Ashmore Group Final Results: AuM Rises 13% as Net Inflows Return

Ashmore Group has delivered a much stronger year for assets under management and client flows, helped by a powerful rally across emerging markets.

The specialist asset manager ended June 2026 with assets under management, or AuM, of US$54.0 billion. That was 13% higher year on year, supported by US$2.7 billion of net inflows and US$3.7 billion of positive investment performance.

Statutory profit before tax increased by 17% to £126.9 million, while diluted earnings per share rose 28% to 15.0 pence. The final dividend has been maintained at 12.1 pence, taking the full-year distribution to 16.9 pence per share.

These headline numbers are encouraging. However, investors should look closely at the source of the profit growth: Ashmore generated £82.5 million of gains from its seed capital investments, while adjusted revenue and underlying operating profit measures weakened.

The full details are available in the original company announcement.

Ashmore's key figures

Metric	FY2026	Year-on-year movement
Assets under management	US$54.0 billion	Up 13%
Net flows	US$2.7 billion inflow	From US$5.8 billion outflow
Investment performance	US$3.7 billion	Positive
Adjusted net revenue	£135.6 million	Down 7%
Profit before tax	£126.9 million	Up 17%
Diluted EPS	15.0 pence	Up 28%
Adjusted diluted EPS	5.0 pence	Down 29%
Total dividend	16.9 pence	Maintained
Financial resources	£609.5 million	86 pence per share

The return to net inflows is the standout development

For an asset manager, client flows matter because higher AuM can generate more management fee income. Ashmore recorded net inflows of US$2.7 billion, compared with net outflows of US$5.8 billion in the previous year.

Gross subscriptions increased by 92% to US$12.5 billion, while redemptions fell by 20% to US$9.8 billion. This is a meaningful improvement in the balance between money entering and leaving Ashmore's strategies.

Flows were also spread across the business. Fixed income and equities each attracted US$1.3 billion of net inflows, while alternatives added US$0.1 billion.

Equities AuM reached US$10.0 billion, representing 19% of the group total. The All Cap strategy alone received US$1.6 billion of net inflows, predominantly from European institutions.

That broadening is strategically useful. Ashmore has traditionally had substantial exposure to emerging market debt, so growth in equities, alternatives and local businesses can reduce reliance on any single investment theme.

The latest result extends the improvement discussed following Ashmore's previous AuM update.

Emerging market performance provided a powerful tailwind

Ashmore benefited from strong markets rather than flows alone. Investment performance added US$3.7 billion to AuM during the year.

The MSCI Emerging Markets equity index returned 44%, compared with 22% from the MSCI World index. Emerging market fixed income indices returned between 7% and 12%.

Ashmore's active funds also delivered relative outperformance. At 30 June 2026, 77% of AuM was outperforming over one year, 68% over three years and 67% over five years.

The one-year figure improved substantially from 57%. The longer-term figures were lower than the previous year's 70% and 81%, respectively, but around two-thirds of AuM remained ahead over three and five years.

Strong relative performance is important because it can support client retention and new mandate wins. It also gives Ashmore a better chance of converting renewed interest in emerging markets into future flows.

Seed capital drove much of the earnings growth

The main qualification concerns earnings quality.

Ashmore invests its own money into selected funds to establish track records, provide initial scale and support new product launches. This is known as seed capital.

These investments generated total gains of £82.5 million, up from £40.1 million. Of the latest gain, £34.7 million was realised and £47.8 million remained unrealised.

That performance helped statutory profit before tax rise to £126.9 million. It also allowed Ashmore to realise £172.9 million of seed investments and recycle capital into other opportunities.

However, these gains are linked to investment markets and can be volatile. They should not be treated in the same way as recurring management fees.

Excluding seed capital and foreign exchange effects, adjusted profit before tax was £43.7 million, down from £70.1 million. Adjusted diluted EPS fell by 29% to 5.0 pence.

Adjusted net revenue declined by 7% to £135.6 million, largely because performance fees dropped from £10.2 million to £1.4 million. Net management fees were more resilient, slipping 1% to £128.2 million despite a higher average AuM balance.

The net management fee margin decreased from 35 basis points to 34 basis points. A basis point is one-hundredth of a percentage point. Ashmore attributed the movement largely to changes in the mix of assets, including growth in lower-margin mandates.

Adjusted EBITDA fell 32% to £35.7 million and the reported adjusted EBITDA margin declined from 36% to 26%. Excluding variable compensation linked to realised seed capital gains, however, the margin improved from 37% to 40%.

Dividend maintained despite limited cover

Ashmore has recommended an unchanged final dividend of 12.1 pence per share, payable on 7 December 2026 if approved. Shareholders must be on the register on 6 November 2026.

The total dividend remains 16.9 pence per share. Dividend cover improved from 0.7 times to 0.9 times, but remains below one, meaning full-year earnings did not completely cover the distribution.

The balance sheet provides support. Ashmore had £609.5 million of financial resources, no debt and £521.5 million more capital than the level required by the board. Cash and deposits stood at £364.7 million.

Even so, maintaining a dividend above annual diluted EPS is not something investors should ignore, particularly when a large part of earnings came from market-sensitive seed capital gains.

Local offices and diversification add another growth route

Ashmore's local businesses increased AuM by 13% to US$8.9 billion and accounted for 16% of group AuM. More importantly, they contributed 23% of revenue and 40% of adjusted EBITDA.

Colombia, Indonesia and India delivered notable growth, while the company is developing newer operations in Mexico and Qatar. AuM sourced from emerging market clients increased from US$18 billion to US$21 billion.

Ashmore also formed a strategic partnership with Japan Post Insurance, which committed an incremental US$1 billion across fixed income, Impact Debt and listed equities strategies.

This combination of local distribution, broader investment capabilities and large institutional relationships could make the business less dependent on traditional global emerging market debt mandates.

For further company coverage, see the dedicated Ashmore Group PLC share page.

What Ashmore investors should watch next

This was a clear improvement in operating momentum. AuM grew, redemptions fell, subscriptions accelerated and net flows turned positive across multiple asset classes.

The key question is whether Ashmore can convert higher AuM into stronger recurring fee income. The current results show that statutory earnings can rise sharply while adjusted revenue, EBITDA and EPS move in the opposite direction.

Investors should therefore watch net flows, the management fee margin and adjusted profitability alongside headline profit. Continued investment outperformance would help, but Ashmore's financial results remain exposed to emerging market conditions, currencies and the value of its seed investments.

The outlook is constructive, but management also acknowledges geopolitical tension, energy disruption and volatile US policy. After a strong year for emerging markets, sustaining positive client flows without relying on another exceptional market rally would be the most convincing sign of durable progress.