ii view: income play Ashmore struggles to impress City

Full-year results to 30 June

• Pre-tax profit up 17% to £126.9 million
• Final dividend unchanged at 12.1p per share
• Total dividend for the year unchanged at 16.9p per share
• Over £600 million of financial resources held

Chief executive Mark Coombs said:

"Ashmore's diversified global platform and focused emerging markets strategy delivered meaningful growth in AuM and profits during the year.

"Ashmore's specialist, active investment processes continued to generate strong outcomes for clients across the period. 77% of AuM is outperforming over one year, with approximately 70% outperforming over three and five years, demonstrating the benefit of the Group's investment philosophy and its disciplined approach to investing across market cycles.

“This broad-based delivery of alpha, across the range of fixed income and equity strategies, and the positive outlook for emerging markets positions the Group well to attract further client allocations as sentiment towards emerging markets becomes increasingly positive."

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ii round-up:

Ashmore Group (LSE:ASHM) today detailed annual profit that broadly matched City forecasts, with the specialist emerging markets fund manager remaining confident about the outlook for its markets.

A 13% year-over-year increase in assets under management (AUM) to $54 billion (£40 billion) and seed capital gains of £82.5 million, pushed full-year pre-tax profit up 17% to £126.9 million. A final dividend of 12.1p per share is to be paid on 7 December and leaves the total annual payment unchanged at 16.9p per share.

Shares in the FTSE 250 company recovered from an early sharp fall to trade up 0.5% having come into this latest news up by close to a quarter so far in 2026. The FTSE 250 index is up 9% during that time. Fellow fund manager and takeover target Schroders (LSE:SDR) is up 44% year-to-date.

Ashmore invests in asset classes including government and corporate debt, equities, and real estate across the emerging markets on behalf of both institutional and retail clients.

AUM of $54 billion as of late June was driven by $2.7 billion in net inflows and $3.7 billion from investment performance.

Management’s push towards increased diversification progressed with assets in equities hitting 19% and up from 17% in late June 2025. Fixed income assets continue to dominate at 78% of all funds managed. Assets managed on behalf of retail clients rose to 5% of AUM from 4% a year ago. 

A first-quarter trading update is scheduled for 14 October. 

ii view:

Ashmore was started in 1992 as part of the Australia and New Zealand Banking Group. In 1999, it became independent and listed on the London Stock Exchange in 2006. Headquartered in London, the group employs around 280 people.

For investors, raised geopolitical tensions and a continuing war in the Middle East now offer increased economic uncertainties. The considered safe haven status of the US dollar in any crisis potentially sees dollar strength and increased headwinds for emerging markets - EM debt is often priced in US dollars with a stronger greenback making interest payments more expensive. A forecast price/earnings (PE) ratio above the three- and 10-year averages may suggest the shares are not obviously cheap, while competition across the fund management industry remains intense.

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More favourably, Ashmore’s specialist focus on emerging markets helps set it apart from other fund managers. Economic growth for many EM's is expected by some analysts to outpace that of developed economies. Consolidation across the asset management industry remains an ongoing possibility, while financial resources held by Ashmore of more than £600 million continue to support shareholder returns.  

On balance, the results are a mixed bag and at best in line with City expectations, although exposure to emerging markets and a forecast dividend yield of over 7% will likely remain attractive to income investors.

Positives:

• Diversity of assets managed
• Attractive dividend (not guaranteed)

Negatives:

• Uncertain economic outlook
• Fee pressure from ETF funds

The average rating of stock market analysts:

Hold