THE ASHMORE FOUNDATION

Company limited by guarantee

Company Registration Number:
06444943 (England and Wales)

Unaudited statutory accounts for the year ended 30 June 2024

Period of accounts

Start date: 1 July 2023

End date: 30 June 2024

THE ASHMORE FOUNDATION

Contents of the Financial Statements

for the Period Ended 30 June 2024

Directors report
Balance sheet
Additional notes
Balance sheet notes

THE ASHMORE FOUNDATION

Directors' report period ended 30 June 2024

The directors present their report with the financial statements of the company for the period ended 30 June 2024

Principal activities of the company

The objectives of the Foundation, as set out in the Foundation’s articles of association are exclusively charitable purposes and are determined by the Trustees of the Foundation in their absolute discretion. The Trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing the Trust’s aims and objectives, in planning future activities, and setting the grant making policy. The Foundation was established using an initial gift received from the Emerging Market asset manager Ashmore Group plc (“Ashmore”), comprised of bonuses waived by employees. This initial capital has been supplemented by further donations and contributions from both Ashmore and its employees in support of the Foundation’s charitable objectives. The Foundation furthers its charitable purposes through its grant making policy, which focuses on the provision of grants and social impact initiatives in Emerging Market countries, defined by the OECD as any low or middle-income country. The Foundation works to address inequality and social injustice by enhancing the capabilities, resources and opportunities of disadvantaged communities, primarily in the locations within which Ashmore operates and invests. An Emerging Market focus: Reflects a desire to give back to the countries and communities that have contributed to Ashmore’s profitability, particularly through the enhancement of skills and resources for disadvantaged and low income groups; Allows for increased leverage of the skills, knowledge, expertise and network of Ashmore employees to deliver the social impact goals of the Foundation; and Provides support for a thriving and diverse civil society, essential to democratic development in transitional and emerging nations. For the Foundation, operating in Emerging Markets poses challenges. Principally, the scale of need versus the resources available, language, distance from local operations, and cultural issues, pose particular challenges in carrying out due diligence and in performing ongoing monitoring of the application of charitable funds. Awareness of these challenges informs the Foundation’s grant strategy.

Political and charitable donations

Grant making policy The Foundation has established its grant making policy to achieve its objectives for the public benefit. Its aim is to improve economic opportunities, tackle inequality and promote social injustice for vulnerable and marginalised communities in Emerging Market countries. The Foundation does this by focusing its resources on economic empowerment, equipping communities with the skills and resources required to meet their basic economic needs and supporting charitable partners to effect systemic change in the social issues we are looking to make an impact i.e. education and skills, small and medium sized enterprise development, gender equity and environmentally positive community development. Geographically, grants are awarded to initiatives within Emerging Market countries, with a focus on countries where Ashmore has a presence or invests, and where there is a clearly defined need and a strong civil society. The Foundation strategically reviews and adapts its priority funding geographies to meet these requirements. The priority locations are Colombia, India, Indonesia and Peru. In the case of natural disasters and humanitarian emergencies, at the discretion of the Trustees, the Foundation may donate to organisations operating outside of Emerging Markets. The Foundation seeks out organisations that are accountable and that can demonstrate an ability to achieve tangible outcomes in areas of social and economic development. To achieve this, the Foundation provides flexible grant funding, often over a number of years and subject to agreed programme outcomes. The Foundation continues to establish partnerships with organisations that are meeting a clearly defined social need for disadvantaged and low-income groups. These organisations must be able to demonstrate clarity of purpose, grassroots engagement and empowerment of communities, tangible positive outcomes, cost-effectiveness, accountability and a sustainable approach to the social and economic development of communities. The Foundation will provide project, general/core, overheads, matched funding or other types of grant funding, depending on the needs of the organisation. The Foundation will not make grants to organisations that: Fail to meet eligibility requirements; Fail to provide sufficient information to enable adequate assessment; Have paid staff related to Ashmore’s employees; Personal appeals; Organisations that are overtly political or pursue political agenda; Organisations that are religious and seek to evangelise or proselytise; Animal charities; and, Applications for retrospective funding. Once identified, potential partners undergo a due diligence assessment, which covers governance, accountability, financial management, sustainability, contextual understanding, monitoring and evaluation frameworks, and positive impact and effectiveness. All grantees must adhere to the Conditions of Grants including a requirement for regular reporting. The ongoing monitoring includes a combination of annual narrative and financial reports, telephone or video conference updates and monitoring visits where possible. The Foundation endeavours to visit each partner and the communities they are working with at least once during the life of the partnership. Progress reports are submitted at six monthly intervals and wherever possible grantees are invited to present their work to Ashmore employees at Ashmore’s offices globally. The total value of grants to be made each year is expected to be a minimum of 50 percent of the Foundation’s donation income.

Additional information

Achievements and Performance During the financial period, the Foundation successfully made funding commitments to seven organisations (2023: eight organisations) in accordance with its grant making policy as outlined above. Commitments for 2023/24 totalled $415 thousand (2023: $564 thousand) which include multi-year grant commitments not due for payment until 2026. Since its inception in 2008, the Foundation has committed over $8.0 million to support social causes throughout the Emerging Markets. Financial Review The Foundation’s work is reliant on income from Ashmore and its employees and investment returns from its reserves. Voluntary donation income for 2023/24 was $876 thousand (2023: $937 thousand). This was derived from Ashmore Group plc’s profit before tax donation of up to 0.5%, Ashmore employee bonus waivers and direct donations to the Foundation via the payroll giving scheme and fundraising activities. The Foundation’s reserves are invested with the aim of incrementally growing the capital value of funds over an investment cycle. Investment income during the year amounted to $364 thousand (2023: $272 thousand) driven by interest income, corporate debt, fixed income and equity funds. Realised and unrealised investment gains for the year were $319 thousand (2023: $203 thousand gain). This was driven by gains on bonds, money market and equity funds during the year. Expenses to support charitable activities (excluding grant making) amounted to $125 thousand (2023: $119 thousand). The Foundation’s grant making activity for the year amounted to $415 thousand (2023: $564 thousand). The decrease relates to fewer commitments approved by the Trustees during the year. Further details are provided in “Achievements and Performance” and in note 4 to the Financial Statements. Reserves amounted to $11.9 million as at 30 June 2024 (30 June 2023: $10.9 million), the increase was driven by income from donations and net realised and unrealised investment gains (30 June 2023: net realised and unrealised investment losses) in the year. Public Benefit The Trustees confirm that during the year ended 30 June 2024 they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. Going Concern Disclosure The Trustees have considered the resilience of the Foundation, taking into account its current financial position, and the principal and emerging risks facing the Foundation including the impact of current global affairs and their effect on global markets and potential implications on the Foundations financial resources. The Trustees have reviewed a going concern assessment, by applying a stressed scenario, including severe but plausible downside assumptions, and the impact on its investments and unrestricted financial resources alongside known grant commitments for a period of 12 months from the date of approval of these financial statements. While there are significant wider market uncertainties that may impact the Foundation, the stressed scenario shows that the Foundation would continue to have sufficient financial resources to meet its liabilities as they fall due for a period of at least 12 months from the date of the release of this report. The financial statements have therefore been prepared on a going concern basis. Reserves and Investment Policy There has been no change to the trustees December 2021 decision to let Ashmore contributions be the main driver of growth for the reserves, and the investment committee (“IC”) is to target a three-year annualised return of 3%. In terms of ethical considerations, there is also no change. Trustees reserve the right to exclude investments in any companies that directly undermine or contravene the organisation’s charitable objectives. Direct investments into any company or entity whose core business activity involves the production, assembly, direct sale, distribution, operation, or marketing of alcohol, tobacco, adult entertainment, weapons and gambling should be avoided. The portfolio nominal return for the 12 months period to 30 June 2024 was +7.2%. The financial year started weakly as expectations of the level at which global interest rates would peak, having initially fallen (to the benefit of the fund in 4QFY23), rose once again on the back of a strong US economy and persistent inflation. This sent the portfolio’s bond and equity valuations down, but the high cash position (c. 37%) minimised the capital deterioration. By October 2023 the inflationary impact of the pandemic and, more recently, the Ukraine war began to slowly subside, and the US economy showed some signs of softening. This was the inflection point on US / global rate expectations resulting in a rally in both bonds and equities, which the IC had added to in September (reducing cash, including the high yielding deposit fund, to c. 28%). Generally, the portfolio’s investments continued to grind higher from this point onwards and the IC further reduced cash in December 2023. By this point, profits had already been taken in the US equities holdings and replaced with more Emerging Market equity exposure, due to the valuation gap. In the 4QFY24, the IC again lowered cash to c. 23% using the funds to lock in longer-term yields in UK Gilts. There was an acceleration in returns in this final quarter of the year, taking the Foundation’s portfolio return for the year to June 2024 to +7.2%.



Directors

The directors shown below have held office during the whole of the period from
1 July 2023 to 30 June 2024

Matthew Hill
Alyssa Nolan
James Carleton
Mark Coombs
Jonathan Shingler
Jennifer Johan Bingham


The director shown below has held office during the period of
1 July 2023 to 14 April 2024

Lydia Jessica Toisuta


The director shown below has held office during the period of
1 July 2023 to 13 April 2024

Oscar Ardila Espindola


The director shown below has held office during the period of
1 July 2023 to 3 December 2023

Patrick Cadell


The director shown below has held office during the period of
1 July 2023 to 1 December 2023

Cemil Urganci


The director shown below has held office during the period of
24 May 2024 to 30 June 2024

Seki Mutukwa


The director shown below has held office during the period of
22 December 2023 to 24 May 2024

Rebecca Embry


The directors shown below have held office during the period of
1 December 2023 to 30 June 2024

Carolina Arias Polo
Dhiren Shah


Secretary Esther Arthur

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
20 December 2024

And signed on behalf of the board by:
Name: Matthew Hill
Status: Director

THE ASHMORE FOUNDATION

Balance sheet

As at 30 June 2024

Notes 2024 2023


£

£
Fixed assets
Investments: 3 9,567,818 8,388,424
Total fixed assets: 9,567,818 8,388,424
Current assets
Cash at bank and in hand: 225,195 336,580
Investments: 4 157,306
Total current assets: 225,195 493,886
Creditors: amounts falling due within one year: 5 ( 308,945 ) ( 253,888 )
Net current assets (liabilities): (83,750) 239,998
Total assets less current liabilities: 9,484,068 8,628,422
Creditors: amounts falling due after more than one year: 6 ( 35,756 ) ( 36,967 )
Total net assets (liabilities): 9,448,312 8,591,455
Members' funds
Profit and loss account: 9,448,312 8,591,455
Total members' funds: 9,448,312 8,591,455

The notes form part of these financial statements

THE ASHMORE FOUNDATION

Balance sheet statements

For the year ending 30 June 2024 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors have chosen not to file a copy of the company's profit and loss account.

This report was approved by the board of directors on 20 December 2024
and signed on behalf of the board by:

Name: Matthew Hill
Status: Director

The notes form part of these financial statements

THE ASHMORE FOUNDATION

Notes to the Financial Statements

for the Period Ended 30 June 2024

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

    Intangible fixed assets amortisation policy

    (g) Fixed asset investments Fixed asset investments are held to generate investment income over time rather than to finance grant making activities. Fixed asset investments include corporate bonds, equity and fixed income funds not held specifically for sale. Fixed asset investments also include cash held from time to time, and money market funds held as part of on-going investment activities to generate investment return and are expected to be held for more than one year from the reporting date. Corporate bonds, equity and fixed income funds are initially recognised at their transaction value and subsequently measured at fair value as at the Balance Sheet date, using the closing market price or net asset value. Cash and money market investments are measured at amortised cost. The Statement of Financial Activities includes net gains and losses on fixed asset investments, including those resulting from movements in foreign exchange rates.

    Other accounting policies

    1. Accounting Policies The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements. (a) Basis of preparation The Foundation constitutes a public benefit entity as defined by Financial Reporting Standard (FRS 102). The Financial Statements have been prepared under the historical cost convention modified by the fair valuation of investments with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The Financial Statements have been prepared in accordance with the Companies Act 2006, the Charities Act 2011, and the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard 102 applicable in the UK and Republic of Ireland (FRS 102). The accounting policies have been applied consistently throughout the year. (b) Going Concern The Trustees have considered the resilience of the Foundation, considering its current financial position, and the principal and emerging risks facing the Foundation including the impact of current global affairs and their effect on global markets and potential implications on the Foundations financial resources. The Trustees have reviewed a going concern assessment, by applying a stressed scenario, including severe but plausible downside assumptions, and the impact on its investments and unrestricted financial resources alongside known grant commitments for a period of 12 months from the date of approval of these financial statements. While there are significant wider market uncertainties that may impact the Foundation, the stressed scenario shows that the Foundation would continue to have sufficient financial resources to meet its liabilities as they fall due for a period of at least 12 months from the date of the release of this report. The financial statements have therefore been prepared on a going concern basis. (c) Functional and presentation currency These financial statements are presented in United States Dollar (US$), which is the Foundation’s functional currency. All information presented in US Dollar has been rounded to the nearest thousand, except when otherwise indicated. (d) Foreign currency translation Transactions in foreign currencies are translated to the US Dollar at the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the end of the reporting date are retranslated to the US Dollar at the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the US Dollar at the exchange rate at the date that the fair value was determined. Non-monetary items in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction. Foreign currency differences arising on retranslation are recognised in the Statement of Financial Activities within other recognised gains and losses. (e) Incoming resources All incoming resources are included in the Statement of Financial Activities on a receivable basis in accordance with the SORP. Income is recognised when the Foundation is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income: Voluntary income is received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when it becomes receivable. The value of services provided by volunteers has not been included in these accounts because it cannot be reliably measured Investment income, comprising interest and dividends, is included when it becomes receivable. (f) Cash at bank and in hand Cash at bank and in hand is held to meet short-term cash commitments as they fall due rather than for investment purposes. (g) Fixed asset investments Fixed asset investments are held to generate investment income over time rather than to finance grant making activities. Fixed asset investments include corporate bonds, equity and fixed income funds not held specifically for sale. Fixed asset investments also include cash held from time to time, and money market funds held as part of on-going investment activities to generate investment return and are expected to be held for more than one year from the reporting date. Corporate bonds, equity and fixed income funds are initially recognised at their transaction value and subsequently measured at fair value as at the Balance Sheet date, using the closing market price or net asset value. Cash and money market investments are measured at amortised cost. The Statement of Financial Activities includes net gains and losses on fixed asset investments, including those resulting from movements in foreign exchange rates. (h) Realised and unrealised gains and losses All gains and losses including those resulting from movements in foreign exchange rates are taken to the Statement of Financial Activities as they arise. Realised gains and losses on the disposal of assets are calculated as the difference between the sales proceeds received and the opening carrying value (or the purchase value if acquired subsequent to the first day of the financial year). Unrealised gains and losses on investments are calculated as the difference between the fair value of investments at the year end and their opening carrying value (or their purchase value if acquired subsequent to the first day of the financial year). Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities. (i) Liabilities Liabilities are recognised in the period in which they are incurred, or in the case of grants, in the period in which the grants are awarded by the Trustees. Liabilities are recognised when either a legal or constructive obligation exists. Grants payable over a period longer than one year are recognised in full in the period in which the grant is approved by the Trustees. (j) Resources expended Expenditure is recognised on an accruals basis as liabilities are incurred. Expenditure includes any VAT which cannot be fully recovered, which is reported as part of the expenditure to which it relates. Charitable expenditure comprises those costs incurred by the Foundation in the delivery of activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature which are necessary to support them. Fundraising expenditure includes costs incurred in the organisation and running of fundraising events including Ashmore Challenge events. No costs are recharged to the Foundation by Ashmore Group plc for the use of its premises or office supplies. These amounts are not material and have not been disclosed. (k) Taxation The Foundation is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and as such, it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, as a charity, the Foundation is exempt from tax in respect of income or capital gains received within the categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to its charitable objects. No tax charges have arisen in the Foundation.

THE ASHMORE FOUNDATION

Notes to the Financial Statements

for the Period Ended 30 June 2024

  • 2. Employees

    2024 2023
    Average number of employees during the period 1 1

THE ASHMORE FOUNDATION

Notes to the Financial Statements

for the Period Ended 30 June 2024

3. Fixed assets investments note

(g) Fixed asset investments Fixed asset investments are held to generate investment income over time rather than to finance grant making activities. Fixed asset investments include corporate bonds, equity and fixed income funds not held specifically for sale. Fixed asset investments also include cash held from time to time, and money market funds held as part of on-going investment activities to generate investment return and are expected to be held for more than one year from the reporting date. Corporate bonds, equity and fixed income funds are initially recognised at their transaction value and subsequently measured at fair value as at the Balance Sheet date, using the closing market price or net asset value. Cash and money market investments are measured at amortised cost. The Statement of Financial Activities includes net gains and losses on fixed asset investments, including those resulting from movements in foreign exchange rates.

THE ASHMORE FOUNDATION

Notes to the Financial Statements

for the Period Ended 30 June 2024

4. Current assets investments note

No current asset investments

THE ASHMORE FOUNDATION

Notes to the Financial Statements

for the Period Ended 30 June 2024

5. Creditors: amounts falling due within one year note

2024 2023
£ £
Bank loans and overdrafts 0
Amounts due under finance leases and hire purchase contracts 0 0
Trade creditors 0 0
Taxation and social security 0 0
Accruals and deferred income 0 0
Other creditors 308,945 253,888
Total 308,945 253,888

THE ASHMORE FOUNDATION

Notes to the Financial Statements

for the Period Ended 30 June 2024

6. Creditors: amounts falling due after more than one year note

2024 2023
£ £
Bank loans and overdrafts 0 0
Amounts due under finance leases and hire purchase contracts 0 0
Other creditors 35,756 36,967
Total 35,756 36,967