LONDON (ShareCast) - (Sharecast News) - FTSE 250 emerging markets asset manager Ashmore reported a rise in first-half assets under management and revenue on Thursday but a drop in profit as it hailed a positive start to 2019.
In the six months to the end of December 2018, assets under management rose 10% from the same period a year ago to $76.7bn amid "resilient" net inflows of $2.4bn. The company said this reflected broad-based institutional client demand and continued growth in retail AuM.

Revenue during the period grew 13% to £152.1m, driven by an 18% increase in net management fee income. However, pre-tax profit was down 6% on the year to £93m due to lower contributions from performance fees and the marking-to-market of seed capital investments.

Adjusted earnings before interest, tax, depreciation and amortisation were up 8% to £98.8m and the margin was maintained at 67%.

Chief executive officer Mark Coombs said: "Ashmore delivered a respectable operating performance in the first half and has experienced a positive start to 2019. The emerging markets are in good health with high GDP growth, low inflation, attractive valuations and, after a slight pause in allocations at the end of 2018, there is renewed momentum in capital flows.

"The temporary factors that supported the US dollar in 2018 are fading, and consequently emerging markets assets are performing strongly and Ashmore's active investment approach is delivering outperformance."

Ashmore also said on Thursday that Coombs has agreed with the board "a prudent and transparent approach to manage his shareholding" of around 39% down to a "more appropriate level" over the medium term by selling up to 4% of his stock each year into the market. The group said he remains fully committed to Ashmore in his current role.

Coombs said a reduction in his shareholding not only increases the market liquidity of Ashmore's shares, but also facilitates his continued participation in the group's remuneration policy on the same terms as other Ashmore employees.

At 0825 GMT, the shares were down 4.5% to 394.80.

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