Ashmore Group today reported profit before tax increased 15% to £128.1m, reflecting higher contribution from seed capital investments (£21.7m gain) and interest income (£24.9m), and £5.2m realised gain on disposal of investments.
The specialist Emerging Markets asset manager's audited results for the year ended 30 June 2024 highlighted how its increasingly diversified business underpinned financial performance with assets under management of $49.3bn and positive investment performance of $2.1bn as lower redemptions drove a reduction in net outflows to $8.5bn.
Adjusted net revenue of £187.8m, a 4% lower YoY reflecting higher performance fees offset by 10% lower average AUM.
Adjusted operating costs increased by 22% YoY, while EBITDA was £77.9m, 27% lower YoY, and adjusted EBITDA margin of 41%.
Mark Coombs, chief executive officer, Ashmore Group said: "Ashmore's diversified business model delivered strong profit growth this year notwithstanding the impact of lower AuM levels. The Emerging Markets continue to perform well; for capital flows to respond more powerfully to this positive backdrop requires near-term uncertainties to be resolved in some investors' minds. Some of these factors, such as the phasing of the next Fed rate cycle and the outcome of the US election, will become clear over the coming months.
"Therefore, as pent-up demand is unlocked, the pick up in investor interest in the Emerging Markets should gather momentum through the second half of 2024 and into 2025.
"Ashmore is delivering investment outperformance for clients and has a highly-scalable operating platform, which means it is well-positioned to benefit from capital flows to Emerging Markets as investor risk appetite increases."
