Ashmore posts rise in first-half profit, but AuM slip
FTSE 250 fund manager Ashmore, which focuses on emerging markets, reported a rise in pre-tax profit for the first half, thanks to favourable currency movements and higher performance fees.
Ashmore Group
200.80p
16:40 04/10/24
Financial Services
15,999.21
17:14 04/10/24
FTSE 250
20,900.08
17:14 04/10/24
FTSE 350
4,570.17
17:14 04/10/24
FTSE All-Share
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16:54 04/10/24
In the six months to the end of December, pre-tax profit rose 94% to £121.5m, while net revenue increased 24% to £144.1m.
Net management fees pushed up to £114.9m from £98.7m, benefiting from a stronger US dollar, while performance fees rose to £21.6m from £8.6m the year before.
Assets under management fell to $52.2bn from $52.6bn during the six months, but edged up 5% from $49.4bn over the course of the calendar year as sentiment towards emerging markets continued to improve.
The company held its interim dividend steady at 4.55p.
Chief executive officer Mark Coombs said: "Emerging markets produced very strong investment returns in 2016 and delivered a 5% increase in Ashmore's AuM over the calendar year. Relative investment performance is strong with more than 90% of assets outperforming benchmarks over one year, and more than 80% over three and five years. This backdrop, together with favourable currency movements, delivered a 94% increase in Ashmore's profit before tax.
“While the US election outcome interrupted the improvement in sentiment towards emerging markets, the effect has been short-lived with asset prices strengthening into 2017. The combination of attractive absolute and relative returns, accelerating GDP growth, and low allocations all support the expectation of further strong performance in 2017 and a return to the improving flow trend seen for most of 2016."
Shore Capital said the results were “very strong”, with revenue ahead of its forecast of £127m and pre-tax profit better than Shore’s forecast of £81.3m.
At 1025 GMT, the shares were up 6.9% to 341.10p.