Shares in Ashmore jumped 18 per cent at the open as the investment manager reveals profits beat expectations
Asset manager Ashmore Group today reported that it almost doubled its profits in the six months to 31 December.
The figures
Assets under management (AuM) were $52.2bn (£41.6bn), up five per cent over 2016. The group said 91 per cent of AuM outperformed benchmarks over the 12 months.
Net revenue increased 24 per cent to £144.1m. The firm made net management fees of £114.9m, and said this benefited from the stronger dollar.
Pre-tax profit increased 94 per cent to £121.5m, and the company reported earnings per share of 13.9p.
Ashmore maintained its interim dividend at 4.55p per share.
Shares in the company went up 18 per cent at the open, and were up six per cent at pixel time.
Why it's interesting
Today's results mark a significant turnaround from the group's situation this time last year – when it reported investors were pulling out of emerging markets in droves, to the tune of a 15 per cent reduction in AuM.
Ashmore said emerging markets delivered strong returns over the year, in line with positive rhetoric from the group throughout the period.
Even the US elections in November and "consequent uncertainty regarding trade and other policies" did little to dampen this – although Ashmore said it "interrupted the recovery towards the end of the period".
What Ashmore said
Chief executive Mark Coombs said the investment manager was boosted by emerging markets.
"While the US election outcome interrupted the improvement in sentiment towards emerging markets, the effect has been short-lived with asset prices strengthening into 2017," he commented.
"The combination of attractive absolute and relative returns, accelerating GDP growth, and low allocations all support the expectation of further strong performance in 2017 and a return to the improving flow trend seen for most of 2016."