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Ashmore Group plc (ASHM) Ord 0.01

Sell:485.60p Buy:486.00p 0 Change: 0.20p (0.04%)
FTSE 250:0.40%
Market closed Prices as at close on 20 September 2019 Prices delayed by at least 15 minutes | Switch to live prices |
Sell:485.60p
Buy:486.00p
Change: 0.20p (0.04%)
Deal now Deal for just £11.95 per trade in a ISA, Lifetime ISA, SIPP or Fund & Share Account
Market closed Prices as at close on 20 September 2019 Prices delayed by at least 15 minutes | Switch to live prices |
Sell:485.60p
Buy:486.00p
Change: 0.20p (0.04%)
Market closed Prices as at close on 20 September 2019 Prices delayed by at least 15 minutes | Switch to live prices |
Deal now Deal for just £11.95 per trade in a ISA, Lifetime ISA, SIPP or Fund & Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

HL comment (14 October 2014)

First quarter trading update: The specialist emerging market asset manager announced a further fall in Assets under Management (AuM). Assets declined by US $3.7 billion compared to the end of the last quarter (30 June 2014), a result of negative investment performance of US$3.4 billion and net fund outflows of US$300 million. The share price declined by over 2% in early UK stockmarket trading.

The Chief Executive noted that "The decline in AuM over the quarter reflects predominantly the correction in markets towards the end of the period, driven by US dollar strength." The group highlighted that bonds across all fixed income themes performed relatively well but a stronger US dollar affected local currency returns, and therefore investment performance was weakest in local currency and blended debt.

The Chief Executive went on to note that "Against this backdrop, the fundamentals in emerging markets continue to be supportive and many of the market uncertainties of the past year are being resolved." The company highlighted a near completion of the electoral cycle - geopolitical risk is evident but isolated - the US Treasury market has reacted in a measured way to the increasing prospect of higher short term rates. The Chief Executive concluded that "This provides a firm footing for Ashmore's investment processes to take on risk and to deliver long-term investment performance for clients." In all, analyst consensus opinion points towards a hold.

Read more share research from Hargreaves Lansdown

Highlights:
  • Assets under management of US$71.3 billion were US$3.7 billion lower than at 30 June 2014.
  • Investment performance reflects market weakness towards the end of the quarter.

Negative Points:
  • Assets under management declined. A fall of US$3.7 billion during the quarter and compared to the end of the last quarter was reported. Assets under management fell during the last full financial year from US$77.4 billion to $75 billion. 
  • Exchange rate movements can work against the company Full year profits for the year ending 30th June 2014 were impacted by effects of foreign exchange translation ( £46 million) and lower performance fees (£30.1 million), a consequence of a market sell-off in May and ongoing volatility throughout the year.
  • In the course of its normal activities, the company has exposure to credit risk. 

Positive Points:
  • The Chief Executive noted that "Against this backdrop, the fundamentals in emerging markets continue to be supportive and many of the market uncertainties of the past year are being resolved." The company highlighted a near completion of the electoral cycle - geopolitical risk is evident but isolated - the US Treasury market has reacted in a measured way to the increasing prospect of higher short term rates. The Chief Executive concluded that "This provides a firm footing for Ashmore's investment processes to take on risk and to deliver long-term investment performance for clients."
  • The Board intends to pay a progressive dividend over time, taking into consideration factors such as prospects for the Group's earnings, demands on the Group's financial resources, and the markets in which the Group operates.
  • Exchange rate movements can work to the company's favour. 
  • The London based fund manager is a recognised leader in the management of emerging market debt.

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This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research disclosure for more information.


Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used.
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