Ashmore Group seed capital programme gains lift profits despite $4.5bn outflows

Pre-tax profits jump 38%

Ashmore Group’s pre-tax profits jumped in the second half of 2023 despite lower assets under management, driven by higher interest income on its cash and gains in its active seed capital investment programme.

In its half-year results published today (7 February), the emerging markets specialist reported pre-tax profits of £74.5m, a 38% increase from the previous year, despite a 13% fall in net revenues to £93.4m.  The hit to revenues reflected a 10% lower average AUM of $53.3bn over the six-month period and reduced FX gains, partially offset by higher performance fees of £8m.  The pre-tax profits rise was attributed to capital gains of £19.6m delivered by the group's active seed capital investment programme, as well as interest income of £12.8m achieved on its cash balances.  Jefferies ...