Ashmore AuM grow 13% amid positive investment performance

Emerging markets asset manager Ashmore posted a jump in full-year assets under management on Friday as it benefited from a positive investment performance as economic activity picks up.

In the year to the end of June 2021, AuM rose 13% to $94.4bn, with an investment performance of $9.6bn and net inflows of $1.2bn.

Pre-tax profit rose 28% to £282.5m and the company declared a final dividend of 12.1p a share, taking the total dividend for the year to 16.9p, in line with 2020.

Ashmore said its active management of client portfolios has delivered an "exceptionally strong" performance across all investment themes over the past 12 months, resulting in 96% of AuM outperforming benchmarks over one year.

Chief executive Mark Coombs said: "Ashmore has made significant progress against its strategic objectives over the past year, generated outperformance for clients, and the group's robust business model has delivered a financial performance that reflects the early stages of a cyclical recovery.

"As vaccination rates increase across the world and governments ease social restrictions, economic activity is picking up and reinforcing the Emerging Markets growth premium, and hawkish central banks in many emerging countries are acting to contain inflation.

"This environment provides attractive opportunities for investors to increase allocations with heavily discounted equity valuations in emerging markets and high real yields compared with the negative rates in developed markets."