Shareholders in Ashmore (ASHM) and clients of the emerging markets (EM)-focused asset manager have differing opinions on whether the fortunes of EM assets have reached a turning point. After a two-year decline, shares in Ashmore are up more than 40 per cent so far this year. Yet the asset manager continued to suffer heavy outflows during the 12 months to the end of June, with average assets under management falling more than a fifth on the previous year to $52.6bn (£39.1bn). The good news was that the group produced a $1.2bn positive investment performance, compared with a negative $2.9bn in 2015.
With the majority of its management fees denominated in US currency, the asset manager gained $36.3m in translation benefit. What's more, there was also improvement in returns for local currency debt, which have previously been dampened by the strength of the greenback. External debt put in the best performance, generating a $0.9bn positive investment performance. During the past three years, Ashmore's external debt portfolio has produced an annualised return of 6.9 per cent, although this is against a benchmark of 7.2 per cent.
Analysts at Numis expect adjusted pre-tax profits of £147m for the year ending December and EPS of 16.2p (from £181m and 19.3p in 2015).
ASHMORE (ASHM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 357p | MARKET VALUE: | £2.53bn | |
| TOUCH: | 357-358p | 12-MONTH HIGH: | 371p | LOW: 194p |
| DIVIDEND YIELD: | 4.7% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 96p | NET CASH: | £364m | |
| Year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 333 | 234 | 26.8 | 15 |
| 2013 | 356 | 258 | 30.0 | 16.1 |
| 2014 | 294 | 172 | 19.5 | 16.45 |
| 2015 | 268 | 181 | 20.3 | 16.65 |
| 2016 | 212 | 168 | 19.1 | 16.65 |
| % change | -21 | -7 | -6 | - |
Ex-div: 3 Nov Payment: 2 Dec | ||||
