Contrarian Bets on Unloved Assets Offer Value Plays

Strategic Insights -

Ashmore, the FTSE 250 fund management group, and British Land, a real estate investment trust, are two unloved assets that have significantly underperformed the US and other Western markets, leading to attractive price valuations. Despite emerging market headwinds, including rising passive investing, Ashmore's dividend yield of over 8% and net cash position make it an attractive hold. British Land's reported NAV of 562p per share and its purchase of seven retail parks for £441m, partially funded by a £300m placement, demonstrate its potential for earnings accretion and a high yield.

Key Takeaways:

  • Ashmore, a FTSE 250 fund management group, has underperformed the US and other Western markets, leading to an attractive price valuation.
  • British Land's real estate investment trust trades at a significant discount to its net asset value (562p per share) due to concerns over brick-and-mortar retailers and office space demand.
  • Ashmore's dividend yield of over 8% and net cash position of £1.35bn make it an attractive hold despite emerging market headwinds.
  • British Land's purchase of seven retail parks for £441m and £300m placement demonstrate its potential for earnings accretion and a high yield.
  • Questor recommends holding both Ashmore and British Land, despite clear risks such as the rise of passive investing.

Statistics:

  • Ashmore's client capital under management: $49.3bn.
  • Ashmore's dividend yield: over 8%.
  • British Land's net asset value: 562p per share.
  • British Land's purchase price of seven retail parks: £441m.
  • British Land's placement: £300m.
  • Ashmore's net cash position: £1.35bn.

Sources:

  • Ashmole, "Questor says: hold Ticker: ASHM"
  • British Land, "£441m retail park deal part-funded by £300m placement"