Half Year 2026 Ashmore Group PLC Earnings Call Transcript
Key Points
- Ashmore Group PLC (AJMPF) reported a 10% increase in assets under management, reaching approximately $52 billion, with net inflows of $2 billion.
- The company achieved a 64% increase in profit before tax to GBP82 million, with diluted EPS rising by 90% to 10p.
- Investment performance was strong, with 82% of assets outperforming in the one-year period.
- The company's seed capital portfolio generated pretax profits of GBP55.4 million, contributing to overall earnings growth.
- Local offices in emerging markets, such as Colombia and Indonesia, showed significant growth in assets under management and client engagement.
- Revenues declined by 16% year-on-year due to lower average assets under management and reduced performance fees.
- Operating costs increased marginally by 1%, despite efforts to maintain efficiency in a challenging inflationary environment.
- Performance fees were lower compared to the previous year, reflecting fewer asset realizations from alternative vehicles.
- The balance sheet showed a relatively low cash position due to recent seed investment activities.
- Geopolitical risks and US tariffs present ongoing challenges, impacting global trade and market stability.
Good morning, everybody. Thank you for coming. Ashmore Group first half '26 financial results. Anyway, so here's the overview. The market has done pretty well, and we've done okay as well. Generally, EM is doing really what we'd expect it to do, which is outperforming developed markets. We're at 82% of our assets outperforming in the one year, which is good. We're comfortable with that.
Our flows have gone up, which is great. So 10% increase in assets under management over the half, which gets us to about $52 billion. Net inflows of $2 billion. Subs up 35%, reds down 39%. So things moving in the right direction -- or the other way around, 39% subs, 35% reds.
Our statutory profits. Revenues are down year-on-year due to lower average AuM and reduced performance fees, which you would expect. We try and keep our costs as tight as we can despite inflationary environment. Our investment performance on our seed has been strong. That's delivered GBP55 million of gains. PBT, up 64% to GBP82 million. Diluted EPS, up 90%,
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