Ashmore increases its 2014 full year dividend by 2%

DividendMax Ltd.

Ashmore increases its 2014 full year dividend by 2%

Highlights

Resilient assets under management of US$75.0 billion at the year end (30 June 2013: US$77.4 billion).

Strong long-term investment performance with 81% of AuM outperforming benchmarks over three years and 92% over five years (30 June 2013: 92% and 73%, respectively).

Sound operational performance and good cost control, total operating costs reduced by 23% to £97.9 million (FY2012/13: £127.2 million).

Adjusted EBITDA £171.0 million (FY2012/13: £249.2 million) resulting in a margin of 65% (FY2012/13: 70%).

PBT declined 34% to £170.3 million (FY2012/13: £257.6 million), and declined 16% at constant exchange rates.

- largely explained by Sterling strength (£46m impact) and lower performance fees (£30m impact).

Basic EPS 19.3p (FY2012/13: 30.0p).

Diluted EPS 18.4p (FY2012/13: 28.7p).

- foreign exchange translation effects reduced diluted EPS by approximately 4p.

Strong cash generation supports progressive dividend policy. Proposed final dividend of 12.0p, giving a 2% increase in full year dividend to 16.45p (FY2012/13: 16.10p).

Commenting on the Group's results, Mark Coombs, Chief Executive Officer, Ashmore Group said:

"Ashmore's financial results for the year reflect the impact of market volatility experienced for much of the period and the effects of Sterling strength. The operational performance was sound, operating cost control and flexibility was demonstrated, and the Group continued to make strategic progress in the period.

"Emerging nations are generally in good health; aggregate GDP growth in Emerging Markets was 4.5% in 2013 and is expected to be higher still in 2014, inflation is at acceptable levels, and FX reserves remain strong. This is an important backdrop as the global economy evolves; Developed Markets are weaning themselves off unprecedented monetary policy experiments while Emerging Markets need to decide how to manage substantial FX reserves in the face of potential foreign currency weakness. This will lead to greater balance and rising Emerging Markets relevance in investment portfolios. Investors will increasingly need to differentiate between those countries and companies that foresee and plan for the unwinding of global imbalances, and those that are ill-prepared.

"Ashmore's absolute focus on Emerging Markets and its depth of knowledge and experience of investing across market cycles position it well to manage the risks and opportunities that will be presented by this evolution to a more balanced global economy in the coming years."

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