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Ashmore profits surge on strong inflows as emerging markets rally

Even though emerging markets have been volatile, returns have remained good

Ashmore Group -
Seed capital portfolio chipped in a profit of £8.4mln

Emerging markets fund manager Ashmore PLC’s (LON:ASHM) profits surged 42% higher on the back of more strong inflows in the six months to December.

Assets under management rose by 28% year-on-year and by 7% from June with net inflows of US$5.7bn and investment gains of US$0.9bn lifting the total to US$98.4bn.

That translated into a 20% rise in revenues to £177mln, while profits jumped to £132mln from £93mln.

Even though emerging markets have been volatile, returns have remained good said Ashmore and continued a rally that started in 2016.

While there was disruption it tended to be country-centric in Argentina, Bolivia, Chile, Ecuador and Lebanon and there was a strong recovery in asset prices near the end of the period as some of these political situations began to normalise.

Mark Coombs, chief executive said: “There continue to be compelling incentives for investors to increase their allocations to Emerging Markets in pursuit of higher risk-adjusted returns compared with those that are available in the developed world.

“The strong client flow momentum in the first half of the financial year and ongoing client activity levels, mean Ashmore is well-positioned to continue to grow."

Ashmore raised the interim dividend by 5% to 4.80p.

Shares increased by 3% to 570p. 

Quick facts: Ashmore Group

Price: 435 GBX

Market: LSE
Market Cap: £3.1 billion

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