Investment manager Ashmore Group Plc posted a solid set of interim results on Thursday, with assets under management rising 10% to $52.5bn in the six months ended 31 December.
Net inflows came to $2.3bn in the half, with broad-based subscriptions up 39% year-on-year and redemptions down 35% on FY24, while its investment performance came to $2.6bn, reflecting positive market returns and Ashmore's active management.
Ashmore said pre-tax profits jumped 64% year‑on‑year to £81.9m, while diluted earnings per share rose 89% to 10.1p, helped by stronger returns from seed capital investments.
However, adjusted net revenues fell 16% to £67.5m, reflecting lower average AUM and reduced performance fees, while operating costs edged 1% higher.
Adjusted underlying earnings came to £20.9m, giving the group an adjusted EBITDA margin of 31%.
The FTSE 250-listed firm, which kept its interim dividend unchanged at 4.8p per share, also said it continued to operate with a "strong" balance sheet, reporting £480m of excess financial resources, including £260m of cash and deposits.
Chief executive Mark Coombs said: "As a consequence of Ashmore's investment performance, the group's financial results are also strong with returns on seed capital investments contributing to a 64% increase in profit before tax and diluted EPS approximately double the prior year.
"The near-term outlook in emerging markets is for higher economic growth, some deflationary pressure allowing for easier monetary conditions, and further weakness in the value of the US dollar, continuing the themes that have driven recent EM outperformance. Ashmore's specialism and proven active investment management philosophy mean it is well-positioned to capitalise on this positive outlook and the multitude of investment opportunities available across emerging markets."
As of 0805 GMT, Ashmore shares were up 1.61% at 265.20p.
Reporting by Iain Gilbert at Sharecast.com