Highlights:

  • Panmure Liberum assigns a ‘Buy’ rating to Ashmore Group plc with a target price of GBP 240 per share.
  • Assets under management (AuM) stood at USD 47.6 billion, with USD 4.1 billion in positive investment performance.
  • Profit before tax reached GBP 108.6 million, supported by returns on seed capital investments.

Investment firm Panmure Liberum has issued a ‘Buy’ rating on Ashmore Group plc (LSE:ASHM), setting a target price of GBP 240 per share. The recommendation might follow Ashmore’s announcement of its audited financial results for the year ended 30 June 2025, which reflected investment performance, operational efficiency, and improved client activity in emerging markets.

Analyst Rating by Panmure Liberum

Panmure Liberum has reaffirmed its confidence in Ashmore Group, issuing a ‘Buy’ recommendation with a target price of GBP 240 per share.

Financial and Operational Performance

For the financial year ended 30 June 2025, Ashmore Group reported Assets under Management (AuM) of USD 47.6 billion. The company recorded positive investment performance of USD 4.1 billion, broadly spread across all investment themes. Net outflows improved to USD 5.8 billion, with net inflows recorded into equities, local markets, and investment-grade strategies.

Adjusted net revenue stood at GBP 146.5 million, a 22% decline year-on-year, reflecting lower average AuM levels. Despite this, performance fees of GBP 10.2 million were achieved across fixed income and alternative investment themes. Adjusted operating costs were reduced by 14% year-on-year, while Adjusted EBITDA stood at GBP 52.5 million, delivering an EBITDA margin of 36%.

Profit before tax was reported at GBP 108.6 million, including robust returns from seed capital investments. Diluted earnings per share (EPS) were 11.8 pence, while adjusted diluted EPS came in at 7.1 pence. The company maintained a final ordinary dividend of 12.1 pence per share, bringing the total dividend for the year to 16.9 pence.

Investment and Market Performance

Ashmore reported improved performance across its investment themes, with emerging market indices returning +8% to +14% across fixed income and equities. The proportion of AuM outperforming benchmarks rose to 57% over one year, 70% over three years, and 81% over five years.

The company also expanded its diversification efforts through growth in equities, investment-grade strategies, and alternatives, launching new products in frontier blended debt, impact debt, and emerging market equity excluding China.

Ashmore continued to grow its local office AuM, which increased 5% year-on-year, driven by performance in Colombia and India. New offices were opened in Qatar and Mexico.

Outlook

Ashmore noted that global markets are gradually shifting toward emerging market exposure amid moderating USD trends and relative economic strength in developing economies. With a liquid balance sheet exceeding GBP 600 million, including approximately GBP 350 million in cash and deposits, the Group intends to capitalise on higher allocations to emerging markets.