Ashmore success sees Coombs cash in

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The success of the fund manager Ashmore Group, which posted a 13 per cent increase in profits yesterday, will see its chief executive cash in with a multimillion-pound windfall.

Mark Coombs, who has headed the company since 1998, called it "broadly a good year for the group" and pointed to "significant progress in both distribution and product development".

Ashmore, which specialises in emerging markets investments, saw its pre-tax profits rise to £246m in the 12 months to the end of June from £217m a year earlier.

Revenues rose by 17 per cent to £334m following growth in management fees income and a second year of record performance fees. Stuart Duncan, an analyst at Peel Hunt, said: "Ashmore's operating performance continues to stand out."

The company announced it was to lift the full-year dividend by 11 per cent to 14.5p. With a 42 per cent stake in the business, Mr Coombs will receive a £43.3m payout. His stake is worth more than £1bn.

He said: "The opportunity for raising assets under management from both developed country and emerging markets sources, as they increasingly come to realise the attractiveness of the emerging markets asset classes over developed markets alternatives, remains a compelling one."

Ashmore Group is to be promoted to the FTSE 100 next week. However, its shares closed 14.9 per cent lower at 385p last night.