Ashmore profits rise AuM tick higher
Emerging market asset manager Ashmore reported a rise in full-year profit and earnings on Friday thanks to growth in assets under management, as it said the outlook for the US economy and its trade policy are the main risks to the current market environment.
In the year to the end of June 2019, adjusted earnings before interest, tax, depreciation and amortisation rose 10% to £201.8m while pre-tax profit jumped 15% to £219.9m as assets under management increased 24% to $91.8bn. Ashmore saw broad-based net inflows of $10.7bn and positive investment performance of $6.9bn.
Chief executive officer Mark Coombs said the company had delivered "strong" results and the backdrop for emerging markets remains relatively healthy, with economic indicators such as GDP growth and inflation continuing to trend favourably.
"The main risks relate to the US and the impact that its confrontational trade policy and slowing domestic growth will have on the broader global economy," he said.
"In this context, the significant diversity across the emerging markets asset classes is important and after recent market weakness the valuations available are highly attractive. Ashmore will continue to implement its active investment processes to exploit these opportunities for clients, is well-positioned to continue to capture investors' rising allocations to emerging markets and, through its consistent strategy and proven business model, to create value for shareholders."