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Ashmore annual profit declines as revenue falls on de-risking

6th Sep 2023 10:21

(Alliance News) - Ashmore Group PLC on Wednesday reported a decline in assets under management, profit and revenue, citing de-risking by investors.

The emerging markets-focused investment manager said pretax profit in the financial year ended June 30 fell 5.6% to GBP111.8 million from GBP118.4 million a year prior. Revenue declined 24% to GBP185.4 million from GBP247.0 million.

Assets under management as at June 30 fell 13% to USD55.9 billion from USD64.0 billion a year prior. The company noted a net outflow of USD11.5 billion due to institutional de-risking, mostly by developed world investors.

Ashmore declared a final dividend of 12.10p per share, unchanged from a year ago. This brings the total dividend for the financial year to 16.90p, also unchanged.

Looking ahead, Chief Executive Officer Mark Coombs said: "There is mounting evidence that the negative cycle has turned and, while the recovery may not be a straight line, it is well-supported by improving fundamentals across the larger emerging countries, although notably China faces some headwinds from lower consumer confidence after reopening its economy.

"Some investors remain cautious, but client activity levels are increasing and the combination of positive performance and attractive valuations available across emerging markets should drive capital flows over the medium term, as has occurred after previous down cycles."

Ashmore shares rose 2.0% to 196.10 pence each on Wednesday morning in London.

By Tom Budszus, Alliance News reporter

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