Ashmore Group plc
Results for 12 months ending 30 June 2019
6 September 2019
www.ashmoregroup.com
Overview
- Strong operating and financial performance
- Active management delivers outperformance: >90% AuM outperforming over one, three & five years
- AuM increased 24% YoY, driven by broad-based net inflows of US$10.7 billion
- Net management fee income +17%
- Adjusted EBITDA +10%, margin maintained at 66%
- Diluted EPS +18%
- Dividends per share 16.65p
-
Diverse range of Emerging Markets well-positioned for growth and future returns
− GDP growth premium vs DM is expanding, inflation is largely under control, central banks cutting rates − Significant value available; Ashmore taking advantage of recent opportunities
− Main risks are in DM (e.g. US trade policy) where yields are low
− Continued incentives for investors to re-allocate to Emerging Markets
2
Strategy focused on Emerging Markets growth opportunity
Significant allocation opportunities (Phase 1)
- Developed world has US$80trn wealth; every 1% increase in EM allocations is a significant AuM opportunity
- Long term: EM target allocations <10% versus 15% (equities) to 20% (fixed income) in global indices
- Short term: investors continue to re-allocate towards target weights after reducing in 2013-2016 period
Increasing AuM diversification (Phase 2)
- Intermediary retail 15% of AuM vs 8% four years ago
- Americas is now largest source of AuM (26%)
- Product range continues to evolve e.g. blended debt ESG, low volatility local currency bonds, China bonds
Local Emerging Markets platforms developing (Phase 3)
- Funds tailored to local market opportunities, liquid markets & alternatives
- Local investors and single-country allocations by global clients
- Total AuM US$5.3 billion; Indonesia is largest with AuM of US$2.0 billion (+20% YoY)
Intermediary retail AuM
16
14
12
10
8
6
4
2
0
2015 | 2016 | 2017 | 2018 | 2019 | |
AuM US$bn | % Group AuM | ||||
Ashmore Indonesia AuM (IDR bn)
30,000
25,000
20,000
15,000
10,000
5,000
0
2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
Strategy delivering diversified AuM growth
3
Investment performance
AuM outperforming versus benchmark, | AuM outperforming versus benchmark, | AuM outperforming versus benchmark, | ||||||||||||||||||||||||||||||
gross one year annualised | gross three years annualised | gross five years annualised | ||||||||||||||||||||||||||||||
100% | 100% | 100% | ||||||||||||||||||||||||||||||
97% | 97% | |||||||||||||||||||||||||||||||
90% | ||||||||||||||||||||||||||||||||
80% | 80% | 80% | ||||||||||||||||||||||||||||||
60% | 60% | 60% | ||||||||||||||||||||||||||||||
40% | 40% | 40% | ||||||||||||||||||||||||||||||
20% | 20% | 20% | ||||||||||||||||||||||||||||||
0% | 0% | 0% | ||||||||||||||||||||||||||||||
External | Local | Corporate | Blended | Equities | Multi-asset | Group | External | Local | Corporate | Blended | Equities | Multi-asset | Group | External | Local | Corporate | Blended | Equities | Multi-asset | Group | ||||||||||||
OutperformingUnderperforming
- Strong investment performance over one, three and five years
- Risk added in 2018 has delivered significant increase in one year performance (31 Dec 2018: 30% AuM outperforming)
Active investment processes delivering strong outperformance
See Appendix 9 for related disclosures | 4 |
Financial performance overview
- AuM +24% YoY, average AuM +16% YoY
- Net flows +US$10.7 billion and positive investment performance of +US$6.9 billion
- Adjusted net revenue +11%
- Net management fees +17% to £294.3 million, reflecting diversified growth in average AuM
-
Ongoing cost discipline
˗ Like-for-likenon-VC cost growth only 3% - Adjusted EBITDA +10%
˗ High profit margin maintained at 66% - Strong cash generation
-
Operating cash flow of £214.3 million (106% of adjusted
EBITDA)
-
Operating cash flow of £214.3 million (106% of adjusted
- Profit before tax +15%
FY2018/19 | FY2017/18 | ||
£m | £m | YoY % | |
AuM (US$bn) | 91.8 | 73.9 | 24 |
Adjusted net revenue | 308.1 | 278.3 | 11 |
Adjusted operating costs | (111.1) | (99.7) | (11) |
Adjusted EBITDA | 201.8 | 183.6 | 10 |
- margin | 66% | 66% | - |
Seed capital | 10.7 | 10.1 | 6 |
Profit before tax | 219.9 | 191.3 | 15 |
Diluted EPS (p) | 25.0 | 21.3 | 18 |
DPS (p) | 16.65 | 16.65 | - |
Figures stated on an adjusted basis exclude FX translation and seed capital-related items; see Appendix 1
5
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Ashmore Group plc published this content on 06 September 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 September 2019 09:16:01 UTC