Latest news with #AshmoreGroup
Yahoo
3 days ago
- Business
- Yahoo
Ashmore Group (LON:ASHM) investors are sitting on a loss of 39% if they invested five years ago
Ashmore Group Plc (LON:ASHM) shareholders will doubtless be very grateful to see the share price up 33% in the last quarter. But if you look at the last five years the returns have not been good. In fact, the share price is down 58%, which falls well short of the return you could get by buying an index fund. It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During the five years over which the share price declined, Ashmore Group's earnings per share (EPS) dropped by 19% each year. The share price decline of 16% per year isn't as bad as the EPS decline. The relatively muted share price reaction might be because the market expects the business to turn around. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). Dive deeper into Ashmore Group's key metrics by checking this interactive graph of Ashmore Group's earnings, revenue and cash flow. What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Ashmore Group, it has a TSR of -39% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective Ashmore Group provided a TSR of 11% over the year (including dividends). That's fairly close to the broader market return. The silver lining is that the share price is up in the short term, which flies in the face of the annualised loss of 7% over the last five years. We're pretty skeptical of turnaround stories, but it's good to see the recent share price recovery. It's always interesting to track share price performance over the longer term. But to understand Ashmore Group better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Ashmore Group you should be aware of, and 2 of them make us uncomfortable. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
3 days ago
- Business
- Yahoo
With a 10.1% dividend yield, could this FTSE 250 share be an income gold mine?
Despite being known largely for its growth opportunities, the FTSE 250's still home to some pretty exceptional dividend yields. And right now, one of the highest-yielding stocks investors can buy is Ashmore Group (LSE:ASHM) with a 10.1% payout. To put this into perspective, that's more than the average total return the UK stock market has produced since the 1990s. And at this rate, investing £500 a month will push a brand-new portfolio into seven-figure territory in just under 30 years. So does that make Ashmore a screaming buy right now? Let's take a closer look. Investigating the yield As a quick reminder, Ashmore's an investment management group specialising in emerging markets with around $46bn of assets under its umbrella. The stock hasn't received a lot of love lately. With emerging markets hit hard during the pandemic, many economies are still suffering from lingering effects as well as post-Covid inflation. And for Ashmore, that's resulted in a lot of client funds being withdrawn alongside poor investment returns. A quick glance at Ashmore's share price makes the impact of this perfectly clear. Over the last five years, the stock has seen close to 60% of its market capitalisation get wiped out. Yet dividends have continued to flow into the pockets of shareholders, enabling the dividend yield to reach double-digit territory. Possibility for a rebound? The global macroeconomic landscape continues to be problematic for many emerging countries. However, with the US dollar being weakened, this has actually created a bit of tailwind for many of these nations. Why? Because a weaker dollar reduces importing costs, borrowing costs, and imported inflation. Subsequently, the performance of emerging market stocks in 2025 has been quite impressive, rising by around 22% since April when looking at the MSCI Emerging Market index. And as investor sentiment improves in this space, Ashmore's ability to attract and retain fresh client funds increases, creating new opportunities to charge its service fees. Sadly, there's no guarantee as to when investor sentiment will shift. Escalating geopolitical tensions and military conflicts don't exactly make riskier investments, like emerging market stocks, enticing. And while Ashmore's balance sheet is well-capitalised with ample liquidity, a persistently low amount of assets under management makes the dividend look less and less sustainable in the long run. In other words, if things don't improve, today's juicy 10% dividend yield could end up getting slashed. The bottom line There's no denying that a cloud of uncertainty is currently hanging over Ashmore's head right now. And with most of the problems external in nature, there's not much management can do to rectify the situation beyond making smart investment decisions and encouraging customers to hold through the storm. But in exchange for taking on this risk, investors are presented with a fairly unique opportunity to potentially lock in a double-digit dividend yield and a price that could climb if investor sentiment improves. It's a high-risk, high-reward situation. Yet with some early signs of stability in its client funds starting to emerge, it might be an opportunity worth exploring further for investors with a higher risk tolerance. The post With a 10.1% dividend yield, could this FTSE 250 share be an income gold mine? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
CNBC
6 days ago
- Business
- CNBC
Ashmore Group CEO: Any threat to Fed independence is terrible for U.S. status as capital safe haven
Mark Coombs, Ashmore Group CEO, joins CNBC's 'Squawk on the Street' to discuss the importance of central bank independence, how dollar weakness is impacting outlooks on the U.S., and more.
Bloomberg
14-07-2025
- Business
- Bloomberg
Ashmore Outflows Slow as Investment Performance Boosts Assets
Ashmore Group Plc outflows slowed in the last quarter with positive investment performance contributing to a rise in assets of the emerging-markets-focused fund manager. Clients pulled a net $800 million in the three months through June, down from the $3.9 billion in the previous quarter, according to a statement on Monday. The London-based firm said 'subscription levels were consistent and investors' risk appetite generally remains subdued given macro events.'
Zawya
03-06-2025
- Business
- Zawya
Ashmore receives authorisation for a regulated business in Qatar
Follows strategic partnership with Qatar Investment Authority ('QIA') under the Active Asset Management Initiative, aligning with the country's National Vision 2030 and ambitions to continue economic growth trajectory Ashmore Group plc ('Ashmore' or 'the Group'), the specialist Emerging Markets asset manager that manages US$46.2 billion, announces that Ashmore Qatar has been authorised by the Qatar Financial Centre Regulatory Authority ('QFCRA'). Ashmore has a long history of investing in Qatar and has conducted business with the country for more than two decades. The Ashmore Qatar office, which will operate under the QFCRA's regulatory framework, will participate in Ashmore's investment committees, including the provision of advice and input on the management of the Ashmore Qatar Equity Fund ('AQEF'), which was launched in January 2024 with the QIA as an anchor investor. Since inception to end April 2025, AQEF has delivered a cumulative gross USD return of 18.5% and has outperformed its benchmark index by 345 basis points. Additionally, the office will support the development of relationships with local investors, providing access to Ashmore's full range of Emerging Markets investment strategies across equities, fixed income and alternatives asset classes. Ashmore currently manages approximately US$10 billion on behalf of clients based in the Middle East, which is invested in a diversified range of listed equity, fixed income and thematic private equity strategies. The establishment of an office in Qatar is line with Ashmore's strategy to develop a network of local businesses in attractive emerging economies. The new business complements Ashmore's other offices in Colombia, India, Indonesia, Peru, Saudi Arabia and the UAE, which together manage US$7.5 billion of assets, representing 16% of the Group's total AuM. Mark Coombs, Chief Executive Officer, Ashmore Group plc, said: 'We are delighted to open our new office in Qatar, as a natural evolution of our long relationship. The country provides exciting growth opportunities as its domestic capital markets broaden and deepen, and its National Vision 2030 raises Qatar's profile as an important investment destination for international investors. We look forward to our Qatar operations contributing to the growth and diversification benefits to the Group provided by Ashmore's other local emerging markets businesses.' Commenting on this milestone, Yousuf Mohamed Al-Jaida, Chief Executive Officer, QFC, stated: 'We are pleased to welcome Ashmore Group to the Qatar Financial Centre. As a globally recognised leader in emerging markets investment, Ashmore's presence in Qatar reflects the growing appeal of our financial ecosystem and the strength of our regulatory framework. At the QFC, we are committed to providing a supportive platform for leading global institutions, enabling them to thrive and contribute meaningfully to the diversification and development of Qatar's financial services sector, in line with the goals of Qatar National Vision 2030.' Media contact details for Ashmore Group: Cardew Group Ashmore@ +44 207 766 1212 Henry Crane +44 7918 207157 Luke Bramwell +44 7467 992924 Media contact details for QFC: QFC Corporate Communications Rasha Kamaleddine +974 5504 9647
