Ashmore Group (ASHM) investor relations material

Executive summary

• Strong market returns and active management led to consistent outperformance versus benchmarks, with 77% of assets outperforming over one year, 68% over three years, and 67% over five years.

• Net inflows of $2.7 billion were achieved, driven by a 92% increase in subscriptions and a 20% reduction in redemptions year-over-year, resulting in a 13% increase in AuM to $54.0 billion.

• Strategic progress included significant growth in equities (+33% AuM), alternatives (+25% AuM), and expansion of the local office network.

• Seed capital returns contributed to a 17% increase in profit before tax, reaching £126.9 million.

• Positive macroeconomic trends and supportive emerging market fundamentals underpin further performance expectations.

Financial highlights

• Adjusted net revenue declined 7% year-over-year to £135.6 million due to lower performance fees, despite higher average AuM.

• Profit before tax increased 17% to £126.9 million, with diluted EPS up 28% to 15.0p.

• Adjusted EBITDA fell 32% to £35.7 million, with margin at 26% (excluding seed capital, margin rose to 40%).

• Dividend per share maintained at 16.9p, with dividend cover of 0.9x.

• Total financial resources stood at £609.5 million, with excess capital of £521.5 million and no debt.

Outlook and guidance

• Emerging markets expected to grow twice as fast as developed markets in the near term.

• Further upside anticipated from EM debt spread compression and continued global investment cycle.

• EM equities trade at a significant discount to developed markets, offering diversification opportunities.