ASHMORE GROUP PLC Ashmore Group plc
Results for six months ending 31 December 2020
10 February 2021
www.ashmoregroup.com
Overview
• Financial performance reflects early stages of a typical recovery cycle
˗ AuM +11% over the six months to US$93.0bn, driven by investment performance
˗ Lower average AuM YoY (-6%) reflecting stage in the recovery cycle
˗ Adjusted EBITDA -12% YoY in line with revenue, margin maintained at 68%
˗ Strong seed capital returns delivered PBT growth of 14% to £150.6 million
• Significant outperformance delivered Improving one, three and five year performance across the Group Post-crisis recovery cycle in progress as usual, potential for further alpha
• Strategy continues to deliver diversification
Equities AuM +41% to US$6.5 billion
IG universe continues to grow, institutional demand and mutual fund products launched
Dedicated ESG funds developing performance track records
Local asset management platforms growing rapidly, AuM +39% over the six months
• Outlook continues to favour Emerging Markets
Vaccination programmes critical to worldwide recovery in 2021
After short-term support of DM stimulus wears off, capital will seek higher growth and returns elsewhere
Economic growth forecasts and relative valuations favour EM over DM
Continued strategic focus
• Operating model performing well
˗ Investment processes delivering alpha
˗ Robust and flexible business model has adapted to environment
• Equities momentum continues
˗ AuM +41% since June to US$6.5 billion
˗ All Cap achieved three-year track record
• Growth in IG opportunity ˗ IG bonds represent >50% of external and corporate debt indices
˗
Ashmore delivering good performance and institutional demand increasing: lower volatility, strong macroeconomic fundamentals, higher yields vs DM bonds, no defaults
• Comprehensive approach to sustainability
˗ ESG factors integrated into fixed income & equities processes
˗ Broad range of dedicated ESG funds launched
˗ Ashmore Foundation grants to projects to offset Group's emissions
• Local markets achieving scale
˗ Diversified network of scalable platforms delivering strong AuM growth (+39% over 6m, +19% in 2020)
Global Emerging Markets equity strategies
Three years | Active | All Cap | Small Cap |
Benchmark (%) | +6.2% | +6.2% | +2.7% |
Alpha (%) | +2.4% | +7.1% | +7.6% |
Composite gross returns, annualised
Investment Grade performance
Three years | Sovereign | Corporate |
Benchmark (%) | +7.4% | +6.3% |
Alpha (%) | +0.7% | +1.6% |
SICAV gross returns, annualised for periods greater than one year
Developing dedicated ESG fund track records
Blended debt | Equity | |
Inception date | Feb 2019 | Mar 2020 |
Benchmark (%) | +6.4% | +57.9% |
Alpha (%) | +1.2% | +25.9% |
SICAV gross returns, annualised for periods greater than one year
Diversifying AuM and revenues
Investment performance
One year: 50% outperforming | Three years: 39% outperforming | Five years: 91% outperforming |
100% | 100% | 100% |
90% | 90% | 90% |
80% | 80% | 80% |
70% | 70% | 70% |
60% | 60% | 60% |
50% | 50% | 50% |
40% | 40% | 40% |
30% | 30% | 30% |
20% | 20% | 20% |
10% | 10% | 10% |
0% | 0% | 0% |
Jun'20: 9%
Jun'20: 17%
Outperforming
Underperforming
• Investment processes delivering significant outperformance as markets recover
• 97% of AuM outperforming over the six month period
AuM outperforming versus benchmark on gross annualised basis Equities bars split between global (LHS) and local products (RHS) See Appendix 9 for related disclosures
Jun'20: 74%
Significant improvement in performance
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Disclaimer
Ashmore Group plc published this content on 10 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 February 2021 11:49:03 UTC.
