Ashmore Group plc (LON:ASHM), the specialist Emerging Markets asset manager, today announces its unaudited results for the six months ending 31 December 2018.
– Assets under management (AuM) of US$76.7 billion, 10% higher than a year ago
– Resilient net inflows of US$2.4 billion in the six months reflecting broad-based institutional client demand and continued growth in retail AuM
– Investment performance remains strong
– 97% of AuM outperforming benchmarks over three years and 92% over five years
– 30% outperforming over one year, as Ashmore’s active investment processes have bought into value created by volatile global markets
– Business model delivers through market cycles
– Revenue growth of 13% driven by 18% increase in net management fee income; performance fees of £1.2 million
– Adjusted EBITDA increased 8% to £98.8 million; margin maintained at 67%
– Growth in operating profit offset by seed capital mark-to-market
– Profit before tax of £93.0 million, 6% lower YoY
– Seed capital mark-to-market resulted in a loss before tax of £9.7 million (H1 2017/18: £10.5 million gain)
– Diluted EPS of 10.1p and interim dividend per share of 4.55p
– Positive start to 2019
– Mark Coombs has agreed with the Board a prudent and transparent approach to manage his shareholding (c. 39%) down to a more appropriate level over the medium term by selling up to 4% of Ashmore stock each year into the market
– He continues to be fully committed to Ashmore in his current role
Commenting on the Group’s results, Mark Coombs, Chief Executive Officer, Ashmore Group said:
“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.”
