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(Alliance News) - Ashmore Group PLC on Thursday boosted its dividend, reported a rise in assets under management, and said profit climbed by more than a third in the first half of its financial year.
In the six months to December 31, assets under management jumped 28% from a year earlier and 7.2% from June to USD98.4 billion. During the six months, the emerging markets asset manager achieved net flows of USD5.7 billion.
First half net revenue was 16% higher year-on-year at GBP176.8 million from GBP152.1 million, with pretax profit surging 42% to GBP132.4 million from GBP93.0 million.
Adjusted earnings before interest, taxes, depreciation and amortisation were 24% higher at GBP122.5 million.
The company said: "Over the past six months, Emerging Markets have experienced fluctuating investor sentiment and consequently more volatile asset prices when compared with the first six months of 2019, driven by the combination of developed world events and a number of domestic political stories where the impact was limited to the country.
"However, the underlying economic and political backdrop across the vast majority of emerging nations remains supportive. Developed world events included a return to protectionism in the US, weaker European growth, while an improvement in US economic data initially provided support to the US dollar."
In emerging markets, Ashmore said events in Argentina, Bolivia, Chile, Ecuador and Lebanon prompted to some investors "to take profits following a period of strong performance in the first half of 2019".
"For those who remained invested, the end of the period delivered a strong recovery in asset prices as some of the political situations began to normalise, the global trade environment improved, the US Federal Reserve and other central banks continued to deliver a dovish message, and economic data improved in a number of emerging countries including China.
"Notwithstanding the price volatility during the six months, returns across the Emerging Markets asset classes were positive for the period as a whole, thereby continuing the broad-based rally that began in early 2016," Ashmore added.
Meanwhile, the company increased its dividend per share by 5.5% to 4.80 pence per share from 4.55p.
Chief Executive Officer Mark Coombs said: "There continue to be compelling incentives for investors to increase their allocations to emerging markets in pursuit of higher risk-adjusted returns compared with those that are available in the developed world. Ashmore's specialist focus on the diverse Emerging Markets, the strong client flow momentum in the first half of the financial year and ongoing client activity levels, mean Ashmore is well-positioned to continue to grow."
Shares in the FTSE 250 company were 3.4% higher at 571.54p each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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