Ashmore Regulatory News (ASHM)

RNS Number : 3435Y

Ashmore Group PLC

08 September 2015

 

Ashmore Group plc

8 September 2015

RESULTS FOR THE YEAR ENDING 30 JUNE 2015

Ashmore Group plc (Ashmore, the Group), the specialist Emerging Markets asset manager, today announces its audited results for the year ending 30 June 2015.

Overview

- Assets under management (AuM) of US$58.9 billion at the year end (30 June 2014: US$75.0 billion).

- Good long-term investment performance delivered in challenging markets

- 60% of AuM outperforming benchmarks over three years and 81% over five years (30 June 2014: 81% and 92%, respectively).

- Net revenues increased 8% to £283.3 million

- higher performance fees and benefits of US dollar strength, outweighing lower management fees.

- Disciplined control of costs, total operating costs reduced by 1% to £99.5 million.

- Adjusted EBITDA of £176.7 million (FY2013/14: £195.1 million) resulting in a stable adjusted margin of 67%.

- PBT increased 6% to £181.3 million (FY2013/14: £171.6 million).

- Diluted EPS increased 4% to 19.3p (FY2013/14: 18.6p).

- positive foreign exchange translation effects of approximately 1.4p.

- Proposed final dividend of 12.1p, giving a 1% increase in full year dividend to 16.65p (FY2013/14: 16.45p).

- Michael Benson to retire at the AGM on 22 October, to be succeeded as Chairman by Peter Gibbs.

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

"The past year has been challenging, with continued volatility in global markets. Investment performance improved in absolute and relative terms in the second half of the year, as was expected after the Group's investment processes added risk in a period of market weakness. Ashmore's proven business model, coupled with a disciplined approach to cost control, has maintained a high operating margin and good cash generation despite lower AuM levels.

"Sentiment towards Emerging Markets continues to be influenced by global macro factors such as the timing of the first US rate increase and China's intentional rebalancing of its economy. Yet the fundamentals across the Emerging Markets universe, comprising more than 70 countries and a diverse range of asset classes, remain sound, with economies demonstrating their ability to withstand notable challenges of the past few years such as higher funding costs, lower commodity prices, currency devaluations and major electoral cycles. This highlights the political, social and economic progress that Emerging Markets have made over the past decades.

"Ashmore is well positioned for an improvement in sentiment, with established processes delivering good long-term investment performance, broad-based distribution capabilities, and meaningful capacity across a broad range of Emerging Markets investment themes."

 

Analysts briefing

There will be a presentation for analysts at 9am on 8 September 2015 at the offices of Goldman Sachs International at Peterborough Court, 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:

Ashmore Group plc

Tom Shippey +44 (0)20 3077 6191Group Finance Director

Paul Measday +44 (0)20 3077 6278Investor Relations

FTI Consulting

Andrew Walton +44 (0)20 3727 1514

Paul Marriott +44 (0)20 3727 1341

Market review

2015 Market review

Asset prices in Emerging Markets remained volatile during the financial year, but reflecting for the most part shifts in market sentiment rather than broad-based changes in economic or political fundamentals. These fundamentals remain sound: according to the IMF, Emerging Markets are expected to grow twice as fast as Developed Markets; central banks have typically acted appropriately in the face of currency weakness; and reforms continue to be pursued across a range of countries. The relatively low level of sovereign indebtedness provides for resilience and the capacity for policy responses to address cyclical challenges. An important aspect of the evolution of Emerging Markets is their willingness to liberalise capital markets, and significant developments in this regard have been made by China, Saudi Arabia and Iran recently. It is expected that other countries will follow suit.

Periods of market weakness provided good opportunities for Ashmore's value-based investment processes to take on risk, particularly around the turn of the calendar year. Market risk aversion was also apparent at the end of the financial year, with disappointing US economic data, weakness in the Chinese equity market, and structural challenges weighing on economic growth in Europe.

External debt

The benchmark EMBI GD index returned 0.5% over the year, while its spread over US Treasuries increased by 85 basis points (bps) to 356 bps. The index comprises 63 countries and therefore the index performance masks a wide range of country returns over the 12 months, for example between Venezuela (-37.2%) and Belize (+16.3%). These characteristics underpin the necessity for active management in Emerging Markets given the wide range of investment opportunities and instruments available.

External debt AuM reduced by US$2.0 billion during the year, with negative investment performance of US$0.6 billion, net outflows of US$1.5 billion, and reclassifications from blended debt of US$0.1 billion. Ashmore's investment processes added risk around the turn of the calendar year to take advantage of the value created in the asset class after a period of market weakness, for example in Russia, and these actions delivered substantial alpha in the second half of the financial year. Over three years, the most relevant timeframe for institutional investors, the Group's external debt broad composite has returned +3.8% versus +4.3% for the EMBI GD benchmark index.

The diversity of the external debt theme is a principal attraction and it offers attractive yields compared with Developed Markets alternatives. The EMBI GD index yields approximately 6% and its spread over US Treasuries is twice as wide as the pre-financial crisis low in 2007, which could be seen as a buffer as the US enters a period of rising interest rates.

Local currency

The unhedged GBI-EM GD index fell 15.4% during the period, with a strengthening US dollar the main driver; by contrast the hedged index rose 5.0%. The weakest unhedged country return was Russia, at -39.2% over the year, and China was the strongest with a return of +6.8%. As with the external debt theme, this illustrates the importance of specialist, active management in delivering investment returns through the cycle from a diversified asset class.

Local currency AuM declined by US$2.1 billion over the 12 months, through negative investment performance of US$2.9 billion, net inflows of US$0.3 billion, and a US$0.5 billion reclassification of an account from the blended debt theme as a consequence of a change in its investment guidelines. Over three years, the Group's local currency bonds composite has returned -3.1% versus -3.8% for the GBI-EM GD benchmark index.

Local currency assets form the largest part of the investable Emerging Market debt universe, with US$12.7 trillion of tradable debt outstanding across sovereign and corporate issuers, compared with US$2.1 trillion issued in the external debt market. New issuance is expected to be biased towards local currency assets, because of the inherent lack of foreign exchange exposure, the ongoing development of local investor bases such as pension funds, and the opening up of markets such as China. Furthermore, institutional investors with an overweight exposure to US dollar-denominated assets have begun to diversify into other currencies, including Emerging Markets currencies. Ashmore therefore expects this asset class to become its single largest theme on an underlying 'as invested' basis in due course. The absolute and relative value in the local currency asset class is apparent in the index yield of approximately 7%.

Corporate debt

The CEMBI BD index returned +2.4% over the year, with high yield (+0.5%) underperforming investment grade (+3.1%), though that pattern was established in the first six months and reversed in the second half of the year when the high yield sub-index rose by 6.4% and investment grade assets returned 2.3%. The index spread over US Treasuries widened by 58bps to 332bps. Corporate credit performed better, in aggregate, than sovereign debt because the asset class has less sensitivity to US yield curve movements, since the bonds tend to have a shorter duration and higher yield than their equivalent sovereign's assets.

Corporate debt AuM fell by US$1.0 billion over the 12 months, through a combination of negative investment performance of US$0.7 billion and net outflows of US$0.3 billion. Over three years, the Group's corporate debt broad composite has returned +6.2% versus +5.2% for the CEMBI BD benchmark index.

The corporate debt asset class has a relatively high yield, particularly compared with non-investment grade alternatives in the developed world, and robust fundamentals. Concerns about the growth in issuance of US dollar-denominated debt by Emerging Markets corporates should be seen in context: while growth is notable in percentage terms (it has doubled over the past five years), the hard currency asset class is dwarfed in terms of stock and issuance by local currency credit; foreign currency issuers tend either to hedge or to have revenues or assets denominated in the foreign currency; and notwithstanding the nearly 30% rise in the trade-weighted US dollar index over the past four years, default rates remain in line with long-term averages.

Blended debt

The Group's blended debt theme has a range of bespoke benchmarks, but for reference the standard benchmark (50% EMBI GD, 25% GBI-EM GD, 25% ELMI+) fell by 6.3%, primarily as a consequence of US dollar strength against Emerging Markets currencies. The benefits of managing an active allocation across Emerging Markets fixed income and FX asset classes are clear from the range of returns by asset class over the course of the financial year, from +2% in hard currency corporate credit to -15% in unhedged local currency bonds. Over the past decade, the minimum difference in annual returns between the best and worst-performing asset classes is 500bps. After a period of mark-to-market weakness in the first half, Ashmore's blended debt investment performance relative to the benchmark improved and benefited from an underweight position in Emerging Markets FX and increasing exposure to undervalued high-yield corporate debt.

The Group's blended debt AuM declined by US$4.9 billion during the period, through negative investment performance of US$1.1 billion, net outflows of US$3.2 billion, and reclassifications to external debt and local currency totalling US$0.6 billion. The redemptions were concentrated in a small number of relatively large segregated account withdrawals, in the second and fourth quarters. Over three years, the Group's blended debt composite has returned +1.9% versus +0.7% for the standard benchmark.

Ashmore expects demand for blended debt funds as investors recognise the benefits of dynamically allocating across the diverse Emerging Markets fixed income universe.

Equities

The MSCI EM (net) index declined by 5.1% over the 12 months. Equities AuM declined by US$2.3 billion, with net outflows of US$2.1 billion predominantly from a small number of segregated accounts invested in the Broad Global Active (BGA) product. Investment performance reduced AuM by US$0.2 billion. The BGA redemptions reflect client decisions made on the basis of longer-term performance, which in AuM terms outweigh the ongoing success in attracting investors to the range of higher performing, and higher revenue margin, specialist funds. The Group's specialist funds now account for 80% of the theme AuM, and within the equities theme the Group's distribution activities, particularly through intermediary channels, are focused on these specialist products, which are delivering long-term outperformance against benchmarks.

Alternatives

Alternatives AuM reduced by US$1.7 billion during the year through capital returns to investors of US$0.8 billion following asset realisations, negative investment performance of US$0.3 billion, and the disposal of the Group's 30% interest in a Chinese real estate joint venture (US$0.6 billion). The Group's share of the profit or losses from the real estate joint venture is recognised in a single line, 'Share of losses from associates and joint ventures', in the consolidated statement of comprehensive income. There is no impact from the disposal on the alternatives net management fee margin, which is stated after excluding the joint venture AuM, and the effect of the disposal on the Group's profit before tax is immaterial.

The Group sees attractive opportunities to grow its exposure to locally-managed illiquid assets in Emerging Markets, offering long-term fund structures to finance projects in areas such as healthcare, infrastructure and real estate. 

Multi-strategy

The decline in multi-strategy AuM from US$2.7 billion to US$1.6 billion is primarily the result of continued and expected redemptions from Japanese retail funds, together with negative investment performance of US$0.2 billion. The AuM in Japanese retail funds reduced from US$2.2 billion to US$1.0 billion over the period. While this trend is likely to continue given the nature of the intermediary market in Japan and subdued appetite for Emerging Markets exposure currently, the Group is well positioned to respond to an improvement in demand when retail investors reassess their allocations to the asset class.

Overlay/Liquidity

The overlay/liquidity theme ended the period with AuM of US$2.6 billion. Net outflows of US$1.0 billion reflect a change in the scale of clients' third-party managed assets that required hedging, whether through market movements, investment decisions or other factors beyond the Group's influence.

Market outlook

It is more than two years since the Federal Reserve surprised markets by announcing that it intended to taper its quantitative easing programme, which inevitably led investors to start considering the timing and trajectory of higher US interest rates. The consensus macro trades have therefore been long the US dollar, to play an economic recovery and higher rates, and overweight European bonds, in the face of relatively slow growth. Importantly, the rally in prices of QE-supported assets in the developed world is now being challenged by the fundamental reality of persistent weak economic growth. The strength of the US dollar over the past few years is affecting US exports and investment, and certain European government bond yields fell close to zero earlier in 2015. Notably, during a protracted period of extremely accommodative monetary policy, developed economies have undertaken little if any reforms to address structural challenges such as high levels of indebtedness. This is in contrast to many Emerging Markets, for example China, which is pursuing a wide range of reforms including liberalising its capital markets and adopting a more flexible currency regime.

Yet global asset allocators remain heavily biased towards Developed Markets and they largely continue to ignore the resilience of Emerging Markets. This resilience has been achieved despite headwinds such as higher funding costs, currency depreciation, a heavy electoral schedule, and substantial outflows of crossover capital. Notwithstanding these factors, Emerging Markets GDP growth continues at 4-5%, around twice the pace of Developed Markets, and the IMF's recent revisions marked the developed world down by 0.3%, including a reduction of 0.6% for the United States, while Emerging Markets as a whole were revised down by only 0.1%. Central banks have gained inflation-targeting credibility and the typical response of the small number of countries that encounter serious problems in any given year is to apply fundamental remedies, such as structural reforms. Emerging Markets indebtedness is low, with Emerging Markets bonds outstanding accounting for 13% of the world total, compared with 57% of GDP contribution. Access to the large and diverse investment universe is increasing, with important markets such as China, Saudi Arabia and Iran opeing up their capital markets more fully to foreign investors.

Across global markets there is likely to be convergence between asset prices and fundamentals over the next few years. In Developed Markets, this is likely to take the form of inflation and currency devaluations rather than real rate increases, austerity and reforms. In contrast, after a period of continued volatility, Emerging Markets' asset prices appear to be discounting a much worse fundamental outlook than is likely to arise, even with higher US interest rates. This suggests that the rational asset allocator will increasingly shift towards Emerging Markets, where there is greater value, more supportive fundamentals, and a need for investors to address underweight positions.

Ashmore is well positioned for an improvement in sentiment, with robust investment performance, broad-based distribution capabilities, and meaningful capacity across a broad range of Emerging Markets investment themes.

Chairman's statement

The Group's financial performance for the period reflects the continued volatile market conditions and a consequently lower average AuM level compared with the prior year, offset by higher performance fees, continued discipline in managing operating costs, and the benefit of a stronger US dollar against Sterling. Adjusted EBITDA declined 9%, less than the 12% reduction in average AuM, to £176.7 million and profit before tax increased 6% to £181.3 million.

Reflecting the increase in profits, the Group's strong and liquid balance sheet, and the Board's confidence in future growth, the Directors are recommending a final dividend of 12.1 pence per share for the year ending 30 June 2015. Subject to shareholders' approval, the final dividend will be paid on 4 December 2015 to those shareholders on the register on 6 November 2015. This makes a total dividend of 16.65 pence for the year, an increase of 1% compared with the prior year (16.45 pence).

After nine years as Chairman I will retire from the Board at the Annual General Meeting (AGM) in October. It has been an immense privilege to lead the Board through a period during which the Emerging Markets have demonstrated remarkable resilience as the developed world caused, and is still dealing with the consequences of, a severe financial crisis. Emerging nations have continued on a powerful convergence path, becoming wealthier in GDP per capita terms, electing more accountable governments, increasing central bank credibility through inflation targeting, and consequently delivering superior GDP growth rates compared with the developed world. The depth and breadth of investable asset classes have increased, notably in local currency markets, and improvements in credit quality have delivered a growing investment grade universe.

Echoing the changes in its markets, Ashmore has developed considerably over the past nine years, growing AuM from US$21.6 billion at the time of its IPO in October 2006 to US$58.9 billion; increasing its headline investment themes from four to eight; broadening its geographic reach from three offices in three countries to 12 offices in 10 countries, of which seven are emerging countries; and increasing its employees from 57 people to 285 today. Profit before tax has risen from £103.9 million in FY2005/06 to £181.3 million in FY2014/15, and the Group has paid and proposed dividends over the period totalling 124.7 pence per share, or £859 million. The total shareholder return since the Group's IPO, with dividends reinvested, is 178%, which compares favourably with a total return of 64% from the FTSE All Share over the same period.

As previously announced, a number of changes to the Board have occurred during the year. Following the conclusion of the AGM in October 2014, Melda Donnelly retired from the Board and David Bennett was appointed to the Board as an independent Non-executive Director. Charles Outhwaite stepped down from the Board in May 2015 for personal reasons.

I am delighted that Peter Gibbs is to succeed me as Chairman, subject to his election by shareholders at the AGM. Peter joined the Ashmore Board in April and has a wealth of experience gained through spending his entire career working in the financial services industry. Nick Land was appointed to the Board at the same time as me, and I am pleased that the Board will continue to benefit from his wisdom and experience as an independent director during this period of transition.

I would like to thank Ashmore's employees for their dedication and hard work during the period of my tenure as Chairman, and I am confident that I leave the Group facing a bright future for Emerging Markets, and in a strong position to continue to deliver value for shareholders.

Michael Benson

Chairman7 September 2015

Chief Executive Officer's report

The ongoing volatile market environment provided opportunities for Ashmore's value-based investment processes during the period, leading to a substantial improvement in performance against benchmarks during the second half of the financial year. However, the combined effect of market declines and net redemptions mean that average AuM is 12% lower than the prior year. The Group continues to manage its costs in a disciplined manner, meaning that the decline in adjusted EBITDA was limited to 9%, and the adjusted margin of 67% was maintained at the level of the prior year. Higher performance fees, lower operating costs, and positive foreign exchange translation effects, with a stronger US dollar against Sterling, contributed to the 6% increase in profit before tax.

AuM development

Assets under management declined by 21% over the year from US$75.0 billion to US$58.9 billion, and average AuM fell by 12% to US$66.4 billion. Investment performance contributed US$6.0 billion of the reduction in AuM and net outflows accounted for US$9.5 billion, more than half of which was due to a small number of relatively large segregated account redemptions in the equities, blended debt, and overlay/liquidity themes. The disposal of the Group's 30% interest in a Chinese real estate joint venture reduced reported AuM in the alternatives theme by US$0.6 billion.

Investment performance

The prices of Emerging Markets assets continued to be volatile during the year, resulting in negative investment performance of US$6.0 billion for the period of which half occurred in the local currency theme, which, as discussed in the Market review, was the weakest of the asset classes largely as a consequence of US dollar strength. Furthermore, the decline was concentrated in the first half of the year, when sentiment towards the asset class deteriorated with a strengthening US dollar, lower commodity prices, and rising geopolitical tension. Ashmore's value-based investment processes identified opportunities in this period of price weakness, and subsequently began to deliver positive investment performance and significant outperformance against benchmarks in the second half.

Therefore, the performance against benchmarks reflects for the most part the market weakness experienced in late 2014 and early 2015, and while slightly weaker compared with the same point a year ago, the performance was much stronger in the second half of the financial year as predicted at the half year stage. Over three and five years, 60% and 81% of AuM are outperforming relevant benchmarks (30 June 2013: 81% and 92%, respectively). Over one year, 23% of AuM are outperforming compared with 38% a year ago.

Financial performance

Revenue

Net revenue for the year of £283.3 million was 8% higher than in the prior year. The increase reflects US dollar strength against Sterling and its effect on the translation of the Group's non-Sterling assets and liabilities, together with a higher contribution from performance fees.

Management fee income net of distribution costs decreased by 11%, reflecting a reduction in average net management fee margin of 1 basis point (bp) to 59bps together with 12% lower average AuM, partially offset by the benefit of a higher average GBP:USD exchange rate.

Performance fees of £13.3 million were approximately £10m higher than the prior year (FY2013/14: £3.1 million) and generated primarily by funds with an August year end and by specific investments in the alternatives theme, and as such were unaffected by the market weakness experienced during the middle of the financial year. There were no material performance fees realised in August 2015 by funds with an August year end.

The Group receives the majority of its fees in US dollars, which are sold to satisfy Sterling or other currency payments. The Group's cash held in currencies other than Sterling is marked-to-market at the balance sheet date with corresponding changes in value taken through the 'Foreign exchange' revenue line together with any gains or losses on currency hedges. Primarily as a result of the US dollar strengthening against Sterling during the period, from 1.7106 to 1.5712, there was a foreign exchange translation gain of £18.5 million (FY2012/13: £30.1 million loss).

Operating cost structure

The Group continues to exert disciplined control over operating costs, while making sufficient investment in its people and platform to support future growth.

The majority of costs relate to staff; the Group's distinctive remuneration philosophy maintains a relatively low cap on fixed salary costs and a strong bias towards variable performance-related remuneration. An emphasis is placed on long-term equity ownership. In the year to 30 June 2015, variable compensation as a percentage of earnings before variable compensation, interest and tax (VC/EBVCIT) was 18.5% (FY2013/14: 20%).

Total operating costs fell by 1% to £99.5 million (FY2013/14: £100.4 million), reflecting slightly higher absolute variable compensation offset by a 3% reduction in operating costs excluding variable compensation.

Profitability

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was £176.7 million (FY2013/14: £195.1 million) and the adjusted EBITDA margin was stable at 67%.

Net finance income of £1.9 million (FY2013/14: £2.2 million income) includes items relating to seed capital investments that are described in more detail in the Business review.

Profit before tax for the year increased by 6% to £181.3 million (FY2013/14: £171.6 million) and diluted earnings per share for the year were 19.3p (FY2013/14: 18.6p).

Strategic developments

Phase 2: diversify developed world capital sources and themes

An important aspect of the development of Emerging Markets, and of Ashmore, is the opening up of significant capital markets to a broader range of investors. Ashmore continues to position itself at the forefront of market openings in order to provide clients with the broadest possible range of investment opportunities in Emerging Markets. This period has seen substantial developments in this regard, with the Group receiving approval in June 2015 from the Saudi Arabia Government Investment Authority to invest in the Tadawul stock market, and equity, fixed income and multi-strategy fund launches under the Chinese RQFII scheme including an all-share fund that can invest in A shares, H shares and ADRs. As part of this process, Ashmore became the first manager to receive approval from the Luxembourg regulator to invest up to 100% of its RQFII funds' NAV in debt instruments traded on the China interbank bond market.

The Group's range of mutual funds continues to grow, with 36 SICAVs (30 June 2014: 32 funds) managing US$7.8 billion and nine US 40-Act funds (30 June 2014: nine funds) managing US$1.2 billion.

Phase 3: mobilise Emerging Markets capital

The Group's local platforms comprise a range of different businesses that address local market needs for independent asset management capabilities. During the year, the Group opened a new office in Saudi Arabia and closed its business in Brazil, which was not developing as rapidly as planned. While the latter business has enjoyed some success in raising assets from local investors, the market continues to be dominated by volatile flow patterns and the platform is unlikely to achieve sufficient scale and flexibility within an acceptable timeframe. This decision does not affect the ability of the Group's global funds to invest in this important market, nor will it have any material impact at the Group level.


In contrast, the Group's business in Indonesia is delivering healthy organic AuM growth and the recently opened office in Saudi Arabia is experiencing encouraging levels of client interest. The regulatory landscape in Turkey continues to evolve in favour of independent asset managers, for example Ashmore is now able to sponsor its own mutual funds on the Istanbul Stock Exchange, and fundraising is progressing well in Colombia.

People and culture

Michael Benson will retire at the Group's AGM in October. On behalf of the Board and all Ashmore employees, I would like to thank Michael for his wise counsel and diligent and valuable service as Chairman over the past nine years since Ashmore went public. Michael has been an outstanding first Chairman, providing flexible and responsive input and enormous help to the Group where we see him as one of our own and will miss him.

The market volatility of the past year has provided opportunities as well as challenges for Emerging Markets investors, and I would like to thank everyone at Ashmore for their positivity and ongoing focus and dedication to delivering value to clients, whatever the market environment.

Mark Coombs

Chief Executive Officer
7 September 2015

Business Review

Ashmore's operating performance for the year reflects 12% lower average AuM compared with the prior year, leading to adjusted EBITDA 9% lower than in the prior year and with the adjusted EBITDA margin remaining at a high level of 67%. In addition to higher performance fees and the disciplined control of operating costs, on a statutory basis, the results reflect the effects of foreign exchange translation, which delivered a gain this year compared with a loss in the prior year, and consequently profit before tax increased 6% to £181.3 million.

Summary non-GAAP financial performance

The table below reclassifies items relating to seed capital and the translation of non-Sterling balance sheet positions to aid clarity and comprehension of the Group's operating performance, and to provide a more meaningful comparison with the prior year. For the purposesof presenting 'Adjusted' profits, operating expenses have been adjusted for the variable compensation on foreign exchange translationgains and losses.

		Reclassification of
£m	FY2014/15 Statutory	Seed capital-related items	Foreign exchange translation	FY2014/15 Adjusted	FY2013/14 Adjusted
Net revenue	283.3	-	(18.5)	264.8	293.0
Investment securities	(3.6)	3.6	-	-	-
Third-party interests	0.8	(0.8)	-	-	-
Operating expenses	(94.2)	2.7	3.4	(88.1)	(97.9)
EBITDA	186.3	5.5	(15.1)	176.7	195.1
EBITDA margin	66%	-	-	67%	67%
Depreciation & amortisation	(5.3)	-	-	(5.3)	(5.0)
Operating profit	181.0	5.5	(15.1)	171.4	190.1
Net finance income/expense	1.9	(5.1)	4.9	1.7	0.9
Associates & joint ventures	(1.6)	-	-	(1.6)	(1.9)
Seed capital-related items	-	(0.4)	-	(0.4)	19.0
Acquisition-related items	-	-	-	-	0.5
Profit before tax excluding FX translation	181.3	-	(10.2)	171.1	208.6
Foreign exchange translation	-	-	10.2	10.2	(37.0)
Profit before tax	181.3	-	-	181.3	171.6

Assets under management

AuM declined by 21% over the year from US$75.0 billion to US$58.9 billion, through gross subscriptions of US$9.2 billion (FY2013/14: US$16.8 billion), gross redemptions of US$18.7 billion (FY2013/14: US$23.3 billion), negative investment performance of US$6.0 billion (US$5.1 billion positive), and a disposal of US$0.6 billion.

Gross subscriptions represent 12% of opening AuM. While at a lower level than the prior year, they were balanced across the Group's investment themes and were achieved despite the adverse sentiment towards Emerging Markets that prevailed for much of the year. This highlights the Group's broad-based distribution resources and diversified client base.

Gross redemptions represent 28% of average AuM (FY2013/14: 32%). Although there was a small number of relatively large and lower margin segregated account redemptions in the period, in the blended debt, equities and overlay/liquidity themes, the reduction from the prior period reflects a substantially lower level of overlay/liquidity redemptions.

AuM movements by investment theme

The AuM by theme as classified by mandate is shown in the table below. Reclassifications typically occur when a fund's investment objectives, investment guidelines or performance benchmark change such that its characteristics cause it to be included in a different theme.

Theme	AuM30 June 2014US$bn	PerformanceUS$bn	GrosssubscriptionsUS$bn	GrossredemptionsUS$bn	Net flowsUS$bn	Reclassificationsand disposalUS$bn	AuM30 June 2015US$bn
External debt	14.0	(0.6)	1.0	(2.5)	(1.5)	0.1	12.0
Local currency	17.3	(2.9)	2.2	(1.9)	0.3	0.5	15.2
Corporate debt	8.2	(0.7)	1.3	(1.6)	(0.3)	-	7.2
Blended debt	20.6	(1.1)	2.8	(6.0)	(3.2)	(0.6)	15.7
Equities	6.1	(0.2)	1.2	(3.3)	(2.1)	-	3.8
Alternatives	2.5	(0.3)	-	(0.8)	(0.8)	(0.6)	0.8
Multi-strategy	2.7	(0.2)	0.2	(1.1)	(0.9)	-	1.6
Overlay/Liquidity	3.6	-	0.5	(1.5)	(1.0)	-	2.6
Total	75.0	(6.0)	9.2	(18.7)	(9.5)	(0.6)	58.9

AuM as invested

The following tables show AuM 'as invested' by underlying asset class, which adjusts from 'by mandate' to take account of the allocation into the underlying asset class of the multi-strategy and blended debt themes; and of cross-over investment from within certain external debt funds. This analysis highlights the scale of the local currency and corporate debt themes, which together represent 51% of Group AuM.

The Group's AuM by investment destination is diversified geographically, with 36% in Latin America, 24% in Asia Pacific, 14% in the Middle East and Africa, and 26% in Eastern Europe.

AuM classified by mandate

	30 June 2015		30 June 2014
Theme	AuM(US$bn)	%	AuM(US$bn)	%
External debt	12.0	20	14.0	19
Local currency	15.2	26	17.3	23
Corporate debt	7.2	12	8.2	11
Blended debt	15.7	27	20.6	27
Equities	3.8	7	6.1	8
Alternatives	0.8	1	2.5	3
Multi-strategy	1.6	3	2.7	4
Overlay / Liquidity	2.6	4	3.6	5
Total	58.9	100	75.0	100

AuM as invested

	30 June 2015		30 June 2014
Theme	AuM(US$bn)	%	AuM(US$bn)	%
External debt	21.1	36	22.8	30
Local currency	17.9	31	23.9	32
Corporate debt	11.8	20	14.4	19
Equities	4.3	7	7.1	10
Alternatives	1.2	2	3.2	4
Overlay / Liquidity	2.6	4	3.6	5
Total	58.9	100	75.0	100

Investor profile

The Group's client base is predominantly institutional in nature, with 91% (30 June 2014: 89%) of AuM from such clients. Ashmore has established direct, long-term relationships with its institutional clients, the most significant categories of which are government-related entities (such as central banks, sovereign wealth funds, and pension schemes) and private and public pension plans, together accounting for 70% of AuM (30 June 2014: 70%).

AuM by investor type

Type	30 June 2015%	30 June 2014%
Central banks	21	19
Sovereign wealth funds	10	8
Governments	8	9
Pension plans	31	34
Corporates/Financial institutions	18	15
Funds/Sub-advisers	1	2
Third-party intermediaries	9	11
Foundations/Endowments	2	2
Total	100	100

AuM sourced through intermediaries, which provide the Group with access to retail markets, amounts to 9% of the Group total (30 June 2014: 11%). The reduction was due to expected redemptions in Japanese retail funds.

AuM by investor geography

Geography	30 June 2015%	30 June 2014%
Americas	21	20
Europe ex UK	27	27
UK	9	12
Middle East & Africa	23	22
Asia Pacific	20	19
Total	100	100

Segregated accounts represent 69% of AuM (30 June 2014: 66%). The trend in demand for segregated accounts is well established and the Group expects this to continue as it reflects ongoing factors such as regulatory obligations, bespoke reporting requirements, and the application of specific investment guidelines. Although the period saw several large segregated account redemptions, some clients moved capital from pooled funds into segregated accounts, explaining the overall increase in the proportion of Group AuM held in segregated accounts.

Financial review

The Group adopted IFRS 10 with effect from 1 July 2014, which redefines the concept of control for consolidation purposes and resulted in four additional funds being consolidated retrospectively from the date of acquiring a controlling stake. Further information and restated historical financial statements are presented in Notes 3 and 31. There is no impact on the Group's net assets or total comprehensive income as a result of the adoption of IFRS 10.

Revenues

Net revenue increased 8% from £262.9 million to £283.3 million as a result of higher performance fees and foreign exchange translation gains, partly offset by lower net management fee income.

Management fee income net of distribution costs declined 11% to £247.3 million (FY2013/14: £278.5 million) following a 12% fall in average AuM and a slight decline in the net management fee margin to 59bps (FY2013/14: 60bps). The net management fee margin is influenced by factors such as theme and product mix, competition, and long-term development of asset class returns. In this period, the rate of margin decline was in aggregate lower than experienced in recent years, reflecting in part the effects of relatively large segregated account redemptions described above and some positive mix effects.

Net management fee income includes the release of an accrual following the renegotiation of an equities distribution agreement, which contributed approximately half a basis point to the Group net management fee margin and should be considered non-recurring in nature.

Performance fees of £13.3 million (FY2013/14: £3.1 million) were generated in the period, mostly by funds with an August year end and specific investments in the alternatives theme, and so unaffected by the market weakness seen in the middle part of the financial year. At 30 June 2015, 13% of the Group's AuM was eligible to earn performance fees (30 June 2014: 12%).

Translation of the Group's non-Sterling assets and liabilities at the period end result in a foreign exchange gain of £18.5 million (FY2013/14: £30.1 million loss), reflecting principally US dollar strength against Sterling. The Group recognised net realised and unrealised hedging losses of £0.4 million (FY2013/14: £3.5 million gain).

Fee income and net management fee margin by investment theme

The table below summarises net management fee income after distribution costs, performance fee income, and average net management fee margin by investment theme.

Theme	Net management feesFY2014/15£m	Net management feesFY2013/14£m	PerformancefeesFY2014/15£m	PerformancefeesFY2013/14£m	Net management fee marginFY2014/15bps	Net management fee marginFY2013/14bps
External debt	45.8	51.4	6.8	0.4	56	60
Local currency	46.6	51.2	0.3	0.2	45	49
Corporate debt	30.9	29.4	0.1	-	65	70
Blended debt	63.6	65.8	0.1	1.8	54	56
Equities	32.2	25.9	0.3	0.2	105	76
Alternatives	12.6	24.3	4.8	0.5	165	202
Multi-strategy	12.5	22.1	0.9	-	95	123
Overlay/Liquidity	3.1	8.4	-	-	17	19
Total	247.3	278.5	13.3	3.1	59	60

Operating costs

The Group has maintained a disciplined approach to controlling costs, resulting in a 1% reduction in operating costs to £99.5 million (FY2013/14: £100.4 million). Excluding variable compensation, operating costs fell 3% from £58.9 million to £57.1 million.

Fixed staff costs of £24.8 million increased only 1% compared with the prior year, consistent with a 1% increase in average headcount from 290 to 293 employees, primarily the result of opening an office in Saudi Arabia. The Group's headcount at 30 June 2015 was 285 employees (30 June 2014: 291 employees).

Other operating costs, excluding depreciation and amortisation, fell by 8% from £29.3 million to £27.0 million, with a continued focus on controlling discretionary expenditure.

The charge for variable compensation was £42.4 million, an increase of 2% on the prior year (FY2013/14: £41.5 million), and representing 18.5% of earnings before variable compensation, interest and tax (FY2013/14: 20%).

EBITDA

EBITDA for the period was £186.3 million (FY2013/14: £176.3 million). On an adjusted basis, reclassifying the effects of seed capital investments and foreign exchange translation, EBITDA was 9% lower at £176.7 million (FY2013/14: £195.1 million), compared with the 12% decline in average AuM. Higher performance fees and the control of operating costs helped to mitigate the effect of lower AuM levels on profitability.

The EBITDA margin for the financial year was 66% (FY2013/14: 67%). On an adjusted basis, the EBITDA margin was unchanged from the prior year at 67%.

Finance income

Net finance income of £1.9 million for the period (FY2013/14: £2.2 million), includes items relating to seed capital investments, which are described in more detail below. Net interest income for the year was £1.7 million and there were no acquisition-related items in the period (FY2013/14: £0.5 million).

Taxation

The majority of the Group's profit is subject to UK taxation; of the total current tax charge for the year of £41.3 million (FY2013/14: £35.7 million), £36.4 million (FY2013/14: £31.0 million) relates to UK corporation tax.

There is a £16.8 million net deferred tax asset on the Group's balance sheet as at 30 June 2015 (30 June 2014: £16.8 million), which arises principally as a result of timing differences in the recognition of the accounting expense and actual tax deduction in connection with (i) share-based payments, and (ii) goodwill and intangibles arising on the acquisition of Ashmore's equity business. Consequently the Group's effective current tax rate for the year is 22.8% (FY2013/14: 21.5%), which is higher than the blended UK corporation tax rate of 20.75% (FY2013/14: 22.5%). Note 12 to the financial statements provides a full reconciliation of this deviation from the blended UK corporate tax rate.

Balance sheet, cash flow and foreign exchange

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 clients, and to fulfil development needs across the business. These include funding establishment costs of distribution offices and local asset management ventures, seeding new funds, trading or investing in funds or other assets, and other strategic initiatives.

As at 30 June 2015, total equity attributable to shareholders of the parent was £656.1 million (30 June 2014: £615.8 million). There is no debt on the Group's balance sheet.

Cash

Ashmore's business model delivers a high conversion rate of operating profits to cash. On operating profit of £181.0 million for the period (FY2013/14: £171.3 million), the Group generated cash of £215.2 million before working capital changes (FY2013/14: £247.9 million) and £190.4 million of cash from operations (FY2013/14: £233.1 million).

Cash and cash equivalents by currency

	30 June 2015£m	30 June 2014£m
Sterling	205.0	100.3
US dollar	152.7	252.3
Other	23.1	19.6
Total	380.8	372.2

Seed capital investments

As at 30 June 2015, the amount invested in seed capital was £213.3 million at cost, with a market value of £207.0 million (30 June 2014: £185.4 million at cost; £187.8 million market value). The 'at cost' investment represents 37% of Group net tangible equity (30 June 2014: 34%) and the majority of the Group's seed capital is held in liquid funds, such as daily-dealing SICAVs or US 40-Act mutual funds.

Seed capital by currency

	30 June 2015£m	30 June 2014£m
US dollar	150.1	122.8
Indonesian rupiah	36.5	36.2
Brazilian real	7.0	17.5
Other	13.4	11.3
Total market value	207.0	187.8

The Group manages its seed capital positions actively and during the year it made new commitments of £91.0 million and realised £68.4 million from previous investments. Seed capital activity resulted in a loss before tax of £5.3 million (FY2013/14: £6.1 million profit), largely due to foreign exchange translation and mark-to-market investment performance.

The consolidation of funds in which the Group's seeding leads to a controlling interest resulted in losses on investment securities of £3.6 million (FY2013/14: £14.9 million gain), change in third-party interests gain of £0.8 million (FY2013/14: £6.1 million loss), operating expenses of £2.7 million (FY2013/14: £3.5 million) and net interest income of £5.3 million (FY2013/14: £3.8 million).

The financial effects of seed capital held in others funds are reported as finance income or expense, and include a negative investment return of £0.2 million (FY2013/14: £9.9 million positive return) and a £4.9 million foreign exchange loss (FY2013/14: £12.9 million loss) arising on the translation of non-Sterling denominated seed capital positions, and principally those denominated in US dollar, Brazilian real and Indonesian rupiah. Note 20 to the financial statements provides more details on the movements in seed capital items during the financial year.

Own shares held

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 2015, the EBT owned 37,889,347 (30 June 2014: 37,962,631) ordinary shares.

Goodwill and intangible assets

At 30 June 2015, goodwill and intangible assets on the Group's balance sheet totalled £74.1 million (30 June 2014: £72.2 million) with the increase attributable to the combined amortisation and impairment charge of £4.0 million (FY2013/14: £3.8 million) and a foreign exchange revaluation gain through reserves of £5.9 million (FY2013/14: £8.3 million loss).

Foreign exchange

The majority of the Group's fee income is received in US dollars and it is the Group's established policy to hedge up to two-thirds of the notional value of up to two years' budgeted foreign currency-denominated net management fees, using either forward or option foreign exchange contracts. The Group's Foreign Exchange Management Committee determines the proportion of budgeted fee income to hedge by regular reference to expected non-US dollar, and principally Sterling, cash requirements. The hedging contracts effectively create a corridor outside of which the proportion of fee income is protected from movements in the GBP: USD exchange rate. When the contracts expire, either they deliver Sterling or the Group can sell the notional amount of US dollars for Sterling at the prevailing spot rate. The proportion of fee income received in foreign currency and not subject to hedging is held as cash or cash equivalents in the foreign currency and marked-to-market at the period end exchange rate.

During the course of the year, the Group conducted spot sales of US dollars and thereby reduced the proportion of cash held in US dollars from 68% at 30 June 2014 to 40% at 30 June 2015. The average GBP:USD rate achieved on the sales was 1.5822, which relative to the spot rate of 1.7106 on 30 June 2014, resulted in a realised gain of approximately £14.6 million.

Regulatory capital

As a UK listed asset management group, Ashmore is subject to regulatory supervision by the Financial Conduct Authority (FCA) under the Prudential Sourcebook for Banks, Building Societies and Investment Firms. At the year end, the Group had two UK-regulated entities: Ashmore Investment Management Limited (AIML), and Ashmore Investment Advisors Limited (AIAL), on behalf of which half-yearly capital adequacy returns are filed. Both AIML and AIAL held excess capital resources relative to their requirements at all times during the period under review.Since 1 January 2007, the Group has been subject to consolidated regulatory capital requirements, whereby the Board is required to assess the degree of risk across the Group's business, and is required to hold sufficient capital against these requirements.

The Board has assessed the amount of Pillar II capital required to cover such risks as £94.4 million (30 June 2014: £72.9 million). The increase compared with the prior year is principally the result of higher seed capital levels and a consequent increase in the market risk requirement, together with a small increase in the operational risk requirement. Given the considerable balance sheet resources available to the Group, the Board is satisfied that the Group is adequately capitalised.

Dividend

The Board intends to pay a progressive ordinary dividend over time, taking into consideration factors such as prospects for the Group's earnings, demands on the Group's financial resources, and the markets in which the Group operates.

In recognition of Ashmore's operating and financial performance during the period, its balance sheet strength, and of the Board's confidence in the Group's future prospects, the Directors are recommending a final dividend of 12.1 pence per share for the year ending 30 June 2015, which, subject to shareholder approval, will be paid on 4 December 2015 to those shareholders who are on the register on 6 November 2015.

Tom Shippey

Group Finance Director7 September 2015

Risk Management

Risk management and internal control systems

In accordance with the principles of the 2012 UK Corporate Governance Code, the Board is ultimately responsible for the Group's risk management and internal control systems and for reviewing their effectiveness. Such systems and their review are designed to manage rather than eliminate the risk of failure to achieve business objectives, and can only provide reasonable and not absolute assurance against material misstatement or loss.

Selected principal risks and mitigants

The Group's principal risks are dynamic and those considered most relevant to the business model are listed in the table below, together with their mitigants. Reputational and conduct risks are common to most aspects of the strategy and business model.

Selected principal risks and their delegated owners

Risk type/owner	Selected principal risks		Mitigation includes
Strategic & business risks (Delegated owner: Ashmore Group plc Board) The risks that the medium and long-term profitability and/or reputation of the Group could be adversely impacted by the failure either to identify and implement the correct strategy, or to react appropriately to changes in the business environment.	1. Long-term downturn in Emerging Markets fundamentals / technical 2. Market capacity issues and increased competition constrain growth 3. Appropriate marketing strategy, which includes effective management of potential and existing investor base		- The Board's long investment management experience; - Group Operating Committee meets regularly; - A clearly defined Group strategy, understood throughout the organisation and actively monitored; - Diversification of investment capabilities by theme, asset class and location; - Experienced, centrally-managed and globally-located distribution team to access increasingly diversified sources of AuM; and - Product Committee in place with knowledge of the markets and related regulation.
Treasury risks (Delegated owner: Chief Executive Officer and Group Finance Director) These are risks that management does not appropriately mitigate balance sheet risks or exposures that could ultimately impact the financial performance or position of the Group.	4. Financial projections and hedging of future cash flows and balance sheet 5. Adequate liquidity provision for Group and subsidiaries		- Monthly reporting of all balance sheet exposures to the executive; - Oversight and management of the Group's foreign exchange balances is the responsibility of the FX Management Committee, which determines the appropriate level of hedging required; - Seed capital is subject to strict monitoring by the Board within a framework of set limits including diversification; - Cash flows are forecast and monitored on a regular basis and managed in line with approved policy; - Group Liquidity Policy; and - The availability of US dollar S&P AAA-rated liquidity funds managed by experienced cash managers.
Investment risks (Delegated owner: Group Investment Committees) The risk of non-performance or manager neglect of duty, including the risk that long-term investment outperformance is not delivered thereby damaging prospects for winning and retaining clients, and putting average management fee margins under increased pressure; and decreased market liquidity provided by counterparties that the Group and its funds rely on.	6. Manager non-performance or neglect of duty; market abuse, similar portfolios being managed consistently 7. Downturn in long-term performance		- Experienced Investment Committees meet regularly (weekly for most investment themes across the Group) ensuring consistent core investment processes are applied; - Allocations across funds are actively reviewed to ensure appropriate consistency; and - Dedicated Emerging Markets research and investment focus, with frequent country visits as well as a physical presence in key Emerging Markets.
Operational risks (Delegated owner: Group Risk and Compliance Committee) Risks in this category are broad in nature and inherent in most businesses and processes. They include the risk that operational flaws result from a lack of resources or planning, error or fraud, weaknesses in systems and controls, or incorrect accounting or tax treatment.	8. Compliance with global and local regulatory requirements, including conflicts of interest and treating customers fairly 9. Oversight of Ashmore overseas entities 10. Level of resources, which includes loss of key staff or inability to attract staff, constrains growth 11. Accuracy and integrity of data including i) manual processes/ reporting; and ii) transactions, static data and prices12. Adequate client oversight including alignment of interests 13. Pre-trade and post-trade booking and settlements 14. Inappropriate accounting practices leads to sanction		- Monthly Risk and Compliance Committee meetings to consider the Group's KRIs; - The Operating Committee has oversight of the Group's Global Operating Model; - An integrated control and management framework to ensure day-to-day global operations are managed effectively; - Experienced Compliance, Legal, and Finance departments to identify, quantify, monitor and manage regulatory changes as well as oversight of client communications and financial promotions; - Conflicts of interest review performed; - Monthly Product Committee meetings including suitability and appropriateness; - Fully integrated trade order management and portfolio accounting platforms; - Formal procedures and sign-off for launch of new funds or material changes to existing funds; - All trading counterparties are subject to strict risk, legal, compliance, and operational sign-off prior to set-up; - Resources are regularly reviewed and also career development and succession is in place; - Group accounting policies in place and reviewed regularly; and - Dedicated tax specialist within the Finance department.

Statement of Directors' responsibilities

The Directors are responsible for preparing the annual report and the Group and parent company financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare Group and parent company financial statements for each financial year. Under that law they are required to prepare the Group financial statements in accordance with IFRSs as adopted by the EU and applicable law and have elected to prepare the parent company financial statements on the same basis.

Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and parent company and of their profit and loss for that period. In preparing each of the Group and parent company financial statements, the Directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and estimates that are reasonable and prudent;

- state whether they have been prepared in accordance with IFRSs as adopted by the EU; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and the parent company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent company's transactions and disclose with reasonable accuracy at any time the financial position of the parent company and enable them to ensure that its financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

Under applicable law and regulations, the Directors are also responsible for preparing a Strategic report, Directors' remuneration report and Corporate governance statement that comply with that law and those regulations.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Responsibility statement of the Directors in respect of the annual financial report

We confirm that to the best of our knowledge:

- the financial statements, prepared in accordance with the applicable set of accounting standards give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole;

- the Directors' report includes a fair review of the development and performance of the business and the position of the issuer and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

We consider the annual financial report, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Group's position and performance, business model and strategy.

 

Michael Benson

Chairman

7 September 2015

Consolidated statement of comprehensive income

For the year ended 30 June 2015

	Notes	2015£m	Restated 2014£m
Management fees		250.2	283.1
Performance fees		13.3	3.1
Other revenue		4.6	7.9
Total revenue		268.1	294.1
Distribution costs		(2.9)	(4.6)
Foreign exchange	7	18.1	(26.6)
Net revenue		283.3	262.9
Gains/(losses) on investment securities	20	(3.6)	14.9
Change in third-party interests in consolidated funds	20	0.8	(6.1)
Personnel expenses	9	(67.2)	(66.1)
Other expenses	11	(32.3)	(34.3)
Operating profit		181.0	171.3
Finance income	8	7.0	10.7
Finance expense	8	(5.1)	(8.5)
Share of losses from associates and joint ventures	27	(1.6)	(1.9)
Profit before tax		181.3	171.6
Tax expense	12	(41.3)	(36.9)
Profit for the year		140.0	134.7
Other comprehensive income, net of related tax effect
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences arising on foreign operations		9.7	(20.2)
Fair value reserve (available-for-sale financial assets):
Net change in fair value		3.2	(3.3)
Net amount transferred to profit or loss		(1.1)	(2.5)
Cash flow hedge intrinsic value gains/(losses)		(1.9)	2.8
Other comprehensive income, net of tax		9.9	(23.2)
Total comprehensive income for the year		149.9	111.5
Profit attributable to:
Equity holders of the parent		136.5	132.1
Non-controlling interests		3.5	2.6
Profit for the year		140.0	134.7
Total comprehensive income attributable to:
Equity holders of the parent		145.7	109.5
Non-controlling interests		4.2	2.0
Total comprehensive income for the year		149.9	111.5
Earnings per share
Basic	13	20.26p	19.48p
Diluted	13	19.34p	18.63p

Comparative information has been restated to reflect the adoption of IFRS 10 Consolidated Financial Statements: see notes 3 and 31.

Consolidated balance sheet

As at 30 June 2015

	Notes	2015£m	Restated 2014£m	Restated 2013£m
Assets
Non-current assets
Goodwill and intangible assets	15	74.1	72.2	84.3
Property, plant and equipment	16	2.5	3.0	3.7
Investment in associates and joint ventures	27	7.3	9.7	11.8
Non-current asset investments	20	8.9	11.7	9.1
Other receivables		0.2	0.2	0.1
Deferred acquisition costs		-	-	0.6
Deferred tax assets	18	20.3	21.3	21.0
		113.3	118.1	130.6
Current assets
Investment securities	20	131.0	173.2	107.5
Available-for-sale financial assets	20	10.6	29.4	36.4
Fair value through profit or loss investments	20	61.8	8.4	-
Trade and other receivables	17	64.0	69.7	82.5
Derivative financial instruments	21	0.3	2.5	-
Cash and cash equivalents		380.8	372.2	395.7
		648.5	655.4	622.1
Non-current assets held-for-sale	20	31.7	39.1	104.9
Total assets		793.5	812.6	857.6
Equity and liabilities
Capital and reserves - attributable to equity holders of the parent
Issued capital	22	-	-	-
Share premium		15.7	15.7	15.7
Retained earnings		649.3	618.2	608.5
Foreign exchange reserve		(5.6)	(14.6)	5.0
Available-for-sale fair value reserve		(3.2)	(5.3)	0.5
Cash flow hedging reserve		(0.1)	1.8	(1.0)
		656.1	615.8	628.7
Non-controlling interests		14.0	16.4	17.1
Total equity		670.1	632.2	645.8
Liabilities
Non-current liabilities
Deferred tax liabilities	18	3.5	4.5	3.0
		3.5	4.5	3.0
Current liabilities
Current tax		13.0	16.4	28.9
Third-party interests in consolidated funds	20	41.5	69.7	40.8
Derivative financial instruments	21	0.3	0.1	2.2
Trade and other payables	25	54.1	87.0	110.0
		108.9	173.2	181.9
Non-current liabilities held-for-sale	20	11.0	2.7	26.9
Total liabilities		123.4	180.4	211.8
Total equity and liabilities		793.5	812.6	857.6

Comparative information has been restated to reflect the adoption of IFRS 10 Consolidated Financial Statements: see notes 3 and 31.

Approved by the Board on 7 September 2015 and signed on its behalf by:

Mark Coombs Tom Shippey

Chief Executive Officer Group Finance Director

Company statement of changes in equity

For the year ended 30 June 2014

 

	Attributable to equity holders of the parent
	Issued capital £m	Share premium £m	Retained earnings£m	Foreign exchange reserve£m	Available-for-sale reserve£m	Cash flow hedging reserve£m	Total£m	Non-controlling interests£m	Totalequity £m
Balance at 30 June 2013 (restated)	-	15.7	608.5	5.0	0.5	(1.0)	628.7	17.1	645.8
Profit for the year	-	-	132.1	-	-	-	132.1	2.6	134.7
Other comprehensive income/(loss):
Foreign currency translation differences arising on foreign operations	-	-	-	(19.6)	-	-	(19.6)	(0.6)	(20.2)
Net fair value gain on available-for-sale assets including tax	-	-	-	-	(3.3)	-	(3.3)	-	(3.3)
Net gains reclassified from available-for-sale reserve to comprehensive income	-	-	-	-	(2.5)	-	(2.5)	-	(2.5)
Cash flow hedge intrinsic value gains	-	-	-	-	-	2.8	2.8	-	2.8
Total comprehensive income/(loss)	-	-	132.1	(19.6)	(5.8)	2.8	109.5	2.0	111.5
Transactions with owners:
Purchase of own shares	-	-	(29.8)	-	-	-	(29.8)	-	(29.8)
Share-based payments	-	-	19.9	-	-	-	19.9	3.9	23.8
Dividends to equity holders	-	-	(112.5)	-	-	-	(112.5)	-	(112.5)
Dividends to non-controlling interests	-	-	-	-	-	-	-	(6.6)	(6.6)
Total contributions and distributions	-	-	(122.4)	-	-	-	(122.4)	(2.7)	(125.1)
Balance at 30 June 2014 (restated)	-	15.7	618.2	(14.6)	(5.3)	1.8	615.8	16.4	632.2
Profit for the year	-	-	136.5	-	-	-	136.5	3.5	140.0
Other comprehensive income/(loss):
Foreign currency translation differences arising on foreign operations	-	-	-	9.0	-	-	9.0	0.7	9.7
Net fair value gain on available-for-sale assets including tax	-	-	-	-	3.2	-	3.2	-	3.2
Net gains reclassified from available-for-sale reserve to comprehensive income	-	-	-	-	(1.1)	-	(1.1)	-	(1.1)
Cash flow hedge intrinsic value losses	-	-	-	-	-	(1.9)	(1.9)	-	(1.9)
Total comprehensive income/(loss)	-	-	136.5	9.0	2.1	(1.9)	145.7	4.2	149.9
Transactions with owners:
Purchase of own shares	-	-	(11.4)	-	-	-	(11.4)	-	(11.4)
Acquisition of non-controlling interests	-	-	-	-	-	-	-	(0.9)	(0.9)
Share-based payments	-	-	19.9	-	-	-	19.9	0.4	20.3
Proceeds received on exercise of vested options	-	-	0.1	-	-	-	0.1	-	0.1
Dividends to equity holders	-	-	(114.0)	-	-	-	(114.0)	-	(114.0)
Dividends to non-controlling interests	-	-	-	-	-	-	-	(6.1)	(6.1)
Total contributions and distributions	-	-	(105.4)	-	-	-	(105.4)	(6.6)	(112.0)
Balance at 30 June 2015	-	15.7	649.3	(5.6)	(3.2)	(0.1)	656.1	14.0	670.1

Comparative information has been restated to reflect the adoption of IFRS 10 Consolidated Financial Statements: see notes 3 and 31.

Consolidated cash flow statement

For the year ended 30 June 2015

	2015£m	Restated 2014£m
Operating activities
Operating profit	181.0	171.3
Adjustments for non-cash items:
Depreciation and amortisation	5.3	4.9
Accrual for variable compensation	42.4	41.5
Unrealised foreign exchange (gains)/losses	(17.7)	26.6
Other non-cash items	4.2	3.6
Cash generated from operations before working capital changes	215.2	247.9
Changes in working capital:
Decrease in trade and other receivables	5.7	12.8
Decrease/(increase) in derivative financial instruments	2.4	(4.6)
Decrease in trade and other payables	(32.9)	(23.0)
Cash generated from operations	190.4	233.1
Taxes paid	(44.7)	(48.3)
Net cash from operating activities	145.7	184.8
Investing activities
Interest received	4.1	0.5
Dividends received	1.8	0.3
Proceeds on disposal of associates	0.6	-
Purchase of non-current asset investments	(0.3)	(2.0)
Purchase of financial assets held-for-sale	(21.8)	(30.4)
Purchase of available-for-sale financial assets	-	(21.3)
Purchase of fair value through profit or loss investments	(2.0)	-
Purchase of investment securities	(77.0)	(58.3)
Sale of non-current asset investments	0.4	2.3
Sale of financial assets held-for-sale	-	12.7
Sale of available-for-sale financial assets	20.8	24.9
Sale of fair value through profit or loss investments	10.1	-
Sale of investment securities	30.1	17.7
Net cash flow arising on initial consolidation/deconsolidation of seed capital investments	(6.8)	9.9
Purchase of property, plant and equipment	(0.7)	(0.4)
Net cash used in investing activities	(40.7)	(44.1)
Financing activities
Dividends paid to equity holders	(114.0)	(112.5)
Dividends paid to non-controlling interests	(6.1)	(6.6)
Third-party subscriptions into consolidated funds	34.0	63.7
Third-party redemptions from consolidated funds	(15.8)	(46.2)
Distributions paid by consolidated funds	-	(0.5)
Acquisition of non-controlling interests	(0.9)	-
Purchase of own shares	(11.4)	(29.8)
Net cash used in financing activities	(114.2)	(131.9)
Net (decrease)/increase in cash and cash equivalents	(9.2)	8.8
Cash and cash equivalents at beginning of year	372.2	395.7
Effect of exchange rate changes on cash and cash equivalents	17.8	(32.3)
Cash and cash equivalents at end of year	380.8	372.2
Cash and cash equivalents at end of year comprise:
Cash at bank and in hand	84.5	76.4
Daily dealing liquidity funds	109.6	224.6
Deposits	186.7	71.2
	380.8	372.2

The indirect method of presenting cash generated from operations has been adopted with effect from 1 July 2014. Previously, the direct method was presented: see note 3 for further details. Comparative information has been restated to reflect the adoption of IFRS 10 Consolidated Financial Statements: see notes 3 and 31.

Company balance sheet

As at 30 June 2015

	Notes	2015£m	2014£m
Assets
Non-current assets
Goodwill and intangible assets	15	4.1	4.1
Property, plant and equipment	16	1.1	1.5
Investment in subsidiaries	26	20.1	20.1
Deferred tax assets	18	9.0	12.3
		34.3	38.0
Current assets
Trade and other receivables	17	451.8	256.9
Cash and cash equivalents		114.5	249.1
		566.3	506.0
Total assets		600.6	544.0
Equity and liabilities
Capital and reserves
Issued capital	22	-	-
Share premium		15.7	15.7
Retained earnings		547.0	495.5
Total equity attributable to equity holders of the Company		562.7	511.2
Liabilities
Current liabilities
Trade and other payables	25	37.9	32.8
		37.9	32.8
Total equity and liabilities		600.6	544.0

Approved by the Board on 7 September 2015 and signed on its behalf by:

Mark Coombs Tom Shippey

Chief Executive Officer Group Finance Director

Company statement of changes in equity

For the year ended 30 June 2015

	Issuedcapital£m	Sharepremium£m	Retained earnings £m	Total equity attributable to equity holders of the parent £m
Balance at 30 June 2013	-	15.7	526.2	541.9
Profit for the year	-	-	94.4	94.4
Purchase of own shares	-	-	(29.8)	(29.8)
Share-based payments	-	-	17.2	17.2
Dividends to equity holders	-	-	(112.5)	(112.5)
Balance at 30 June 2014	-	15.7	495.5	511.2
Profit for the year	-	-	158.9	158.9
Purchase of own shares	-	-	(11.4)	(11.4)
Share-based payments	-	-	18.0	18.0
Dividends to equity holders	-	-	(114.0)	(114.0)
Balance at 30 June 2015	-	15.7	547.0	562.7

 

Company cash flow statement

As at 30 June 2015

	2015£m	2014£m
Operating activities
Cash generated from operations before working capital charges	144.0	8.4
Changes in working capital:
Decrease/(increase) in trade and other receivables	(150.4)	36.8
Increase/(decrease) in trade and other payables	5.1	(13.0)
Cash generated from operations	(1.3)	32.2
Taxes paid	(21.6)	-
Net cash from/(used in) operating activities	(22.9)	32.2
Investing activities
Interest received	0.4	0.2
Loans to subsidiaries	(44.5)	(37.7)
Dividends received from subsidiaries	41.1	143.2
Purchase of property, plant and equipment	-	(0.4)
Net cash from/(used in) investing activities	(3.0)	105.3
Financing activities
Dividends paid	(114.0)	(112.5)
Purchase of own shares	(11.4)	(29.8)
Net cash used in financing activities	(125.4)	(142.3)
Net decrease in cash and cash equivalents	(151.3)	(4.8)
Cash and cash equivalents at beginning of year	249.1	271.7
Effect of exchange rate changes on cash and cash equivalents	16.7	(17.8)
Cash and cash equivalents at end of year	114.5	249.1
Cash and cash equivalents at end of year comprise:
Cash at bank and in hand	5.0	20.4
Daily dealing liquidity funds	39.5	183.7
Deposits	70.0	45.0
	114.5	249.1

The indirect method of presenting cash generated from operations has been adopted with effect from 1 July 2014. Previously, the direct method was presented: see note 3 for further details.

 

Notes to the financial statements

1) General information

Ashmore Group plc (the Company) is a public limited company listed on the London Stock Exchange and incorporated and domiciled in the United Kingdom. The consolidated financial statements of the Company and its subsidiaries (together the Group) for the year ended 30 June 2015 were authorised for issue by the Board of Directors on 7 September 2015.

2) Basis of preparation

The Group and Company financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) effective for the Group's reporting for the year ended 30 June 2015 and applied in accordance with the provisions of the Companies Act 2006.

The financial statements have been prepared on a going concern basis under the historical cost convention, except for the measurement at fair value of certain financial assets that are available-for-sale or classified as fair value through profit or loss.

The Company has taken 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.

The preparation of financial statements 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. Further information about key assumptions and other key sources of estimation and areas of judgement are set out in note 33.

3) Effects of new and amended IFRSs

New standards, interpretations and amendments adopted during the year

The following standards and amendments to standards relevant to the Group's operations were adopted with effect from 1 July 2014.

- IFRS 10 Consolidated Financial Statements redefines the concept of control for consolidation purposes and its adoption has led to four additional funds being consolidated where the Group is now deemed to hold a controlling interest, as defined by this accounting Standard. This has resulted in the total assets and liabilities of those funds being consolidated on a line-by-line basis within the Group's consolidated balance sheet, and the third-party interest in the consolidated funds being recorded within liabilities. There is no impact on the net assets or total comprehensive income of the Group. The Group's previously reported consolidated balance sheets from 1 July 2013 and consolidated cash flows for the year ended 30 June 2014 have been restated to include the consolidation of those funds. Further details on the effect of the restatement on the Group's consolidated financial statements are set out in note 31.

Prior to the application of IFRS 10, the Group consolidated investments where its shareholding resulted in control, as defined by IFRS. This policy has not changed subsequent to the adoption of IFRS 10. However, the change to the definition of control under IFRS 10 means that certain of the Group's funds, principally where the Group holds seed capital investments, now meet the definition of a subsidiary as they are deemed to be controlled by the Group.

- IFRS 11 Joint Arrangements outlines the classification and accounting for jointly controlled arrangements that involve contractually agreed sharing of control. An arrangement subject to joint control under IFRS 11 is classified as either a joint venture (representing a share of net assets, accounted for using the equity method) or a joint operation (representing rights to assets and obligations for liabilities, accounted for accordingly). The adoption of this Standard has not resulted in any impact on the Group's consolidated financial statements.

- IFRS 12 Disclosure of Interests in Other Entities requires certain additional disclosures to be made in respect of the Group's interests in the funds it manages but does not control, as defined by IFRS 10. These disclosures are included in note 28.

Change in accounting policy

The Group adopted the indirect method of presenting cash generated from operations in the Group consolidated cash flow statement with effect from 1 July 2014.

- In accordance with IAS 7 Statement of Cash Flows, the Group has elected to present cash generated from operations using the indirect method (i.e. presenting a line-by-line reconciliation of operating profit to net cash from operating activities on the face of the consolidated cash flow statement). Previously, the Group presented cash generated from operations using the direct method (i.e. presenting cash receipts from customers less cash paid to suppliers and employees on the face of the cash flow statement).

- The Group believes that the indirect method provides additional information regarding the items that affect cash flows generated from operating activities. Comparative consolidated cash flow statement information has also been restated to reflect the new presentation; however, this did not result in any impact on the current or prior period's cash flows generated from operations.

New standards and interpretations not yet adopted

At the date of authorisation of these consolidated financial statements the following standards and interpretations relevant to the Group's operations were issued by the IASB but are not yet mandatory. The Group is assessing the impact of these standards on the Group's future consolidated financial statements.

- IFRS 9 Financial instruments was originally issued in November 2009, and the finalised version, incorporating requirements for classification and measurement, impairment, general hedge accounting and derecognition, was issued in July 2014. IFRS 9 replaces the classification and measurement models for financial instruments in IAS 39 with three classification categories: amortised cost, fair value through profit or loss and fair value through other comprehensive income. Under IFRS 9, the Group's business model and the contractual cash flows arising from its investments in financial instruments will determine the appropriate classification. All equity investments within the scope of IFRS 9 are to be measured at fair value, with gains or losses reported either in the statement of comprehensive income or, by election, through other comprehensive income. However, where fair value gains and losses are recorded through other comprehensive income there will no longer be a requirement to transfer gains or losses to the statement of comprehensive income on impairment or disposal.

In addition, IFRS 9 introduces an expected loss model for the assessment of impairment. The current model under IAS 39 (incurred loss model) requires the Group to recognise impairment losses when there is objective evidence that an asset is impaired. Under the expected loss model, impairment losses are recorded if there is an expectation of credit losses, even in the absence of a default event. The Group does not anticipate that this will have a material impact on its results. IFRS 9 is effective for annual periods beginning on or after 1 January 2018 and has yet to be endorsed for use in the EU.

- IFRS 15 Revenue from Contracts with Customers deals with revenue recognition and establishes a single, principles-based model to be applied to all contracts with customers. Revenue is recognised when a customer obtains control of a good or service and thus has the ability to direct the use and obtain the benefits from the good or service. IFRS 15 replaces IAS 18 Revenue and IAS 11 Construction Contracts and related interpretations. The Standard provides guidance on topics such as the point in which revenue is recognised, accounting for variable consideration, costs of fulfilling and obtaining a contract and various related matters. New disclosures about revenue are also introduced. IFRS 15 is effective for annual periods beginning on or after 1 January 2018 and has yet to be endorsed for use in the EU.

No other standards or interpretations issued and not yet effective are expected to have an impact on the Group's consolidated financial statements.

4) Significant accounting policies

The following principal 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, unless otherwise stated.

Basis of consolidation

The consolidated financial statements of the Group comprise the financial statements of the Company and its subsidiaries, associates and joint ventures. This includes an Employee Benefit Trust (EBT) established for the employee share-based awards and consolidated investment funds.

Interests in subsidiaries

Subsidiaries are those entities, including investment funds, over which the Group has control as defined by IFRS 10. The Group has control if it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date when control ceases. The Group re-assesses whether or not it controls an entity if facts and circumstances indicate that there are changes to one or more of the elements of control.

The profit or loss and each component of other comprehensive income are attributed to the equity holders of the parent of the Group and to any non-controlling interests. Based on their nature, the interests of third-parties in consolidated funds are classified as liabilities and appear as 'Third-party interests in consolidated funds' on the Group's balance sheet. Associates and joint ventures are presented as single line items in the statement of comprehensive income and balance sheet (see note 27). Intercompany transactions and balances are eliminated on consolidation. Consistent accounting policies have been applied across the Group in the preparation of the consolidated financial statements as at 30 June 2015.

A change in the ownership interest of a consolidated entity that does not result in a loss of control by the Group is accounted for as an equity transaction. If the Group loses control over a consolidated entity, it derecognises the related assets, goodwill, liabilities, non-controlling interest and other components of equity, and any gain or loss being recognised in consolidated comprehensive income. Any investment retained is recognised at its fair value at the date of loss of control.

Interests in associates and joint arrangements

Associates are partly owned entities over which the Group has significant influence but no control. Joint ventures are entities through which the Group and other parties undertake an economic activity which is subject to joint control.

Investments in associates and interests in joint ventures are measured using the equity method of accounting. Under this method, the investments are initially recognised at cost, including attributable goodwill, and are adjusted thereafter for the post-acquisition changes in the Group's share of net assets. The Group's share of post-acquisition profit or loss is recognised in the statement of comprehensive income.

Where the Group's financial year is not coterminous with those of its associates or joint ventures, unaudited interim financial information is used after appropriate adjustments have been made.

Interests in consolidated structured entities

The Group acts as fund manager to investment funds that are considered to be structured entities. Structured entities are entities that have been designed so that voting or similar rights are not the dominant factor in deciding which party has control, for example, when any voting rights relate to administrative tasks only and the relevant activities of the entity are directed by means of contractual arrangements. The Group's assets under management are managed within structured entities. These structured entities typically consist of unitised vehicles such as Sociétés d'Investissement à Capital Variable (SICAVs), limited partnerships, unit trusts and open-ended and closed-ended vehicles which entitle third-party investors to a percentage of the vehicle's net asset value.

The Group has interests in structured entities as a result of the management of assets on behalf of its clients. Where the Group holds a direct interest in a closed-ended fund, private equity fund or open-ended pooled fund such as a SICAV, the interest is accounted for either as a consolidated structured entity or as a financial asset, depending on whether the Group has control over the fund or not.

Control is determined in accordance with IFRS 10, based on an assessment of the level of power and aggregate economic interest that the Group has over the fund, relative to third-party investors. Power is normally conveyed to the Group through the existence of an investment management agreement and / or other contractual arrangements. Aggregate economic interest is a measure of the Group's exposure to variable returns in the fund through a combination of direct interest, carried interest, expected management fees, fair value gains or losses, and distributions receivable from the fund.

The Group concludes that it acts as a principal when the power it has over the fund is deemed to be exercised for self-benefit, considering the level of aggregate economic exposure in the fund and the assessed strength of third-party investors' kick-out rights. The Group concludes that it acts as an agent when the power it has over the fund is deemed to be exercised for the benefit of third-party investors.

The Group concludes that it has control and, therefore, will consolidate a fund as if it were a subsidiary where the Group acts as a principal. If the Group concludes that it does not have control over the fund, the Group accounts for its interest in the fund as a financial asset.

Interests in unconsolidated structured entities

The Group classifies the following investment funds as unconsolidated structured entities:

- Segregated mandates and pooled funds managed where the Group does not hold any direct interest. In this case, the Group considers that its aggregate economic exposure is insignificant, and in relation to segregated mandates, the third-party investor has the practical ability to remove the Group from acting as fund manager, without cause. As a result, the Group concludes that it acts as an agent for third-party investors.

- Pooled funds managed by the Group where the Group holds a direct interest, for example seed capital investments, and the Group's aggregate economic exposure in the fund relative to third-party investors is less than 20% (i.e. threshold established by the Group for determining agent versus principal classification). As a result, the Group concludes that it is an agent for third-party investors and, therefore, will account for its beneficial interest in the fund as a financial asset.

The disclosure of the AuM in respect of consolidated and unconsolidated structured entities is provided under note 28.

Foreign currency

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

Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currency of the Group entities at the spot exchange ratesat the date of the transactions.

Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated into the functional currencyat the spot exchange rate at that date. 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.

Foreign currency differences arising on translation are generally recognised in comprehensive income. However, foreign currency differences arising from the translation of the following items are recognised in other comprehensive income:

- available-for-sale equity instruments; and

- qualifying cash flow hedges to the extent that the hedge is effective.

Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, are translated into Sterling at the spot exchange rates 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 currency differences are recognised in other comprehensive income, and accumulated in the foreign currency translation reserve, except to the extent that the translation difference is allocated to non-controlling interests.

When a foreign operation is disposed of such that control is lost, the cumulative amount in the foreign currency translation reserve related to that foreign operation is reclassified to comprehensive income as part of the gain or loss on disposal. If the Group disposes only part of its interest in a subsidiary that includes a foreign operation while retaining control, then the relevant proportion of the cumulative amount is reattributed to non-controlling interests.

If the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, then foreign currency differences arising on the item form part of the net investment in the foreign operation and are recognised in other comprehensive income, and accumulated in the foreign currency translation reserve within equity.

Business combinations

Business combinations are accounted for using the acquisition method as at the acquisition date. The acquisition date is the date on which the acquirer effectively obtains control of the acquiree.

The consideration transferred for the acquisition is generally measured at the acquisition date fair value, as are the identifiable net assets acquired, liabilities incurred (including any asset or liability resulting from a contingent consideration arrangement) and equity instruments issued by the Group in exchange for control of the acquiree.

Acquisition related costs are expensed as incurred, except if they are related to the issue of debt or equity securities.

Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Subsequently, changes to the fair value of the contingent consideration that is deemed to be a liability will be recognised in accordance with IAS 39 in comprehensive income. If the contingent consideration is classified as equity, it will not be remeasured and settlement is accounted for within equity.

If share-based payment awards (replacement awards) are required to be exchanged for awards held by the acquiree's employees (acquiree's awards) and relate to past services, then all or a portion of the amount of the acquirer's replacement awards is included in measuring the consideration transferred in the business combination. This determination is based on market-based value of the replacement awards compared with the market-based value of the acquiree's awards and the extent to which the replacement awards relate to pre-combination service.

Goodwill

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 and 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 or when there is an indication of impairment.

Intangible assets

The cost of intangible assets, such as management contracts and brand names, acquired as part of a business combination is 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 profits expected to be earned 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 eight years.

Non-controlling interests (NCI)

NCI are measured at their proportionate share of the acquiree's identifiable net assets at the acquisition date. Changes to the Group's interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

Property, plant and equipment

Property, plant and equipment is stated at cost less accumulated depreciation and impairment losses. Cost is determined on the basis of the direct and indirect costs that are directly attributable. Property, plant and equipment is depreciated using the straight-line method over the estimated useful lives, assessed to be five years for office equipment and four years for IT equipment. The residual values and useful lives of assets are reviewed at least annually.

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.

Financial instruments

Recognition and initial measurement

Financial instruments are recognised when the Group becomes party to the contractual provisions of an instrument, initially at fair value plus transaction 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, cancelled or expires.

Subsequent measurement

The subsequent measurement of financial instruments depends on their classification in accordance with IAS 39 Financial instruments: recognition and measurement and IFRS 5 Non-current assets held-for-sale and discontinued operations.

Financial assets

The Group classifies its financial assets into the following categories: financial assets held-for-sale, investment securities, fair value through profit or loss investments, available-for-sale financial assets and non-current financial assets held-for-sale.

The Group may, from time to time, invest in funds where an Ashmore Group subsidiary is the investment manager or an adviser (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 capital investments are recognised as non-current financial 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 financial assets at fair value through profit or loss in accordance with IAS 39. Where the assets are not readily realisable, they are recognised as non-current asset investments. If a seed capital investment remains under the control of the Group for more than one year from the original investment date, the underlying fund is consolidated line-by-line.

Investment securities

Investment securities represent listed securities, other than derivatives, held by consolidated funds. These securities are held at fair value with gains and losses recognised through the consolidated statement of comprehensive income.

Non-current financial assets held-for-sale

Non-current financial 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 financial 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 fair value through profit or loss investments in accordance with IAS 39. Subsequent movements will be recognised in accordance with the Group's accounting policy for the newly adopted classification.

Available-for-sale financial assets

Available-for-sale financial assets include readily realisable interests in seeded funds that are either allocated specifically to this category or cannot be assigned to any other category. They are carried at fair value and changes in 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. Dividend income and impairment losses are recognised in the consolidated statement of comprehensive income.

Financial assets designated as fair value through profit or loss (FVTPL)

Financial assets designated as FVTPL include certain readily realisable interests in seeded funds, non-current asset investments and derivatives. The Group designates financial assets as FVTPL when:

- the financial assets are managed, evaluated and reported internally on a fair value basis; and

- the classification at fair value eliminates or significantly reduces an accounting mismatch which would otherwise arise.

From the date the financial asset is designated as FVTPL all subsequent changes in fair value, foreign exchange differences, interest and dividends are reflected in the consolidated statement of comprehensive income and presented in finance income or expense.

(i) FVTPL investments

The Group classifies new readily realisable interests in seeded funds as FVTPL investments with fair value changes being directly recognised through the consolidated statement of comprehensive income. Fair value is measured based on the proportionate net asset value in the fund.

(ii) Non-current asset investments

Non-current asset investments include closed-end funds which are designated as FVTPL. They are held at fair value with changes in fair value being recognised through the consolidated statement of comprehensive income. 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.

(iii) Derivatives

Derivatives include foreign exchange forward contracts and options used by the Group to manage its foreign currency exposures and those held in consolidated funds. Derivatives are initially recognised at fair value on the date on which a derivative contract is entered and subsequently re-measured at fair value. Transaction costs are recognised immediately in the statement of comprehensive income. 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 in comprehensive income, except for the effective portion of cash flow hedges, which is recognised in other comprehensive income.

Trade and other receivables

Trade and other receivables 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 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 are measured at amortised cost less any impairment.

Cash and cash equivalents

Cash represents cash at bank and in hand and cash equivalents comprise short-term deposits and investments in money market instruments with an original maturity of three months or less.

Financial liabilities

The Group classifies its financial liabilities into the following categories: non-current financial liabilities held-for-sale, financial liabilities designated as FVTPL and financial liabilities at amortised cost.

Non-current financial liabilities held-for-sale

Non-current financial liabilities represent interests held by other parties in funds in which the Group recognises 100% of the investment in the fund as a held-for-sale financial asset. These liabilities are carried at fair value with gains or losses recognisedin the statement of comprehensive income within finance incomeor expense.

Financial liabilities at FVTPL

Financial liabilities at FVTPL include derivative financial instruments and third-party interests in consolidated funds. They are carried at fair value with gains or losses recognised in the consolidated statement of comprehensive income within finance income or expense.

Other financial liabilities

Other financial liabilities including trade and other payables are subsequently measured at amortised cost using the effective interest rate method.

Fair value of financial instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the 'exit price') in an orderly transaction between market participants at the measurement date. In determining fair value, the Group uses various valuation approaches and establishes a hierarchy for inputs used in measuring fair value that maximises the use of relevant observable inputs and minimises the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Group.

Unobservable inputs are inputs that reflect the Group's assumptions about the assumptions other market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances.

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 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 instruments are not listed on any stock exchange or not traded on any regulated markets, valuation techniques are used by valuation specialists. These techniques include the market approach, the income approach or the cost approach for which sufficient and reliable data is available. The use of the market approach generally consists of using comparable market transactions or using techniques based on market observable inputs, while the use of the income approach generally consists of the net present value of estimated future cash flows, adjusted as deemed appropriate for liquidity, credit, market and/or other risk factors.

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

The fair value of the derivatives is their quoted market price at the balance sheet date.

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 comprehensive income;

- 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 comprehensive income in the same period during which the relevant financial asset or liability affects the Group's results.

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

Derecognition of financial assets and liabilities

The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risk and rewards of ownership of the asset. The Group derecognises a financial liability when the Group's obligations are discharged, cancelled or they expire.

Impairment of financial assets

General

At each reporting date, the carrying amounts of the Group's assets are reviewed to assess whether there is any objective evidence of impairment in the value of financial assets classified as either available-for-sale or trade and other receivables. Impairment losses are recognised if an event has occurred which will have an adverse impact on the expected future cash flows of an asset and the expected impact can be reliably estimated. If any such indication exists, the asset's recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

The recoverable amount of an asset is the higher of an asset's fair value less costs to sell and its 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.

Impairment losses on available-for-sale financial assets are measured as the difference between cost and the current fair value. Where there is evidence that the available-for-sale financial asset is impaired, the cumulative loss that had been previously recognised in other comprehensive income is reclassified from the available-for-sale fair value reserve and recognised in the consolidated statement of comprehensive income.

Impairment losses in respect of assets other than goodwill are measured as the difference between the carrying amount of the financial asset and the present value of estimated cash flows discounted at the asset's original effective interest rate. Such impairment losses are recognised in the consolidated statement of other comprehensive income and are recognised against the carrying amount of the impaired asset on the consolidated statement of financial position. Interest on the impaired asset continues to be accrued on the reduced carrying amount based on the original effective interest rate of the asset.

Subsequent increases in fair value of previously impaired available-for-sale financial assets are reported as fair value gains in the available-for-sale fair value reserve through other comprehensive income and not separately identified as an impairment reversal.

For all other assets other than goodwill, if in a subsequent year, the amount of the estimated impairment loss decreases because of an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed, but is limited to the extent that the value of the asset may not exceed the original carrying amount that would have been determined, net of depreciation or amortisation, had no impairment occurred.

Goodwill

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. The pre-tax discount rate applied is based on the Group's weighted average cost of capitalafter making allowances for any specific risks.

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. Therefore, for the purpose of testing goodwill for impairment, the Group is considered to have one cash-generating unit to which all goodwill is allocated and, as a result, no further split of goodwill into smaller cash-generating units is possible and the impairment review is conducted for the Group as a whole.

An impairment loss in respect of goodwill is not reversed.

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:

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.

Performance fees

Performance fees net of rebates relate to the performance of funds managed during the period and are recognised when the quantumof 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 or upon early redemption by a client.

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.

Distribution costs

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

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.

Share-based payments

The Group issues share awards to its employees under share-based compensation plans.

For equity-settled awards, the fair value of the amounts payable to employees is recognised as an expense with a corresponding increase in equity, over the vesting period after adjusting for the estimated number of shares that are expected to vest. The fair value is measured at the grant date using an appropriate valuation model, taking into account the terms and conditions upon which the instruments were granted. At each balance sheet date prior to vesting, the cumulative expense representing the extent to which the vesting period has expired and management's best estimate of the awards that are ultimately expected to vest is calculated. The movement in cumulative expense is recognised in the statement of comprehensive income with a corresponding entry within equity.

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 using an appropriate valuation model, taking into account the estimated number of awards that are expected to vest and the terms and conditions upon which the instruments were granted. During the vesting period, the liability recognised represents the portion of the vesting period that has expired at the balance sheet date multiplied by the fair value of the awards at that date. Movements in the liability are recognised in the statement of comprehensive income.

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.

Finance income and expense

Finance income includes interest receivable on the Group's cash and cash equivalents, realised gains on available-for-sale financial assets and both realised and unrealised gains on held-for-sale assets and investments measured at FVTPL.

Finance expense realised losses on available-for-sale financial assets and both realised and unrealised losses on held-for-sale assets and investments measured at FVTPL.

Taxation

Tax expense for the year comprises current and deferred tax. Tax is recognised in the consolidated 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.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year, and any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the balance sheet date in the countries where the Group operates. Current tax also includes withholding tax arising from dividends.

Deferred tax

Deferred tax is recognised using the balance sheet liability method,in respect of 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 reporting date.

Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against whichthe assets can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the balance sheet date.

Dividends

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

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.

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.

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.

Segmental information

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

Company-only accounting policies

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

Investment in subsidiaries

Investments by the Company in subsidiaries are stated at cost less, where appropriate, provisions for impairment.

5) Segmental information

The location of the Group's non-current assets at year end other than financial instruments, deferred tax assets and post-employment benefit assets is shown in the table below. Disclosures relating to revenue are in note 6.

Analysis of non-current assets by geography

	2015£m	2014£m
United Kingdom	12.4	14.3
United States	70.9	70.1
Other	0.6	0.5

6) Revenue

Management fees are accrued throughout the year in line with prevailing levels of assets under management and performance fees are recognised when they can be estimated reliably and it is probable that they will crystallise. The Group is not considered to be reliant on any single source of revenue. During the year, none of the Group's funds (FY2013/14: none) provided more than 10% of total revenue in the year respectively when considering management fees and performance fees on a combined basis.

Analysis of revenue by geography

	2015£m	2014£m
United Kingdom earned revenue	247.3	266.2
United States earned revenue	14.4	22.2
Other revenue	6.4	5.7

7) Foreign exchange

The foreign exchange rates which had a material impact on the Group's results are the US dollar, the Brazilian real and Indonesian rupiah.

£1	Closing rate as at 30 June 2015	Closing rateas at 30 June2014	Average rate year ended30 June2015	Average rate year ended30 June 2014
US dollar	1.5712	1.7106	1.5822	1.6281
Brazilian real	4.8744	3.7854	4.2257	3.7250
Indonesian rupiah	20,970	20,219	19,713	18,618

Foreign exchange gains and losses are shown below.

	2015£m	2014£m
Net realised and unrealised hedging gains/(losses)	(0.4)	3.5
Translation gains/(losses) on non-Sterling denominated monetary assets and liabilities	18.5	(30.1)
Total foreign exchange gains/(losses)	18.1	(26.6)

8) Finance income and expense

	2015£m	Restated2014£m
Finance income
Interest income	7.0	4.7
Net gains on disposal of available-for-sale financial assets	-	2.5
Net realised gains on seed capital investments measured at fair value	-	3.0
Release of contingent consideration	-	0.5
Total finance income	7.0	10.7
Finance expense
Net realised losses on disposal of available-for-sale financial assets	(0.2)	-
Net realised losses on disposal of seed capital investments measured at fair value	(1.2)	-
Net unrealised losses on seed capital investments measured at fair value	(3.7)	(8.5)
Total finance expense	(5.1)	(8.5)
Net finance income	1.9	2.2

9) Personnel expenses

Personnel expenses during the year comprised the following:

	2015£m	2014£m
Wages and salaries	20.0	19.6
Performance-related cash bonuses	17.3	15.0
Share-based payments	24.5	23.2
Social security costs	2.3	5.1
Pension costs	1.6	1.2
Other costs	1.5	2.0
Total personnel expenses	67.2	66.1

Personnel expenses in respect of the year ended 30 June 2015 include an amount of £0.1 million (FY2013/14: £0.6 million) that has been waived by Directors and employees in earlier periods with an equivalent amount paid to charity in the financial year to 30 June 2015.

Number of employees

The number of employees of the Group (including Directors) during the reporting year, all categorised as investment management personnel, was as follows:

	Average for the year ended30 June 2015Number	Average for the year ended30 June 2014Number	At30 June 2015Number	At30 June 2014Number
Total employees	293	290	285	291

Directors' remuneration

There are retirement benefits accruing to two Directors under a defined contribution scheme (FY2013/14: two).

10) Share-based payments

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

Group	2015£m	2014£m
Omnibus Plan	25.0	19.2
Ashmore Equities Investment Management (US) L.L.C (AEIM) operating agreement	1.6	0.3
Phantom Bonus Plan	(2.1)	0.1
Total related to compensation awards	24.5	19.6
Related to acquisition of AEIM	-	3.6
Total share-based payments expense	24.5	23.2

The total expense recognised for the year in respect of equity-settled share-based payment transactions was £26.5 million (FY2013/14:£23.8 million).

The Ashmore First Discretionary Share Option Scheme (Option Scheme)

The Option Scheme was set up in October 2000. Options issued under the Option Scheme typically have a life of 10 years and vest afterfive 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 anequity-settled basis. No further options will be issued under the Option Scheme. All outstanding options are fully vested.

Share options outstanding under the Option Scheme were as follows:

Group and Company	2015 Number of options	Weighted average exercise price pence	2014 Number of options	Weighted average exercise price pence
At the beginning of the year	503,750	35.11	503,750	35.11
Exercised	(328,750)	18.72	-	-
Forfeited	-	-	-	-
Options outstanding at year end	175,000	65.89	503,750	35.11
Options exercisable	175,000	65.89	503,750	35.11

328,750 share options were exercised during the year (FY2013/14: none). The weighted average share price on the date options were exercised during the year was 317.46p.

Weighted average remaining contractual life of outstanding options

Group and Company	At 30 June 2015	At 30 June2014
Outstanding options	175,000	503,750
Weighted average exercise price	65.89p	35.11p
Weighted average remaining contracted life (years)	1.00	1.63

Range of exercise prices for share options outstanding at the end of the year

Group and Company Exercise price per share (p)	Exercise periods	2015Number	2014Number
10.00 - 20.00	9 December 2010 - 8 December 2015	-	328,750
20.00 - 30.00	27 April 2011 - 26 April 2016	125,000	125,000
170.00 - 180.00	8 December 2011 - 7 December 2016	50,000	50,000
		175,000	503,750

There were no new share options granted during the year ended 30 June 2015 (FY2013/14: none).

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 Omnibus Plan will also allow bonuses to be deferred in the form of share awards with or without matching shares. These elements can be used singly or in combination. 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 share-based payments relating to the Omnibus Plan represent the combined cash and equity-settled payments.

Total expense by year awards were granted

Group and Company Year of grant	2015£m	2014£m
2009	-	0.9
2010	2.0	1.1
2011	3.0	2.9
2012	2.9	3.2
2013	4.0	(0.3)
2014	2.6	11.4
2015	8.4	-
	22.9	19.2

Awards outstanding under the Omnibus Plan were as follows:

i) Equity-settled awards

Group and Company	2015Number of shares subject to awards	2015Weighted averageshare price	2014Number of sharessubject to awards	2014 Weighted averageshare price
Restricted share awards
At the beginning of the year	17,996,262	£3.50	18,070,806	£2.98
Granted	5,386,125	£3.07	5,316,273	£3.83
Vested	(2,296,630)	£2.86	(4,288,564)	£3.88
Forfeited	(561,123)	£3.46	(1,102,253)	£3.52
Awards outstanding at year end	20,524,634	£3.46	17,996,262	£3.50
Bonus share awards
At the beginning of the year	5,659,814	£3.55	5,134,098	£3.10
Granted	2,422,401	£3.05	1,918,121	£3.83
Vested	(677,641)	£3.03	(1,388,760)	£3.77
Forfeited	-	-	(3,645)	£3.25
Awards outstanding at year end	7,404,574	£3.43	5,659,814	£3.55
Matching share awards
At the beginning of the year	5,659,814	£3.55	5,134,098	£3.10
Granted	2,421,333	£3.05	1,918,121	£3.83
Vested	(605,548)	£2.97	(941,429)	£3.91
Forfeited	(71,025)	£3.58	(450,976)	£3.47
Awards outstanding at year end	7,404,574	£3.43	5,659,814	£3.55
Total	35,333,782	£3.44	29,315,890	£3.52

ii) Cash-settled awards

Group and Company	2015Number of shares subject to awards	2015Weighted averageshare price	2014Number of sharessubject to awards	2014 Weighted averageshare price
Restricted share awards
At the beginning of the year	2,200,290	£3.50	2,205,318	£3.49
Granted	15,161	£3.09	70,423	£3.83
Vested	(36,887)	£3.94	(11,491)	£3.24
Forfeited	(1,595,716)	£3.51	(63,960)	£3.25
Awards outstanding at year end	582,848	£3.48	2,200,290	£3.50
Bonus share awards
At the beginning of the year	1,579,772	£3.50	1,596,195	£3.50
Granted	-	-	35,211	£3.83
Vested	-	-	(51,634)	£3.24
Forfeited	(1,196,787)	£3.51	-	-
Awards outstanding at year end	382,985	£3.49	1,579,772	£3.50
Matching share awards
At the beginning of the year	1,579,772	£3.50	1,596,195	£3.50
Granted	-	-	35,211	£3.83
Vested	-	-	(8,618)	£3.24
Forfeited	(1,196,787)	£3.51	(43,016)	£3.24
Awards outstanding at year end	382,985	£3.49	1,579,772	£3.50
Total	1,348,818	£3.49	5,359,834	£3.50

iii) Total awards

Group and Company	2015 Number of shares subject to awards	2015Weighted averageshare price	2014Number of sharessubject to awards	2014 Weighted averageshare price
Restricted share awards
At the beginning of the year	20,196,552	£3.50	20,276,124	£3.04
Granted	5,401,286	£3.07	5,386,696	£3.83
Vested	(2,333,517)	£2.88	(4,300,055)	£3.88
Forfeited	(2,156,839)	£3.50	(1,166,213)	£3.51
Awards outstanding at year end	21,107,482	£3.46	20,196,552	£3.50
Bonus share awards
At the beginning of the year	7,239,586	£3.54	6,730,293	£3.19
Granted	2,422,401	£3.05	1,953,332	£3.83
Vested	(677,641)	£3.03	(1,440,394)	£3.75
Forfeited	(1,196,787)	£3.51	(3,645)	£3.25
Awards outstanding at year end	7,787,559	£3.43	7,239,586	£3.54
Matching share awards
At the beginning of the year	7,239,586	£3.54	6,730,293	£3.19
Granted	2,421,333	£3.05	1,953,332	£3.83
Vested	(605,548)	£2.97	(950,047)	£3.90
Forfeited	(1,267,812)	£3.51	(493,992)	£3.45
Awards outstanding at year end	7,787,559	£3.43	7,239,586	£3.54
Total	36,682,600	£3.45	34,675,724	£3.52

The fair value of awards granted under the Omnibus Plan is determined by the average Ashmore Group plc closing 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 vesting date when the grantee becomes unconditionally entitled to the underlying shares. The fair value of the remaining awards is spread over the period from the date of grant to the vesting date.

The liability arising from cash-settled awards under the Omnibus Plan at the end of the year and reported within trade and other payableson the consolidated balance sheet is £1.3 million (30 June 2014: £7.1 million) of which £nil (30 June 2013: £nil) relates to vested awards.

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 underthe CSOP.

Other arrangements

AEIM operating agreement

Under the terms of AEIM's operating agreement, certain employees are eligible to receive part of their variable compensation in the form of partnership units. These awards, which typically vest five years from the date of grant depending on the satisfaction of service conditions, are accounted for as equity-settled share-based payments. The fair value of awards granted is based on the equity valuation of the subsidiary atthe date of grant. Upon vesting, the holders are entitled to receive units in the subsidiary.

Share awards outstanding at year end under the operating arrangement were as follows:

Group	2015Number of shares subject to awards	2015Weighted averageshare price(US dollars)	2014Number of sharessubject to awards	2014Weighted averageshare price(US dollars)
At the beginning of the year	67,289	$31.88	54,352	$32.05
Granted	21,678	$41.11	31,187	$31.66
Vested	-	-	-	-
Forfeited	(15,246)	$37.60	(18,250)	$32.00
Awards outstanding at year end	73,721	$33.41	67,289	$31.88

The total expense recognised for the year in respect of the AEIM equity-settled share-based payment transactions was £1.5 million (FY2013/14:£3.8 million).

AEIM Phantom Bonus Plan

The Phantom Bonus Plan is a cash-settled share-based payment plan set up to provide long-term incentives to certain employees. The units typically vest after five years from date of grant, contingent upon continued employment. Units awarded under the plan carry no voting rights. The fair value of units granted under the plan is determined with reference to the equity valuation of the underlying employing entity.

Awards outstanding at year end under the Phantom Bonus Plan were as follows:

Group	2015Number of shares subject to awards	2015Weighted averageshare price(US dollars)	2014Number of sharessubject to awards	2014Weighted averageshare price(US dollars)
At the beginning of the year	22,041	$31.85	13,229	$32.02
Granted	10,643	$41.11	12,609	$31.66
Vested	-	-	-	-
Lapsed	(8,166)	$41.11	(3,797)	$31.93
Awards outstanding at year end	24,518	$41.11	22,041	$31.85

As at 30 June 2015, the related liability reported within trade and other payables on the consolidated balance sheet is £0.3 million of which £nil relates to vested awards (FY2013/14: £0.2 million of which £nil relates to vested awards).

Prior period acquisition of AEIM

At the time of the acquisition of AEIM in May 2011, employees and management held unvested shares representing 17.9% of its partnership shares. These awards, which vest after five years depending on the satisfaction of service conditions, are accounted for as equity-settled share-based payments in accordance with IFRS 2 Share-based payment which results in an annual charge to the statement of comprehensive income during the period of vesting. Upon vesting, the holders are entitled to receive shares in AEIM 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 AEIM.

During the year, no awards were granted (FY2013/14: none), none vested (FY2013/14: none vested) and 73,600 awards were forfeited (FY2013/14: 11,500 awards were forfeited). 232,300 awards (30 June 2014: 305,900 awards) are outstanding as at the year end.

11) Other expenses

Other expenses consist of the following:

	2015£m	Restated2014£m
Travel	4.1	4.9
Professional fees	3.3	4.3
Information technology and communications	5.9	5.6
Deferred acquisition costs	-	0.1
Amortisation of intangible assets (note 15)	3.6	3.8
Impairment of intangible assets (note 15)	0.4	-
Operating leases	3.3	3.2
Premises-related costs	0.9	1.4
Insurance	1.1	0.9
Auditors' remuneration (see below)	1.0	0.9
Depreciation of property, plant and equipment (note 16)	1.3	1.1
Consolidated funds (note 20)	2.7	3.5
Other expenses	4.7	4.6
	32.3	34.3

Auditors' remuneration

	2015£m	2014£m
Fees for statutory audit services:
- Fees payable to the Company's auditor for the audit of the Group's accounts	0.2	0.2
- Fees payable to the Company's auditor and its associates for the audit of the Company's subsidiaries pursuantto legislation	0.3	0.3
Fees for non-audit services:
- Fees payable to the Company's auditor and its associates for tax services	0.3	0.2
- Fees payable to the Company's auditor and its associates for other services	0.2	0.2
	1.0	0.9

12) Taxation

Analysis of tax charge for the year:

	2015£m	2014£m
Current tax
UK corporation tax on profits for the year	37.6	30.7
Overseas corporation tax charge	4.9	4.7
Adjustments in respect of prior years	(1.2)	0.3
	41.3	35.7
Deferred tax
Origination and reversal of temporary differences (see note 18)	-	(0.1)
Adjustments in respect of prior year	-	(0.2)
Effect of changes in corporation tax rates	-	1.5
Tax expense for the year	41.3	36.9

Factors affecting tax charge for the year

	2015£m	Restated 2014£m
Profit before tax	181.3	171.6
Profit on ordinary activities multiplied by the blended UK tax rate of 20.75% (FY2013/14: 22.5%)	37.6	38.6
Effects of:
Non-deductible expenses	8.0	8.4
Deduction in respect of vested shares/exercised options (Part 12, Corporation Tax Act 2009)	(2.5)	(3.9)
Deferred tax arising from origination and reversal of temporary differences	-	(0.1)
Different rate of taxes on overseas profits	-	(0.1)
Non-taxable income	(2.0)	(4.9)
Tax relief on amortisation and impairment of goodwill and intangibles	(1.0)	(1.5)
Effect of deferred tax balance from changes in the UK corporation tax rate	-	1.5
Other items	2.4	(1.2)
Adjustments in respect of prior years	(1.2)	0.1
Tax expense for the year	41.3	36.9

Non-deductible expenses include the tax impact of non-deductible IFRS 2 accounting charges in respect of share-based payments of £5.0 million (FY 2013/14: £5.2 million).

Non-taxable income relates mainly to the NCI share of net profits of the Group's US subsidiaries.

A reduction to the main rate of UK corporation tax from 21% to 20% was enacted in Finance Act 2013 and became effective from 1 April 2015. The effect of this rate reduction to 20% has been reflected in the figures set out above.

13) Earnings per share

Basic earnings per share is calculated by dividing the profit after tax for the financial period attributable to equity holders of the parent of £136.5 million (FY2013/14: £132.1 million) by the weighted average number of ordinary shares in issue during the period, excluding own shares.

Diluted earnings per share is calculated based on basic earnings per share adjusted for all dilutive potential ordinary shares. There is no difference between the profit for the year attributable to equity holders of the parent used in the basic and diluted earnings per share calculations.

Reconciliation of the weighted average number of shares used in calculating basic and diluted earnings per share is shown below.

	2015Numberof ordinary shares	2014Numberof ordinary shares
Weighted average number of ordinary shares used in the calculation of basic earnings per share	674,424,923	677,970,089
Effect of dilutive potential ordinary shares - share options/awards	31,986,209	31,034,197
Weighted average number of ordinary shares used in the calculation of diluted earnings per share	706,411,132	709,004,286

14) Dividends

Dividends paid in the year

Company	2015£m	2014£m
Final dividend for FY2013/14 - 12.00p (FY2012/13: 11.75p)	82.7	81.9
Interim dividend for FY2014/15 - 4.55p (FY2013/14: 4.45p)	31.3	30.7
	114.0	112.6

In addition, the Group paid £6.1 million (FY2013/14: £6.6 million) of dividends to non-controlling interests.

Dividends declared/proposed in respect of the year

Company	2015pence	2014pence
Interim dividend declared per share	4.55	4.45
Final dividend proposed per share	12.10	12.00
	16.65	16.45

On 7 September 2015 the Board proposed a final dividend of 12.10p per share for the year ended 30 June 2015. 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 £83.3 million.

15) Goodwill and intangible assets

Group	Goodwill£m	Fund management relationships£m	Otherintangible assets£m	Total£m
Cost - (at original exchange rate)
At 30 June 2013, 30 June 2014 and 30 June 2015	57.5	39.5	2.6	99.6
Accumulated amortisation and impairment
At 30 June 2013	-	(19.7)	(2.5)	(22.2)
Amortisation charge for the year	-	(3.5)	(0.1)	(3.6)
At 30 June 2014	-	(23.2)	(2.6)	(25.8)
Amortisation charge for the year	-	(3.6)	-	(3.6)
Impairment charge for the year	-	(0.4)	-	(0.4)
At 30 June 2015	-	(27.2)	(2.6)	(29.8)
Net book value
At 30 June 2013	61.7	22.3	0.3	84.3
Accumulated amortisation for the year	-	(3.5)	(0.3)	(3.8)
Foreign exchange revaluation through reserves*	(6.0)	(2.3)	-	(8.3)
At 30 June 2014	55.7	16.5	-	72.2
Accumulated amortisation and impairment for the year	-	(4.0)	-	(4.0)
Foreign exchange revaluation through reserves*	4.3	1.6	-	5.9
At 30 June 2015	60.0	14.1	-	74.1

* FX revaluation through reserves is a result of the retranslation of US dollar-denominated intangibles and goodwill.

Company	Goodwill£m
Cost
At the beginning and end of the year	4.1
Net carrying amount at 30 June 2014 and 2015	4.1

Goodwill

The Group's goodwill balance relates principally to the acquisition of AEIM in May 2011.

The Company's goodwill balance relates to the acquisition of the business from ANZ in 1999.

The annual impairment review of goodwill was undertaken for the year ending 30 June 2015. The Group consists of a single cash generating unit for the purpose of assessing the carrying value of goodwill. In performing the impairment review, management prepares a calculation ofthe recoverable amount of goodwill and compares this to the carrying value. The recoverable amount was based on a fair value less costs tosell calculation using the Company's year end share price. Based on management's assessment as at 30 June 2015, the recoverable amount was in excess of the carrying value of goodwill and no impairment was implied. No impairment losses have been recognised in the currentor preceding years.

Fund management relationships

Intangible assets comprise fund management relationships related to profit expected to be earned from clients of AEIM.

An annual impairment review of the fund management relationships was undertaken for the year ending 30 June 2015. The recoverable amount was derived from the cumulative pre-tax net earnings anticipated to be generated over the remaining useful economic life, discounted to present value using a rate of 13.0% per annum. Cumulative net earnings associated with the fund management relationships intangible asset were derived from the annual operating profit contribution that would arise as a result of the remaining fund management relationships, adjusted for investment performance and investor attrition.

The fund management relationships intangible asset was determined to be impaired as the recoverable amount was lower than the carrying value as at 30 June 2015. Accordingly, an impairment charge amounting to £0.4 million was recognised during the year and included within other expenses in the Group's consolidated statement of comprehensive income (FY2013/14: no impairment was recognised).

The remaining amortisation period for fund management relationships is four years (30 June 2014: five years).

16) Property, plant and equipment

Group	2015Fixtures,fittings and equipment£m	2014Fixtures,fittings and equipment£m
Cost
At the beginning of the year	5.8	11.1
Additions	0.7	0.4
Foreign exchange revaluation	0.1	(0.4)
Disposals	-	(5.3)
At the end of the year	6.6	5.8
Accumulated depreciation
At the beginning of the year	2.8	7.4
Depreciation charge for the year	1.3	1.1
Foreign exchange revaluation	-	(0.4)
Disposals	-	(5.3)
At the end of the year	4.1	2.8
Net book value at 30 June	2.5	3.0

 

Company	2015Fixtures,fittings and equipment£m	2014Fixtures,fittings and equipment£m
Cost
At the beginning of the year	2.7	7.5
Additions	0.3	0.4
Disposals	-	(5.2)
At the end of the year	3.0	2.7
Accumulated depreciation
At the beginning of the year	1.2	6.1
Depreciation charge for year	0.7	0.3
Disposals	-	(5.2)
At the end of the year	1.9	1.2
Net book value at 30 June	1.1	1.5

17) Trade and other receivables

	Group		Company
	2015£m	Restated 2014£m	2015£m	2014£m
Current
Trade debtors	60.8	60.7	2.5	2.0
Prepayments	2.3	2.4	1.4	1.9
Loans due from subsidiaries	-	-	294.1	249.6
Amounts due from subsidiaries	-	-	151.0	2.8
Other receivables	0.9	6.6	2.8	0.6
Total trade and other receivables	64.0	69.7	451.8	256.9

Group trade debtors include all billed and unbilled management fees due to the Group at 30 June 2015 in respect of investment management services provided up to that date. Included in amounts due from subsidiaries for the Company are intercompany dividends receivable and intercompany trade receivables.

18) Deferred taxation

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

	2015			2014
Group	Other temporary differences£m	Share-based payments£m	Total£m	Other temporary differences£m	Share-based payments£m	Total£m
Deferred tax assets	9.6	10.7	20.3	9.4	11.9	21.3
Deferred tax liabilities	(3.5)	-	(3.5)	(4.5)	-	(4.5)
	6.1	10.7	16.8	4.9	11.9	16.8

 

	2015			2014
Company	Other temporary differences£m	Share-based payments£m	Total£m	Other temporary differences£m	Share-based payments£m	Total£m
Deferred tax assets	0.3	8.7	9.0	0.4	11.9	12.3

Movement of deferred tax balances

The movement in the deferred tax balances between the balance sheet dates has been reflected in equity or the statement of comprehensive income as follows:

Group	Other temporary differences£m	Share-based payments£m	Total£m
At 30 June 2013	4.7	13.3	18.0
Credited/(charged) to the consolidated statement of comprehensive income	0.2	(1.4)	(1.2)
At 30 June 2014	4.9	11.9	16.8
Credited/(charged) to the consolidated statement of comprehensive income	1.2	(1.2)	-
At 30 June 2015	6.1	10.7	16.8

 

Company	Other temporary differences£m	Share-based payments£m	Total£m
At 30 June 2013	0.4	13.3	13.7
Charged to the statement of comprehensive income	(0.1)	(1.4)	(1.5)
At 30 June 2014	0.3	11.9	12.2
Charged to the statement of comprehensive income	-	(3.2)	(3.2)
At 30 June 2015	0.3	8.7	9.0

19) Fair value of financial instruments

The Group has an established control framework with respect to the measurement of fair values. This framework includes a valuation team that has overall responsibility for all significant fair value measurements. It regularly reviews significant inputs and valuation adjustments. If third-party information is used to measure fair value, then the team assesses and documents the evidence obtained from the third parties to support such valuations. There are no material differences between the carrying amounts of financial assets and liabilities and their fair values at the balance sheet date.

Fair value hierarchy

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

- Level 1: Valuation is based upon a quoted market price in an active market for an identical instrument. This fair value measure relates to the valuation of quoted and exchange traded equity and debt securities.

- Level 2: Valuation techniques are based upon observable inputs, either directly (i.e. as prices) or indirectly (i.e. derived from prices). This fair value measure relates to the valuation of quoted equity securities in inactive markets or in interests in unlisted funds whose net asset values are referenced to the fair values of the listed or exchange traded securities held by those funds.

- Level 3: Valuation techniques use significant unobservable inputs.

For financial instruments that are recognised at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The fair value hierarchy of financial instruments which are carried at fair value at year end is summarised below:

	2015				Restated2014
	Level 1£m	Level 2£m	Level 3£m	Total£m	Level 1£m	Level 2£m	Level 3£m	Total£m
Financial assets
Investment securities	36.8	46.7	47.5	131.0	123.0	50.2	-	173.2
Non-current financial assets held-for-sale	-	31.7	-	31.7	-	39.1	-	39.1
Available-for-sale financial assets	0.4	10.2	-	10.6	0.8	28.6	-	29.4
Fair value through profit or loss investments	-	61.8	-	61.8	-	8.4	-	8.4
Non-current asset investments	-	8.9	-	8.9	-	11.7	-	11.7
Derivative financial instruments	-	0.3	-	0.3	-	2.5	-	2.5
	37.2	159.6	47.5	244.3	123.8	140.5	-	264.3
Financial liabilities
Third-party interests in consolidated funds	15.0	8.7	17.8	41.5	49.5	20.2	-	69.7
Derivative financial instruments	-	0.3	-	0.3	-	0.1	-	0.1
Non-current financial liabilities held-for-sale	-	11.0	-	11.0	-	2.7	-	2.7
	15.0	20.0	17.8	52.8	49.5	23.0	-	72.5

There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the year (FY2013/14: none).

Changes in Level 3 financial assets and liabilities recognised at fair value on a recurring basis

	Investment securities£m	Third-party interests in consolidated funds£m
At 1 July 2014	-	-
Additions	47.6	17.8
Losses recognised in consolidated comprehensive income within finance income	(0.1)	-
At 30 June 2015	47.5	17.8

Valuation of Level 3 financial liabilities recognised at fair value on a recurring basis

The measurement of investment securities and third-party interests in consolidated funds classified within Level 3 relates to investments made during the year in closed-end private equity funds that are neither listed on any stock exchange nor traded on any regulated markets. The Group considered it is more appropriate to classify these investments within Level 3 as the valuation is based on valuation techniques as reflected within the net asset values (NAVs) of the funds as provided by the administrator.

Financial instruments not measured at fair value

Financial assets and liabilities that are not measured at fair value include cash and cash equivalents, trade and other receivables, and trade and other payables. The carrying value of financial assets and financial liabilities not measured at fair value is considered a reasonable approximation of fair value as at 30 June 2015 and 2014.

20) Seed capital investments

The Group considers itself a sponsor of an investment fund when it facilitates the establishment of the fund in which the Group is the investment manager. The Group ordinarily provides seed capital in order to provide initial scale and facilitate marketing of the funds tothird-party investors. The fund is then financed through the issue of units to investors. Aggregate interests held by the Group include seedcapital, management fees and performance fees. The Group generates management and performance fee income from managing theassets on behalf of third-party investors.

The movements of seed capital investments and related items during the year are as follows:

Group	Netnon-current financial assets held-for-sale£m	Available-for-sale financial assets£m	FVTPL investments£m	Investment securities (relating to consolidated funds)£m	Other(relating to consolidated funds)*£m	Third-party interests in consolidated funds£m	Non-current asset investments£m	Total£m
Carrying amount at 30 June 2013 (restated)	78.0	36.4	-	107.5	(7.4)	(40.8)	9.1	182.8
Net transfers:
Held-for-sale to consolidated funds	(40.6)	-	-	48.1	-	(7.5)	-	-
Held-for-sale to FVTPL investments	(12.0)	-	12.0	-	-	-	-	-
Available-for-sale to held-for-sale	2.7	(2.7)	-	-	-	-	-	-
Net purchases, disposals and fair value changes	8.3	(4.3)	(3.6)	17.6	5.8	(21.4)	2.6	5.0
Carrying amount at 30 June 2014 (restated)	36.4	29.4	8.4	173.2	(1.6)	(69.7)	11.7	187.8
Net transfers:
Held-for-sale to consolidated funds	(22.8)	-	-	30.7	-	(7.9)	-	-
Held-for-sale to FVTPL investments	(13.3)	-	13.3	-	-	-	-	-
Consolidated funds to FVTPL investments	-	-	42.6	(116.9)	-	74.3	-	-
Net purchases, disposals and fair value changes	20.4	(18.8)	(2.5)	44.0	17.1	(38.2)	(2.8)	19.2
Carrying amount at 30 June 2015	20.7	10.6	61.8	131.0	15.5	(41.5)	8.9	207.0

* Relates to cash and other assets in consolidated funds that are not investment securities.

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

Where Group companies invest seed capital into funds operated and controlled by the Group and the Group is actively seeking to reduce its investment and it is considered highly probable that it will relinquish control within a year, the interests in the funds are treated as held-for-sale and are recognised as financial assets and liabilities held-for-sale. During the year, eight funds (FY2013/14: nine) were seeded in this manner, met the above criteria, and consequently the assets and liabilities of these funds were initially classified as held-for-sale.

The non-current assets and liabilities held-for-sale at 30 June 2015 were as follows:

	2015£m	2014£m
Non-current financial assets held-for-sale	31.7	39.1
Non-current financial liabilities held-for-sale	(11.0)	(2.7)
Seed capital investments classified as held-for-sale	20.7	36.4

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 financial assets designated as FVTPL. Two such investments were transferred to the FVTPL category during the year (FY2013/14: two funds were transferred to the FVTPL category) after the Group reduced its interests following investment inflows from third parties. There was no impact on net assets or comprehensive income as a result of the reclassification.

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 asheld-for-sale, and will be consolidated line-by-line after it is assessed that the Group controls the investment fund in accordance with the requirements of IFRS 10. During the year, six such funds (FY2013/14: four) with an aggregate carrying amount of £22.8 million (FY2013/14: £40.6 million) were transferred from held-for-sale to consolidated funds category. There was no impact on net assets or comprehensive income as a result of the transfer.

Included within finance income are net gains of £2.1 million (FY2013/14: net losses of £10.7 million) in relation to held-for-sale investments.

As the Group considers itself to have one segment (refer to note 4), no additional segmental disclosure of held-for-sale assets or liabilitiesis applicable.

b) Available-for-sale financial assets

Available-for-sale financial assets at 30 June 2015 comprise equities held as follows:

	2015£m	Restated 2014£m
Equities listed on stock exchange	0.4	0.8
Equity funds	7.9	26.1
Debt funds	2.3	2.5
Seed capital classified as available-for-sale	10.6	29.4

c) Fair value through profit or loss investments

Fair value through profit or loss investments at 30 June 2015 comprise equities held in equity funds.

	2015£m	Restated 2014£m
Seed capital classified as fair value through profit or loss investments	61.8	8.4

Included within finance income are losses of £2.7 million (FY2013/14: net gains of £4.4 million) on the Group's fair value through profit or loss investments.

d) Consolidated funds

The Group has consolidated 12 investment funds as at 30 June 2015 (30 June 2014: six investment funds), over which the Group is deemed to have control (see note 26). 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 in accordance with IFRS 10. Consolidated fund assets and liabilities are presented line by line after intercompany eliminations. The table below sets out an analysis of the carrying amounts of interests held by the Group in consolidated investment funds.

	2015£m	Restated2014£m
Investment securities	131.0	173.2
Cash and cash equivalents	15.7	7.9
Other	(0.2)	(9.5)
Third-party interests in consolidated funds	(41.5)	(69.7)
Consolidated seed capital investments	105.0	101.9

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

The maximum exposure to loss is the carrying amount of the assets held. The Group has not provided financial support or otherwise agreedto be responsible for supporting any consolidated fund financially.

Included within the consolidated statement of comprehensive income are net losses of £0.2 million (FY2013/14: net gains of £9.1 million) relating to the Group's share of the results of the individual statements of comprehensive income for each of the consolidated funds, as follows:

	2015£m	Restated 2014£m
Finance income	5.3	3.8
Gains/(losses) on investment securities	(3.6)	14.9
Change in third-party interests in consolidated funds	0.8	(6.1)
Other expenses	(2.7)	(3.5)
Net gains/(losses) on consolidated funds	(0.2)	9.1

As of 30 June 2015, the Group's consolidated funds were domiciled in Brazil, Indonesia, Luxembourg and the United States.

e) Non-current asset investments

Non-current asset investments relate to the Group's holding in closed-end funds and are designated as FVTPL. 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.

	2015£m	2014£m
Non-current asset investments	8.9	11.7

Included within finance income are net losses of £2.9 million (FY2013/14: net gains of £3.2 million) on the Group's non-current asset investments.

21) Financial instrument risk management

Group

The Group is subject to strategic, business, investment, operational and treasury risks throughout its business as discussed in the Risk management report. This note discusses the Group's exposure to and management of the following principal risks which arise from the financial instruments it uses: credit risk, liquidity risk, interest rate risk, foreign exchange risk and price risk. Where the Group holds units in investment funds, classified either as held-for-sale, available-for-sale, FVTPL or non-current asset investment financial assets, the related financial instrument risk disclosures in the note below categorise exposures based on the Group's direct interest in those funds without looking through to the nature of underlying securities.

Risk management is the ultimate responsibility of the Board, as noted in the Risk management report.

Capital management

It is the Group's policy that all entities within the Group have sufficient capital to meet regulatory and working capital requirements andit conducts regular reviews of its capital requirements relative to its capital resources.

As the Group is regulated by the United Kingdom's FCA, it is required to maintain appropriate capital and perform regular calculations of capital requirements. This includes development of an Internal Capital Adequacy Assessment Process (ICAAP), based upon the FCA's methodologies under the Capital Requirements Directive. The Group's Pillar III disclosures can be found on the Group's website at www.ashmore.com, covering the year to 30 June 2015. These disclosures indicate that the Group had excess capital of £485.4 million as at 30 June 2015 (30 June 2014: excess capital of £465.7 million) over the level of capital required under a Pillar II assessment. The objective of the assessment is to check that the Group has adequate capital to manage identified risks and the process includes conducting stress tests to identify capital and liquidity requirements under different future scenarios including a potential downturn.

All regulated entities within the Group have complied with regulatory requirements and filings that apply in the jurisdictions they operate.

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 amountswhen due.

Exposure to credit risk is monitored on an ongoing basis by senior management and the Group's Risk Management and Control function.The Group has a counterparty and cash management policy in place which, in addition to other controls, restricts exposure to any single counterparty by setting exposure limits and requiring approval and diversification of counterparty banks and other financial institutions.The Group's maximum exposure to credit risk is represented by the carrying value of its financial assets. The table below lists financialassets subject to credit risk.

	Notes	2015£m	Restated 2014£m
Investment securities	19	131.0	173.2
Non-current financial assets held-for-sale	19	31.7	39.1
Available-for-sale financial assets	19	10.6	29.4
Fair value through profit or loss investments	19	61.8	8.4
Derivative financial instruments	19	0.3	2.5
Trade and other receivables	17	64.0	69.7
Cash and cash equivalents		380.8	372.2
Total		680.2	694.5

Investment securities, derivative financial instruments, non-current financial assets held-for-sale, available-for-sale financial assets and FVTPL investments expose the Group to credit risk from various counterparties, which is monitored and reviewed by the Group.

The Group's cash and cash equivalents, comprised of short-term deposits with banks and liquidity funds, are predominantly held with counterparties with credit ratings ranging from AA- to AAA as at 30 June 2015 (30 June 2014: A to AAAm).

All trade and other receivables are considered to be fully recoverable and none were overdue at year end (30 June 2014: none). They includefee debtors that arise principally within the Group's investment management business. They are monitored regularly and, 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.

Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with its financial liabilities that are settled by delivering cash or other financial assets.

In order to manage liquidity risk there is a Group Liquidity Policy 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:

At 30 June 2015

	Within 1 year£m	1-5 years£m	More than5 years£m	Total£m
Non-current liabilities held-for-sale	11.0	-	-	11.0
Third-party interests in consolidated funds	41.5	-	-	41.5
Derivative financial instruments	0.3	-	-	0.3
Current trade and other payables	54.1	-	-	54.1
	106.9	-	-	106.9

At 30 June 2014

	Within 1 year£m	1-5 years£m	More than5 years£m	Total£m
Non-current liabilities held-for-sale	2.7	-	-	2.7
Third-party interests in consolidated funds	13.5	-	-	13.5
Current trade and other payables	69.4	-	-	69.4
	85.6	-	-	85.6

Details on leases and other commitments are provided in note 30.

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 income through adverse movements in interestrates. This relates to bank deposits held in the ordinary course of business. The Group has a cash management policy which monitors cash levels and returns within set parameters on a continuing basis.

Bank and similar deposits held at year end are shown on the consolidated balance sheet as cash and cash equivalents. The effective interest earned on bank and similar deposits during the year is given in the table below:

Effective interest rates applicable to bank deposits

	2015%	2014%
Deposits with banks and liquidity funds	1.17	0.70

Deposits with banks and liquidity funds are repriced at intervals of less than one year.

At 30 June 2015, if interest rates over the year had been 50 basis points higher/lower with all other variables held constant, profit before tax for the year would have been £0.7 million higher/lower (FY2013/14: £1.9 million higher/lower), mainly as a result of higher/lower interest on cash balances. An 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 profit before tax.

In addition, the Group is indirectly exposed to interest rate risk where the Group holds seed capital investments in funds which invest in debt securities.

Group

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 costs are denominated in Sterling. Consequently, the Group has an exposure to movements in the GBP:USD exchange rate. In addition, the Group operates globally whichmeans that it may enter into contracts and other arrangements denominated in local currencies in various countries. The Group also holds a number of seed capital investments which are denominated mainly in US dollars, Brazilian real and Indonesian rupiah.

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

The table below shows the Group's sensitivity to a 1.0% exchange movement in the US dollar, Brazilian real and Indonesian rupiah, net of hedging activities.

	2015		2014
Foreign currency sensitivity test	Impact on profitbefore tax£m	Impact on equity£m	Impact on profitbefore tax£m	Impact on equity£m
US dollar +/- 1%	2.4	2.6	3.2	3.2
Brazilian real +/- 1%	0.1	0.1	-	0.1
Indonesian rupiah +/-1%	0.3	0.3	0.1	0.4

Price risk

Price risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of market changes.

Seed capital

The Group is exposed to the risk of changes in market prices in respect of seed capital investments. Such price risk is borne by the Group directly through interests in available-for-sale and non-current asset seed capital investments or indirectly either through line-by-line consolidation of underlying financial performance and positions held in certain funds or potential impairments when fair values less costs to sell of seed investments held-for-sale are less than carrying amounts. Details of seed capital investments held are given in note 20.

The Group has well defined procedures governing the appraisal, approval and monitoring of seed capital investments.

At 30 June 2015, a 5% movement in the fair value of these investments would have had a £10.4 million (FY2013/14: £9.4 million) impacton net assets and the impact on profit before tax would have been £4.6 million (FY2013/14: £3.7 million).

Management and performance fees

The Group is also indirectly exposed to price risk in connection with the Group's management fees which are based on a percentage of valueof AuM and fees based on performance. Movements in market prices, exchange and interest rates could cause the AuM to fluctuate whichin turn could affect fees earned. Performance fee revenues could also be reduced depending upon market conditions.

Management and performance fees are diversified across a range of investment themes and are not measurably correlated to any single market index in Emerging Markets. In addition, throughout Ashmore's history, the policy of having funds with year ends staged throughoutthe financial year has meant that in periods of steep market decline, some performance fees have still been recorded. The profitability impactis likely to be less than this, as cost mitigation actions would apply, including the reduction of the variable compensation paid to employees.

Using the year end AuM level of US$58.9 billion and applying the year's average net management fee rate of 59bps, a 5% movementin AuM would have a US$17.4 million impact on management fee revenues (FY2013/14: using the year end AuM level of US$75.0 billionand applying the year's average net management fee rate of 60bps, a 5% movement in AuM would have a US$22.5 million impact on management fee revenues).

Hedging activities

The Group uses forward and option contracts to hedge its exposure to foreign currency risk. These hedges, which have been assessed as effective cash flow hedges as at 30 June 2015, protect a proportion of the Group's revenue cash flows from foreign exchange movements. The cumulative fair value of the outstanding foreign exchange hedges asset at 30 June 2015 was £0.1 million (30 June 2014: £2.4 million foreign exchange hedges asset) and is included within the Group's derivative financial instrument assets.

The notional and fair values of foreign exchange hedging instruments were as follows:

	2015		2014
	Notional amount£m	Fair value assets/(liabilities)£m	Notional amount£m	Fair value assets/(liabilities)£m
Cash flow hedges
Foreign exchange nil-cost option collars	97.0	0.1	85.9	2.4
	97.0	0.1	85.9	2.4

The maturity profile of the Group's outstanding hedges is shown below.

Notional amount of option collars maturing:	2015£m	2014£m
Within 6 months	52.0	39.8
6 - 12 months	35.0	33.3
>12 months	10.0	12.8
	97.0	85.9

When hedges are assessed as effective, intrinsic value gains and losses are initially recognised in other comprehensive income and later reclassified to comprehensive income as the corresponding hedged cash flows crystallise. Time value in relation to the Group's hedges is excluded from being part of the hedging item and, as a result, the net unrealised loss related to the time value of the hedges is recognisedin the consolidated statement of comprehensive income for the year.

A £1.9 million intrinsic loss (FY2013/14: £2.8 million gain) on the Group's hedges has been recognised through other comprehensiveincome and £nil intrinsic value (FY2012/13: £nil) was reclassified from equity to the statement of comprehensive income in the year.

Included within net realised and unrealised hedging loss of £0.4 million (note 7) recognised at 30 June 2015 (£3.5 million gain at 30 June 2014) are:

- a £0.8 million loss in respect of foreign exchange hedges covering net management fee income for the financial year ending 30 June 2015 (FY2013/14: £1.7 million gain in respect of foreign exchange hedges covering net management fee income for the financial year ended 30 June 2014); and

- a £0.4 million gain in respect of crystallised foreign exchange contracts (FY2013/14: £1.8 million gain).

Company

The risk management processes of the Company including those relating to the specific risk exposures covered below are aligned withthose of the Group as a whole unless stated otherwise.

In addition, the risk definitions that apply to the Group are also relevant for the Company.

Credit risk

The Company's maximum exposure to credit risk is represented by the carrying value of its financial assets. The table below lists financial assets subject to credit risk by credit rating:

		2015£m	2014£m
Cash and cash equivalents		114.5	249.1
Trade and other receivables		451.8	256.9
Total		566.3	506.0

The Company's cash and cash equivalents comprise short-term deposits held with banks and liquidity funds which have credit ratings ranging from A- to A+ as at 30 June 2015 (30 June 2014: A to AAAm).

All trade and other receivables are considered to be fully recoverable and none were overdue at year end (30 June 2014: none).

Liquidity risk

The contractual undiscounted cash flows relating to the Company's financial liabilities all fall due within one year.

Details on leases and other commitments are provided in note 30.

Company

Interest rate risk

The principal interest rate risk for the Company is that it could sustain a reduction in interest revenue from bank deposits held in the ordinary course of business through adverse movements in interest rates.

Bank and similar deposits held at year end are shown on the Company's balance sheet as cash and cash equivalents. The effective interest earned on bank and similar deposits during the year is given in the table below:

Effective interest rates applicable to bank deposits

	2015%	2014%
Deposits with banks and liquidity funds	1.06	0.59

Deposits with banks and liquidity funds are repriced at intervals of less than one year.

At 30 June 2015, if interest rates over the year had been 50 basis points higher/lower with all other variables held constant, post-tax profit for the year would have been £0.3 million higher/lower (FY2013/14: £0.9 million higher/lower), mainly as a result of higher/lower interest on cash balances. An 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.

Foreign exchange risk

The Company is exposed primarily to foreign exchange risk in respect of US dollar cash balances and US dollar-denominated intercompany balances. However, such risk is not hedged by the Company.

At 30 June 2015, if the US dollar had strengthened/weakened by 1% against Sterling with all other variables held constant, profit before tax for the year would have decreased/increased by £2.6 million respectively (FY2013/14: decreased/increased by £3.6 million respectively).

22) Share capital

Authorised share capital

Group and Company	2015Number of shares	2015Nominalvalue£'000	2014Numberof shares	2014 Nominalvalue£'000
Ordinary shares of 0.01p each	900,000,000	90	900,000,000	90

Issued share capital - allotted and fully paid

Group and Company	2015Number of shares	2015Nominalvalue£'000	2014Numberof shares	2014Nominalvalue£'000
Ordinary shares of 0.01p each	712,740,804	71	712,740,804	71

All the above ordinary shares represent equity of the Company and rank pari passu in respect of participation and voting rights.

At 30 June 2015 there were 175,000 (30 June 2014: 503,750) options in issue with contingent rights to the allotment of ordinary sharesof 0.01p in the Company. There were also equity-settled share awards issued under the Omnibus Plan totalling 35,333,782 (30 June 2014: 29,315,890) shares that have release dates ranging from September 2015 to December 2019. Further details are provided in note 10.

23) Own shares

The Ashmore 2004 EBT was established to act as an agent to facilitate the acquisition and holding of shares in the Company with a viewto facilitating the recruitment and motivation of the employees. As at the year end, the EBT owned 37,889,347 (30 June 2013: 37,962,631) ordinary shares of 0.01p with a nominal value of £3,789 (30 June 2014: £3,796) and shareholders' funds are reduced by £125.3 million(30 June 2014: £124.6 million) in this respect. It is the intention of the Directors to make these shares available to employees throughthe share-based compensation plans. The EBT is periodically funded by the Company for these purposes.

24) Treasury shares

Treasury shares held by the Company

	2015		2014
Group and Company	Number	£m	Number	£m
Ashmore Group plc ordinary shares	5,368,331	6.9	5,368,331	6.9

Reconciliation of treasury shares

	2015Number	2014Number
At the beginning and end of the year	5,368,331	5,368,331

The market value of treasury shares was £15.5 million at year end (30 June 2014: £19.9 million).

25) Trade and other payables

	Group2015£m	GroupRestated 2014£m	Company2015£m	Company2014£m
Current
Trade and other payables	26.7	51.6	29.7	28.6
Accruals and deferred income	27.4	35.4	2.7	3.3
Amounts due to subsidiaries	-	-	5.5	0.9
Total trade and other payables	54.1	87.0	37.9	32.8

26) Interests in subsidiaries

Operating subsidiaries

Movements in investments in subsidiaries during the year were as follows:

Company	2015£m	2014£m
Cost
At the beginning and end of the year	20.1	20.1

In the opinion of the Directors, the following subsidiary undertakings principally affected the Group's results or financial position at 30 June 2015. A full list of the Group's subsidiaries and all related undertakings is disclosed in note 34.

Name	Country of incorporation/ formation and principal place of operation	% of equity shares held by the Group
Ashmore Investments (UK) Limited	England	100.00
Ashmore Investment Management Limited	England	100.00
Ashmore Investment Advisors Limited	England	100.00
Ashmore Management Company Limited	Guernsey	100.00
Ashmore Investment Management (Singapore) Pte. Ltd.	Singapore	100.00
AA Development Capital Investment Managers (Mauritius) LLC	Mauritius	55.00
Ashmore Investments (Brazil) Limited	Guernsey	88.57
Ashmore Investments (India) Limited	Mauritius	100.00
Ashmore Investments (Turkey) NV	Netherlands	84.20
Ashmore Investment Management (US) Corporation	USA	100.00
PT Ashmore Asset Management Indonesia	Indonesia	70.00
Ashmore Investments Saudi Arabia	Saudi Arabia	90.00
Ashmore Investments (Colombia) SL	Spain	100.00
Ashmore Japan Co. Limited	Japan	100.00
Ashmore Investment Consulting (Beijing) Co. Limited	China	100.00
Ashmore Equities Holding Corporation	USA	100.00
Ashmore Equities Investment Management (US) L.L.C.*	USA	62.90

* Non-controlling interests (NCI) have a material economic interest in AEIM of 22.4%. The results and net assets of AEIM for the year ended 30 June 2015, prepared in accordance with IFRS and modified for fair value adjustments on acquisition, were: net profit of £16.9 million (of which £3.0 million was attributable to NCI) and net assets of £27.1 million (of which £11.7 million was attributable to NCI). 

Consolidated funds

The Group consolidated the following investment funds as at 30 June 2015 over which the Group is deemed to have control:

Name	Type of fund	Country of incorporation/ principal place of operation	% of netassets value held by the Group
Ashmore Brazil Long Short Fund	Equity	Brazil	76.81
Ashmore Special Opportunities Fund LP	Alternatives	Guernsey	50.00
Ashmore Emerging Markets Distressed Debt Fund	Corporate debt	Guernsey	40.02
Ashmore Emerging Markets Debt and Currency Fund Limited	Blended debt	Guernsey	97.84
Ashmore Dana Obligasi Nusantara	Local currency	Indonesia	88.35
Ashmore Dana USD Nusantara	External debt	Indonesia	100.00
Ashmore SICAV Turkish Equity Fund	Equity	Luxembourg	99.61
Ashmore SICAV Latin America Equity Fund	Equity	Luxembourg	100.00
Ashmore SICAV Emerging Markets Local Currency Bonds Broad Fund	Local currency	Luxembourg	47.75
Ashmore Emerging Markets Debt Fund	External debt	USA	97.77
Ashmore Emerging Markets Frontier Equity Fund	Equity	USA	78.93
Ashmore Emerging Markets Equity Fund	Equity	USA	66.22

27) Interests in associates and joint arrangements

The Group held interests in the following associates and joint ventures as at 30 June 2015:

Name	Type	Nature of business	Country of incorporation/formation and principalplace of operation	% of equity shares held by the Group
VTB-Ashmore Capital Holdings Limited	Associate	Investment management	Russia	50%
Everbright Ashmore*	Associate	Investment management	China	30%
Central China Securities Co. Limited	Joint venture	Investment management	China	49%

*Everbright Ashmore includes four related investment management entities.

The associates and the joint venture are unlisted.

Movements in investments in associates and joint ventures during the year were as follows:

	2015			2014
	Associates£m	Joint ventures£m	Total£m	Associates£m	Joint ventures£m	Total£m
At the beginning of the year	2.3	7.4	9.7	2.3	9.5	11.8
Additions	-	-	-	-	-	-
Share of profit /(loss)	(0.1)	(1.5)	(1.6)	0.2	(2.1)	(1.9)
Distributions	(0.6)	-	(0.6)	(0.2)	-	(0.2)
Foreign exchange revaluation	(0.2)	-	(0.2)	-	-	-
At the end of the year	1.4	5.9	7.3	2.3	7.4	9.7

Associates

The summarised aggregate financial information on associates is shown below.

Group	2015£m	2014£m
Total assets	3.3	3.4
Total liabilities	(0.3)	(1.1)
Net assets	3.0	2.3
Group's share of net assets	0.9	0.7
Revenue for the year	0.7	4.6
Profit for the year	(0.3)	0.6
Group's share of profit for the year	(0.1)	0.2

The carrying value of the investments in associates includes attributable goodwill that arose on acquisition of the associates. Although the Group's share of net assets of the associates is currently below the aggregate carrying value of the associates reflected on the consolidated balance sheet, the Group has considered that this position is temporary. No permanent impairment is believed to exist relatingto the associates.

The Group has undrawn capital commitments of £4.2 million (30 June 2014: £5.1 million) to investment funds managed by the associates. Further details are provided in note 28.

Joint ventures

Group owns 49% interest in a fund management joint venture with Central China Securities Co. Limited in China. Under the terms of the agreement and upon being granted the required approvals by the China Securities Regulatory Commission and other relevant government authorities, the Group contributed its share of the initial capitalisation equivalent to £9.9 million.

Summarised financial information on the Group's share in the joint venture is shown below:

	2015£m	2014£m
Current assets	5.6	8.7
Non-current assets	-	0.1
Current liabilities	(0.3)	(1.4)
Total equity	5.3	7.4
Income	0.2	0.6
Expenses	(1.7)	(2.7)
Loss for the year	(1.5)	(2.1)

28) Interests in structured entities

The Group has interests in structured entities as a result of the management of assets on behalf of its clients. Where the Group holds a direct interest in a closed-ended fund, private equity fund or open-ended pooled fund such as a SICAV, the interest is accounted for either as a consolidated structured entity or as a financial asset depending on whether the Group has control over the fund or not.

The Group's interest in structured entities is reflected in the Group's AuM. The Group is exposed to movements in AuM of structured entities through potential loss of fee income as a result of client withdrawals. Outflows from funds are dependent on market sentiment, asset performance and investor considerations. Further information on these risks can be found in the Business review.

Considering the potential for changes in AuM of structured entities, management has determined that the Group's unconsolidated structured entities include segregated mandates and pooled funds vehicles. Disclosure of the Group's exposure to unconsolidated structured entities has been made on this basis.

The reconciliation of AuM reported by the Group within unconsolidated structured entities is shown below.

	Total AuMUS$bn	Less:AuM within consolidated fundsUS$bn	AuM withinunconsolidated structured entitiesUS$bn
30 June 2015	58.9	0.2	58.7

Included in the Group's consolidated management fees of £250.2 million are management fees amounting to £245.8 million earned from unconsolidated structured entities.

The table below shows the carrying values of the Group's interests in unconsolidated structured entities, recognised in the Group balance sheet, which are equal to the Group's maximum exposure to loss from those interests.

	2015£m
Management fees receivable	46.5
Trade and other receivables	4.7
Seed capital investments	102.0
Total exposure	153.2

The main risk the Group faces from its beneficial interests in unconsolidated structured entities arises from potential decrease in the fair value of seed capital investments. The Group's beneficial interests in seed capital investments are disclosed in note 20. Note 21 includes further information on the Group's exposure to market risk arising from seed capital investments.

The Group has undrawn investment commitments relating to structured entities as follows.

	2015£m	2014£m
Ashmore I - FCP Colombia Infrastructure Fund	2.3	2.9
Everbright Ashmore China Real Estate Fund	1.3	1.6
VTBC-Ashmore Real Estate Partners I, LP	2.9	3.5
Ashmore Special Opportunities Fund LP	6.9	-
Ashmore Emerging Markets Distressed Debt Fund	1.4	-
Ashmore Emerging Markets Corporate Private Debt Fund	1.2	-
Total undrawn investment commitments	16.0	8.0

29) Related party transactions

Related parties of the Group include key management personnel, close family members of key management personnel, subsidiaries, associates, joint ventures, Ashmore Funds, the EBT and the Ashmore Foundation.

Key management personnel - Group and Company

The compensation paid to or payable to key management personnel for employee services is shown below:

£m	2015£m	2014£m
Short-term employee benefits	1.4	0.9
Defined contribution pension costs	-	-
Share-based payment benefits	2.9	(0.4)
	4.3	0.5

Share-based payment benefits represent the fair value charge to the statement of comprehensive income of current year share awards.

During the year, there were no other transactions entered into with key management personnel (FY2013/14: none). Aggregate key management personnel interests in consolidated funds at 30 June 2015 were £11.5 million (30 June 2014: £3.4 million).

Transactions with subsidiaries - Company

Details of transactions between the Company and its subsidiaries are shown below:

	2015£m	2014£m
Transactions during the year
Management fees received	78.8	45.0
Net dividends received	141.1	143.2
Loans given to subsidiaries	44.5	40.9

Amounts receivable or payable to subsidiaries are disclosed in notes 17 and 25, respectively.

Transactions with Ashmore Funds - Group

During the year, the Group received £137.7 million of gross management fees and performance fees (FY2013/14: £158.5 million) from the 96 funds (FY2013/14: 90 funds) it manages and which are classified as related parties. As at 30 June 2015 the Group had receivables due from funds of £46.8 million (30 June 2014: £55.3 million).

Transactions with the EBT - Group and Company

The EBT, which acts as an agent for the purpose of the employee share-based compensation plans, has been provided a loan facility to allow it to acquire Ashmore shares in order to satisfy outstanding unvested shares awards. The EBT is included within the results of the Group and the Company. As at year end the loan outstanding was £149.0 million (30 June 2014: £137.6 million).

Transaction with the Ashmore Foundation - Group and Company

The Ashmore Foundation is a related party to the Group. The Foundation was set up to provide financial grants to worthwhile causes withinthe Emerging Markets countries in which Ashmore invests and/or operates with a view to giving back into the countries and communities. The Group donated £0.1 million to the Foundation during the year (FY2013/14: £0.1 million).

30) Commitments

Operating lease commitments

The Group and Company have entered into certain property leases. The leases have no escalation clauses or renewal or purchase options,and no restrictions imposed on them. The future aggregate minimum lease payments under these non-cancellable operating leases fall dueas follows:

Group

	2015£m	2014£m
Within 1 year	2.3	2.8
Between 1 and 5 years	8.5	8.2
Later than 5 years	6.6	5.2
	17.4	16.2

Company

	2015£m	2014£m
Within 1 year	1.2	1.2
Between 1 and 5 years	4.6	4.6
Later than 5 years	4.1	5.2
	9.9	11.0

Operating lease expenses are disclosed in note 11.

Company

The Company has undrawn loan commitments to other Group entities totalling £58.9 million (30 June 2014: £84.2 million) to support their investment activities but has no investment commitments of its own (30 June 2014: none).

31) Restatements on adoption of IFRS 10

As explained in note 3, the Group adopted IFRS 10 in the year and has reassessed its consolidation conclusions effective from 1 July 2014. As a result, the Group consolidated four additional funds retrospectively, with the impact of increasing consolidated total assets and liabilities by £73.9 million as at 1 July 2014. These funds were previously accounted for as financial assets and classified as available-for-sale financial assets and investments held at fair value through profit and loss. The Group's comparative cash flow statement has also been restated, with the effect of increasing subscriptions and redemptions in consolidated funds by £44.6 million and £40.2 million, respectively.

The Group has restated comparative information where relevant, as shown below.

Impact on consolidated statement of comprehensive income

	30 June 2014
	As previously reported£m	IFRS 10 restatement£m	As restated£m
Net revenue	262.9	-	262.9
Operating profit	169.7	1.6	171.3
Profit before tax	170.3	1.3	171.6
Profit for the period	133.4	1.3	134.7
Other comprehensive income, net of related tax effect	(21.9)	(1.3)	(23.2)
Total comprehensive income for the period	111.5	-	111.5
Profit attributable to:
Equity holders of the parent	130.8	1.3	132.1
Non-controlling interests	2.6	-	2.6
Profit for the period	133.4	1.3	134.7
Earnings per share
Basic	19.29p	0.19p	19.48p
Diluted	18.44p	0.19p	18.63p

Impact on consolidated balance sheets

	30 June 2014			30 June 2013
Condensed consolidated balance sheet	As previously reported£m	IFRS 10 restatement£m	As restated£m	As previously reported£m	IFRS 10 restatement£m	As restated£m
Non-current assets	118.1	-	118.1	130.6	-	130.6
Investment securities	70.7	102.5	173.2	49.7	57.8	107.5
Available-for-sale financial assets	48.5	(19.1)	29.4	55.6	(19.2)	36.4
Fair value through profit or loss investments	25.3	(16.9)	8.4	-	-	-
Trade and other receivables	64.0	5.7	69.7	77.3	5.2	82.5
Derivative financial instruments	2.4	0.1	2.5	-	-	-
Cash and cash equivalents	370.6	1.6	372.2	395.5	0.2	395.7
Non-current assets held-for-sale	39.1	-	39.1	104.9	-	104.9
Total assets	738.7	73.9	812.6	813.6	44.0	857.6
Non-current liabilities	4.5	-	4.5	3.0	-	3.0
Current tax	16.4	-	16.4	28.9	-	28.9
Third-party interests in consolidated funds	13.5	56.2	69.7	12.8	28.0	40.8
Derivative financial instruments	-	0.1	0.1	2.1	0.1	2.2
Trade and other payables	69.4	17.6	87.0	94.1	15.9	110.0
Non-current liabilities held-for-sale	2.7	-	2.7	26.9	-	26.9
Total liabilities	106.5	73.9	180.4	167.8	44.0	211.8
Share capital	15.7	-	15.7	15.7	-	15.7
Retained earnings	616.4	1.8	618.2	608.0	0.5	608.5
Foreign exchange reserve	(12.8)	(1.8)	(14.6)	5.3	(0.3)	5.0
Available-for-sale fair value reserve	(5.3)	-	(5.3)	0.7	(0.2)	0.5
Cash flow hedging reserve	1.8	-	1.8	(1.0)	-	(1.0)
Non-controlling interests	16.4	-	16.4	17.1	-	17.1
Total equity	632.2	-	632.2	645.8	-	645.8

32) Post-balance sheet events

There were no post-balance sheet events that required adjustment of or disclosure in the financial statements for the year ended 30 June 2015.

33) Accounting estimates and judgements

Estimates and judgements used in preparing the financial statements are regularly evaluated and are based upon management's assessmentof current and future events. The principal estimates and judgements that have a significant effect on the carrying amounts of assets and liabilities are discussed below.

Impairment of intangible assets

The Group tests goodwill and intangible assets annually for impairment. The recoverable amount for goodwill is determined in reference to the Group's market capitalisation, whereas recoverable amount for intangible assets is determined based upon value in use calculations prepared on the basis of management's assumptions and estimates. The carrying value of goodwill and intangible assets on the Group's balance sheetat 30 June 2015 was £74.1 million (30 June 2014: £72.2 million). Management considers that reasonable possible changes in any of the key assumptions applied would not cause the carrying value of goodwill to materially exceed its recoverable value. An impairment charge of £0.4 million was recognised on the intangible assets, representing the excess of the carrying value to its recoverable value (see note 15).

Performance fees

The Group assesses the recognition of performance fees to determine whether receipt of the fees is considered probable and the amount reliable. The assessment is made using management's judgement of the circumstances relevant to each performance fee entitlement.

There were no outstanding performance fees receivable at 30 June 2015 (30 June 2014: none).

Share-based payment transactions

The Group measures the cost of equity-settled and cash-settled share-based awards at fair value at the date of grant and expenses them over the vesting period based on the Group's estimate of the shares that will eventually vest.

Classification of seed capital investments

The Group invests seed capital from time to time to support the initial launch and growth of new products, such as SICAVs, private-equity funds and alternative investment funds. The seed capital investments vary in duration depending on the nature of the product and the time expected to grow the funds to a size and track record required for participation by third-party investors. The Group reviews the size and nature of these investments to consider the level of control over the fund and to determine the appropriate classification for accounting either as full consolidation (where the Group concludes that it has control over the fund), using equity-method accounting (where the Group exercises significant influence or joint control), or as a financial asset classified as available-for-sale, held-for-sale or at fair value through profit or loss. In the case of seed capital investments, where the Group concludes that it does not have control over the fund, the Group is also not deemed to have significant influence over the fund, and therefore does not apply equity-method accounting. The Group would account for the seed capital investment as a financial asset, classified either as an available-for-sale financial asset, financial asset held-for-sale, or a financial asset at fair value through profit or loss. The Group considers that its seeding activity is intended to help establish a fund's track record and to provide initial scale until the fund has attracted sufficient third-party capital, at which stage the Group will actively seek to redeem and redeploy the seed capital.

The adoption of IFRS 10 has led to additional funds being consolidated where the Group is now deemed to hold a controlling interest as defined in IFRS 10. Prior to the adoption of IFRS 10, the Group consolidated funds as held-for-sale assets and liabilities or consolidated funds, when the Group's aggregate economic interest gave the Group control over these funds. This policy has not changed subsequent to the adoption of IFRS 10. However, the change to the definition of control under IFRS 10 means that certain of the Group's funds now meet the definition of a subsidiary as they are deemed to be controlled by the Group as a result of the combination of holding a significant proprietary investment and additionally being the investment manager, with third-party investors unable to remove the Group or Group subsidiary entities easily from that role without cause.

Interests in unconsolidated structured entities

Management exercises judgement to determine whether the Group controls an investment fund under IFRS 10, including making an assessment of whether the Group has power over the fund which the Group exercises for self-benefit. Management also assesses the magnitude of the Group's aggregate economic interest in the fund (comprising direct interests, carried interests, expected management fees, fair value gains or losses, and distributions receivable from funds managed) relative to third-party investors, and whether third-party investors have substantive rights to remove the Group from acting as a fund manager without cause.

The Group has assessed and classified the following fund vehicles as unconsolidated structured entities:

- Segregated mandates and pooled funds managed where the Group does not hold a direct interest, for example, seed capital investment.The Group has assessed that third-party investors have the practical ability to vote by a simple majority, to remove the Group from acting as fund manager without cause. As a result, the Group has concluded that it acts as agent for the third-party investors.

- Pooled funds managed where the Group holds interests, for example seed capital investments, and the Group's aggregate economic exposure in the fund relative to third-party investors is less than 20% (i.e. the threshold established below which the Group is deemed to act as an agent, and above which the Group is deemed to act as a principal, taking into account investor kick-out rights). As a result, the Group concluded it is an agent for third-party investors and, therefore, has accounted for its beneficial interest in the fund as a financial asset. Further details on the carrying values of these seed capital financial assets have been disclosed under note 20.

The disclosure of the AuM in respect of consolidated and unconsolidated structured entities is provided under note 28.

34) Subsidiaries and related undertakings

The following is a full list of the Ashmore Group plc subsidiaries and related undertakings as at 30 June 2015 pursuant to the requirements of Statutory Instrument 2015 No. 80 The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015. The list includes the Group's subsidiaries and related undertakings, all significant holdings (greater than 20% interest), associate undertakings, joint ventures and significant holdings in Ashmore sponsored public funds in which the Group has invested seed capital:

Name	Country of incorporation/ principal place of operation	Classification	% interest
Ashmore Brasil Gestora de Recursos Limitada	Brazil	Subsidiary	100.00
Ashmore Investment Consulting (Beijing) Co. Limited	China	Subsidiary	100.00
Ashmore Management Company Colombia SAS	Colombia	Subsidiary	61.00
Ashmore Investments (UK) Limited	England and Wales	Subsidiary	100.00
Ashmore Investment Management Limited	England and Wales	Subsidiary	100.00
Ashmore Investment Advisors Limited	England and Wales	Subsidiary	100.00
Aldwych Administration Services Limited	England and Wales	Subsidiary	100.00
Ashmore Asset Management Limited	England and Wales	Subsidiary	100.00
Ashmore Investments (Brazil) Limited	Guernsey	Subsidiary	88.00
Ashmore Management Company Limited	Guernsey	Subsidiary	100.00
Ashmore Management Company Turkey Limited	Guernsey	Subsidiary	100.00
Ashmore Private Equity Turkey Fund 1 (GP) Limited	Guernsey	Subsidiary	100.00
Ashmore Global Special Situations Fund 3 (GP) Limited	Guernsey	Subsidiary	100.00
Ashmore Global Special Situations Fund 4 (GP) Limited	Guernsey	Subsidiary	100.00
Ashmore Global Special Situations Fund 5 (GP) Limited	Guernsey	Subsidiary	100.00
VTBC-Ashmore Investment Management Limited	Guernsey	Subsidiary	100.00
VTBC-Ashmore Partnership Management 1 Limited	Guernsey	Subsidiary	100.00
AA Indian Development Capital Advisors Private Limited	India	Subsidiary	100.00
Ashmore Investment Advisors (India) Private Limited	India	Subsidiary	99.82
Ashmore - Centrum India Opportunities Investment Advisers Private Limited	India	Subsidiary	51.00
Ashmore-Centrum Funds Trustee Company Private Limited	India	Subsidiary	51.00
PT Ashmore Asset Management Indonesia	Indonesia	Subsidiary	70.00
Ashmore Japan Co. Limited	Japan	Subsidiary	100.00
AA Development Capital Investment Managers (Mauritius) LLC	Mauritius	Subsidiary	55.00
Ashmore Investments (India) Limited	Mauritius	Subsidiary	100.00
Ashmore Investments (Turkey) NV	Netherlands	Subsidiary	84.20
Ashmore Russia LLC	Russia	Subsidiary	100.00
Ashmore Investment Saudi Arabia	Saudi Arabia	Subsidiary	90.00
Ashmore Investment Management (Singapore) Pte. Ltd.	Singapore	Subsidiary	100.00
Ashmore Investments (Colombia) SL	Spain	Subsidiary	100.00
Ashmore Portfoy Yonetimi Anonim Sirketi	Turkey	Subsidiary	99.96
Ashmore Emlak ve Yatirim Ltd Sirketi	Turkey	Subsidiary	100.00
Ashmore Investment Management (US) Corporation	USA	Subsidiary	100.00
Ashmore Equities Holding Corporation	USA	Subsidiary	100.00
Ashmore Equities Investment Management (US) L.L.C.	USA	Subsidiary	62.90
Everbright Ashmore Real Estate Partners Limited	Cayman Islands	Associate	30.00
Everbright Ashmore Services and Consulting Limited	Cayman Islands	Associate	30.00
Everbright Ashmore Investment Management Limited	Cayman Islands	Associate	30.00
EA Team Investment Partners Limited	Cayman Islands	Associate	30.00
T&C (Hong Kong) Limited	Hong Kong	Associate	24.00
Ashmore Central China Securities Co. Limited	China	Joint venture	49.00
VTB-Ashmore Capital Holdings Limited	Russia	Associate	50.00
Ashmore Brazil Long Short Fund	Brazil	Consolidated fund	76.81
Ashmore Special Opportunities Fund LP	Guernsey	Consolidated fund	50.00
Ashmore Emerging Markets Distressed Debt Fund	Guernsey	Consolidated fund	40.02
Ashmore Emerging Markets Debt and Currency Fund Limited	Guernsey	Consolidated fund	97.84
Ashmore Dana Obligasi Nusantara	Indonesia	Consolidated fund	88.35
Ashmore Dana USD Nusantara	Indonesia	Consolidated fund	100.00
Ashmore SICAV Turkish Equity Fund	Luxembourg	Consolidated fund	99.61
Ashmore SICAV Latin America Equity Fund	Luxembourg	Consolidated fund	100.00
Ashmore SICAV Emerging Markets Local Currency Bonds Broad Fund	Luxembourg	Consolidated fund	47.75
Ashmore Emerging Markets Debt Fund	USA	Consolidated fund	97.84
Ashmore Emerging Markets Frontier Equity Fund	USA	Consolidated fund	78.93
Ashmore Emerging Markets Equity Fund	USA	Consolidated fund	66.22
Everbright Ashmore China Real Estate Fund	China	Significant holding	22.78
Ashmore Russian Debt Fund	Guernsey	Significant holding	83.33
Ashmore Dana Ekuitas Nusantara	Indonesia	Significant holding	27.64
Ashmore Dana USD Equity Nusantara	Indonesia	Significant holding	82.18
Ashmore SICAV Frontier Equity Fund	Luxembourg	Significant holding	31.93
Ashmore SICAV 3 EM Multi Strategy Fund	Luxembourg	Significant holding	33.45
Ashmore SICAV 3 All Chinese Equity Fund	Luxembourg	Significant holding	50.00
Ashmore SICAV 3 Chinese Debt Fund	Luxembourg	Significant holding	100.00
Ashmore SICAV 3 Chinese Multi-Strategy Fund	Luxembourg	Significant holding	100.00
Ashmore Saudi GCC Equity Fund	Saudi Arabia	Significant holding	33.64
Ashmore Saudi Equity Fund	Saudi Arabia	Significant holding	37.81
Ashmore Turkey Equity Fund	Turkey	Significant holding	73.39
Ashmore Emerging Markets Local Currency Fund	USA	Significant holding	36.07
Ashmore Emerging Markets Short Duration Fund	USA	Significant holding	36.74

35) Cautionary statement regarding forward-looking statements

It is possible that this document could or may contain forward looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could or other words of similar meaning.

Undue reliance should not be placed on any such statements because, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward looking statements. There are several factors that could cause actual results to differ materially from those expressed or implied in forward looking statements. Among the factors that could cause actual results to differ materially from those described in the forward looking statements are changes in the global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or dispositions. The Group undertakes no obligation to revise or update any forward looking statement contained within this document, regardless of whether those statements are affected as a result of new information, future events or otherwise.

36) Statutory accounts

The financial information set out above does not constitute the Group's statutory accounts for the years ended 30 June 2015 or 2014. Statutory accounts for 2014 have been delivered to the registrar of companies, and those for 2015 will be delivered in due course. The auditors have reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 in respect of the accounts for 2014 or 2015.