Ashmore Group plc (LON: ASHM), the specialist Emerging Markets asset manager, today announced its unaudited results for the six months ending 31 December 2019.
- Assets under management (AuM) increased 28% YoY and 7% over the period to US$98.4 billion
- Diversified net inflows of US$5.7 billion and positive investment performance of US$0.9 billion
- Active management continues to deliver long-term outperformance
- 75% of AuM outperforming benchmarks over three years and 98% over five years
- 24% outperforming over one year, reflecting combination of market volatility and adding risk at attractive price levels in line with Ashmore’s disciplined investment approach
- Progress across all three phases of Ashmore’s long-term growth strategy
- Higher allocations: new and existing clients increasing allocations to Emerging Markets
- Diversification: delivering outperformance in global equities products and generating client flows
- Mobilise Emerging Markets capital: Ashmore Indonesia listed at premium valuation
- Strong operating and financial performance
- Adjusted net revenue growth of 20% driven by 18% increase in net management fees
- Adjusted EBITDA increased 24% to £122.5 million, delivering an adjusted EBITDA margin of 69%
- Seed capital return of £8.4 million
- Profit before tax of £132.4 million, 42% higher than prior year
- Diluted EPS increased 56% to 15.8p reflecting operational performance, seed capital profit and lower effective tax rate
- Interim DPS up 5% to 4.80p
Commenting on the Group’s results, Mark Coombs, Ashmore Group Chief Executive Officer, said:
“Ashmore performed well over the six months, increasing AuM primarily through net inflows and delivering strong financial performance with a 24% increase in adjusted EBITDA and 56% growth in diluted EPS. There continue to be compelling incentives for investors to increase their allocations to Emerging Markets in pursuit of higher risk-adjusted returns compared with those that are available in the developed world. Ashmore’s specialist focus on the diverse Emerging Markets, the strong client flow momentum in the first half of the financial year and ongoing client activity levels, mean Ashmore is well-positioned to continue to grow.”
