Ashmore Regulatory News (ASHM)

Final Results

11/09/2012

Ashmore Group PLC

11 September 2012

Ashmore Group plc

11 September 2012

RESULTS FOR THE YEAR ENDED 30 JUNE 2012

Ashmore Group plc ("Ashmore", the "Group"), the specialist Emerging Markets asset manager, today announces its audited results for the year ended 30 June 2012.

Highlights

• Total net revenue of £333.3 million, in line with FY2010/11 (£333.8 million)

- Management fees up 21% to £302.6 million

- Performance fees of £25.4 million (FY2010/11: £85.4 million)

• EBITDA margin 71% (2011: 73%)

• Profit before tax of £243.2 million, 1% down from FY2010/11 (£245.9 million)

• Basic earnings per share of 26.8p (FY2010/11: 28.1p)

• 10.75p final dividend, making a full year dividend of 15.00p

• Final assets under management ("AuM") of US$63.7 billion at 30 June 2012, a decrease of US$2.1 billion (3%) from US$65.8 billion at 30 June 2011.

Commenting on the Group's results, Mark Coombs, Chief Executive Officer, Ashmore Group plc said:

"These results demonstrate the resilient nature of Ashmore's business. The Group achieved a satisfactory financial performance during a period of significant ongoing market volatility."Against this market backdrop, the Group has delivered higher quality revenues, with growing, more diversified management fees replacing the anticipated reduction in performance fees, while maintaining overall levels of profitability."The Group experienced positive net inflows during both halves of the year, with total subscriptions of $13billion. Investors from Emerging Markets into other Emerging Markets are increasing in number and size as they re-assess global risks and seek to diversify away from developed country risks. As a consequence, we are continuing to see strong growth in assets coming from Emerging Markets clients."More and more investors are seeing Emerging Markets debt as an alternative to fixed income in general and with yields in the developed world either high for a good reason or yielding next to nothing, Emerging Market debt looks highly attractive. Emerging Markets equities looks to be ripe for a good year given relatively low valuations, and specialist areas in small cap and frontier markets are bound to attract attention as investors lose their solely large cap bias in the search for high long term returns and outperformance.

Analysts/investors briefing

There will be a presentation for analysts at 09.00 on 11 September at the offices of Goldman Sachs International at Peterborough Court, 10th Floor, 133 Fleet Street, London EC4A 2BB. A copy of the presentation will be made available on the Group's website at www.ashmoregroup.com

Contacts

For further information please contact:

Chairman's Statement

As shareholders will be aware, global economies are currently facing many challenges, not least of which centre round the European debt crisis and the contraction of trade around the world. Such conditions create great uncertainty, which in turn lead to considerable market volatility. Against this background Ashmore has had a year of consolidation, one in which it has been able to use its specialist knowledge and skills to enhance its scalable operating platform. This is a key component for achieving success in any asset management business and the Chief Executive Officer's report and Business Review which follow provide details of what has been achieved.

In financial terms, the Group has produced a solid performance. The closing level of AUM was US$ 63.7 billion, marginally down from last year, which reflects the impact of difficult and volatile market conditions. Despite this, a number of the asset classes have grown through net inflows. As against last year the Group's revenues have fallen very marginally, largely due to the anticipated reduction in performance fees. This fall was mitigated to some extent by increased management fees.

A little over a year ago the Group completed the acquisition of AshmoreEMM and after a considerable amount of planning the business has been successfully integrated into the Group and the new equity team is operating well. Looking forward, the Group is determined to grow its equity footprint and the experience which AshmoreEMM has developed over many years, will provide a sturdy platform to help achieve this.

The Board continues to place great emphasis on all issues surrounding corporate governance and it welcomes the appointment of Simon Fraser, who joined the Group as a non-executive director in February this year. He has had a long and extensive career in the field of investment management and his experience will be very helpful to the Board. We are looking to appoint a further non-executive director in due course. Jonathan Asquith, who has been on the Board since September 2008, will retire and not seek re-election at the AGM. On behalf of the Board I would like to thank him for the service and contribution that he has given to the Group during this period.

Although the Group saw a modest fall in earnings per share, as against last year, the Board remains confident about the future and the growth of the operations and the Directors are recommending a final dividend of 10.75p a share for the year to 30 June 2012, which subject to shareholders' approval, will be paid on 7 December, to those shareholders on the register on 9 November. This makes a total dividend for the year of 15.00p a share (FY2010/11: 14.50p a share).

While the challenges facing the global markets look likely to continue, Ashmore's investment team will continue to strive to produce top class investment performance, through its exclusive focus on the Emerging Markets. The distribution and support teams will also seek to win, serve and retain the assets of the Group's diverse and growing client base.

Looking back over the year there is much that has been accomplished, but there are always areas where improvements can be made and the Group remains totally committed to achieving the highest standards and levels of excellence in everything it does.

The Board is grateful to everyone across the Group's global offices for their hard work and commitment over the past year.

Michael Benson

Chairman

Chief Executive Officer's Report

The results for the year ended 30 June 2012 provided a demonstration of the continuing resilient nature of Ashmore Group in a difficult year for investing. The business is now a more diversified one with the full range of Emerging Markets investment themes in place. This provides for an unrivalled depth of Emerging Markets fund products for which the distribution architecture is significantly developed. The expected increased levels of management fee income largely offset the anticipated reduction in performance fees. The Group was successful in completing the integration of the Emerging Markets equities business AshmoreEMM, with the consideration structure providing a reduction in the expected level of contingent payments, as global equity indices declined and hence levels of equities AuM reduced. Overall therefore the profit before tax for the Group was £243.2 million, a reduction of 1% on the previous year.

AuM Development

During the year, although average AuM increased by US$ 17.5 billion (38%), AuM decreased by 3% from US$ 65.8 billion to US$ 63.7 billion as overall negative investment performance of US$ 3.4 billion exceeded the level of net subscriptions achieved of US$1.3 billion.

Gross subscriptions totalled US$ 13.0 billion (FY2010/11 US$23.0 billion) principally into all the debt themes with further large segregated mandates from both new and existing clients being a substantial component.

Gross redemptions increased in absolute terms to US$ 11.7 billion (FY2010/11 US$7.5 billion) which at an overall level of 18% of average AuM remain on the low side by industry standards, although slightly up on the prior year. The absolute increase over levels experienced in prior periods was due to a combination of equities outflows in the first year after acquisition, and from retail multi-strategy assets raised in Japan in the prior period, undoubtedly amplified by the extreme market volatility experienced during the year.

Investment performance

Overall negative investment performance was primarily driven by the negative performance in equities and local currency exceeding positive investment performance in the external, corporate and blended debt themes.

The sharp declines in equities indices, particularly in the first and fourth quarters, impacted AuM levels significantly in both the dedicated equities and multi-strategy themes. The predominantly dollar denominated external, corporate and blended debt mandates maintained positive performance given their relative attractions over developed world debt. In contrast, the declines in a number of Emerging Markets currencies due to the climate of risk aversion ensured that local currency debt indices were negative, notwithstanding the same underlying relative attractiveness. This led to negative investment performance in the local currency debt theme and of course impacted currency overlay AuM. At an overall Group level the percentage of funds outperforming benchmarks at 30 June 2012 was 23% over one year reflecting our consistent approach of adding risk in the risk off environment at the end of the first quarter and 86% over three years. This strong long term investment performance profile, particularly in the debt themes, continues to underpin the Group's position as one of the leading specialist Emerging Markets fund managers, which has again this year been recognised with a number of awards.

Financial performance

Revenue

Net revenue for the year of £333.3 million was in line with the prior year. This resulted from a 21% increase in management fee income to £302.6 million, driven by an increase in average AuM levels offset by the reduction of average revenue margins which were largely in line with the levels reported at the interim stage (FY 2011/12: 74bps, H1 2011/12: 76 bps, FY 2010/11: 86bps). As reported at the interim this fall resulted from theme and mix effects including the respective weighting of the Group's higher and lower margin themes as they were differently impacted by flows and performance, the inclusion of the equities theme for the full period with lower margins than the Group's previous average, and further segregated account gains. The fall in performance fees to £25.4 million (FY 2010/11: £85.4 million) was expected as it is determined by levels of absolute investment performance, which reduce as is normal at this point in the cycle after peaking immediately following the credit crisis, and they were further reduced through the significant market sell offs at the end of the first quarter which largely eliminated performance fees for funds with year ends thereafter.

Cost structure

The Group has maintained its cost structure, and continues to focus on ensuring this remains a key strength, with the year on year changes largely reflecting the increment arising from the increase in staff and other costs resulting from the inclusion of the AshmoreEMM business for a first full year, together with the amortisation and share-based accounting charges arising from the transaction.

The structure of staff costs has been maintained, whereby fixed salaries and benefits are set at a capped and low basic level, with the majority of staff costs arising from variable compensation, including a significant component of equity based long term incentive share awards. This remains a core characteristic of Ashmore's business model. In the year to 30 June 2012 variable compensation as a percentage of earnings before variable compensation (VC/EBVCIT) was 18% (FY 2010/11: 19%). The VC/EBVCIT fell by 1% from the level of the prior period reflecting the less good overall performance metrics of the business - in particular short term investment performance and shareholder return.

Other expenses increased by 50% to £34.4 million (FY2010/11: £22.9 million). The increase reflected largely the costs of the acquired business and the amortisation of intangible assets (£6.2 million) arising within it.

As a result operating profit for the year is £225.1 million (FY 2010/11: £239.4 million). In line with the statement made in the report last year, the Group's margins have reduced, although by slightly less than expected due to the lower variable compensation charge to an EBITDA margin of 71% for the year (FY 2010/11: 73%).

Finance income during the period increased as a result of adjustments to the contingent consideration for the acquisition of AshmoreEMM. As in the first half, the further reduction during the second half in levels of AuM within the business, including outflows and negative investment performance, resulted in a downward revision of the level of the contingent payment at 31 May 2012, as well as reductions to the expected levels of the two further contingent payments scheduled for 31 May 2013 and 2014. This underlines the benefit of a significant component of the overall consideration being in the form of contingent payments. Incorporating finance charges arising from the unwind of the discount of contingent payments and gains upon the Group's seed capital, the overall finance income was £18.1 million (FY 2010/11: £6.5 million).

Profit after tax for the year was £185.7 million (FY 2010/11: £190.2 million). Earnings per share for the year was 26.82p (FY2010/11: 28.08p).

Strategic progress

Equities acquisition update

The acquisition of AshmoreEMM was completed at the end of the prior financial year and integrating the business successfully was the focus for the current year. Immediately following change of control the distribution responsibilities for the equities theme were undertaken within Ashmore's global distribution team and during the year this included the establishment of business development, institutional account management and product specialist functions through firstly familiarisation, then on-going focus and training and targeted recruitment. The seeding and launch of daily dealing SICAV and US mutual funds on the Ashmore platforms for both the broad global active and global small cap strategies were completed providing efficient access to these two key conduits. Full investment responsibility for the Group's equities theme was transferred to the AshmoreEMM team during the year and thereafter there has been a focus on further developing the equities investment process. The integration of AshmoreEMM onto the Group's core portfolio management and fund accounting systems was completed on schedule. This implementation gives consistent systems across the Group and provides greater transparency and enables more effective and efficient group-wide support for the AshmoreEMM business. AshmoreEMM is now fully integrated into the Group with the local governance structure reflecting Ashmore's global operating model and with local functional units reporting into the respective global function head. Finally in July 2012 immediately after the year end the physical infrastructure was enhanced with the move to a new purpose designed office, open plan in nature in line with the Group's global standard , providing for the adoption of the optimised Group wide technology infrastructure.

Investment theme developments

We continue to seek investment themes and sub-themes for investors to allocate capital across the Emerging Markets where we can provide both diversification of risk/return profiles and depth and growth of investable asset pools. The period has seen a widening adoption of Emerging Markets investment grade products, the initial establishment of dedicated local currency corporate debt funds, and the set up of conduits to allow wider access to our equity product suite, including in particular our small and mid cap and frontier markets expertise where we have outstanding track records across the Middle East, Asia and Africa. As expected with the inversion of credit quality between developed markets and Emerging Markets sovereigns, we have seen increasing momentum within Emerging Markets investment grade products as investors find the universe of developed world investment grade debt reduces, whilst it increases in Emerging Markets. We have also now launched investment grade bond products denominated in local currency. This enables investors to take advantage of attractive local currency exposure whilst diversifying away from Dollar, Euro, Yen and Sterling denominated bond assets which have traditionally dominated the investment grade space. Not all fixed income managers have the appropriate combination of interest rate, credit and foreign exchange skills to manage such a product successfully over the cycle, and we have been pleased with our immediate outperformance here.

One of the most significant product initiatives in the year was not in the form of new product, but in new conduits for our existing global equities themes. We now have both SICAV and US 40 Act mutual funds in place for our broad global active, global small cap and frontier Emerging Markets equities products. These conduits open up the chance of investing with us to a far larger audience of both institutional and retail clients and we expect great things from both our investing and distribution teams in these sub themes.

Distribution platform update

In line with the progress reported over the previous two years this year saw the final elements of the organisational structure added to the distribution platform, coupled with a deepening of resources within all the key functions. The addition of product specialists completes the architecture providing clients with access to individuals who are focused entirely upon the efficient communication of the investment management strategies and results. This function enables the investment management team to maximise their time managing assets yet ensuring the client or prospective client has full access to individuals participating in the respective investment committees and who are fully aware of every nuance of the resultant performance.

Further progress was achieved in both the institutional and retail areas of the business. In terms of institutional clients, the global reach of the business development team delivered a broadening of the client base both in terms of client type and geographic location. Meanwhile further progress was made in the buildout of the Group's retail activities with the Group securing access to a number of intermediary platforms in the US and Europe which are beginning to show encouraging early signs.

The distribution headcount at the end of the year was 41 (30 June 2011: 32) substantially completing the rapid growth phase of the team and ensuring the Group is positioned to raise assets and service clients globally from developed world and Emerging Markets with a highly experienced team of professionals focused on the Emerging Markets for all asset classes.

Local asset management developments

The Group believes strongly that, in addition to the AuM sourced from developed world investors who are increasing their allocations to the Emerging Markets in line with the trend of growth of these markets, its own long term growth will be enhanced by successfully mobilising Emerging Markets capital in line with the third phase of the Group's strategy. This recognises the absence of a history of the high leverage that is prevalent in the developed world, the economic growth prospects, demographics and enviable savings rate dynamics of these countries as well as the relatively early stage of development of asset management industries within many of these Emerging Markets.

The Group has previously reported the establishment of local asset management subsidiaries in Brazil, Turkey and Colombia and real estate joint ventures in China and Russia which during the year have continued investing successfully and made progress in raising AuM, although much needs to be done. At the same time the Group has been looking throughout the period at further opportunities which aim to extend the geographic and asset class breadth.

This has resulted in July 2012 in the establishment of a further new local asset management venture for Ashmore in Indonesia. We look forward to reporting on the developments within this new venture alongside the existing ones in the coming years.

Overall the key now is to start seeing significant performance and asset growth from our local asset management operations.

People and culture

At the end of the year the Group's headcount has increased to 257 (30 June 2011: 246) reflecting the increase in both distribution and some of the key support functions which was offset by a small reduction arising from synergies achieved within the integration of AshmoreEMM. Whilst AuM levels overall have reduced by 3%, gross inflows of US$13 billion have resulted from the significant efforts across the Group in winning mandates and bringing them on board efficiently by strong cross functional collaboration. Our investment professionals have continued to ensure that their exclusive focus on the Emerging Markets and our long standing and rigorous investment process provide for the maximum potential for investment outperformance, in a year where global markets have provided many further challenges. In summary, last year judged through our KPI's, investment performance and shareholder return would probably be assessed as satisfactory. We, of course, like to do much better than this.

In facing all of our challenges together I continue to be impressed by our team, and by the significant levels of emotional capital they invest in what we do. As we grow and clients' demands get more complex, and new people such as our AshmoreEMM colleagues join us, the pressure on individuals and the need for the whole firm to help each other will only increase. I should like to thank everyone for the contribution made during the last year and look forward to our continuing joint effort to do everything better, achieving investment outperformance and retaining and raising AuM whilst operating in an efficient and controlled manner across our existing and new businesses.

Outlook

Markets have been obsessed with Eurozone 'tail-risk' and low levels of developed world growth, and we expect these concerns to continue to affect financial market sentiment over the coming months, but to a steadily declining degree. The larger backdrop of de-leveraging and global rebalancing of currencies remains and justifies investment allocations to Emerging Markets much higher than today.

Although this developed world environment means that Emerging Markets will go through periods of slower growth via lower export orders from the US and EU, they are becoming less dependent on this export demand as they are trading (and investing) more amongst themselves. For several of the most export-dependent Asian economies there is also a progressive shift to a domestic demand-led model of growth and hence growth rates of Emerging Markets economies are not only higher than in the West, but increasingly more resilient.

As a result an Emerging Markets allocation is more and more seen as an important diversifier and risk reducer for investors as in the worst developed world scenarios Emerging Markets are likely to be safer investment destinations. Countries with high levels of foreign exchange reserves and low debt are most insulated from global risks, and in an about-turn from fifteen years ago, that means Emerging Markets. Having the odd US$300 billion in reserves means a central bank can intervene to protect its currency at will at any time.

Continuing to hold such large reserves concentrated in US dollars is, of course, unsustainable in the longer term and 2013 may see more diversification by central banks into Emerging Market currencies. This also benefits other asset classes denominated in those currencies, both fixed income and, in due course, equity.

We expect that this will contribute to significant growth in fixed income and equity issuance. Corporate debt market growth is being encouraged in many countries to provide term financing to companies and to help dis-intermediate banks that need to de-lever. Valuations are not expensive in either asset class, with both unsustainably low price/earnings ratios in equities, and certain spreads almost double 2008 levels despite greater relative safety.

Prejudice about Emerging Markets is steadily being eroded. Whilst it is difficult for some investors to accept the harsh realities in the West, there is gradually less difficulty in taking the plunge and investing in Emerging Markets. Fears of slow growth in Emerging Markets or a Chinese 'hard landing' constitute excuses for delay rather than long term reasons for not investing. We are seeing new types of developed world investors steadily increase allocations.

Investors from Emerging Markets into other Emerging Markets are also increasing in number and size as they re-assess global risks. In particular, we have seen substantial growth of assets from Emerging Markets government entities, including central banks as these institutions diversify away from developed countries. We expect this trend to continue. Our strategy of building on-the-ground presence in Emerging Markets also positions us to take advantage of the institutionalisation of local savings over the next few years which together with our growing access to more distribution channels and end investor types in developed countries will continue to diversify our income streams.

In summary, more and more investors are seeing Emerging Markets debt as an alternative to fixed income in general, not just developed world corporate credit. Indeed, with yields in the developed world either high for a good reason or yielding next to nothing, Emerging Markets debt looks highly attractive. Furthermore, after a period of relatively poor performance and flows, Emerging Markets equity, which has long been an established asset class, looks to be ripe for a good year given relatively low valuations. In particular, we believe that our depth and outstanding performance advantage in small and mid-cap companies, in new frontier markets and regions in the Middle East, Africa, and Asia are bound to attract attention as investors lose their solely large cap bias in the search for high long term returns and outperformance.

Our job remains to outperform across as broad a product set as possible, to fight for our investors to achieve risk / return diversification and, through focusing on revenue and costs, to maintain a high margin. We are up for it as ever.

Mark Coombs

Chief Executive Officer

Business Review

The financial and operational highlights previously described are analysed further in the following financial and business review, providing a detailed account of the Group's activities and their financial impact in the period.

Key Performance Indicators

Ashmore Group result

The Group recorded an operating profit before tax for the year ended 30 June 2012 of £225.1 million (FY2010/11: £239.4 million), giving rise to an EBITDA margin of 71 per cent (FY2010/11: 73 per cent); a profit before tax of £243.2 million (FY2010/11: £245.9 million); and a profit after tax of £185.7 million (FY2010/11: £190.2 million). The financial results are analysed further below.

Assets under Management and Fund Flows

During the year AuM decreased by 3% from US$65.8 billion to US$63.7 billion, comprising net inflows of US$1.3 billion, which was somewhat lower than our expectation, and adverse investment performance of US$3.4 billion.

The year saw good levels of gross subscriptions which totalled US$13.0 billion (FY2010/11: US$23.0 billion). The reduction from the prior year was perhaps to be anticipated given the extraordinary subscriptions in the multi-strategy and overlay themes in that period. Subscriptions this year were greatest in the external debt and local currency themes with strong contributions both from new and existing segregated account clients and into a range of the public funds in these two themes. Corporate debt continues to be a theme where there is significant interest and this included the particular growth of the investment grade corporate debt sub-theme which increased in the period, following several new segregated client wins, to become approximately half of AuM in the theme. Likewise blended debt attracted further segregated account wins and as the period ended we began to see subscriptions through its US mutual fund vehicle.

The absolute levels of gross redemptions increased to US$11.7 billion (FY2010/11 US$7.5 billion). However,as a percentage of opening AuM the level of redemptions was slightly down on the prior period, and only slightly up on average AuM. Within the equities theme there were redemptions principally within the broad global active strategy from a number of funds and segregated accounts. After the significant accumulation of AuM in the multi-strategy theme over the prior period, given its origin, there was an expectation of an increase in the redemption levels for this year and the asset allocation and currency component inherent within this product meant that the sharp mark downs in equities and Emerging Markets currencies, particularly in the first and fourth quarters contributed additionally to this effect.

New funds and accounts

The year saw further launches of new funds, including a new Japanese retail focused multi-strategy fund and three new equities funds. As such our principal equities strategies, broad global active, global small cap and frontier, are now available for investors on Ashmore's most widely distributed platforms.

There were also 11 new segregated and white label/dual brand funds won during the year, within the external debt, local currency, corporate debt and blended debt themes.

At 136, the overall number of funds and accounts is in line with that from the prior year (30 June 2011: 135) since the above additions have been offset by a number of fund closures as the Group has rationalised its public fund product offerings including the closure of a number of overlapping equity strategies after the acquisition of AshmoreEMM, and by reductions in equity segregated accounts.

AuM movements by investment theme

In line with the interim results and the historically reported quarterly updates, the AuM by theme as classified by mandate is shown in the following table. This details gross subscriptions and redemptions, investment performance and average management fee margins for each theme.

AuM movements by investment theme as mandated:

AUM - as invested

The following tables report AuM "as invested" by underlying asset class which adjusts from "by mandate" to take account of the allocation into underlying asset class of multi-strategy, blended debt themes; and of cross-over investment from within certain external debt funds. This analysis continues to demonstrate the greater significance of the local currency and corporate debt themes, the growth in the period of the external debt after its positive flow and performance profile and the reduction in the equities theme in line with the outflows and negative performance. The tables below illustrate the impact of moving between the "by mandate" and the "as invested" analysis as at 30 June 2012, and the previous year end.

AUM as classified by mandate

AUM as invested

Investor profile

Investor type

In line with the investment over the last three years in the Group's distribution platform the Group's AuM has further diversified. AuM is predominantly of an institutional nature (30 June 2012 89%; 30 June 2011: 85%) and the most significant sub-categories of institutional investor are government agencies and private and public pension plans, together accounting for 67% (30 June 2011: 64%) of AuM. During the year there were further fund inflows within the government category, which include those from Emerging Markets central banks, reserve managers and sovereign funds as part of the third phase of the Group's strategy - mobilising Emerging Markets capital.

The remaining AuM is derived through our relationships with third party intermediaries - including electronic platforms, private banks, brokers and other distributors - where the end customers are typically retail/high net worth individuals. The reduction in the percentage of this AuM to 11% (30 June 2011: 15%) results entirely from the reduction of Japanese retail multi-strategy AuM which was raised in the previous year. Following developments in the Group's products and the distribution platform which target these sources of AuM, there have been good levels of inflows into the range of sub-funds within the SICAV platform and some good initial inflows into the Group's US mutual fund complex which was launched in December 2010. The total AuM at the end of the year in these two platforms were US$3.2 billion and US$364.0 million respectively. In addition the new multi-strategy product for a Japanese distributor and further US mutual fund advisory arrangements provided AuM inflows during the year. Developing AuM sourced through such intermediaries remains one of the Group's key strategic objectives and overall the period has seen some good progress in deepening and developing these relationships in Europe, the US and Japan.

AuM by investor type

Investor Geography

The increasing appeal of the Emerging Markets asset class to investors globally is demonstrated by the Group's continued diverse geographic investor profile.

AuM by investor geography

Management fees and performance fees

As the Group's AuM are predominantly US dollar based, the majority of management and performance fees are also US dollar denominated. The table below sets out AuM, net management fees, net management fee margins, and performance fees, by theme in US dollars:

Underlying US dollar management and performance fees:

Management fees

Net management fee income in Sterling terms increased by 21% to £302.6 million as a function of increased levels of average AuM (FY2011/12: US$63.9 billion; FY2010/11: US$46.4 billion), stable GBP/USD foreign exchange rates (FY2011/12: 1.59 effective; FY2010/11: 1.59 effective) offset by a reduction in average management fee margins (FY2011/12: 74 bps; FY2010/11: 86 bps). The average revenue margin reduction was initially driven by an exit rate of 82 bps and includes, as anticipated, the full year impact of the Group's acquired equities business. The remaining reduction is through both theme and client mix effects. These include the reduction in AuM of the higher margin multi-strategy theme, the development for the first time of substantial levels of AuM within the sub-theme of investment grade corporate debt with a lower revenue margin than high yield corporate debt and further segregated mandate subscriptions at lower margins.

Performance fees

Total performance fee income for the year was £25.4 million (FY2010/11: £85.4 million) being earned across the investment themes. The majority of these fees were annual performance fees from funds having an August 2011 year end with the balance being made up of other annual performance fees and crystallised fees arising on redemptions during the year. This reduction had been anticipated as absolute levels of investment return reduced period on period after peaking in 2009/10 following the credit crisis. The market wide corrections seen in the period reduced performance fees for the funds with a December 2011 and April 2012 year end to a minimal level.

It is the Group's policy to maintain a good balance between those funds where the Group is eligible to earn performance fees and those that generate revenues for the Group solely through management fees. At the year end the Group was eligible to earn performance fees on 30% of AuM (30 June 2011: 38%), or 37% of funds (30 June 2011: 43%). Of this AuM, 54% (30 June 2011: 41%) of it, whilst able to generate performance fees in the future, was ineligible to do so in FY2011/12 either as a result of such fees only being available at the end of the multi-year fund life, such funds not earning a fee in the performance year, or as a result of rebate agreements in the new period.

In the new financial year, unaudited annual performance fees for the funds with performance years ended 31 August 2012 were approximately £4 million (August 2011: £18.8 million).

Operating costs and operating margin

The Group has maintained its tightly controlled cost structure, with a low proportion of recurring costs and a large proportion of variable performance related costs. Closing headcount increased from 246 at 30 June 2011 to 257 at 30 June 2012 while the average headcount shows a larger increase from 182 to 251 as a result of the full year impact of AshmoreEMM. The increase in wages and salaries to £18.0 million (FY2010/11: £11.5 million) reflects this increase in average headcount. There has been continued recruitment this year to support the future growth of the business particularly to support the development of our distribution and support teams.

Variable compensation costs represent the majority of overall personnel expenses and consist of performance related bonuses, share-based payments and associated social security costs. Variable compensation is calculated as a percentage of profit before variable compensation, interest and tax. The rate of variable compensation applied in the year to 30 June 2012 reduced to 18% (FY2010/11: 19%). The lower level of variable compensation from the prior year reflects the flat to slightly lower performance of the overall business over the year.

The overall total for other expenses for the year to 30 June 2012 was £34.4 million (FY2010/11: £22.9 million) with key drivers for the year on year rise being increased amortisation charges on intangible assets, integration costs for AshmoreEMM (most notably with information technology and communications) and the full year impact of AshmoreEMM, offset partly by reduced professional fees of £4.0 million (FY2010/11: £5.5 million), largely resulting from acquisition-related costs in the prior year. Other costs have also increased reflecting the geographic expansion of the business and increased distribution activities.

The five year trend of total employee numbers and total employment costs are shown below. These demonstrate how the Group's operating model has been maintained.

Year end headcount

Employee costs

Taxation

The majority of the Group's profit is subject to UK taxation. The Group's effective tax rate for the year is 23.7% (FY2010/11: 22.7%). The tax rate for the year is less than the blended UK corporation tax rate of 25.5% principally as a result of deductions in respect of share based awards vesting during the period.

There is a £15.1 million deferred tax asset on the Group's balance sheet at 30 June 2012 (30 June 2011: £17.9 million), as a result of timing differences in the recognition of the accounting expense and actual tax deductions in connection with share price appreciation on share-based awards.

Balance sheet management and cash flow

It is the Group's policy to maintain a strong balance sheet in order to support regulatory capital requirements, to meet the commercial demands of current and prospective investors, and to fulfil development needs across the business which include funding establishment costs of distribution offices and local asset management ventures, seeding new funds, trading or investment in funds or other assets and other strategic initiatives.

As at 30 June 2012, total equity attributable to shareholders of the parent was £537.3 million, as compared to £498.5 million at 30 June 2011. There is no debt on the Group's balance sheet.

Cash

The Group's cash and cash equivalents balance decreased by £22.4 million in the year to £346.6 million. The Group continues to generate significant cash from operations, totalling £238.8 million in the year (FY2010/11: £253.4 million), from which it paid the following significant items: £106.9 million in cash dividends (FY2010/11: £93.7 million); £58.2 million of taxation (FY2010/11: £62.1 million); £62.2 million for net new seed capital investments (FY2010/11: £12.5 million); £40.8 million for purchase of own shares to satisfy share awards (FY2010/11: £10.9 million).

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 with institutions and liquidity funds with approved credit ratings of A or better. Typically during the financial year these have been short-term cash deposits with banks and investments in the Group's S&P AAA rated money market liquidity funds.

Seed capital investments

As at 30 June 2012 the amount invested was £140.1 million (at cost), with a market value of £148.9 million. During the period the largest seed capital investments were further amounts invested in respect of the launch of a new equities focused SICAV sub-funds and an equities (small cap) focused 40 Act fund as well as further seeding in to the Group's recently launched SICAV funds, including the inflation linked bond fund. In addition the year saw capital commitment calls made by funds managed by the Group's local asset management subsidiaries and associates. Some of the seed capital investments made in earlier periods were able to be recycled profitably.

Purchase of own shares

The Group purchases and holds shares through an Employee Benefit Trust ("EBT") in anticipation of the exercise of outstanding share options and the vesting of share awards. At 30 June 2012 the EBT owned 32,668,764 (30 June 2011: 24,555,042) ordinary shares.

Goodwill and Intangible assets

Total goodwill and intangible assets on the Group's balance sheet at 30 June 2012 are £98.1 million (30 June 2011: £103.2 million). The year on year decrease of £5.1 million is driven by amortisation charges of £6.2 million (FY2010/11: £0.5 million), combined with a non-recurring impairment charge of £1.2 million (FY2010/11: nil), partly offset by FX retranslation gains of £2.3 million arising on non-Sterling denominated goodwill and intangible assets (FY2010/11: £2.3 million). This gain is included within the Group's other comprehensive income.

Deferred acquisition costs (DAC)

The Group carries on its balance sheet unamortised deferred acquisition costs of £4.7 million (FY2010/11: £6.9 million) in respect of the launch of Ashmore Global Opportunities Limited ("AGOL"), a publicly listed closed-ended investment company incorporated in 2007.

During FY2011/12, the shares of AGOL have continued to trade at a discount to the net asset value of its balance sheet and, as previously, where this discount is in excess of 10 per cent for 12 consecutive months, an EGM is required to consider whether AGOL should be wound up. The EGM was held on 7 June 2012, with over 90 per cent of the voting shareholders voting against winding up. Should the discount continue to exceed 10 per cent for a further 12 consecutive months, an EGM will once again be required. Should, as a result of any future vote, AGOL be wound up, this would not result in an acceleration or recognition of these deferred acquisition costs. An early termination of AGOL would instead trigger the full recovery of the initial set-up costs including the portion of £9.6 million amortised to 30 June 2012.

Foreign exchange management

The Group's long-standing policy is to hedge between a quarter and two-thirds of the notional value of foreign exchange exposure in connection with its net management fee cash flows, using either forward foreign exchange contracts or options for up to two years forward with at least 25% coverage for the first 12 month period. The GBP/USD exchange rate to 30 June 2012 ranged between GBP1.00:1.5387 - 1.6419USD.

The Group experienced an overall foreign exchange gain for the year to 30 June 2012 of £2.8 million (FY2010/11: £7.4m loss), comprising a gain of £2.7 million (FY2010/11: loss of £9.2 million) on the translation of non-Sterling denominated assets and liabilities combined with a gain of £0.1 million (FY2010/11: gain of £1.8 million) on realised and unrealised hedging transactions.

The notional level of foreign exchange hedges in place at 30 June 2012 is US$168.5 million. This consists of options (US$119.5 million) and forwards (US$49.0 million) in respect of FY2012/13 and FY2013/14 net management fee cash flows.

The options effectively operate as a collar, and together with the forwards, protect the Sterling value of US$168.5 million of the Group's forecast management fee revenue cash flows for FY2012/13 and FY2013/14 from being impacted by currency movements (outside the contracted ranges for the collars).

The options and forwards have been marked-to-market at the year-end rate of GBP1:1.5707USD.

As designated hedges the mark-to-market movement in the value of the options and forwards will be taken through reserves, until such time as they and the associated hedged revenues mature, so long as the hedges are assessed as being effective. If assessed as ineffective, the mark-to-market of the options and forwards will be taken through the income statement.

Dividend

In recognition of the satisfactory financial performance during the period, and of our confidence in the Group's future prospects, the Directors are recommending a final dividend of 10.75 pence per share for the year ended 30 June 2012 which, subject to shareholder approval, will be paid on 7 December 2012 to all shareholders who are on the register on 9 November 2012.

An interim dividend for the six-month period to 31 December 2011 of 4.25 pence (31 December 2010: 4.16 pence) was paid on 4 April 2012. Together, these result in a full-year dividend of 15.00 pence (2011: 14.50 pence), an increase of 3.4%.

Graeme Dell

Group Finance Director

Consolidated statement of comprehensive income

Year ended 30 June 2012

Consolidated balance sheet

Year ended 30 June 2012

Approved by the Board on 10 September 2012 and signed on its behalf by:

Consolidated statement of changes in equity

Year ended 30 June 2012

Consolidated cash flow statement

Year ended 30 June 2012

Company balance sheet

Year ended 30 June 2012

Approved by the Board on 10 September 2012 and signed on its behalf by:

Company statement of changes in equity

Year ended 30 June 2012

Company cash flow statement

Year ended 30 June 2012

Notes to the financial statements

1) Significant accounting policies

The following accounting policies have been applied consistently where applicable to all years presented in dealing with items which are considered material in relation to the Group and Company financial statements, with the exception of new standards and interpretations which have been adopted with effect from 1 July 2011 as disclosed in policy note (a) below or where noted otherwise.

(a) Basis of preparation - Group and Company

The financial information has been prepared in accordance with IFRS as adopted by the EU, and applied in accordance with the provisions of the Companies Act 2006. Based on these adopted IFRS, the Directors have selected the accounting policies to be applied, which are set out below.

The financial information has been prepared under the historical cost convention, except for the measurement at fair value of derivative financial instruments and certain financial assets that are held as available-for-sale.

The Company is taking advantage of the exemption in section 408 of the Companies Act 2006 which allows it not to present its individual statement of comprehensive income and related notes.

New and amended standards and interpretations

• Adopted by the Group

The following new and amended IFRSs effective for the first time during the year and relevant to the Group did not have a material impact:

- IFRS 7 Financial Instruments: Disclosures (Amendment): The amendment was part of the IASB's annual improvement project published in May 2010 and reduced the volume of disclosures regarding collateral held and clarified requirements when carrying amounts of financial assets do not reflect the maximum exposure to credit risk.

- IFRS 7 Financial Instruments: Disclosures (Amendment): The amendment requires additional disclosures relating to transfers of financial assets where an entity retains continuing involvement.

- IAS 1 Presentation of Financial Statements (Amendment)-: The amendment clarified that an entity may present an analysis of each component of other comprehensive income either in the statement of changes in equity or in the notes to the financial statements.

- IAS 24 Related Party Disclosures (Amendment): This amendment clarified the definition of a related party to simplify the identification of related party relationships.

• Issued but not yet effective

The following new standards and amendments issued are effective from 1 January 2013 unless stated otherwise and have not been early adopted:

- Amendment to IAS 1 Presentation of Items of Other Comprehensive Income changes the grouping of items presented in the other comprehensive income based on whether they will be reclassified to profit or loss in future or not. Effective from 1 July 2012.

- Amendment to IAS 32 Financial instruments: Presentation (Effective from 1 January 2014) provides additional guidance for offsetting financial assets and liabilities while amendments to IFRS 7 Financial instruments: Disclosures set out the corresponding new disclosure requirements.

- IAS 19 Employee Benefits (Revised) primarily results in changes to the measurement, recognition and disclosure of post-employment benefit plans and termination costs.

- IAS 27 Separate Financial Statements (Revised) and IAS 28 Investments in Associates and Joint Ventures (Revised) are revised accordingly as they are largely replaced by IFRS 10 and 11, respectively.

- IFRS 9 Financial Instruments: Classification and Measurement replaces the current models for classification and measurement of financial instruments. Financial assets are to be classified into two measurement categories: those measured as at fair value and those measured at amortised cost. Classification depends on an entity's business model and the contractual cash flow characteristics of the instrument. Financial liabilities are not affected by the changes. Effective from 1 January 2015.

- IFRS 10 Consolidated Financial Statements revises the concept of control to relate it to whether an investor has exercisable power over an investee and consequently has exposure or rights to variable returns. Consolidation procedures remain unchanged.

- IFRS 11 Joint Arrangements requires joint ventures to be accounted for using the equity accounting method while joint operations are accounted for based on the rights and obligations of each party in the arrangement.

- IFRS 12 Disclosure of Interests in Other Entities consolidates and enhances disclosure requirements relating to interests of an entity in other entities.

- IFRS 13 Fair Value Measurement provides guidance on how to measure fair value where fair value is required or permitted under IFRS and enhances disclosures requirements.

Adoption of IFRS 9, 10, 11, 12 and 13 could have a significant effect on the Group's financial statements the impact of which is still being considered by management.

(b) Basis of consolidation

(i) Subsidiaries

Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The results of subsidiaries acquired during the year are included in the consolidated statement of comprehensive income from the effective date of acquisition.

(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.

(iii) Associates

Associates are entities over which the Group has significant influence. Significant influence exists when the Group has the power to participate in the financial and operating policy decisions of the investee but does not control those policies.

Associates are accounted for using the equity method as described under IAS 28, whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the Company's share of net assets of the investee.

(iv) Employee Benefit Trust

An Employee Benefit Trust ("EBT") acts as an agent for the purpose of the employee share-based compensation plans. Accordingly, the EBT is included within the Group and Company financial statements.

(c) Business combinations

Under the requirements of IFRS 3 Business Combinations, all business combinations are accounted for using the purchase method (acquisition accounting). The cost of a business combination is the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed and equity instruments issued by the acquirer. The fair value of a business combination is calculated at the acquisition date by recognising the acquiree's identifiable assets, liabilities and contingent liabilities that satisfy the recognition criteria, at their fair values at that date. The acquisition date is the date on which the acquirer effectively obtains control of the acquiree. The cost of a business combination in excess of the fair value of net identifiable assets or liabilities acquired, including intangible assets identified, is recognised as goodwill. Costs of issuing debt or equity instruments are accounted for under IAS 32 and IAS 39. All other costs associated with acquisitions are expensed.

(d) Foreign currency translation

The Group's financial statements are presented in Pounds Sterling ("Sterling"), which is the Company's functional and presentation currency. Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency).

(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 at the prevailing exchange rate. Foreign exchange differences arising on translation are recognised in the statement of comprehensive income. 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 into Sterling at the foreign exchange rates ruling at the balance sheet date. The revenues and expenses of foreign operations are translated into 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 other comprehensive income.

(e) Financial instruments

Financial assets and liabilities are recognised when the Group becomes party to the contractual provisions of an instrument, initially at fair value plus transactions costs except for financial assets classified at fair value through profit or loss. Purchases or sales of financial assets are recognised on the trade date, being the date that the Group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the investments have expired or been transferred or when the Group has transferred substantially all risks and rewards of ownership. Financial liabilities are derecognised when the obligation under the liability has been discharged or cancelled or expires.

The Group's accounting policy on fair value measurements is in accordance with IFRS 7 Financial Instruments: Disclosures and is discussed in note 14.

(i) Investment securities

Investment securities represent securities held by consolidated seed investments. Securities listed on a recognised stock exchange or dealt on any other regulated market that operates regularly, recognised and open to the public, are valued at the last known available closing bid price. If such a price is not available, a closing mid price (the mean of the listed closing bid and asking prices) may be taken as a basis for the valuation. If a security is traded on several actively traded and organised financial markets, the valuation is made on the basis of the last known bid price on the main market on which the securities are traded. In the case of securities for which trading on an actively traded and organised financial market is not significant, but which are bought and sold on a secondary market with regulated trading among security dealers (with the effect that the price is set on a market basis), the valuation may be based on this secondary market.

Where investments are not listed on any stock exchange or not traded on any regulated markets, these investments will be valued by independent valuation agents.

Investments in open-ended funds are valued on the basis of last available NAV of the units or shares of such funds.

The Group's share of the results of the comprehensive income for each of the consolidated seed investments is included in the Group's total comprehensive income.

(ii) Derivatives

Derivatives include foreign exchange forward contracts and options used by the Group to manage its foreign currency exposures and those held in in consolidated seed funds.

Derivatives are initially recognised at fair value on the date on which a derivative contract is entered and subsequently remeasured at fair value. Transaction costs are recognised immediately in the statement of comprehensive income. The fair value of the derivatives is their quoted market price at the balance sheet date. All derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to the statement of comprehensive income, except for the effective portion of cash flow hedges, which is recognised in other comprehensive income.

(iii) Financial assets

The Group may, from time to time, invest in funds where an Ashmore Group subsidiary is the Investment Manager or an Advisor ('seeding'). Where the holding in such investments is deemed to represent a controlling stake and is acquired exclusively with a view to subsequent disposal through sale or dilution, these seed investments are recognised as non-current assets held-for-sale in accordance with IFRS 5. The Group recognises 100% of the investment in the fund as a "held-for-sale" asset and the interest held by other parties as a "liability held-for-sale". Where control is not deemed to exist, and the assets are readily realisable, they are recognised as available-for-sale financial assets. Where the assets are not readily realisable, they are recognised as non-current asset investments. If a seed investment remains under control of the Group for more than one year from the original investment date, it is consolidated line by line.

The recognition policy for the three categories of financial assets are set out below:

• Non-current asset investments

Non-current asset investments, relating to closed-end funds, are classified as financial assets at fair value through profit or loss. Fair value is assessed by taking account of the extent to which potential dilution of gains or losses may arise as a result of additional investors subscribing to the fund where the final close of a fund has not occurred.

• Financial assets held as non-current assets held-for-sale

Non-current assets held-for-sale are measured at the lower of their carrying amount and fair value less costs to sell except where measurement and re-measurement is outside the scope of IFRS 5. Where investments that have initially been recognised as non-current assets held-for-sale, because the Group has been deemed as holding a controlling stake, are subsequently disposed of or diluted such that the Group's holding is no longer deemed a controlling stake, the investment will subsequently be classified as an available-for-sale financial asset. Subsequent movements will be recognised in accordance with the Group's accounting policy for the newly adopted classification.

• Financial assets held as available-for-sale

For available-for-sale financial assets, gains and losses arising from changes in their fair value are recognised in other comprehensive income, until the asset is disposed of or impaired, at which time the cumulative gain or loss previously recognised in other comprehensive income is included in profit for the year as part of comprehensive income.

(iv) 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 statement of comprehensive income when there is appropriate evidence that trade and other receivables are 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 Group's weighted average cost of capital. The resulting adjustment is recognised as interest expense or interest income. Subsequent to initial recognition these assets and liabilities are measured at amortised cost less any impairment.

(v) Hedge accounting

The Group applies cash flow hedge accounting when the transactions meet the specified hedge accounting criteria. To qualify, the following conditions must be met:

- formal documentation of the relationship between the hedging instrument(s) and hedged item(s) must exist at inception;

- the hedged cash flows must be highly probable and must present an exposure to variations in cash flows that could ultimately affect profit and loss;

- the effectiveness of the hedge can be reliably measured; and

- the hedge must be highly effective, with effectiveness assessed on an ongoing basis.

For qualifying cash flow hedges, the change in fair value of the effective hedging instrument is initially recognised in other comprehensive income and is released to profit for the year as part of comprehensive income in the same period during which the relevant financial asset or liability affects profit or loss.

Where the hedge is highly effective overall, any ineffective portion of the hedge is immediately recognised in profit and loss. Where the instrument ceases to be highly effective as a hedge, or is sold, terminated or exercised, hedge accounting is discontinued.

(f) 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.

(g) Property, plant and equipment

Property, plant and equipment includes office equipment and is stated at cost less accumulated depreciation and impairment losses.

Depreciation is charged to the statement of comprehensive income on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. The useful life of office equipment is estimated to be five years. The residual values and useful lives of assets are reviewed at least annually.

(h) Intangible assets

• Goodwill

Goodwill represents the difference between the cost of the acquisition and the fair value of the net identifiable assets acquired and is stated at cost less any accumulated impairment losses. Goodwill has an indefinite useful life, is not subject to amortisation and is tested annually for impairment. Goodwill and intangible assets held by subsidiaries and denominated in a foreign currency are translated at the closing balance sheet rate. Any gain or loss on translation is included in other comprehensive income.

IFRS 3 and IAS 36 require goodwill to be allocated to cash-generating units for the purpose of impairment testing. The Group is considered to have one cash-generating unit and all goodwill has been allocated to this cash-generating unit.

• Other intangibles

The cost of intangible assets, such as management contracts and trade names, acquired as part of a business combination are their fair value as at the date of acquisition. The fair value at the date of acquisition is calculated using the discounted cash flow methodology and represents the valuation of the net residual revenue stream arising from the management contracts and brand name in place at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and impairment losses. Intangible assets are amortised, if appropriate, over their useful lives which have been assessed as being between 31 months and 10 years.

Other intangible assets held by subsidiaries and denominated in a foreign currency are retranslated at the closing balance sheet rate. Any gain or loss on translation is included in other comprehensive income.

(i) Deferred acquisition costs

Costs that are directly attributable to securing an investment management contract are deferred if they can be identified separately and measured reliably and it is probable that they will be recovered. Deferred acquisition costs represent the contractual right to benefit from providing investment management services and are charged as the related revenue is recognised.

(j) 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 statement of comprehensive income.

The recoverable amount of assets is the greater of their fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using the Group's weighted average cost of capital. 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.

(k) Dividends payable

Dividends are recognised when the shareholders' rights to receive payments have been established.

(l) Employee benefits

Obligations for contributions to defined contribution pension plans are recognised as an expense in the statement of comprehensive income when payable in accordance with the scheme particulars.

(m) Share-based payments

The Group issues share awards to its employees under share-based compensation plans. The awards are accounted for in line with IFRS 2 Share-Based Payment. Phantom awards are classified as cash settled under IFRS 2. All other awards are classified as equity settled.

For equity settled awards 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 of equity settled awards is measured using an appropriate valuation model, taking into account the terms and conditions upon which the instruments were granted.

For cash settled awards the fair value of the amounts payable to employees is recognised as an expense with a corresponding liability on the Group's balance sheet. The fair value is measured at the end of each reporting period and spread over the vesting period. The fair value of cash settled awards is measured using an appropriate valuation model, taking into account the terms and conditions upon which the instruments were granted.

(n) Equity shares

The Company's ordinary shares of 0.01 pence each are classified as equity instruments. Ordinary shares issued by the Company are recorded at the fair value of the consideration received or the market price at the day of issue. Direct issue costs, net of tax, are deducted from equity through share premium. When share capital is repurchased, the amount of consideration paid, including directly attributable costs, is recognised as a change in equity.

(o) Own shares

Own shares are held by the EBT. The holding of the EBT comprises own shares that have not vested unconditionally to employees of the Group. In both the Group and Company, own shares are recorded at cost and are deducted from retained earnings.

(p) Treasury shares

Treasury shares are recognised in equity and are measured at cost. Consideration received for the sale of such shares is also recognised in equity, with any difference between the proceeds from the sale and original cost being taken to retained earnings.

(q) Revenue

Revenue comprises management fees, performance fees and other revenue. Revenue is recognised in the statement of comprehensive income 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 net of rebates 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 net of rebates 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.

(r) Distribution costs

Distribution costs are cost of sales payable to third parties and are recognised over the period for which the service is provided.

(s) Operating leases

Payments payable under operating leases are recognised in the statement of comprehensive income on a straight-line basis over the term of the lease. Lease incentives received are recognised on a straight-line basis over the lease term and are recorded as a reduction in premises costs.

(t) Finance income

Finance income includes interest receivable on the Group's cash and cash equivalents and gains on available-for-sale/held-for-sale assets. Gains and losses on available-for-sale/held-for-sale assets recognised in the year arose either as a result of crystallisation on the disposal of an available-for-sale asset or upon reclassification of financial assets previously held as non-current assets held-for-sale as described in policy note (e)(ii).

Finance income also includes adjustments in relation to the Group's contingent consideration liabilities related to acquisitions and charges in respect of unwinding of net present value discounts.

(u) Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive income except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

(i) Current tax

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.

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.

(v) 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 23.

(w) Segmental information

Key management information, including revenues, margins, investment performance, distribution costs and AuM flows, which is relevant to the operation of Group, is reviewed on the basis of the investment management business as a whole and, hence, the Group's management regards the Group's services as comprising one business segment (being provision of investment management services) and that its operations are not run on a discrete geographic basis. 

Company

In addition to the above accounting policies, the following specifically relate to the Company.

(x) 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.

(y) 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.

2) Revenue

Management fees are accrued throughout the period in line with fluctuations in the levels of assets under management. Periodic performance fees are recognised only if performance hurdles have been achieved in a period. The Group is not considered to be reliant on any single source of revenue. During the year, two of the Group's funds provided 11.3% and 10.5% (2011: two funds provided 19.7% and 10.3%) of total revenue in the year respectively when considering management fees and performance fees on a combined basis.

Analysis of revenue by geography

3) Foreign exchange

The only foreign exchange rate which had a material impact on the Group's results is the US dollar.

Analysis of foreign exchange

4) Finance income

Analysis of finance income

Included within finance income is £16.8 million (FY2010/11: £nil) in relation to the downward adjustment of the Group's contingent consideration liabilities, £0.4 million (FY2010/11: £nil) received as part of an acquisition-related purchase price adjustment and £0.4 million (FY2010/11: £5.3 million) in relation to gains on available-for-sale and held-for-sale assets.

Included within finance expense is £4.1 million (FY2010/11: £0.5 million) in relation to the unwind of the discounts applied to earn out liabilities on the Group's balance sheet following the acquisition of AshmoreEMM.

5) Personnel expenses

Number of employees

The number of employees of the Group (including Directors) during the reporting years, analysed by category, was as follows:

Analysis of employee benefits expense

Employee benefits in the above table in respect of the year ended 30 June 2012 include an amount of £0.6 million (2011: £1.9 million) that has been waived by Directors and employees in earlier periods with an equivalent amount to be paid to charity in the financial year to30 June 2013.

Directors' remuneration

Disclosures of Directors' remuneration as required by the Companies Act 2006 are as follows:

There are retirement benefits accruing to two Directors under a defined contribution scheme (2011: two).

6) Other expenses

Auditors' remuneration

7) Taxation

A reduction to the main rate of UK corporation tax from 26% to 24% was substantively enacted on 26 March 2012 and became effective from 1 April 2012. The effect of this rate reduction has been reflected in the figures set out above. On 21 March 2012 the Chancellor announced that the main rate of UK corporation tax will further reduce to 22% by 2014. An initial further reduction to 23% (effective from 1 April 2013) was substantively enacted on 3 July 2012.

8) Earnings per share

Basic earnings per share is calculated by dividing the profit after tax for the financial year attributable to equity holders of the parent of£181.5 million (2011: £189.0 million) 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 an 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 financial 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:

9) Share-based payments

The total share-based payments-related cost recognised by the Group in the statement of comprehensive income is shown below:

Group and Company share-based compensation plans

The following share-based compensation plans were in operation during the reporting year.

The Ashmore First Discretionary Share Option Scheme ("Option Scheme")

The Option Scheme was set up in October 2000. Options issued under the Option Scheme typically have a life of ten years and vest after five years from date of grant. The pro rata proportion of the fair value of options at each reporting year end has been accounted for on an equity-settled basis. No further options will be issued under the Option Scheme.

The Executive Omnibus Incentive Plan ("Omnibus Plan")

The Omnibus Plan was introduced prior to the Company listing in October 2006 and provides for the grant of share awards, market value options, premium cost options, discounted options, linked options, phantoms and/or nil cost options to employees. The Plan will also allow bonuses to be deferred in the form of share awards with or without matching shares. These elements can be used singly or in combination. Awards granted under the Omnibus plan typically vest after five years from date of grant, with the exception of bonus awards which vest after the shorter of five years from date of grant or on the date of termination of employment. Awards under the Omnibus Plan are accounted for as equity settled, with the exception of phantoms which are classified as cash settled.

The Approved Company Share Option Plan ("CSOP")

The CSOP was also introduced prior to the Company listing in October 2006 and is an option scheme providing for the grant of market value options to employees with the aggregate value of outstanding options not exceeding £30,000 per employee. The CSOP qualifies as a UK tax approved company share option plan and approval thereto has been obtained from HMRC. To date, there have been no awards made under the CSOP. The share-based payments relating to the Omnibus Plan represent the combined cash and equity settled payments.

Share options outstanding

Share options outstanding under the Option Scheme were as follows:

The weighted average share price on the date options were exercised during 2012 was 369.92p (2011: 352.36p).

Weighted average remaining contractual life of outstanding options

There were no new share options granted during the year ended 30 June 2012 (2011: none).

Share awards outstanding

Share awards outstanding under the Omnibus Plan were as follows:

Equity settled awards

Cash settled awards

Total awards

The fair value of awards granted under the Omnibus Plan is determined by the average Ashmore Group plc share price for the five business days prior to grant.

Where the grant of restricted and matching share awards is linked to the annual bonus process the fair value of the awards is spread overa period including the current financial year and the subsequent five years to their release date when the grantee becomes unconditionally entitled to the underlying shares. Of the total outstanding share awards of 30,097,672 as at 30 June 2012 (25,555,448 as at 30 June 2011) the amount of 23,890,685 (2011: 19,630,824) were restricted and matching shares granted as part of the Group's variable compensation process. The fair value of the remaining awards is spread over the period from date of grant to the release date.

Acquisition of AshmoreEMM

On acquisition of AshmoreEMM, employees and management held unvested shares representing 17.9% of its partnership shares. These awards, which vest after 5 years depending on the satisfaction of service conditions, are accounted for as equity settled share-based payments in accordance with IFRS 2 which results in an annual charge to the income statement during the period of vesting. Upon vesting, the holders are entitled to receive AshmoreEMM shares which may be exchanged for shares in Ashmore Group plc or cash at the discretion of the Group. The grant date fair value was based on the intrinsic value proportionate with the value implied from the purchase consideration paid by the Group to acquire AshmoreEMM.

No awards were granted or vested (2011: none) during the year. 25,097 awards (2011: none) were forfeited during the year and 2,294,453 (2011: 2,300,000) awards are outstanding as at year end.

10) Dividends

An analysis of dividends is as follows:

In addition to the £101.0 million (2011: £93.4 million) of dividends paid to equity holders of the parent, the Group also paid £5.9 million(2011: £0.3 million) of dividends to non-controlling interests.

On 10 September 2012 the Board proposed a final dividend of 10.75p per share for the year ended 30 June 2012. 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 £73.7 million (2011: £72.2 million).

11) Goodwill and intangible assets

For the year ended 30 June 2012:

For the year ended 30 June 2011:

(i) FX revaluation through reserves is a result of the retranslation of US dollar denominated intangibles and goodwill.

Goodwill

The goodwill balance within the Group relates principally to the acquisition of AshmoreEMM in May 2011.

The goodwill balance within the Company at the beginning and the end of the year was £4.1 million and related to the acquisition of the business from ANZ in 1999. Additional goodwill arising in the Group at the beginning of the year relates to the Dolomite acquisition in 2008.

The business of the Group is managed as a single unit, with asset allocations, research and other such operational practices reflecting the commonality of approach across all fund themes. The Group considers itself to have one cash-generating unit to which goodwill is allocated. Therefore, no further split into smaller cash-generating units is possible, and the impairment review is conducted for the Group as a whole.

Goodwill is tested for impairment annually or whenever there is an indication that the carrying amount may not be recoverable based on management's judgements regarding the future prospects of the business, estimates of future cash flows and discount rates. When assessing the appropriateness of the carrying value of goodwill at year end, the recoverable amount is considered to be the greater of fair value less costs to sell or value in use calculations. The calculation is based on the forecast future profitability and cash flow projections of the cash-generating unit over a 10-year period which management believes is the most appropriate timescale to review and consider performance. The discount rate applied is based on the Group's weighted average cost of capital. 

The annual impairment review of goodwill was undertaken at 31 May 2012. No impairments were deemed necessary.

AshmoreEMM fund management relationships and the AshmoreEMM brand name

The AshmoreEMM fund management relationships and the AshmoreEMM brand name are separately identifiable intangible assets acquired as part of the acquisition of AshmoreEMM in May 2011.

Ashmore engaged an independent third-party valuation expert to value these assets as part of the acquisition. They were valued at the present value of the expected future cash flows resulting from the assets over their useful lives and were discounted using the Group weighted average cost of capital of 13.0%. They are being amortised over their useful lives which were also estimated based on the work of the valuation expert. Their estimated useful lives are eight years for the fund management relationships and 10 years for the AshmoreEMM brand name. The fund management relationships intangible comprises the profit expected to be earned from existing clients of AshmoreEMM. The AshmoreEMM brand name is being actively used through the co-branding of the subsidiary since its acquisition. The carrying amounts of the assets in the balance sheet are based on their historic costs less amortisation and accumulated impairment losses.

Other intangible assets

In addition, in order to incentivise Amundi, who were formerly a shareholder in AshmoreEMM, to retain existing AuM within the business and to further increase AuM there is an incentive fee payable after three years tied to the level of such AuM at that time. As the purpose of this is to benefit the Group going forward, a corresponding intangible asset was recognised. During the year to 30 June 2012 there has been a downward adjustment to the net present value of the incentive fee payable to Amundi at the end of the agreement. Consequently management have concluded that the associated intangible asset is impaired. An impairment charge of £1.2 million for the year to 30 June 2012 has been included within other expenses in the Group's consolidated statement of comprehensive income, reducing the carrying value of the intangible asset to its recoverable amount.

12) Trade and other receivables

Group trade debtors include all billed and unbilled management fees due to the Group at 30 June 2012 in respect of management services provided to that date.

13) Deferred taxation

Deferred tax assets and liabilities recognised by the Group and Company are attributable to the following:

Movement in temporary differences between the balance sheet dates has been reflected in equity or the statement of comprehensive income as follows:

A reduction to the main rate of UK corporation tax from 26% to 24% was substantively enacted on 26 March 2012 and became effective from 1 April 2012. The rate reduction is reflected in the value of deferred tax assets and liabilities included in the figures above. The 2012 Budget on 21 March 2012 announced that the UK corporation tax rate is set to reduce further to 22% by 2014. 

Whilst a reduction to a rate of 22% has not yet been substantively enacted, a further reduction to a rate of 23% (effective from 1 April 2013) was substantively enacted on 3 July 2012. The overall effect of a further tax reduction from 24% to 23%, if applied to the deferred tax balance above as at 30 June 2012, would be to further decrease the Group deferred tax assets by approximately £0.6 million and the Company deferred tax assets by £0.6 million.

14) 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 derivative financial instruments is determined by reference to published price quotations (Level 2 inputs).

Fair value hierarchy

The Group measures fair values using the following fair value hierarchy that reflects the significance of inputs used in makingthe measurements.

- Level 1: Valuation is based upon a quoted market price in an active market for an identical instrument.

- Level 2: Valuation techniques are based upon observable inputs, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3: Valuation techniques use significant unobservable inputs.

The fair value hierarchy of financial instruments which are carried at fair value as at 30 June is summarised below:

There were no transfers between Level 1, Level 2 and Level 3 during the year (2011: none).

The valuation techniques used to estimate the fair value of contingent consideration payable in connection with the acquisition of AshmoreEMM are described in note 23.

15) Seed capital investments

a) Non-current assets and non-current liabilities held-for-sale

Where Group companies inject seed capital into funds operated and controlled by the Group, the fund is classified as being held-for-sale.

Typically, if the fund remains under the control of the Group for more than one year from the original investment date it will cease to be classified as held-for-sale, and will be consolidated line by line after considering the proximity of loss of control, and the extent to which consolidation of the fund on a line by line basis would be material to the presentation of the Group's financial statements.

Investments cease to be classified as held-for-sale when they are no longer controlled by the Group. A loss of control may happen either through sale of the investment and/or dilution of the Group's holding. When investments cease to be classified as held-for-sale they are classified as available-for-sale financial assets in accordance with IAS 39 (see below).

b) Consolidated funds

Consolidated funds represent seed capital investments where the Group has held its position for a period greater than one year and its interest represents a controlling stake in the fund. These funds are consolidated line by line.

Investment securities include listed and unlisted equities and debt securities. Other includes trade receivables, trade payables and accruals.

Included within the consolidated statement of comprehensive income is a net gain of £0.5 million (FY2010/11: £nil) relating to the Group's share of the results of the individual statements of comprehensive income for each of the consolidated funds. This is made up of finance income of £1.3 million partially offset by a £0.4 million loss on investment securities and by £0.4 million allocated to third-party interests in consolidated funds.

As of 30 June 2012, the Group's consolidated funds were domiciled in Brazil, Luxembourg and the USA.

c) Available-for-sale financial assets

Investments at fair value

d) Non-current asset investments

Non-current asset investments relate to the Group's holding in closed-end funds and are classified as financial assets at fair value through profit or loss. Fair value is assessed by taking account of the extent to which potential dilution of gains or losses may arise as a result of additional investors subscribing to the fund where the final close of a fund has not occurred.

Included within finance income is £0.7 million of unrealised gains on the Group's non-current asset investments.

16) Financial instrument risk management

Group

The Group is subject to strategic, business, investment, operational and treasury risks throughout its business as discussed in the Business Review. This note provides further detail on the Group's exposure to and the management of risks derived from the financial instruments it uses. Specific areas of financial instrument risk include credit, liquidity, interest rate, foreign exchange and price risk.

Risk management is the direct responsibility of the Group's senior management. The Ashmore Group Risk Management and Control department, the Group's Risk and Compliance Committee and the Audit and Risk Committee are responsible for monitoring the overall risk environment. The Group has established a control environment which seeks to ensure that risks are reviewed regularly and that all risk controls operating throughout the Group are in accordance with regulatory requirements. In addition, as a regulated business the Group is responsible for maintaining appropriate capital and performing regular calculations of capital requirements, including the development of an Internal Capital Adequacy Assessment Process ("ICAAP"), based upon the Financial Services Authority's methodologies under the Capital Requirements Directive. An overview of the ICAAP can be found on our website at www.ashmoregroup.com.

The effectiveness of the Group's risk management process is critical to its soundness and profitability and considerable resources are dedicated to this area.

• Credit risk

The Group has exposure to credit risk from its normal activities where the risk is that a counterparty will be unable to pay in full amounts when due. The Group's maximum exposure to credit risk is represented by the carrying value of its financial assets.

Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis.

Financial assets subject to credit risk at 30 June 2012 and 30 June 2011 are as follows:

At 30 June 2012 there were no overdue trade and other receivables (2011: none). All trade and other receivables are considered to be fully recoverable.

Cash and cash equivalents

The Group's cash and cash equivalents are short-term deposits with banks and liquidity funds which have credit ratings ranging fromA to AAAm as at 30 June 2012 (2011: A to AAAm).

Trade and other receivables at amortised cost

Financial assets at amortised cost principally comprise fee debtors, which are all less than 90 days old.

Fee debtors arise principally within the Group's investment management business and amounts are monitored regularly. Historically, default levels have been insignificant, and, unless a client has withdrawn funds, there is an ongoing relationship between the Group and the client. There is no significant concentration of credit risk in respect of fees owing from clients.

Financial assets held at fair value

Such assets comprise derivative financial instruments, investment securities, non-current assets held-for-sale and available-for-sale financial assets. These assets expose the Group to credit risk from varied counterparties which is monitored and reviewed by the Group's risk management team.

• Liquidity risk

Liquidity risk is the risk that the Group cannot meet its obligations as they fall due or can only do so at a cost. In order to manage inherent liquidity risk there is a liquidity policy within the Group to ensure that there is sufficient access to funds to cover all forecast committed requirements for the next 12 months.

The maturity profile of the Group's contractual undiscounted financial liabilities is as follows:

As at 30 June 2012:

As at 30 June 2011:

• Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in marketinterest rates.

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. This exposure is monitored by management on a continuing basis.

At 30 June 2012, if interest rates over the year had been 50 basis points higher or 50 basis points lower (2011: 200 basis points higheror 40 basis points lower) with all other variables held constant, post-tax profit for the year would have been £1.7 million higher/£1.7 million lower (2011: £7.5 million higher/£1.5 million lower), mainly as a result of higher/lower interest on cash balances.

The assumption that the fair value of assets and liabilities will not be affected by a change in interest rates was used in the model to calculate the effect on post-tax profits.

Effective interest rates applicable to financial instruments are as follows:

The Group is also exposed to interest rate risk through debt securities held in consolidated seed funds. The following table provides a summary of fixed and floating rate interest exposures in these funds:

As at 30 June 2012:

No seed investment funds were consolidated on a line by line basis as at 30 June 2011.

• Foreign exchange risk

Foreign exchange risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in foreign exchange rates.

The Group's revenue is almost entirely denominated in US dollars, whilst the majority of the Group's cost are Sterling-based. Consequently, the Group has an exposure to movements in the US$/£ exchange rate. In addition, the Group operates globally which means that it may enter into contracts and other arrangements denominated in local currencies in various geographic areas.

The Group's policy is to hedge significant foreign exchange exposures by using a combination of forward foreign exchange contracts and/or options for up to two years forward. The Group also sells US dollars at spot rates when opportunities arise.

The Group's financial assets and liabilities are denominated in the following currencies:

As at 30 June 2012:

As at 30 June 2011: