By Christian Moess Laursen
Ashmore Group is scheduled to report results for fiscal 2023 on Wednesday. Here is what you need to know:
PRETAX PROFIT: The emerging-markets assets manager is expected to report 114.1 million pounds ($143.7 million) in pretax profit, according to a company-compiled average from nine brokers’ estimates, for the year ended June 30. This would compare to a GBP118.4 million pretax profit in fiscal 2022.
TOTAL REVENUE: Ashmore Group is expected to achieve GBP197.0 million in total revenue, a decline from the prior-year’s GBP262.50 million, based on the company-provided analyst consensus.
WHAT TO WATCH:
–MANAGEMENT FEES: As the FTSE 250-listed group has already released its fourth-quarter assets under management and net flow, investors will likely focus on the profit and loss accounts. “The main focus will be on management fees and the average fee margin for the half,” UBS analyst Michael Werner said in a research note. Based on a Visible Alpha-provided consensus, Ashmore should see a drop in operating management fees to GBP185.0 million from fiscal 2022’s GBP243.5 million.
–INVESTMENT PERFORMANCE: The company’s fourth-quarter trading update showed a small under-performance in July, while the one-, three- and five-year numbers remained weak, Numis analyst David McCann says in a research note. “Investment performance remains poor, and we suspect it will continue to cause issues for both client retention and sales for some time,” he says. In fiscal 2022, Ashmore posted a negative investment performance of $16.6 billion.
–EMERGING MARKETS OUTLOOK: Following widespread risk aversion from investors amid war in Ukraine and high global interest rates, Ashmore is reliant on a recovery of investor demand for emerging markets. In its most recent update, Chief Executive Mark Coombs said these markets continue to perform well, helped by improving fundamentals. However, the near-term outlook looks challenging, JPMorgan analyst Angeliki Bairaktar wrote in a research note. Investors should look for outlook comments on emerging markets.
Write to Christian Moess Laursen at [email protected]
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