Ashmore sees promise in emerging markets, FY profit in line
LONDON, Sept 5 (Reuters) -Emerging markets-focused investor Ashmore ASHM.L said on Thursday core markets were demonstrating resilience to shocks, with growth gathering momentum into 2025 as it reported annual pretax profit in line with expectations.
The British fund firm said profit before tax increased 15% to 128.1 million pounds ($168.5 million) over the year to end-June, reflecting higher contribution from seed capital investments, interest income and disposals.
Its adjusted EBITDA of 77.9 million pounds was 27% lower year on year, and undershot a consensus forecast of 83.6 million pounds from eight analysts supplied by the firm.
The company reported a 4% fall in adjusted net revenue to 187.8 million pounds, although this came in just above expectations. The figure reflected higher performance fees offset by lower assets under management over the period.
Ashmore had previously disclosed a further $2 billion of quarterly net outflows in a trading update in July, as well as a 5% dip in its assets under management to $49.5 billion.
Analysts have cautioned that heightened geopolitical tensions present an unhelpful backdrop for emerging markets flows.
Ashmore said in July that investor appetite for emerging markets remained subdued, although some industry data has pointed to healthy flows for the wider industry.
"For capital flows to respond more powerfully to this positive backdrop requires near-term uncertainties to be resolved in some investors' minds," CEO Mark Coombs said in a statement.
"Some of these factors, such as phasing of next Fed rate cycle and outcome of the U.S. election, will become clear over coming months."
Ashmore said approximately 60% of its assets under management were outperforming benchmarks over three and five years.
The company maintained its final ordinary dividend at 12.1 pence per share, resulting in total dividends per share of 16.9 pence, in line with analyst forecasts.
($1 = 0.7603 pounds)
Reporting By Sinead Cruise, editing by Kirstin Ridley
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