £50,000 per annum until Admission in October 2006 when
they increased to £100,000 per annum.
4 Nick Land was appointed on 3 July 2006. His fees were initially £15,000 per annum until Admission in October 2006 when they increased to
£30,000 per annum.
5 Jon Moulton’s fees were increased from £2,000 per annum to £30,000 per annum on Admission in October 2006.
6 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.
7 Benefits include payment in lieu of pension equivalent to 7% of basic salary in ‘Salaries’ column. Mark Coombs’s benefits also include membership
of the Company medical scheme.
Number of options   Number of options
at beginning of period at end of period Exercise price First exercise date Last exercise date
Jim Pettigrew Nil 687,600 £0.2424 31 July 2011 30 July 2016
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 Nil 200,000 £2.50 13 December 2006 30 November 2011
Directors’ share awards
The Ashmore First Discretionary Share Option Scheme
The Company Executive Omnibus Incentive Plan
Remuneration report continued
Audited information
Pensions
Executive directors are entitled to join the Ashmore
Group plc Retirement and Death Benefit 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, executive directors have
elected for employer contributions to cease and 
equivalent taxable cash payments have been made 
to the individuals in lieu.
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.
No share awards have been made to non-executive directors. 35 ASHMORE GROUP PLC ANNUAL REPORT 2007
Approved by the board and signed on its behalf by
Jon Moulton
Chairman of the remuneration committee
12 September 2007 
Directors’ interests in ordinary shares of
Ashmore Group plc
The market price of the Company’s shares as at 
30 June 2007 was £2.6925. The highest share price
during the financial year since Admission was £3.28.
The lowest share price was the Admission price of
£1.70 per share.
30 June 30 June
2007 2006
Executive directors
Mark Coombs 303,324,200 416,250,000
Jim Pettigrew 946,100 _
Non-executive directors
Michael Benson 29,000 –
Nick Land 29,000 –
Jon Moulton 30,511,700 52,500,000 36 ASHMORE GROUP PLC ANNUAL REPORT 2007
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 2007
which comprise the Group income statement,
the Group and parent Company balance sheets,
the Group and parent Company cash flow statements,
the Group 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
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, the 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 24.
Our responsibility is to audit the financial statements
and the part of the 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
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, Chief Executive Officer’s
review, business review and corporate governance
report 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 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 remuneration
report to be audited. It also includes an assessment
of the significant estimates and judgements 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. 37 ASHMORE GROUP PLC ANNUAL REPORT 2007
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
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 remuneration report to be audited.
Opinion
In our opinion:
• the Group financial statements give a true and fair
view, in accordance with IFRS as adopted by the
EU, of the state of the Group's affairs as at 
30 June 2007 and of its profit for the year then
ended;
• the parent Company financial statements give a
true and fair view, in accordance with IFRS 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 2007;
• the financial statements and the part of the
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
12 September 2007 38 ASHMORE GROUP PLC ANNUAL REPORT 2007
Consolidated income statement
Year ended 30 June 2007
2007 2006
Notes £m £m
Management fees 130.2 80.8
Performance fees 20.4 54.2
Other revenue 2 13.0 2.9
Total revenue 163.6 137.9
Less: Distribution costs (3.8) (2.3)
Net revenue 159.8 135.6
Personnel expenses 3 (32.6) (34.4)
Other expenses 4 (5.5) (6.5)
Operating profit 121.7 94.7
Gain on sale of business – 2.8
Interest income 9.7 6.5
Interest expense – (0.1)
Profit before tax 131.4 103.9
Income tax expense 5 (39.9) (32.3)
Profit for the year 91.5 71.6
Attributable to:
Equity holders of the parent 91.4 71.5
Minority interest 0.1 0.1
Profit for the year 91.5 71.6
Earnings per share:
Basic 6 13.7p 10.8p
Diluted 6 12.9p 10.4p 39 ASHMORE GROUP PLC ANNUAL REPORT 2007
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 2005 – 0.3 69.1 69.4 0.5 69.9
Profit for the year – – 71.5 71.5 0.1 71.6
Share-based payments – – 10.7 10.7 – 10.7
Disposal of business –––– (0.6) (0.6)
Dividends – – (55.0) (55.0) – (55.0)
Balance at 30 June 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 – – 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 40 ASHMORE GROUP PLC ANNUAL REPORT 2007
Consolidated balance sheet
As at As at
30 June 30 June
2007 2006
Notes £m £m
Assets
Property, plant and equipment 13 0.2 0.2
Intangible assets 9 4.1 4.1
Other receivables 12 0.1 3.6
Deferred tax asset 16 14.4 1.6
Total non-current assets 18.8 9.5
Trade and other receivables 12 27.2 20.0
Derivative financial instruments 0.5 1.3
Cash and cash equivalents 218.0 132.7
Total current assets 245.7 154.0
Total assets 264.5 163.5
Equity
Issued capital 14 – –
Share premium 0.3 0.3
Retained earnings 195.6 96.3
Total equity attributable to equity holders of the parent 195.9 96.6
Minority interest 0.1 –
Total equity 196.0 96.6
Liabilities
Deferred tax liabilities 16 – 0.1
Total non-current liabilities – 0.1
Current tax 15.7 18.0
Derivative financial instruments – 0.1
Trade and other payables 17 52.8 48.7
Total current liabilities 68.5 66.8
Total liabilities 68.5 66.9
Total equity and liabilities 264.5 163.5
Approved by the board on 12 September 2007 and signed on its behalf by:
Mark Coombs Jim Pettigrew
Chief Executive Officer Chief Operating and Financial Officer 41 ASHMORE GROUP PLC ANNUAL REPORT 2007
Consolidated cash flow statement
Year ended 30 June 2007
2007 2006
Notes £m £m
Operating activities
Cash receipts from customers 164.6 151.7
Cash paid to suppliers and employees (32.3) (34.7)
Cash generated from operations 132.3 117.0
Income taxes paid (39.2) (22.7)
Net cash from operating activities 93.1 94.3
Investing activities
Interest received 9.5 6.1
Dividends received – 1.4
Net proceeds from disposal of subsidiary – (0.2)
Purchase of property, plant and equipment 13 (0.1) –
Net cash from investing activities 9.4 7.3
Financing activities
Dividends paid 8 (15.5) (55.0)
Net cash used in financing activities (15.5) (55.0)
Effect of exchange rate changes on cash and cash equivalents (1.7) (0.5)
Net increase in cash and cash equivalents 85.3 46.1
Cash and cash equivalents at beginning of year 132.7 86.6
Cash and cash equivalents at end of year 218.0 132.7
Cash and cash equivalents comprise:
Cash at bank and in hand as shown in balance sheet 218.0 132.7
218.0 132.7 42 ASHMORE GROUP PLC ANNUAL REPORT 2007
Company balance sheet
As at As at
30 June 30 June
2007 2006
Notes £m £m
Assets
Property, plant and equipment 13 0.2 0.2
Intangible assets 9 4.1 4.1
Investment in subsidiaries 19 1.0 1.0
Other receivables 12 – 1.5
Deferred tax asset 16 14.4 1.6
Total non-current assets 19.7 8.4
Trade and other receivables 12 5.1 13.5
Cash and cash equivalents 167.5 80.5
Total current assets 172.6 94.0
Total assets 192.3 102.4
Equity
Issued capital 14 – –
Share premium 0.3 0.3
Retained earnings 152.7 61.3
Total equity attributable to equity holders of the company 153.0 61.6
Liabilities
Current tax – 3.6
Trade and other payables 17 39.3 37.2
Total current liabilities 39.3 40.8
Total liabilities 39.3 40.8
Total equity and liabilities 192.3 102.4 43 ASHMORE GROUP PLC ANNUAL REPORT 2007
Company cash flow statement
Year ended 30 June 2007
2007 2006
Notes £m £m
Operating activities
Cash receipts from customers 55.7 40.7
Cash paid to suppliers and employees (31.1) (28.3)
Cash generated from operations 24.6 12.4
Income taxes paid (5.5) (1.1)
Net cash from operating activities 19.1 11.3
Investing activities
Interest received 4.5 3.3
Dividends received from subsidiaries 79.0 66.9
Purchase of property, plant and equipment 13 (0.1) –
Net cash from investing activities 83.4 70.2
Financing activities
Dividends paid 8 (15.5) (55.0)
Net cash used in financing activities (15.5) (55.0)
Net increase in cash and cash equivalents 87.0 26.5
Cash and cash equivalents at beginning of year 80.5 54.0
Cash and cash equivalents at end of year 167.5 80.5
Cash and cash equivalents comprise:
Cash at bank and in hand as shown in balance sheet 167.5 80.5
167.5 80.5 44 ASHMORE GROUP PLC ANNUAL REPORT 2007
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 2005 – 0.3 38.7 39.0
Profit for the year – – 66.9 66.9
Share-based payments – – 10.7 10.7
Dividends – – (55.0) (55.0)
Balance at 30 June 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 – – 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 45 ASHMORE GROUP PLC ANNUAL REPORT 2007
Notes to the financial statements
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
made assumptions about the accounting policies expected 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.
(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. 46 ASHMORE GROUP PLC ANNUAL REPORT 2007
Notes to the financial statements continued
1) Significant accounting policies continued
(d) Financial instruments continued
(ii) 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 improvement 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 net selling price 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. 47 ASHMORE GROUP PLC ANNUAL REPORT 2007
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 options to its employees under the share option 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 the Black-Scholes formula, 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 option plan. The holding of the EBT comprises own shares that have not vested unconditionally
to employees of the Group. 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. 48 ASHMORE GROUP PLC ANNUAL REPORT 2007
Notes to the financial statements continued
1) Significant accounting policies continued
(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 in other operating income.
(p) Interest income and interest expense
Interest income and expense are calculated using an effective interest rate method. Interest income comprises
interest receivable on the Group’s cash and cash equivalents, and on funds invested. Interest expense
comprises interest payable on trade and other payables.
(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 the Group’s services comprise one business segment (being provision of
investment management services) and that it operates in a market that is not geographically segmented. 49 ASHMORE GROUP PLC ANNUAL REPORT 2007
1) Significant accounting policies continued
(s) Adopted IFRS not yet applied
The following IFRS endorsed by the EU were available for early application but have not been applied by the
Group in these consolidated financial statements:
• IFRS 7: Financial instruments: Disclosures; and the related amendment to IAS 1 on capital disclosures
• IFRIC 10: Interim Financial Reporting and Impairment
• IFRIC 11: IFRS 2 – Group and Treasury Share Transactions
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 except for additional disclosures on capital and financial
instruments when the relevant standards come into effect for periods commencing on or after 1 January 2007.
(t) 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 24.
(u) 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.
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. 50 ASHMORE GROUP PLC ANNUAL REPORT 2007
Notes to the financial statements continued
2) Other revenue
Year ended Year ended
30 June 30 June
2007 2006
£m £m
Included in other revenue:
Net foreign exchange gains (see note 11) 2.7 0.9
Administration fees – 1.1
Transaction, structuring and other fees 10.3 0.9
13.0 2.9
Net foreign exchange gains in the year ended 30 June 2007 comprise £4.4m (30 June 2006: £1.4m) of realised
and unrealised hedging gains relating to the management of the Group’s US dollar denominated revenue,
net of £1.7m (30 June 2006: £0.5m) representing the impact of foreign exchange movements on the Group’s 
non-sterling denominated monetary assets and liabilities.
3) Personnel expenses
Number of employees
The number of employees of the Group (including executive directors) during the reporting years, analysed by
category, was as follows:
Average for Average for
the year the year
ended ended As at As at
30 June 30 June 30 June 30 June
2007 2006 2007 2006
Investment management 59 42 69 49
Fund administration – 6 – –
Total employees 59 48 69 49
The fund administration employees in the above table relate to the employees of International Administration
(Guernsey) Limited which was sold on 30 December 2005.
Analysis of employee benefits expense
Year ended Year ended
30 June 30 June
2007 2006
£m £m
Wages and salaries 3.8 3.0
Share-based payments 5.7 6.8
Performance-related bonuses 21.7 23.6
Social security costs 0.5 0.3
Pension costs 0.2 0.2
Other costs 0.7 0.5
Total employee benefits 32.6 34.4
Performance-related bonuses included in the above table in the year ended 30 June 2007 include a total of
£8.7m of bonuses that have been waived by executive directors and employees, with an equivalent amount to
be paid as charitable donations in the financial year to 30 June 2008. 51 ASHMORE GROUP PLC ANNUAL REPORT 2007
4) Other expenses
Other expenses
Year ended Year ended
30 June 30 June
2007 2006
£m £m
Operating leases 0.4 0.4
Premises related costs 0.3 0.3
Information technology and communications 0.7 0.7
Depreciation of property and equipment 0.1 0.1
Auditors’ remuneration 0.2 0.7
Other expenses 3.8 4.3
Total other expenses 5.5 6.5
Auditors’ remuneration
Year ended Year ended
30 June 30 June
2007 2006
£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 (see below) – 0.5
Total services 0.2 0.7
Other services represent payments in respect of the Company’s IPO in October 2006. 52 ASHMORE GROUP PLC ANNUAL REPORT 2007
Notes to the financial statements continued
5) Taxation
Recognised in the income statement
Year ended Year ended
30 June 30 June
2007 2006
£m £m
Current tax:
Corporation tax on profits of the year 38.1 32.9
Adjustments in respect of prior years 3.1 0.6
Total current tax 41.2 33.5
Deferred tax arising from origination and reversal of temporary differences:
Current year (see note 16) (1.3) (1.2)
Total tax charge for the year 39.9 32.3
Deferred tax charge recognised directly in equity
Year ended Year ended
30 June 30 June
2007 2006
£m £m
Share-based payments (see note 16) 11.6 –
Tax charge recognised in equity 11.6 –
Factors affecting tax charge for the year
Year ended Year ended
30 June 30 June
2007 2006
£m £m
Profit before tax 131.4 103.9
Profit before tax multiplied by corporation tax at the UK standard rate of 30% 
(2006: 30%) 39.4 31.2
Effects of:
Expenses not deductible 0.6 0.6
Deduction in respect of exercised options (Schedule 23 Finance Act 2003) (0.2) –
Share-based payments 1.5
Profit on sale of subsidiary – (1.0)
Dividend receivable from overseas subsidiary – (0.2)
Other (3.0) 1.4
Adjustments in respect of prior years
Current tax 3.1 0.6
Deferred tax – (1.8)
Total tax in the income statement 39.9 32.3 53 ASHMORE GROUP PLC ANNUAL REPORT 2007
6) Earnings per share
Basic earnings per share is calculated by dividing the profit for the year attributable to equity holders of the parent
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
2007 2006
Weighted average number of ordinary shares used in calculation
of basic earnings per share 667,467,808 660,200,000
Effect of dilutive potential ordinary shares – share options 38,827,815 26,859,915
Weighted average number of ordinary shares used in calculation
of diluted earnings per share 706,295,623 687,059,915
7) Share-based payments
Group and Company share-based compensation plans
The following share-based compensation plans were in operation during the reporting year .
Enterprise Management Incentive Scheme (EMI Scheme)
The Group issued share options through its EMI Scheme in October 2000. As at June 2004 all options held under
the scheme were exercised. The shares held as a result of exercising EMI options were accounted for on a cash
settled basis up until 28 April 2006 when the policy was changed to equity settled. The EMI Scheme is no longer
operative and there are no options outstanding under this scheme.
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 five years from date of grant. The fair value of options at each reporting year end have
been accounted for on a cash settled basis up until 28 April 2006, and on an equity-settled basis thereafter .
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’s IPO 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 Omnibus 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. It is intended they will be complementary
and ensure that any cyclical fluctuations do not have an excessively adverse effect on employee remuneration in
circumstances where the Group has performed well.
The Approved Company Share Option Plan (CSOP)
The CSOP was also introduced prior to the Company’s IPO in October 2006 and is an option scheme providing
for the grant of market value options to selected 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 2007 there have been no awards made under the CSOP . 54 ASHMORE GROUP PLC ANNUAL REPORT 2007
Notes to the financial statements continued
7) Share-based payments continued
Share-based payments through the income statement
Group and Company
Year ended Year ended
30 June 30 June
2007 2006
£m £m
EMI Scheme – 5.4
Option Scheme 0.3 1.4
Omnibus Plan 5.4 –
Total expense 5.7 6.8
Share options outstanding
Share options outstanding under share-based compensation plans were as follows:
Group and Company
Weighted Weighted
As at average As at average
30 June 2007 exercise 30 June 2006 exercise
Number of price Number of price
options p options p
At beginning of year 46,225,000 13.24 28,125,000 8.44
Granted 2,021,671 36.96 19,850,000 19.08
Exercised (10,000,000) 8.10 (1,250,000) 0.52
Forfeited (93,750) 13.24 (500,000) 6.60
At end of year 38,152,921 15.84 46,225,000 13.24
Options exercisable 1,393,750 0.52 2,750,000 0.52
The weighted average share price on the date options were exercised during 2007 was 159.0p (2006: 18.72p).
Weighted average remaining contractual life of outstanding options
Group and Company
Year ended Year ended
30 June 30 June
2007 2006
Outstanding options 38,152,921 46,225,000
Weighted average exercise price 15.84p 13.24p
Weighted average remaining contracted life (years) 7.65 8.35
Range of exercise prices for share options outstanding
at the end of the year 0.52p – 170.00p 0.52p – 24.24p
7) Share-based payments continued
Share-based payments through the income statement
Group and Company
Year ended Year ended
30 June 30 June
2007 2006
£m £m
EMI Scheme – 5.4
Option Scheme 0.3 1.4
Omnibus Plan 5.4 –
Total expense 5.7 6.8
Share options outstanding
Share options outstanding under share-based compensation plans were as follows:
Group and Company
Weighted Weighted
As at average As at average
30 June 2007 exercise 30 June 2006 exercise
Number of price Number of price
options p options p
At beginning of year 46,225,000 13.24 28,125,000 8.44
Granted 2,021,671 36.96 19,850,000 19.08
Exercised (10,000,000) 8.10 (1,250,000) 0.52
Forfeited (93,750) 13.24 (500,000) 6.60
At end of year 38,152,921 15.84 46,225,000 13.24
Options exercisable 1,393,750 0.52 2,750,000 0.52
The weighted average share price on the date options were exercised during 2007 was 159.0p (2006: 18.72p).
Weighted average remaining contractual life of outstanding options
Group and Company
Year ended Year ended
30 June 30 June
2007 2006
Outstanding options 38,152,921 46,225,000
Weighted average exercise price 15.84p 13.24p
Weighted average remaining contracted life (years) 7.65 8.35
Range of exercise prices for share options outstanding
at the end of the year 0.52p – 170.00p 0.52p – 24.24p 55 ASHMORE GROUP PLC ANNUAL REPORT 2007
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
2007 2006
Equity-settled Equity-settled 28 April 2006
(awards granted (awards granted Final cash-
in period) in period) settled basis
Dividend yield (%) 5.50 5.50 5.50
Expected volatility (%) 31.00 – 34.00 36.00 36.00
Risk free interest rate (%) 5.12 4.54 5.02
Expected life (years) 7 77
Weighted average share price 186.10p 19.10p 24.24p
Weighted average exercise price 36.96p 19.10p 13.24p
Weighted average fair value of options granted during the year 10.92p 4.46p 7.10p
Weighted average fair value of cash-settled options outstanding N/A N/A 10.41p
As the Company was not listed until October 2006 it does not have historic share price information to consider
for estimating expected volatility . Therefore, volatility has been calculated for options granted in the period by
taking the average of the historic volatility of four of the Company’s quoted peers over the preceding four-year
period. The average volatility of these four quoted peers as on each reporting date is considered as the 
long-term mean and used for valuing options. Peers selected were public quoted fund management companies
which were considered to offer suitable coverage in terms of business mix to be a reasonable proxy for volatility
for the Company .
8) Dividends
An analysis of dividends paid is as follows:
Group and Company
Year ended Year ended
30 June 30 June
2007 2006
Interim dividend £15.5m £55.0m
Dividend per share 2.30p 8.33p
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 12 September 2007 the board proposed a final dividend of 6.7p per share for the year ended 30 June 2007.
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 £44.7m. 56 ASHMORE GROUP PLC ANNUAL REPORT 2007
Notes to the financial statements continued
9) Intangible assets – goodwill
Group and Company
The goodwill balance of £4.1m (2006: £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 on 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 to date and no movement in goodwill.
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 is determined by reference to published price quotations.
11) Financial risk management
Financial risk management objectives and policies
Financial risk management relates to risk to the Group in respect of its own assets and liabilities.
The Group has limited exposure to financial instruments in respect of its own assets and liabilities. They include
forward foreign exchange contracts, cash deposits and trade receivables and payables.
The main risks arising from financial instruments are foreign currency risk, exposure to interest rate risk, liquidity
risk and credit risk. Each of these risks is discussed in detail below.
Interest rate risk
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.
Effective interest rates applicable to financial instruments are as follows:
Year ended Year ended
30 June 30 June
2007 2006
% %
Deposits with banks 5.57 5.28
As at As at
30 June 30 June
2007 2006
£m £m
Items repricing within one year or less:
Deposits with banks 218.0 132.7
Items repricing in more than one year but not more than two years:
Loans included within “Trade and other receivables” 0.1 3.6 57 ASHMORE GROUP PLC ANNUAL REPORT 2007
11) Financial risk management continued
Liquidity risk
It is the Group’s policy to ensure that it has sufficient access to funds to cover all forecast committed requirements
for the next 12 months.
Foreign currency risk
Foreign currency risk is the risk that the Group will sustain losses through adverse movements in currency
exchange rates. The Group’s business is impacted through its exposure to fee income being principally 
US dollars while its cost base is largely sterling denominated. Forward foreign exchange contracts are used to
mitigate exposure to foreign currency risk where it is considered that the sterling values of such amounts are at
risk. The use of such instruments is limited and is subject to approval by the Chief Executive Officer . In addition 
to foreign currency fee revenue, the Group has a foreign currency exposure in respect of bank account balances
held in US dollars.
The financial effect of the realised and unrealised hedging gains during the year and the impact of the movement
of the foreign exchange rates on the Group’s non-sterling denominated monetary assets and liabilities is shown in
note 2.
At 30 June 2007 forward contracts totalling US$30m were outstanding with a maturity profile of less than one year
(30 June 2006: US$90m).
Credit risk
Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis.
The Group’s principal exposure to credit risk arises from default of an investment management client in respect of
fees due and banks in respect of deposits and derivative positions. There is no significant concentration of credit
risk in respect of fees owing from clients. Bank deposits are liquid short-term deposits with banks which have
credit ratings ranging from A+ to AA.
12) Trade and other receivables
Group Company
As at As at As at As at
30 June 30 June 30 June 30 June
2007 2006 2007 2006
£m £m £m £m
Current
Trade debtors 24.5 15.9 1.0 13.0
Prepayments and accrued income 0.7 0.3 0.7 0.4
Other receivables 2.0 3.8 3.4 0.1
27.2 20.0 5.1 13.5
Non-current
Other receivables 0.1 3.6 – 1.5
0.1 3.6 – 1.5 58 ASHMORE GROUP PLC ANNUAL REPORT 2007
Notes to the financial statements continued
13) Property, plant and equipment
Group and Company
2007 2006
Fixtures, Fixtures,
fittings and fittings and
equipment equipment
£m £m
Cost
At 1 July 0.6 0.6
Additions 0.1 –
At 30 June 0.7 0.6
Accumulated depreciation
At 1 July 0.4 0.3
Depreciation charge for year 0.1 0.1
At 30 June 0.5 0.4
Net book value at 30 June 0.2 0.2
14) 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
2007 2007 2006 2006
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
2007 2007 2006 2006
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. 59 ASHMORE GROUP PLC ANNUAL REPORT 2007
14) Share capital continued
At 30 June 2006 there were 46,225,000 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 April 2016 and the
allotment price ranges from 0.52p to 24.24p.
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 170.0p. There are also restricted share awards issued under the
Omnibus Plan totalling 2,009,522 shares that have a release date in November 2011.
15) 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 38,725,000 
(June 2006: 48,725,000) ordinary shares of 0.01p with a nominal value of £3,872.50 (June 2006: £4,872.50) 
and shareholders’ funds are reduced by £5.9m (June 2006: £4.8m) in this respect. It is the intention to make
these shares available to employees by way of sale through the share option scheme.
16) 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 2006
(Assets) (0.9) (0.7) (1.6)
Liabilities 0.1 – 0.1
Net (0.8) (0.7) (1.5)
At 30 June 2007
(Assets) (0.3) (14.1) (14.4)
Net (0.3) (14.1) (14.4)
Company
Other
temporary Share-based
differences payments Total
£m £m £m
At 30 June 2006
(Assets) (0.9) (0.7) (1.6)
Net (0.9) (0.7) (1.6)
At 30 June 2007
(Assets) (0.3) (14.1) (14.4)
Net (0.3) (14.1) (14.4) 60 ASHMORE GROUP PLC ANNUAL REPORT 2007
Notes to the financial statements continued
16) 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 2005 – (0.3) (0.3)
Credited to the consolidated income statement (see note 5) (0.8) (0.4) (1.2)
At 30 June 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)
Company
Other
temporary Share-based
differences payments Total
£m £m £m
At 1 July 2005 – (0.3) (0.3)
Credited to the consolidated income statement (0.9) (0.4) (1.3)
At 30 June 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)
The UK deferred tax rate has changed from 30% to 28% during the year . The impact of this change is a reduction
of £0.9m in the deferred tax asset (30 June 2006: nil). 61 ASHMORE GROUP PLC ANNUAL REPORT 2007
17) Trade and other payables
Group Company
As at As at As at As at
30 June 30 June 30 June 30 June
2007 2006 2007 2006
£m £m £m £m
Current
Accruals and deferred income 52.8 48.7 39.3 37.2
52.8 48.7 39.3 37.2
Following the Group’s IPO in October 2006 and the finalisation of the allocation between cash-based and 
share-based awards in respect of the financial year to 30 June 2006, a reallocation of £0.8m was made from the
bonus provision held at 30 June 2006 to share-based payments included in equity .
18) Leases
Operating leases
The Group has entered into certain property leases. The leases have no fixed 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:
Group and Company
As at As at
30 June 30 June
2007 2006
£m £m
Within one year – –
Over one year but not more than five years 0.4 0.4
Total 0.4 0.4 62 ASHMORE GROUP PLC ANNUAL REPORT 2007
Notes to the financial statements continued
19) Subsidiaries
Company
Investment in subsidiaries
As at As at
30 June 30 June
2007 2006
£m £m
Cost and net book value 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 2007
operation % owned
Ashmore Investments (UK) Limited England 100.00
The principal subsidiaries whose results are included in the consolidated financial statements of the Group,
excluding the directly held subsidiaries of the Company shown above, are as follows:
Country of
incorporation/
formation and As at
principal 30 June
place of 2007
operation % owned
Ashmore Investment Management Limited England 100.00
Ashmore Management Company Limited Guernsey 100.00
Ashmore Hong Kong Limited Hong Kong 100.00
Ashmore Global Special Situations Fund 3 (GP) Limited Guernsey 100.00
Ashmore Private Equity Turkey Management Limited Guernsey 70.00
All shares held are ordinary . 63 ASHMORE GROUP PLC ANNUAL REPORT 2007
20) Related party transactions
Related party transactions are in respect of relationships with senior management. The senior management
compensations are as follows:
Restated
Year ended Year ended
30 June 30 June
2007 2006
£m £m
Short-term employee benefits 16.3 6.7
Share-based payment benefits 0.1 4.6
Total 16.4 11.3
Short-term employee benefits include the actual amounts of cash bonuses payable in respect of the year to 
30 June 2007. This was previously reported as the actual amounts of cash bonuses paid in the year to 
30 June 2006.
The figures in the above table in the year ended 30 June 2007 include a total of £8.3m of bonuses that have
been waived by senior management, with an equivalent amount to be paid as charitable donations in the
financial year to 30 June 2008.
Share-based payment benefits represents the fair value charge to the income statement of options and shares
resulting from options that have been granted to senior management.
Loans 
Loans to senior management are as follows:
Year ended Year ended
30 June 30 June
2007 2006
£m £m
Loans – 1.5
Loans are made by the EBT at commercial rates with repayment due in full on certain trigger events, including
sale of any shares into a listing, or at the latest five years from date of grant.
No amounts have been provided against or written off any of these balances.
Intragroup transactions that have been eliminated are not disclosed as related party transactions in these
consolidated financial statements. 64 ASHMORE GROUP PLC ANNUAL REPORT 2007
Notes to the financial statements continued
20) Related party transactions continued
Transactions with subsidiaries
Details of transactions between the Company and its subsidiaries, which are related parties of the Company,
are shown below:
Company
Year ended Year ended
30 June 30 June
2007 2006
£m £m
Management fees received 38.8 38.8
Net dividends received 63.5 11.9
As at As at
30 June 30 June
2007 2006
£m £m
Amounts due from subsidiaries 0.3 12.6
Amounts due to subsidiaries 4.1 4.4
Details of transactions between the Group and other related parties, excluding compensation, are disclosed below.
Transactions and balances with related parties
Post-employment benefit plans
The Group contributed the following amounts to a defined contribution scheme and had amounts outstanding at
30 June each year as follows:
Year ended Year ended
30 June 30 June
2007 2006
£m £m
Employer contributions to a defined contribution scheme 0.2 0.2
21) 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
2007 2006 2007 2006
US dollar 2.0088 1.8484 1.9466 1.7806 65 ASHMORE GROUP PLC ANNUAL REPORT 2007
22) Directors’ remuneration
Disclosures of directors’ remuneration as required by the Companies Act, 1985 are as follows:
Restated
Year ended Year ended
30 June 30 June
2007 2006
£m £m
Aggregate emoluments 5.5 2.6
5.5 2.6
The figures shown against directors’ emoluments in the table represent the actual amounts payable in respect of
the period. This was previously reported as the actual amounts of cash bonuses paid in the year to 30 June 2006.
The figures in the above table in the year ended 30 June 2007 include a £3 million cash bonus that has been
waived by Mark Coombs with an equivalent amount to be paid as charitable donations in the financial year to 
30 June 2008.
There are retirement benefits accruing to one director under a defined contribution scheme (30 June 2006: one).
Directors’ emoluments
This information is included in the remuneration report on page 34.
23) Post balance sheet events
There are no post balance sheet events for the year ended 30 June 2007.
24) 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 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. 66 ASHMORE GROUP PLC ANNUAL REPORT 2007
Five-year summary
UK GAAP IFRS
2003 2004 2005 2006 2007
£m £m £m £m £m
Management fees 12.4 25.4 41.2 80.8 130.2
Performance fees 7.1 38.1 23.2 54.2 20.4
Other revenue 1.4 3.4 2.8 2.9 13.0
Total revenue 20.9 66.9 67.2 137.9 163.6
Less:Distribution costs (0.5) (1.6) (1.3) (2.3) (3.8)
Net revenue 20.4 65.3 65.9 135.6 159.8
Personnel expenses (2.2) (2.7) (3.4) (4.0) (5.2)
Variable compensation (3.7) (13.1) (13.9) (30.4) (27.4)
Other operating expenses (3.0) (3.7) (3.8) (6.5) (5.5)
Total operating expenses (8.9) (19.5) (21.1) (40.9) (38.1)
Operating profit 11.5 45.8 44.8 94.7 121.7
Net interest 1.2 2.0 3.6 6.4 9.7
Gain on sale 0.0 0.0 0.0 2.8 0.0
Profit before tax 12.7 47.8 48.4 103.9 131.4
Tax (4.1) (13.5) (16.0) (32.3) (39.9)
Profit for the year 8.6 34.3 32.4 71.6 91.5
Eps (basic) 1.1p 4.7p 4.9p 10.8p 13.7p
Other operating data (unaudited)
AuM at period end (US$bn) 3.3 5.9 11.0 20.1 31.6
AuM at period end (£bn) 2.0 3.2 6.1 10.9 15.7
Average AuM (£bn) 1.3 2.8 4.5 9.4 13.6
Average £:US$ exchange rate for the year 1.59 1.74 1.86 1.78 1.95
Period end £:US$ exchange rate for the year 1.66 1.83 1.82 1.84 2.01 67 ASHMORE GROUP PLC ANNUAL REPORT 2007
Information for shareholders
Ashmore Group plc
Registered in England and Wales.
Company No. 3675683
Registered office
20 Bedfordbury
London WC2N 4BL
Tel: +44 (0) 20 7557 4100
Fax: +44 (0) 20 7557 4141
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 2007 12 September 2007
First quarter AuM statement 16 October 2007
Annual general meeting 31 October 2007
Ex-dividend date 7 November 2007
Record date 9 November 2007
Final dividend payment date 7 December 2007
Second quarter AuM statement 15 January 2008
Announcement of unaudited 
interim results for the six months 
ended 31 December 2007 26 February 2008
Announcement of results for 
the year ended 30 June 2008 September 2008
Registrar
Lloyds TSB Registrars
The Causeway
Worthing
West Sussex
BN99 6DA
UK shareholder helpline: 0870 600 3970 
International shareholder helpline: +44 121 415 7047
Further information about the Registrar is available
on their website www.lloydstsb-registrars.co.uk.
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. Lloyds TSB Registrars offer a secure,
free and easy-to-use internet-based share dealing
service known as Shareview Dealing.
To access this service, you can log on at
www.shareview.co.uk/dealing or contact the helpline
on 0870 850 0852 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. 68 ASHMORE GROUP PLC ANNUAL REPORT 2007
Electronic copies of the 2007 Annual Report and
financial statements and other publications
Copies of the 2007 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 Lloyds TSB 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
You should notify Lloyds TSB 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 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 Lloyds TSB 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 Lloyds
TSB Registrars immediately by calling the shareholder
helpline on 0870 600 3970.
Disability helpline
For shareholders with hearing difficulties a special
text phone number is available: 0870 600 3950.
Information for shareholders continued Definitions
‘Admission’ admission to the Official List of the London Stock Exchange
‘Articles’ the articles of association of the Company
‘AuM’ assets under management
‘average AUM’ average of the month end AuMs for the relevant period
‘basis points’ 100th of a per cent
‘board’ Company’s board of directors
‘Combined Code’ Combined Code on Corporate Governance issued in 2006
‘Companies Acts’ every statute (including any orders, regulations or other subordinate 
legislation made under it) from time to time in force concerning companies 
in so far as it applies to the Company
‘Company’ or ‘Ashmore’ Ashmore Group plc
‘CSR’ Corporate Social Responsibility
‘$’ or ‘dollars’ all references to dollars or $ sign are to the currency of the US
‘ebit’ earnings before interest and tax
‘eps’ earnings per share
‘EU’ European Union
‘FRC’ Financial Reporting Council
‘FTSE 250’ comprised of mid-capitalised companies, not covered by the FTSE 100
‘Group’ the Company and its subsidiary undertakings
‘IAS’ International Accounting Standards
‘IFRS’ or ‘IFRSs’ International Financial Reporting Standards
‘IPO’ initial public offering
‘US’ United States of America
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
20 Bedfordbury 
London WC2N 4BL
United Kingdom
www.ashmoregroup.com