Ashmore Group (ASHM) H1 2026 earnings summary

Executive summary

• AUM rose 10% to $52.5bn, driven by $2.3bn net inflows and $2.6bn investment performance gains; subscriptions rose 39% and redemptions fell 35%.

• Profit before tax increased 64% to £81.9m and diluted EPS rose 89% to 10.1p, supported by £55.4m in seed capital gains.

• Adjusted net revenue declined 16% to £67.5m, while the interim dividend was maintained at 4.8p per share.

• One-year benchmark outperformance covered 82% of AUM; equities AUM grew 17% and local-office AUM 8%.

Financial highlights

• Net management fees fell 9% to £62.1m; adjusted EBITDA was £20.9m, down 38%, with a 31% margin.

• Total operating costs were £48.3m, broadly in line with the prior year; adjusted operating costs increased 1% YoY.

• Seed capital generated £55.4m in pre-tax gains, including £9.6m realized; first-half performance fees were £0.8m.

• Effective statutory tax rate was 13.6%, mainly reflecting seed-book gains not subject to UK corporation tax; operating tax remained ~22%.

• Total financial resources were £573.6m, including £480.3m excess capital; there was no debt.

Outlook and guidance

• Performance fees are forecast up to £5m for FY 2026, excluding second-half alternatives realizations; timing remains uncertain.

• Full-year non-variable-compensation operating costs are expected to be ~2x the first-half £29m; a higher non-cash depreciation charge is expected in H2 for the London office lease.

• The client pipeline improved, with institutional activity stronger than retail and opportunities more weighted to new clients and equities; funding timing remains uncertain.

• Management expects lower redemptions to continue as a trend, while flows may fluctuate; EM growth, high real yields, rate cuts and dollar weakness are supportive themes.

• Variable compensation was accrued at 32.5% of pre-bonus profit, subject to review after year-end results.