Emerging markets asset manager Ashmore (ASHT) delivered a more polished first-half performance, reporting an 11 per cent rise in assets under management (AUM) to $71bn (£46.4bn), driven by net inflows of $1.6bn and a $5.7bn positive investment performance. However, headline profits were lower as performance fees fell from £23m to £15.3m, while management fees were trimmed back from £151m to £148m.
The drop in management fee income was due mainly to adverse exchange rate movements and an expected reduction in average revenue margins that came largely as a result of a shift in investment themes and client mix. Lower performance fees reflected the fact that some funds are only paid fees at the performance year-end, which in some cases fell outside the six-month trading period. Crucially, all the major investment categories delivered a positive net performance, and the percentage of assets outperforming their relevant benchmarks over one year rose from 23 per cent last June to 89 per cent.
Analysts at Numis Securities are forecasting full-year pre-tax profits of £216m and EPS of 22.8p (from £243.2m and 25.8p in 2012), recovering to £238m and 25.2p, the year after.
| ASHMORE (ASHM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 360p | MARKET VALUE: | £2.57bn | |
| TOUCH: | 360-361p | 12-MONTH HIGH: | 402p | LOW: 300p |
| DIVIDEND YIELD: | 4.2% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 80p* | NET CASH: | £330m | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 179 | 130 | 13.8 | 4.25 |
| 2012 | 168 | 120 | 13.9 | 4.35 |
| % change | -6 | -7 | +1 | +2 |
Ex-div: 13 Mar Payment: 12 Apr *Includes intangible assets of £86m, or 12p a share | ||||
