logo-loader
FinanceInvestments and investor services
viewAshmore Group

Ashmore says emerging markets valuations “highly attractive” but US policy casts shadow

“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”

Ashmore says emerging markets valuations “highly attractive” but US policy casts shadow

Ashmore Group PLC (LON:ASHM) said the fundamental attractions of emerging markets remain but US trade policy is casting a shadow of doubt over the asset class.

The specialist active fund manager last month revealed that assets under management increased 24% over the past year to US$91.8bn.

A 17% increase in net management fees lifted adjusted net revenue 11% to £308.1mln.

Profit before tax rose 15% to £219.9mln and earnings per share jumped 18% to 25p, with the total dividend per share of 16.65p flat on last year.

“The backdrop for emerging markets remains relatively healthy, with economic indicators such as GDP growth and inflation continuing to trend favourably,” said chief executive Mark Coombs.

“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 argued that the diversity across the emerging markets asset classes was especially important and that recent market weakness had made valuations “highly attractive”.

Coombs confirmed that he has an agreement with the board to sell up to 4% of Ashmore shares in the market each year but that he is a “committed as a significant executive shareholder” and has “no intention of seeking creeping control of Ashmore”.

Broker Peel Hunt upgraded its recommendation back to 'buy' from 'add' after recent share price weakness.

Analysts said the long-term potential of the business remained "unchanged", with results "broadly as expected".

Shares in the FTSE 250 company were up 2.5% to 466.2p in early trading on Friday.

-- Adds broker comment --

Quick facts: Ashmore Group

Price: 483.8 GBX

LSE:ASHM
Market: LSE
Market Cap: £3.45 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: PharmaCielo looking to 2020 as a transformative year for the...

PharmaCielo (CVE: PCLO) Chief Corporate Officer David Gordon joined Steve Darling from Proactive in Toronto to talk about the cannabis company whose operations are in Colombia. Gordon talked about the facilities they have and the advantages the climate in Colombia has for...

13 hours, 51 minutes ago

RNS

Director/PDMR Shareholding

1 day, 22 hours ago

Trading Statement

4 days, 4 hours ago

Director/PDMR Shareholding

2 weeks, 4 days ago

Director/PDMR Shareholding

2 weeks, 4 days ago

Final Results

on 09/06/2019

2 min read