Ashmore sees interim AuM slide, remains optimistic for full year

Nervous investors pulled billions of dollars from Ashmore Group funds at the end of 2023, the specialist asset manager said on Wednesday.

Assets under management (AuM) were $54.0bn in the six months to 31 December, down 10% on the same period a year earlier.

Positive investment performance added $2.6bn to AuM during the period, but it was not enough to offset outflows of $4.5bn.

Ashmore, which specialises in emerging markets, noted: "This period compromises two contrasting quarters, with lower market levels and risk aversion influencing performance and flows in the first quarter, followed by a strong rally and an improvement in net flows delivering AuM in the second."

Adjusted net revenues fell 13% to £93.4m, while adjusted earnings before interest, tax, depreciation and amortisation slid 33% to £42.6m.

Pre-tax profits rose 38%, however, to £74.5m, due to strong gains in the firm’s seed capital investment programme and higher interest income on cash balances.

Looking to the rest of the year, chief executive Mark Coombs said: "Emerging markets have continued to perform strongly over the six months, and the factors driving this growth - superior growth, effective monetary policies and a weaker US dollar - look set to underpin further increases in asset prices in 2024.

"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 emerging markets.

"Ashmore…is well positioned to capitalised on increasing capital flows."

As at 0915 GMT, shares in Ashmore were down nearly 2% at 206p.