Ashmore Group Navigates Outflows with Performance Gains: A Balanced Outlook

Ashmore Group plc (LON:ASHM), the specialist Emerging Markets asset manager, released its audited results for the year ended June 30, 2025, showcasing both challenges and strategic progress.

While assets under management (AuM) reached US$47.6 billion, the firm contended with net outflows, though positive investment performance offered a buffer.

Shares are down over 5% following the report.

Despite improved net outflows of US$5.8 billion, the company saw positive investment performance of US$4.1 billion, demonstrating strength across various investment themes, including equities and investment grade (IG) strategies.

The performance reflects a growing investor interest in emerging markets, fueled by their superior economic growth prospects compared to developed economies.

However, adjusted net revenue declined by 22% year-over-year to £146.5 million, a direct consequence of lower average AuM levels. Performance fees provided a bright spot, generating £10.2 million from fixed income and alternative investments.

Ashmore demonstrated effective cost management, reducing adjusted operating costs by 14% year-over-year. Non-VC costs decreased by 6%, and VC accruals, aligned at 35% of EBVCT, resulted in a 25% lower charge. This cost discipline contributed to an adjusted EBITDA of £52.5 million and a healthy margin of 36%.

Profit before tax reached £108.6 million, bolstered by strong returns on seed capital investments. Diluted EPS stood at 11.8 pence, although adjusted diluted EPS was 7.1 pence. The company maintains a robust balance sheet with over £600 million in financial resources.

The company has maintained its final ordinary dividend at 12.1 pence per share, resulting in total dividends per share of 16.9 pence, a move that underscores its commitment to returning value to shareholders despite the challenging environment.

AskTraders Takeaway: The results reflect a company navigating a complex environment. While outflows remain a concern, the positive investment performance and strategic initiatives signal potential for future growth. Markets are likely to react to Ashmore's ability to attract and retain assets amidst a shifting global landscape.

CEO Mark Coombs emphasized the alignment of Ashmore’s strategy with emerging market opportunities, stating, “Ashmore's active investment processes are delivering outperformance for clients against a positive backdrop for emerging markets… Ashmore is therefore well-positioned to capture flows as investors shift allocations away from the US.”