Ashmore Group plc
Results for six months ending 31 December 2020
10 February 2021
www.ashmoregroup.com
Overview
• Financial performance reflects early stages of a typical recovery cycle
˗ AuM +11% over the six months to US$93.0bn, driven by investment performance
˗ Lower average AuM YoY (-6%) reflecting stage in the recovery cycle
˗ Adjusted EBITDA -12% YoY in line with revenue, margin maintained at 68%
˗ Strong seed capital returns delivered PBT growth of 14% to £150.6 million
• Significant outperformance delivered Improving one, three and five year performance across the Group Post-crisis recovery cycle in progress as usual, potential for further alpha
• Strategy continues to deliver diversification
Equities AuM +41% to US$6.5 billion
IG universe continues to grow, institutional demand and mutual fund products launched
Dedicated ESG funds developing performance track records
Local asset management platforms growing rapidly, AuM +39% over the six months
• Outlook continues to favour Emerging Markets
Vaccination programmes critical to worldwide recovery in 2021
After short-term support of DM stimulus wears off, capital will seek higher growth and returns elsewhere
Economic growth forecasts and relative valuations favour EM over DM
Continued strategic focus
• Operating model performing well
˗ Investment processes delivering alpha
˗ Robust and flexible business model has adapted to environment
• Equities momentum continues
˗ AuM +41% since June to US$6.5 billion
˗ All Cap achieved three-year track record
• Growth in IG opportunity ˗ IG bonds represent >50% of external and corporate debt indices
˗
Ashmore delivering good performance and institutional demand increasing: lower volatility, strong macroeconomic fundamentals, higher yields vs DM bonds, no defaults
• Comprehensive approach to sustainability
˗ ESG factors integrated into fixed income & equities processes
˗ Broad range of dedicated ESG funds launched
˗ Ashmore Foundation grants to projects to offset Group's emissions
• Local markets achieving scale
˗ Diversified network of scalable platforms delivering strong AuM growth (+39% over 6m, +19% in 2020)
Global Emerging Markets equity strategies
Three years | Active | All Cap | Small Cap |
Benchmark (%) | +6.2% | +6.2% | +2.7% |
Alpha (%) | +2.4% | +7.1% | +7.6% |
Composite gross returns, annualised
Investment Grade performance
Three years | Sovereign | Corporate |
Benchmark (%) | +7.4% | +6.3% |
Alpha (%) | +0.7% | +1.6% |
SICAV gross returns, annualised for periods greater than one year
Developing dedicated ESG fund track records
Blended debt | Equity | |
Inception date | Feb 2019 | Mar 2020 |
Benchmark (%) | +6.4% | +57.9% |
Alpha (%) | +1.2% | +25.9% |
SICAV gross returns, annualised for periods greater than one year
Diversifying AuM and revenues
Investment performance
One year: 50% outperforming | Three years: 39% outperforming | Five years: 91% outperforming |
100% | 100% | 100% |
90% | 90% | 90% |
80% | 80% | 80% |
70% | 70% | 70% |
60% | 60% | 60% |
50% | 50% | 50% |
40% | 40% | 40% |
30% | 30% | 30% |
20% | 20% | 20% |
10% | 10% | 10% |
0% | 0% | 0% |
Jun'20: 9%
Jun'20: 17%
Outperforming
Underperforming
• Investment processes delivering significant outperformance as markets recover
• 97% of AuM outperforming over the six month period
AuM outperforming versus benchmark on gross annualised basis Equities bars split between global (LHS) and local products (RHS) See Appendix 9 for related disclosures
Jun'20: 74%
Significant improvement in performance
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Ashmore Group plc published this content on 10 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 February 2021 11:49:03 UTC.