Ashmore beats forecasts following strong inflows

10th Sep 2013 07:11

Record subscriptions helped emerging markets asset manager Ashmore to drive strong net inflows into its funds in the year to June. Strong net inflows of $13.4bn (£8.5bn) led to a 22% increase in assets under management (AuM) to $77.4bn during the year, with average AuM rising 13%. Net revenue of £355.5m was 7% higher than the prior year and well ahead of consensus forecasts, with pre-tax profit lifted 6% to £257.6m and diluted earnings per share 11% to 28.69p.Market conditions were friendly for most of the year but an "indiscriminate sell-off" in the fourth quarter, caused by concerns over the timing of the withdrawal of quantitative easing by the US Federal Reserve, contributed to an investment performance of just $0.3bn.Chairman Michael Benson said: "Ashmore's specialist knowledge and active investment management style come to the fore in such difficult periods."A 4% increase in management fee income net of distribution costs to £311.2m was driven by an increase in average AuM levels offset by a reduction of average net management fee margins by 6 basis points (bps) to 68 bps.Chief Executive Officer Mark Coombs proposed a final dividend per share of 11.75p and said the company's focus solely on emerging markets was vital during periods of market volatility such as those experienced recently. "It is therefore satisfying that Ashmore's client base is demonstrating its confidence in our long-standing processes through its resilience. Investors are increasingly recognising the strengths and competitive qualities of emerging markets in contrast to the structural challenges faced by developed markets."Given strong underlying fundamental trends, Coombs added that the recent re-pricing of the markets presented "even greater investment opportunities".OH