Notice of AGM and Annual Repo
Ashmore Group PLC
28 September 2010
Notice of Annual General Meeting and Annual Report for the year ended 30 June 2010
Ashmore Group plc issued its Notice of Annual General Meeting (" the Notice") today, 28 September 2010. The Circular containing the Notice contains a summary of certain proposed amendments to the Articles of Association a copy of which is available on the Company's website.
The Company's Annual General Meeting will be held at 12 noon on Thursday 28 October 2010 at Kingsway Hall, 66 Great Queen Street, London WC2B 5BX.
Copies of the Company's Notice of Annual General Meeting, together with the Annual Report for the year ended 30 June 2010, have been uploaded to the UK Financial Services Authority National Storage Mechanism and will shortly be available for inspection at www.Hemscott.com/nsm.do
The above documents can also be downloaded from the Company's website at :-
Additional Information
The unaudited Final Results announcement for the year ended 30 June 2010, released on 14 September 2010, was prepared in accordance with IFRSs as adopted by the EU and applicable law. Included in this announcement is additional information, for the purposes of compliance with the Disclosure and Transparency Rules, which includes the Directors responsibility statement and Risk Statement, all as extracted from the 2010 Annual Report and Accounts dated 13 September 2010.
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 or 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 judgments 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.
Under applicable law and regulations, the Directors are also responsible for preparing a Directors' 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.
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; and
· 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.
Risk
Risk is inherent in all businesses and is therefore present within the Group's activities. The Group seeks to effectively identify, monitor and manage each of its risks and actively promotes a risk awareness culture throughout the organisation. The ultimate responsibility for risk management rests with the Board. However, from a practical perspective some of this activity is delegated.
The key risks, their mitigants, and their delegated owners are set below for each of the four risk categories that Ashmore considers most important: strategic and business, investment, operational, and treasury - with reputational risk being a common characteristic across all four categories.
Risk management and control
Risk management and control is one element of the Group's overall system of internal controls within its corporate governance framework - incorporating Risk, Compliance and Internal Audit.
Key risks and mitigants
|
Risk type/owner |
Description of risk |
Mitigation |
|
Strategic and business risks The risk that the medium and long-term profitability of the Group could be adversely impacted by the failure to identify and implement the correct strategy, and to react smartly to changes in the business environment. Delegated to: Ashmore Group plc Board |
T These include: >>A long-term downturn in the fundamental and technical dynamics of emerging markets. >>Reputational damage to Ashmore impacting marketing and distribution capabilities. >>Market capacity issues constrain growth. |
T These include: >>Board's long investment management experience. >>Clearly defined Group strategy, understood throughout the organisation and actively monitored. >>Diversification of investment capabilities to reduce single event/ product exposure. >>Committee-based investment methodology creates a scalable business model. |
|
Investment risks The risk that long-term investment outperformance is not delivered and/or manager non-performance, damaging prospects for winning and retaining clients, and putting average management fee margins under pressure. Delegated to: Ashmore Group Investment Committee |
T These include: >>A downturn in investment performance. >>Inadequate due diligence on an investment/deal. >>Lack of financing, or an exit strategy for privately held investments. >>Limited number of counterparties which may restrict access to market liquidity. |
These include: >>Experienced Investment Committee (IC) meets weekly ensuring consistent core investment processes are applied. >>Dedicated emerging markets research and investment focus, with frequent country visits. >>Dedicated investment teams with expertise centred around structuring of special situations deals. >>Strong professional relationships developed with major counterparties over the years. >>Compensation structure links investment professionals' remuneration to long-term performance of funds they manage, and the wider Group. |
|
Operational risks Risks in this category are broad in nature and inherent in all businesses. They include the risk that operational flaws result in business losses - through error or fraud, the inability to capitalise on market opportunities, or weaknesses in systems and controls. Delegated to: Ashmore Group Risk and Compliance Committee |
T These include: >>Information security and data integrity. >>Oversight of offshore subsidiaries. >>Compliance, including monitoring of investment breaches. >>Execution and process management. >>Business continuity and systems disruption. >>Lack of resources. |
These include: >>Information security policy in place and enforced. >>Valuations of all investments is the responsibility of the external fund administrator. Pricing Methodology Committee (PMC) also provides feedback on valuation of hard-to-price assets. >>Integrated control and management framework to ensure day-to-day global operations are managed effectively. >>Risk and Compliance Committee meets on a monthly basis and includes written reports from all relevant department heads in attendance. >>A disaster recovery procedure exists and is tested regularly. >>Engagement letters or service level agreements in place with all significant service providers. >>Quarterly SYSC review includes assessment of resources. |
|
Treasury risks These are the risks that the management does not appropriately mitigate balance sheet risks or exposures which could ultimately impact the financial performance or position of the Group. Delegated to: Chief Executive Officer and Group Finance Director |
T These include: >>Group revenues are primarily US dollar-based, whereas results are denominated in sterling. >>The Group invests in its own funds from time to time, exposing it to price risk, credit risk and foreign exchange risk. >>Liquidity management. >>The Group is exposed to credit risk and interest rate risk in respect of its cash balances. |
T These include: >>Monthly reporting of all balance sheet exposures to the Executive. >>Hedging policy in place and FX management committee meets regularly to review the Group's currency exposures. >>Counterparties utilised for corporate deposits or investments are approved by the Executive. >>Significant corporate investments are approved by the Board, and all others by the Chief Executive Officer. |
Enquiries:
Michael Perman
Company Secretary
28 September 2010
END
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