Ashmore: Preparing for emerging market growth
Emerging markets specialist Ashmore reported a decline in total adjusted net revenue of 22 per cent to £146.5m in its latest fiscal period.
Net management fee income declined 19 per cent to $129.7m, (£95m) causing a margin drop to 35 basis points from the 39 recorded last year.
AUM stood at $47.6bn, a 3 per cent decline from 2024. A positive investment performance of $4.1bn was offset by outflows of $5.8bn.
However, the group maintained a strong, liquid balance sheet, with more than £600m financial resources, which was used to increase seed capital investments.
The final ordinary dividend remained unchanged at 12.1p per share.
The group’s share price declined 7.1 per cent in early morning trading, but analysts have maintained their buy position, believing the attractive nature of emerging markets will ultimately benefit Ashmore.
Commenting on the group’s results, chief executive officer Mark Coombs said, “Ashmore’s strategy is aligned with the opportunities in emerging markets.”
“This year the group has…continued to invest in initiatives to diversify and deliver future growth, including using the strength of its balance sheet to increase seed capital investments.”
On the ground
Ashmore continued to increase the proportion of its AUM sourced from clients settled in emerging markets. These assets now account for 38 per cent of total AUM.
It stood at $18bn, compromising of both institutional clients and the group’s growing local market businesses.
In its bid to invest in increase its market exposure, the group expanded its network of local offices, establishing new bases in Qatar and Mexico.
The weatlh manager also broadened its distribution access in Indonesia and Saudi Arabia through developing its digital technology and began developing a domestic product range in India.
Optimistic for the future
The group remains positive of its prospects due to the downward trajectory of both the US economy and its currency, as the market continues to suffer from tariff turmoil while bracing for the Federal Reserve’s upcoming interest rate decision.
This has caused investors to grow an appetite for allocating capital into emerging markets and the group is now prepared to grow from a shift of investor capital from the US to other markets that offer higher risk-adjusted returns.
Coombs said, “Ashmore is well-positioned to capture flows.”