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PT Ashmore Asset Management Indonesia Tbk
Result for Full Year ended 30 June 2024
5 September 2024
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Overview
• Focusing on delivering investment performance amid challenging market environment
• Steady improvement in investment performance particularly with 82% of equity Asset under Management (AuM) outperforming* index over Jan-Jun 2024
period
• Equity mutual fund market share increase to 9.5% in June 2024 (June 2023: 8.9%)
• Supported by attractive macro economy to foreign investors
• Financial performance reflects business initiatives despite industry wide challenges
• Capital market pressure in 4Q resulting in AuM ending at Rp30.6tr (-6% YoY), average AuM (-1% YoY)
• Management fee margin increased to 66bp from 65bp – driven mostly by business initiatives in debt funds
• Total operating expense was up 1% YoY
• EBITDA margin of 52% remains above historical average level
• Balance sheet delivering strong returns (interest income and seed capital), profit before tax +13% YoY
• Dividend payout maintained
• Consistent implementation of business strategy
• Ashmore launched seven products for institutional clients, which increased the proportion of AuM from institutional AuM clients to 66% (FY23: 63%).
• Capitalizing on opportunities to grow fee-based income
• Cautiously positive amid political transition
• Bond yield has started to decline and Rupiah strengthening
• Excluding commodity and tech sectors, equity index will see better earnings growth in 2025 with attractive dividend yield
• Catalyst will come from lower interest rates and growth inflection post fiscal disbursement
*AuM outperforming versus benchmark on gross annualized basis
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Investment performance
One year: 53% Outperformance Three years: 23% Outperformance Five years: 35% Outperformance
7% 12%
45% 46%
53%
83%
100% 100% 99% 99% 100%
100%
Equity Local Debt External Debt Blended Debt Multi Asset Equity Local Debt External Debt Blended Debt Multi Asset Equity Local Debt External Debt Blended Debt Multi Asset
Underperform Outperform Underperform Outperform Underperform Outperform
FY22/23: 64% FY22/23: 98% FY22/23: 98%
• FY23/24 investment performance was under pressure particularly in 4Q following rate increase and weak large cap equities
• Rupiah was affected by foreign outflows and breached psychological level of Rp16,000/1US$ as many investors are awaiting formation of new
Government
• Despite short term headwinds, YTD (Jan-Jun 2024) investment performance showed 71% of AuM outperforming benchmark
AuM outperforming versus benchmark on gross annualized basis. Disclaimer: Gross performance is shown, weighted by fund AuM, to provide a representative view to analysts and shareholders of Ashmore’s investment
performance over relevant time periods. Reporting of investment performance to existing and prospective fund investors is specific to the fund and the investor’s circumstances and objectives and may, for example, include net as
well as gross performance
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Assets under management (AuM)
• AuM has stabilized with performance challenges in the
final quarter
• Net performance –Rp1.0tr or US$61m (FY23: +1.7tr or AuM development (Rptr)
US$115m) due to weak Indonesia equity market, JCI -3% in 4Q
following BI rate hike in April and weak performance by financial
sector
• Net outflows of –Rp1tr or -US$61m (FY23: -Rp2.6tr or –
US$171m)
• Market share in equity theme has improved
• Market share up to 9.5% in Jun24 (8.9% in Jun23)
• Investment performance improved in the YTD end June 24 with
82% of equity AuM outperforming* index
• Net redemption of Rp1tr or US$60m (FY23: Rp2.5tr or
US$172m)
• Subscriptions driven by new discretionary mandates, blended
debt and multi asset mutual funds
• Improvement in redemption rates compares to previous years,
particularly in equity theme
AuM by theme and mandate
3%
55%
28%
45%
Equity Mutual fund
Debt
Discretionary
MultiAsset fund
69%
*AuM outperforming versus benchmark on gross annualized basis. Disclosure: Gross performance is shown, weighted by fund AuM, to provide a representative view to analysts and shareholders of Ashmore’s investment performance
over relevant time periods.
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Financial performance overview
Overview
• Net revenue was +1% FY 2023/24 FY 2022/23 YoY %
• Average AuM is -1% over past 12 months (Rp billion) (Rp billion)
• Management fees increased by 1bp to 66bps
Average AuM (IDR trillion) 31.9 32.3 -1.0
• Total operating costs +1% y/y Average AuM (US$ billion) 2.0 2.2 -7.4
• Increase in IT related cost to support product launches
• Staff costs up on higher average headcount
Total revenue 324 327 -0.9
• EBITDA margin of 52% remains above historical Net revenue 210 209 0.6
average level
Operating costs 218 216 0.9
• Higher interest income EBITDA 110 113 -2.7
• Higher average cash and effective interest rate EBITDA margin 52% 55%
• Yield from seed capital
Profit before tax 131 117 12.5
• Realized gain on partial disposal of investment in EPS (Rp) 48 41 13.9
Buka Investasi Digital
*Net revenue is revenue from management fees after being adjusted by selling agent or ceded fees
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Revenues
FY 2023/24 FY 2022/23 YoY %
(Rp billion) (Rp billion)
• Investment management fees -1% YoY
Management fees 323 325 -1%
Selling Agent fees / rebate -113 -116 -3%
• Selling agent or ceded fees -3%
• Outflow from selling agent reduced its AuM contribution and
therefore to revenue Net revenue 210 209 1%
• Selling agent has shown inflow in 4Q mostly in equity
Net revenue (Rp billion)
• Net investment management fee margin 66bp, +1bp YoY
• Increase in net management fee in debt theme by 11bp from
47bps to 58bps*
See Appendix 2 for more detail
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Operating costs
FY 2023/24 FY 2022/23 YoY %
(Rp billion) (Rp billion)
• Total operating costs +1% YoY Ceded fees -113 -116 -3%
• Ceded fee was down by 3%
Staff costs -42 -40 7%
• Staff costs increased 7% YoY due to full period effect of wage inflation
and higher average headcount Other operating costs -34 -32 8%
• Other operating costs +8% YoY mainly IT related costs driven by D&A -3 -4 -18%
number of new products
Operating cost before VC -193 -191 1%
• Variable compensation* (VC) accrued at 20% of EBVCIT** VC on P&L -25 -25 0%
Total Operating costs -218 -216 1%
Total operating cost (Rp billion)
*Variable compensation (VC) is performance based compensation
**EBVCIT: Earnings before variable compensation (VC), interest and tax
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Seed capital
• Total value of Rp107 billion (US$6.7 million) in seed capital FY 2023/24 FY 2022/23 YoY %
(Rp billion) (Rp billion)
• Total impact of seed funds to P&L: Rp5.7 billion Unrealized gain 5.4 2.8 94%
• Unrealized gain of mutual fund of Rp5.4 billion Dividend received from mutual fund 0.3 0.1 297%
• Dividend received from mutual fund: Rp344 million implying 3.4% yield
on US$ bond fund Total impact in AAMI P&L 5.7 2.8 100%
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Cash generation
• Strong cash flow generation through the cycle
• Operating cash flow of Rp108 billion, +29% YoY represents
98% of EBITDA
• Strong contribution from higher net interest income due to
increase in interest rate and higher average cash
• Operating cash flow supports returns to shareholders
and allows investment for future growth
• Dividend paid during the period is Rp96 billion
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Balance sheet
• Consistent strong and liquid balance sheet
• Liquid financial resources 10
107
101
• Cash of Rp198 billion -
104
• Seed capital of Rp107 billion in mutual funds to support
262
product development, in line with the Company’s strategy. 211.2
175 198
- 143
68.2
• AAMI has no debt
2019 2020 2021 2022 2023 2024
Cash Seed capital
• Company capital requirement is more than sufficient
• As of June 2024 financial resources of Rp185 billion
• Excess financial resources of Rp154 billion over regulatory
requirement*
*Regulatory requirement of NAWC (net adjusted working capital) : minimum capital that should be owned by the securities company or an exchange member based on the company's assets and capital deducted by its liability
components.
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Dividend and buyback
• Total dividend FY23/24: Rp102bn +12% YoY 140 105.0%
• DPS of Rp46* for FY23/24 implies yield of 7% 120
100.0%
• Steady and consistent dividend payout ratio of 99% 100
80 95.0%
• Treasury shares of 10.9m shares up to June 2024 60 116 90.0%
98 102
• Buyback to be used for Share Based Payment for 40 91
79
employee and management 85.0%
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• Up to June 2024 buyback is 0.5% of total shares in issue
- 80.0%
2020 2021 2022 2023 2024
Dividend (Rp bn) Payout ratio (RHS)
8
7
6
5
4
7
3 6
2
1 2
-
2022 2023 2024
Buyback (Rpbn)
* Final dividend of Rp27.5 per share is pending approval at October 2024 Annual General Meeting
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Market outlook
• EM still has the best risk reward fundamentals
• Steady improvement in growth and inflation fundamentals supported by structural economic reform
• Despite US Treasury yield moving up and Chinese economic growth slowing, EMG sovereign credit ratings in the past two years experienced credit rating
upgrades
• Election: US election and Government transition in Indonesia are key events in 2H24/2025
• US election impact on EM will be different than in 2016; US economy is on late stage cycle in 2024 vs early stage cycle in 2016
• Market expects Fed to do 3-4x rate cut by year end or by 75 to 100bps
• Indonesia is set to create new Government and cabinet in October 2024
• Indonesia macro economy resilience
• Indonesia has low debt level, providing flexibility to adapt to uncertain global market conditions
• Potential US rate cut could further add stimulus to capital markets
• In the equity market, improved earnings growth in 2025 alongside attractive dividend yields.
• Indonesia GDP per capita is expected to hit US$5,000 providing opportunity for Indonesia’s economy and investment growth
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Appendices
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Appendix 1: Financial Summary Consolidated
FY 2023/24 FY 2022/23
(Rp billion) (Rp billion) YoY
AuM average (IDR tr) 32.0 32.3 -1%
AuM average (US$ bn) 2.0 2.2 -8%
(Rpbn except for per share items)
Revenue 324 327 -1%
Ceded Fee* (113) (116) -3%
Net revenue 212 211 0%
Staff costs (67) (64) 5%
Other operating costs (35) (32) 10%
EBITDA 110 116 -5%
EBITDA margin 52% 55%
D&A (3) (4) -18%
Operating profit 107 112 -5%
Finance income 13 4 206%
Finance cost (1) (1) -15%
Gain on Investment 9 3 186%
FX 5 1 296%
Profit before tax 131 117 12%
EPS 48 41 14%
*Ceded fee is mutual fund selling agent fees
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Appendix 2: Net management fee margins
120
108
105
100 98
92 93
85
80
65 66
Fees in bp
58
60
50 52
47 45
42
40
20
-
Total Equity MF Debt MF Balance MF Equity KPD Debt KPD Balance KPD
FY22/23 FY23/24
KPD: Kontrak Pengelolaan Dana (Discretionary account)
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Appendix 3: Asset under management
AuM by theme (Rp billion)
9,215
Equity
623
Debt
MultiAsset
20,763
AuM by Client Type AuM by fund type
12% Intermediary retail
34%
Pension plans
20% Sovereign wealth funds 45% Mutual fund
55% Discretionary fund
Insurance
31% 3%
Corporates/financial
institutions
AuM as of June 2024
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Appendix 4: Diversification of Assets under Management
100% Retail , 0% Retail , 0%
Other**, 3%
Other**, 8%
90%
Fixed Fixed
Intermediaries , Income ,
80% Income ,
32% Intermediaries , 30%
22%
43% Mutual
fund ,
70% 55%
60% Mutual fund
, 81%
Institutional Institutional
50% foreign , 33% foreign , 11%
40%
Equity , 70%
Equity , 67%
30%
Institutional
Discretionary ,
domestic ,
20% Institutional 45%
45%
domestic ,
34%
10% Discretionary
, 19%
0%
AuM* Revenue AuM* Revenue AuM* Revenue
Client Product Theme
AuM breakdown is based on AuM average over past 12 months
Other includes MultiAsset
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Appendix 5: Quarterly flows (US$m)
511
272
195
168
99
61
33 44
8
(1) (13) (6)
(32) (18)
(80)
(123) (135) (136)
(185)
(375)
Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24
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Appendix 6: Industry development
Industry AuM (Rp billion) AuM per account (Rp million)
900,000 900.0
780
600,000 600.0
359
306
300,000 300.0
40
- -
2019 Dec 2024 Jun
MF All Capital Market
Total AUM Mutual fund
MF AuM to Total Gross Domestic Product Number of accounts as a % to total population
5.0% 4.6% 5.0% 4.6%
4.0% 3.7% 4.0%
3.0% 3.0%
2.0% 2.0%
0.9%
1.0% 1.0%
0.0% 0.0%
2019 Dec 2024 Jun 2019 Dec 2024 Jun
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Disclaimer
IMPORTANT INFORMATION
This document does not constitute an offer to sell or an invitation to buy shares in Ashmore Group plc or any other invitation or inducement to engage in
investment activities. Certain statements, beliefs and opinions in this document are forward-looking, which reflect the Company's current expectations and
projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual
results or events to differ materially from those expressed or implied by the forward-looking statements.
Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will
continue in the future. The value of investments, and the income from them, may go down as well as up, and is not guaranteed. Past performance cannot be relied
on as a guide to future performance. Exchange rate changes may cause the value of overseas investments or investments denominated in different currencies to
rise and fall. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise. You should not place undue reliance on any forward-looking statements, which speak only as of the date of this document
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