The US election left Ashmore (ASHM) at risk of having a nascent recovery halted. During the second quarter of its financial year it suffered around $700m (£560m) in net outflows. Management cited a small number of institutional investors withdrawing money from local currency and dollar-denominated debt. However, flows have quickly recovered since then, group finance director Tom Shippey was quick to assure.
Overall, the emerging markets-specialist asset manager made progress in reducing the pace of outflows: the first three months of the reported period saw flat flows. Investment gains of $0.3bn meant assets under management were almost flat since the financial year-end, and up 5 per cent over the previous 12 months. As a result, performance fees were up from £8.6m to £21.6m.
The overlay strategy generated the biggest increase in assets at $0.5bn. Blended debt was also popular with investors, generating net inflows and investment gains of $0.4bn, taking assets to $14.1bn. This strategy reduced Ashmore's local currency exposure and increased its weighting towards off-benchmark corporate debt.
Analysts at Numis expect adjusted pre-tax profit of £197m during the 12 months to June 2017, giving EPS of 22.7p (from £168m and 18.1p in 2016).
ASHMORE (ASHM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 352.7p | MARKET VALUE: | £2.51bn | |
| TOUCH: | 352.6-352.7p | 12-MONTH HIGH: | 379p | LOW: 196p |
| DIVIDEND YIELD: | 4.7% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 98p | NET CASH: | £378m | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 110 | 63 | 6.9 | 4.55 |
| 2016 | 141 | 122 | 14.7 | 4.55 |
| % change | +28 | +94 | +114 | |
Ex-div: 9 Mar Payment: 7 Apr | ||||
