REG-Ashmore Group Plc Notice of Annual General Meeting and Annual Report

Released : 28/09/2009 04:36:00
RNS Number : 7999Z  
Ashmore Group PLC  
28 September 2009  
RNS Number:   
Ashmore Group PLC   
28 September 2009   
Notice of Annual General Meeting and Annual Report for the year ended 30 June 
Ashmore Group plc issued its Notice of Annual General Meeting today, 28 
September 2009.   
The Company's Annual General Meeting will be held at 12 noon on Thursday 29 
October 2009 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 2009, have been submitted to the UK 
Listing Authority, and will shortly be available for inspection at the UK 
Listing Authority's Document Viewing Facility which is situated at:   
The Financial Services Authority   
25 The North Colonnade   
Canary Wharf   
London E14 5HS   
Tel: +44 (0) 20 7066 1000  
The above documents can also be downloaded from the Company's website at :-  
The unaudited 2009 preliminary results for the year ended 30 June 2009, released 
on 15 September 2009, were prepared in accordance with IAS 34. Included in this 
announcement is additional information, for the purposes of compliance with the 
Disclosure and Transparency Rules, which includes a responsibility statement and 
key risk analysis , all as extracted from the 2009 Annual Report and Accounts 
dated 14 September 2009.  
Statement of Directors' responsibilities  
The Directors are responsible for preparing the Annual Report, the Remuneration 
report and the financial statements in accordance with applicable law and 
regulations. UK company law requires the Directors to prepare financial 
statements for each financial year. Under that law the Directors have prepared 
the Company and the Group financial statements in accordance with IFRS. In 
accordance with the FSA's Disclosure and Transparency Rules (DTR 4.1.12) the 
Directors confirm to the best of their knowledge that: (a) the financial 
statements have been prepared in accordance with the applicable set of 
accounting standards, and 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  
(b) the Business review includes a fair review of the development and 
performance of the business and the position of the Company and the undertakings 
included in the consolidation taken as a whole, together with a description of 
the principal risks and uncertainties that they face.   
In preparing those financial statements, the Directors are required to:  
* select suitable accounting policies and then apply them consistently;  
* make judgements and estimates that are reasonable and prudent;  
* state that the financial statements comply with IFRS as adopted by the EU; 
* prepare the financial statements on the going concern basis, unless it is 
inappropriate to presume that the Company and the Group will continue in 
The Directors are responsible for keeping proper accounting records that 
disclose with reasonable accuracy at any time the financial position of the 
Company and the Group and to enable them to ensure that the financial statements 
and the Remuneration report comply with the Companies Acts and, as regards the 
Group financial statements, Article 4 of the IAS Regulation. They are also 
responsible for safeguarding the assets of the Company and the Group and hence 
for taking reasonable steps for the prevention and detection of fraud and other 
irregularities. The Directors are responsible for the maintenance and integrity 
of the Company's website. Legislation in the United Kingdom governing the 
preparation and dissemination of financial statements may differ from 
legislation in other jurisdictions.  
Risk Analysis  
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 
However, from a practical perspective some of this activity is delegated. The 
key risks, their mitigants, and their delegated owners are set out 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. 
During the year the Group's risk control framework has been enhanced to take 
account of changing business and market conditions. There has been specific 
focus on the further development of the Group Risk Matrix, which seeks to 
identify the key risks to the Group, as well as current mitigants and 
forward-looking action plans. 
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, with effect from July 2009, a newly formed Internal  
Audit function. Further details of the Group's internal control environment  
are described in the Corporate governance report of the annual report on pages 
30 to 37.  
Risk Analysis  
  Risk Type/owner                                             Description of Risk                                           Mitigation                                                    
  Strategic and business risks                                                                                                                                                            
  The risk that the medium and long-term profitability of     These include:                                                These include:                                                
  the Group could be adversely impacted by the failure to     * A long-term downturn in the fundamental and technical       * Board's long investment management experience.              
  identify and implement the correct strategy, and to react   dynamics of emerging markets.                                 * Clearly defined Group strategy, understood throughout the   
  smartly to changes in the business environment.             * Reputational damage to                                      organisation and actively monitored.                          
  Delegated to:                                               Ashmore impacting marketing and distribution capabilities.    * Diversification of investment capabilities to reduce single 
  Ashmore Group plc Board                                     * Loss of key staff.                                          event/product exposure.                                       
                                                                                                                            * Committee based investment methodology creates a scalable   
                                                                                                                            business model.                                               
                                                                                                                            * New talent targeted and incorporated into Group processes   
                                                                                                                            as appropriate                                                
  Investment risks                                                                                                                                                                        
  The risk that long-term investment                          These include:                                                These include:                                                
  outperformance is not delivered, damaging                   * A downturn in investment                                    * Experienced Investment Committee (IC) meets                 
  prospects for winning and retaining clients,                performance.                                                  weekly ensuring consistent core investment processes          
  and putting average management fee                          * Inadequate due diligence                                    are applied.                                                  
  margins under pressure.                                     on an investment/deal.                                        * Dedicated emerging markets research and investment focus,   
                                                              * Lack of financing, or an                                    with frequent country visits.                                 
  Delegated to:                                               exit strategy for privately held investments.                 * Compensation structure links investment professionals'      
  Ashmore Group Investment Committee                                                                                        remuneration to long-term performance of funds they           
                                                                                                                            manage, and the wider Group.                                  
                                                                                                                            * Dedicated deal teams with expertise centred around          
                                                                                                                            structuring of special situations deals.                      
  Operational risks                                                                                                         These include:                                                
  Risks in this category are broad in nature and              These include:                                                * Pricing Methodology Committee (PMC) providing               
  inherent in all businesses. They include the risk that      * Inability to fairly price assets.                           oversight of prices used for valuing hard-to-price            
  operational flaws result in business losses - through       * Oversight of offshore subsidiaries.                         assets, with valuations of the most material assets           
  error or fraud, the inability                               * Compliance, including monitoringof investment breaches.     outsourced to independent third parties.                      
  to capitalise on market opportunities, or weaknesses in     * Controls around special purpose vehicles.                   * Integrated control and management framework                 
  systems and controls.                                       * Execution and process                                       to ensure day-to-day global operations are                    
                                                              management.                                                   managed effectively.                                          
  Delegated to:                                               * Business and systems disruption.                            * Risk and Compliance Committee meets on                      
  Ashmore Group Risk and Compliance Committee                                                                               a monthly basis to consider the Group's KeyRisk Indicators    
                                                                                                                            * A disaster recovery procedure exists and istested           
                                                                                                                            * Engagement letters or service level agreements in place     
                                                                                                                            with all significant service providers.                       
  Treasury risks                                                                                                                                                                          
  These are the risks that the management                     These include:                                                These include:                                                
  does not appropriately mitigate balance sheet               * Group revenues are primarily US Dollar-based, whereas       * Monthly reporting of all balance sheet exposures            
  risks or exposures which could ultimately impact the        results                                                       to the Executive.                                             
  financial performance or position of the Group.             are denominated in Sterling.                                  * A proportion of Group currency exposures are                
                                                              * The Group invests in its own funds from time to time,       hedged as a matter of policy.                                 
                                                              exposing it toprice risk, credit risk and foreignexchange     * Counterparties utilised for corporate depositsor            
  Delegated to:                                               risk.                                                         investments are approved by the Executive.                    
  Chief Executive Officer and Group Finance Director          * Liquidity management.                                       * Significant corporate investments are approved              
                                                              * The Group is exposed to credit risk and interest rate risk  by the Board, and all others by the Chief Executive Officer.  
                                                              in respect of its cash balances.                                                                                            
Michael Perman  
Company Secretary   
28 September 2009   
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