Home Estate Planning Ashmore suffers further outflows as emerging markets improve

Ashmore suffers further outflows as emerging markets improve

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Emerging markets asset manager Ashmore suffered further outflows over the last six months, as the fundhouse has struggled to attract new money.

In its results covering the second half of 2023, the firm said its net revenue had dropped 13 per cent to £93.4m while operating costs had risen 13 per cent.

However, this was partially offset by higher performance fees, which brought in an extra £8m for the firm.

Ashmore’s assets under management had dropped to $54bn, a 10 per cent fall from last year, but the firm noted that outflows and performance had both begun to improve from the first half of the year.

Adjusted EBITDA for the firm decreased by 33 per cent to £42.6m, with a margin of 46 per cent, but profit before tax increased 38 per cent year-on-year to £74.5m.

The manager, which has seen investors continuing to withdraw their money from the firm, experienced $4.5bn of outflows in the six months, while market performance brought in $2.6bn for the firm.

In its results, it noted that emerging market indexes had returned between five and seven per cent over the last six months, and its active management approach had led to 61 per cent of its assets under management outperforming over the last year.

Mark Coombs, CEO of Ashmore Group, said that emerging markets had “continued to perform strongly over the six months”, and argued that the factors driving this performance, such as a weaker US dollar and effective monetary policies “look set to underpin further increases in asset prices in 2024”.

He added: “Although there are risks, particularly geopolitical ones in a year of many elections around the world and continued growth headwinds in China, there is a compelling argument for a shift in asset allocations from heavily indebted and relatively expensive developed markets to the emerging markets where many of the economies are sound, fiscal and monetary policies are sensible, and absolute and relative valuations are attractive.”

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