8th Sep 2015 06:56
LONDON (Alliance News) - Ashmore Group PLC on Tuesday reported higher pretax profit in its last financial year, as the asset manager defended the fundamentals of emerging markets.
Chief Executive Mark Coombs said that sentiment towards emerging markets is being influenced by macroeconomic factors such as the timing of the first US interest rate increase and China's rebalancing of its economy.
"Yet the fundamentals across the emerging markets universe, comprising more than 70 countries and a diverse range of asset classes, remain sound, with economies demonstrating their ability to withstand notable challenges of the past few years such as higher funding costs, lower commodity prices, currency devaluations and major electoral cycles," Coombs said.
"Ashmore is well positioned for an improvement in sentiment, with established processes delivering good long-term investment performance, broad-based distribution capabilities, and meaningful capacity across a broad range of Emerging Markets investment themes," Coombs added.
"Ashmore is well positioned for an improvement in sentiment, with established processes delivering good long-term investment performance, broad-based distribution capabilities, and meaningful capacity across a broad range of Emerging Markets investment themes."
Ashmore said it made a GBP181.3 million pretax profit in the financial year ended June 30, compared with GBP171.6 million the prior year. Net revenue was up by 8% to GBP283.3 million as higher performance fees and the strength of the dollar more than offset lower management fees on a fall in assets under management to USD58.9 billion from USD75.0 billion over the course of the year.
Adjusted earnings before interest, tax, depreciation and amortisation, decreased to GBP176.7 million from GBP195.1 million. Diluted earnings per share increased 4% to 19.3 pence, and Ashmore lifted its dividend for the year to 16.65p from 16.45p.
Analysts had forecast net revenue of GBP284.0 million, adjusted EBITDA of GBP170.7 million, diluted earnings per share of 20.1 pence and a 16.9p dividend, according to consensus estimated provided by the company.
In addition, the emerging markets asset manager said that Peter Gibbs, the non-executive director it appointed to the board earlier this year, will succeed Michael Benson as chairman in October.
Benson, who has been in the role since July 2006, is to be replaced by the former chief investment officer and head of region for the non-US investment management activities of Merrill Lynch following Ashmore's upcoming annual meeting of shareholders.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Ashmore