Ashmore Group Says Its Full-Year Net Increases by 39% on Performance Fees
Ashmore Group Plc, a U.K. fund manager that focuses on emerging markets, said fiscal full-year profit rose 39 percent, boosted by higher performance and management fees after a recovery in global financial markets.
Net income climbed to 160.6 million pounds ($247 million) in the year to June 30, from 115.5 million pounds a year earlier, the London-based company said today in a statement. Assets under management rose 42 percent to $35.3 billion in the same period.
“They have delivered a good set of results beating both our estimates and consensus,” said Sarah Ing, an analyst at Singer Capital Markets Ltd. in London, putting her price target under review. “The tone of the statement is also encouraging because it is more upbeat than they have been in recent months.”
Emerging-market stocks have outperformed advanced-country shares this year because developing nations are growing twice as fast, have more profitable companies and less debt. The MSCI Emerging Markets Index climbed 19 percent in the 12 months to June 30.
Ashmore dropped 1.5 percent to 314 pence in London trading after Jon Moulton, founder of Alchemy Partners LLP., sold up to half of his stake in the money manager, according to the terms of the sale obtained by Bloomberg News. Moulton currently owns 20 million shares, or a 2.8 percent stake, according to data compiled by Bloomberg. The company has gained 15 percent this year.
“We believe we are steadily better positioned in emerging markets investing and well set to deal with the greater competition that a growing investable universe inevitably brings,” Chief Executive Officer Mark Coombs said in the statement.
Ashmore, which first sold shares in 2006, focuses on emerging markets through local currency, distressed debt and private equity funds. The firm plans to pay a full-year dividend of 13 pence per share, up from 12 pence a year earlier.