Emerging markets fund specialist Ashmore’s share price edges up after firm beats profit expectations
Ashmore Group’s share price rose by one per cent yesterday after the emerging markets fund specialist beat profit expectations in its full-year results.
The figures
Assets under management (AUM) of $52.6bn (£39.4bn) were down from $58.9bn in the year ending 30 June 2015.
Ashmore’s net revenue for the period came in at £232.5m, down 18 per cent.
Read more: With a Fed rate hike looking likely, can the emerging market comeback last?
And the company reported a pre-tax profit of £167.7m. This was down by eight per cent, but was ahead of a mean consensus forecast of £142.8m, according to Thomson Reuters.
On Tuesday, Ashmore’s share price edged up by one per cent to 358p.
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Why it’s interesting
Chief executive Mark Coombs said the profits came in above expectations after a “rally in emerging markets asset prices and improving investor sentiment”.
He added that “ongoing challenges" in the developed world – “high indebtedness, political risk and reluctance to reform” – provide a “clear incentive” for investors to shift their focus to emerging markets.
Read more: Emerging markets funds hot, China not, for investors this summer
What the company said
Coombs added:
Ashmore’s strategy and business model are designed to deal with the fluctuations of market cycles, and while the past few years have presented challenges to emerging markets, these results for the financial year demonstrate that the group has maintained its high profitability and continued to generate cash.
In weaker markets, Ashmore’s consistent investment processes acquire risk and these actions usually provide strong outperformance for clients as markets recover.
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