RNS Number : 7999Z
Ashmore Group PLC
28 September 2009
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
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
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 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 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
* New talent targeted and incorporated into Group processes
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.
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.
28 September 2009
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