14th Feb 2019 08:46
LONDON (Alliance News) - Asset manager Ashmore Group PLC on Thursday reported a "resilient" interim performance in a period in which emerging market sentiment weakened, though profit has fallen.
Ashmore's assets under management over the six months to December 31 rose 10% on the year to USD76.7 billion, with net inflows "resilient" at USD2.4 billion.
Revenue was up 13% year-on-year to GBP152.1 million, on the back of higher net management fee income, which climbed 18% to GBP142.3 million.
However, performance fees slumped to GBP1.2 million from GBP14.8 million, due to weaker global markets throughout 2018.
This led to a 6% drop in pretax profit to GBP93.0 million, with the fall caused by the lower performance fees as well as seed capital mark-to-market, which brought a loss of GBP9.7 million from a GBP10.5 million gain a year prior.
Ashmore has held its interim dividend flat at 4.55 pence each.
Chief Executive Mark Coombs commented: "Ashmore delivered a respectable operating performance in the first half and has experienced a positive start to 2019. The emerging markets are in good health with high GDP growth, low inflation, attractive valuations and, after a slight pause in allocations at the end of 2018, there is renewed momentum in capital flows.
"The temporary factors that supported the US dollar in 2018 are fading, and consequently emerging markets assets are performing strongly and Ashmore's active investment approach is delivering outperformance."
Coombs, Ashmore added, has agreed to start lowering his stake in the company, which at the moment stands at 39%. It has become "increasingly apparent", he said, that this ownership could hinder the firm.
He is thus to sell up to 4% of stock each year over the medium term.
Looking ahead, Ashmore believes the outlook for emerging markets in 2019 is positive, though politics will again be a source of uncertainty in the market.
So far 2019 has begun well, the company said, with strong returns so far in the year and sentiment towards emerging markets returning.
Shares were down 4.0% on Thursday morning at 396.81 pence each.
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