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(Alliance News) - Ashmore Group PLC on Friday said its assets under management grew by double digits as its Equities funds enjoyed a stellar year with stock markets rebounding after the pandemic-induced steep drop at the start of 2020.
Shares in the emerging markets investment manager were down 3.9% in London on Friday morning at 379.60 pence each.
At June 30, Ashmore's assets under management stood at USD94.4 billion, up 13% from USD83.6 billion at the same point the year before.
The investment manager added USD9.6 billion through its investment performance and a further USD1.2 billion was added through net inflows.
Ashmore noted 96% of its assets outperformed their benchmarks in the past 12 months.
"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," Chief Executive Mark Coombs said.
He continued: "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."
Ashmore's Equity funds saw 61% growth in the period.
"Excellent investment performance has been delivered across all strategies over the past 12 months with absolute returns of 41% to 66%, and nearly 1,700 basis points of outperformance in the All Cap strategy. This track record is delivering decent client flows, with net inflows of USD0.9 billion over the past 12 months and eight consecutive quarters of net inflows to the Group's equity strategies," the company said.
External debt funds rose 6.4%, Local Currency grew 4.8%, Corporate Debt 6.6%, and Blended Debt by rose slightly.
Pretax profit in the year to June 30 rose to GBP282.5 million from GBP221.5 million the year before. Net revenue slipped to GBP291.7 million from GBP330.5 million.
However, adjusted earnings before interest, tax, depreciation and amortisation was GBP195.7 million, down 12% from GBP222.5 million last year.
Ashmore declared total dividend of 16.9 pence for the year, unchanged on the year before.
By Paul McGowan; paulmcgowan@alliancenews.com
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