Ashmore Group (ASHM) H1 2025 earnings summary

Executive summary

• Assets under management remained stable at $49 billion (US$48.8bn), with net outflows significantly reduced to $1.1 billion and improved client engagement.

• Adjusted EBITDA margin held at 42%, reflecting operational efficiency and cost discipline despite a 14% year-on-year decline in net revenue.

• Strategic initiatives in equities, local platforms, and private markets contributed to diversification and growth.

• Outperformance achieved across a broad range of strategies, especially in equities and corporate credit, with active management outperforming benchmarks over one, three, and five years.

Financial highlights

• Adjusted net revenue declined 14% year-on-year to £79.9m, with average AuM down 6% and net management fees down 17% to £68.3m.

• Adjusted EBITDA was £33.7m, down 21% year-on-year; diluted EPS at 5.4p (down 37% YoY), with adjusted diluted EPS at 4.8p (down 17% YoY).

• Interim dividend maintained at 4.8p per share; total equity attributable to shareholders was £818.1m as of 31 December 2024.

• Adjusted operating costs reduced by 9% year-on-year, with fixed staff costs down 2% and other operating costs down 10%.

• Seed capital investments totaled nearly £350 million, with £90 million of new investments and a P&L gain of £5 million.

Outlook and guidance

• Positive outlook for emerging markets, supported by resilient fundamentals, robust GDP growth, effective policies, and ongoing reforms.

• Board expects continued growth in equities and alternatives, with local offices driving asset growth and a progressive dividend policy.

• Effective tax rate expected to remain in the 21%-22% range, with 21.6% reported.

• No material performance fees forecasted for the second half unless significant alternatives realizations occur.

• US political developments and global macro trends may cause short-term volatility, but EM assets expected to benefit from global policy trends.