Overview
- Assets under management (AuM) of US$49.4 billion at 31 December 2015 (30 June 2015: US$58.9 billion)
- Better flows and performance in Q2
- High margin, long-term capital raised in alternatives theme
- Opportunities to add risk where prices have fallen unjustifiably, based on fundamentals
- Investment performance reflects the cycle: 55% outperforming benchmarks over one year, 14% over three years and 64% over five years
- Net revenues declined 29% to £116.4 million
- Net management fees of £98.7 million declined 26%, in line with lower average AuM (-25%)
- Performance fees of £8.6 million
- Smaller FX translation gains
- Cost flexibility demonstrated: operating costs reduced by 16% to £46.3 million
- Adjusted EBITDA of £68.0 million (H1 2014/15: £96.3 million)
- Margin maintained at a high level of 63%
- Diluted EPS 6.5p (H1 2014/15: 11.5p)
- Good cash generation (£56.9 million from operations) and strong balance sheet
- Interim DPS of 4.55p to be paid on 1 April 2016 (H1 2014/15: 4.55p)
Commenting on the Group's results, Mark Coombs, Chief Executive Officer, Ashmore Group said:
"Notwithstanding the effects that weaker markets and sentiment have had on AuM levels, Ashmore's inherently flexible cost base has delivered good cash generation and enabled the profit margin to be maintained at a high level in the first half of the financial year. Markets have remained volatile in early 2016, and while this can provide great value-based investment opportunities, sentiment is likely to continue to be affected by the lower oil price and ongoing concerns about slowing global growth, particularly with respect to China. However, after a prolonged period of adjustment in Emerging Markets, the current yields across sovereign and corporate credit markets suggest these asset classes are well placed to deliver long-term outperformance, particularly with the backdrop of robust fundamentals."
