Ashmore reports a 9% growth in assets under management

Written by: Wajeeh Khan
January 15, 2021
  • Ashmore reports a 9% growth in assets under management.
  • The investment manager values AUM at £68.06 billion.
  • Ashmore Group's stock saw a close to 20% decline in 2020.

Ashmore Group plc (LON: ASHM) said on Friday that its assets under management (AUM) saw a 9% annualised growth in the fourth quarter of 2020. The company valued its total AUM at £68.06 billion at the end of the year.

Ashmore Group was reported more than 2% up in premarket trading on Friday, but it lost almost half of the intraday gain on market open. The money manager is now trading at a per-share price of 451 pence versus a low of 307 pence per share in the first week of April 2020. The price action should come in handy if you are interested in investing in the stock market.

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Between September and December, Ashmore said that its assets under management jumped by £5.49 billion. It valued positive investment performance at £5.93 billion that offset £439.09 million of net outflows. In September, Ashmore had recorded a 5% annualised growth in its full-year revenue.

CEO Marc Coombs’ comments on Friday

CEO Marc Coombs said in a statement on Friday:

“While COVID-19 will continue to affect individual countries differently, the deployment of vaccines supports the view that 2021 will see improved growth and importantly the growth in emerging countries is forecast to be higher than in the developed world.”

As per equity analyst Tom Mills of Jefferies, Ashmore’s AUM at the end of 2020 printed significantly higher than the consensus that stood at £64.91 billion. Mills said:

“Relative fund performance has improved with essentially all themes now outperforming benchmark over 9M and 1Yr numbers recovering well with several now ahead of benchmark.”

In separate news from the United Kingdom, the sports betting and gambling company, Entain plc, said it was in talks to appoint Jette Nygaard-Andersen as its next Chief Executive Officer.

Ashmore’s stock saw a close to 20% decline in 2020

Ashmore’s report on Friday attributed 27% of growth in its AUM to developing equities. Local and external debt, on the other hand, increased 10% each. The British investment manager also said on Thursday that equities, external debt, and liquidity saw net inflows, but local currency, and blended and corporate debt recorded outflows during the period.

Ashmore performed fairly downbeat in the stock market last year with an annual decline of a little under 20%. At the time of writing, the London-based company is valued at £3.23 billion and has a price to earnings ratio of 17.65.