Ashmore Group (LSE:ASHM) shares dropped more than 5% after it released full-year 2025 results that showed lower revenues but stronger investment performance and signs of improved flows. The specialist asset manager said it is well-positioned to benefit as investors increase allocations to emerging markets.
Assets under management stood at US$47.6 billion at the end of June. Investment performance added US$4.1 billion, while net outflows reduced to US$5.8 billion. The company noted inflows into equities, investment-grade debt and local offices.
Revenues fell to £146.5 million as average assets eased, but costs were cut by 14%. Adjusted EBITDA was £52.5 million with a margin of 36%. Profit before tax was £108.6 million, helped by returns from seed capital.
The balance sheet carried more than £600 million of financial resources, including around £350 million in cash. The final dividend was maintained at 12.1p for a total payout of 16.9p.
Chief executive Mark Coombs said the strategy is delivering, with new products launched and offices opened in Qatar and Mexico. He said Ashmore is well-positioned to capture flows as investors shift capital from the US to emerging markets.
Performance improved across all time periods, with 81% of assets outperforming over five years.
In London, Ashmore shares were down 5.2%, changing hands at 162p.
-- Updated with share price movement --