Economy

Ashmore profit rises on emerging markets strength

Despite reporting pre-tax profits of £206 million, 23% up on the prior year and well ahead of consensus forecast of £198 million on net inflows of $1.9 billion (£1.4 billion), shares in the business were 5.9% or 21p lower at 343.5p by 10am, having fallen nearly 10% at the market open.

After a long period of underperformance on concerns about the economic outlook, many emerging markets have posted double-digit returns over the previous year as sentiment improved, prompting Ashmore's stock to outperform developed market peers.

The FTSE 250 group this morning reported an 11% increase in revenues in the year to the end of June, with pre-tax profits rising to £206.2m - around £6m ahead of analysts' expectations.

Assets under management during the period rose 12 percent to $58.7 billion after net inflows of $1.9 billion and market gains of $4.2 billion, it said in a statement, mirroring half-year gains seen by peers including Jupiter (JUP.L) over the summer. Performance fees, charged for outperformance, were 28.3 million pounds, it said, up from 10.4 million a year earlier.

Ashmore shares fell 5.2% to 343.5p in the first hours of trading on Thursday.

Adding to the subdued tone, UBS analyst Michael Werner also pointed to lower-than-expected management fees of 221.6 million pounds, after the fee margin dipped to 50 basis points in the second half of the year.

The emerging markets specialist said recent weakness in EM asset prices was primarily the result of investor behaviour and capital flows moving to developed markets that were being supported by quantitative easing rather than deterioration in the underlying fundamentals.

The margin was pressured after the company won investment mandates from institutional clients at lower fee levels.

"The performance of emerging markets assets over the past year has been strong".

Mark Coombs, chief executive officer at Ashmore, said the asset manager's business model "is delivering as expected".



Like this

loading...
loading...

Latest


07 September 2017
Ban on skirts as school opts for 'gender-neutral' uniform
Kerry Gold Smith said the headmaster was "doing this mainly for the small amount of transgender kids he has at the school". She said: "The school gave more than enough warning of the uniform policy before the six weeks holidays".

07 September 2017
Nagpur woman dumped in suitcase in Karnataka after being raped and killed
Mumbai: Daughter of a sub-inspector in Nagpur was brutally raped and killed in Ambarnath by two of her friends on September 4. After speaking to police from Ambernath and Belagavi , as well as friends of the victim, TOI pieced the sordid tale together.

07 September 2017
Police in BC receive multiple calls about possible meteorite strike
Dashcam and security footage shows the fireball briefly lighting up the sky as bright as a lightning bolt late Monday night. Witnesses of the meteor reported hearing a "huge boom" after watching the meteor tear through the night sky.

07 September 2017
Hurricane Irma: NFL postpones Dolphins-Buccaneers game
Though, rescheduling the game is helped by the fact that both teams have the same bye week. Last year, Steen started seven games for the Dolphins as he played mostly at center.

07 September 2017
FCA closes 'long-standing customer' investigation into Police Mutual
We have particular concerns regarding how some firms communicated with their customers about exit and/or paid-up charges. Chesnara noted the statement from the FCA, and reiterated that it has provided the FCA with all information requested.

07 September 2017
The Force receive word on their Super Rugby axing appeal
Forrest, founder and chairman of Fortescue Metals, said he planned to kick off the competition with an global game. Mr Forrest said the new competition would target a region he said was poorly served by the existing competition.

07 September 2017
Rafael Nadal eases into US Open quarter-finals
That began a run of three points in a row for del Potro to claim that set, the last when Federer pushed a backhand volley long. The ensuing tiebreaker was dominated by del Potro, who closed it with a booming cross-court forehand victor on the run.

07 September 2017
Destiny 2 Clan Features "Unavailable" For Next Few Days
This, of course, effects the game's reliance on co-op - something undoubtedly important in any new online first-person shooter. Bungie has announced via Twitter that the Clan features in Destiny 2 will be unavailable to players for several more days.

07 September 2017
Schwab US Large-Cap Value ETF (SCHV) Rises 0.28% for Sep 6
Seeing how a certain stock has traded previously may allow traders to project which way shares will move in the near future. Understanding risks involved with picking stocks can help the investor figure out what is best for them individually.

07 September 2017
Trump coming to North Dakota Wednesday for tax-reform speech
The White House did not release details to KX about whether the speech will be open to the public, or who else will be attending. Senate Republicans failed to achieve the seven year campaign promise to repeal and replace ObamaCare in July.