Overview
- Assets under management (AuM) of US$58.9 billion at the year end (30 June 2014: US$75.0 billion).
- Good long-term investment performance delivered in challenging markets
- 60% of AuM outperforming benchmarks over three years and 81% over five years (30 June 2014: 81% and 92%, respectively).
- Net revenues increased 8% to £283.3 million
- higher performance fees and benefits of US dollar strength, outweighing lower management fees.
- Disciplined control of costs, total operating costs reduced by 1% to £99.5 million.
- Adjusted EBITDA of £176.7 million (FY2013/14: £195.1 million) resulting in a stable adjusted margin of 67%.
- PBT increased 6% to £181.3 million (FY2013/14: £171.6 million).
- Diluted EPS increased 4% to 19.3p (FY2013/14: 18.6p).
- positive foreign exchange translation effects of approximately 1.4p.
- Proposed final dividend of 12.1p, giving a 1% increase in full year dividend to 16.65p (FY2013/14: 16.45p).
- Michael Benson to retire at the AGM on 22 October, to be succeeded as Chairman by Peter Gibbs.
Commenting on the Group's results, Mark Coombs, Chief Executive Officer, Ashmore Group said:
"The past year has been challenging, with continued volatility in global markets. Investment performance improved in absolute and relative terms in the second half of the year, as was expected after the Group's investment processes added risk in a period of market weakness. Ashmore's proven business model, coupled with a disciplined approach to cost control, has maintained a high operating margin and good cash generation despite lower AuM levels.
"Sentiment towards Emerging Markets continues to be influenced by global macro factors such as the timing of the first US rate increase and China's intentional rebalancing of its economy. Yet the fundamentals across the Emerging Markets universe, comprising more than 70 countries and a diverse range of asset classes, remain sound, with economies demonstrating their ability to withstand notable challenges of the past few years such as higher funding costs, lower commodity prices, currency devaluations and major electoral cycles. This highlights the political, social and economic progress that Emerging Markets have made over the past decades.
"Ashmore is well positioned for an improvement in sentiment, with established processes delivering good long-term investment performance, broad-based distribution capabilities, and meaningful capacity across a broad range of Emerging Markets investment themes."
