Reports
Emerging Markets Specialist Ashmore Feels The Chill As Sector Struggles
London-listed Ashmore Group, which specialises in managing portfolios of emerging market assets, reported that assets under management fell 2.7 per cent in the six months to end-December last year.
London-listed Ashmore Group, which
specialises in managing portfolios of emerging market assets,
reported that assets under management fell 2.7 per cent in the
six months to end-December last year, standing at $75.3
billion.
There was a net outflow of $2.9 billion, gross subscriptions of
$7.3 billion and positive investment performance of $800 million,
the firm said.
Last year, emerging markets – albeit with some exceptions –
endured a torrid year, as the prospect of reduced central bank
money-printing, especially in the US, encouraged investors who
had put money into emerging market assets to change course.
Ashmore Group said it logged net management fees of £149.8
million, against a figure for the same period a year ago of
£148.2 million.
Pre-tax profits fell to £79.5 million, down from £120.2 million
for the same period a year ago. Basic earnings per share were
9.23 pence, down from 13.94 pence.
"The group has continued to make operational and strategic
progress, but these financial results reflect the weak market
backdrop which existed for much of the period. Despite the
broader environment, investment performance remains strong across
the group with 95 per cent of assets outperforming their
respective benchmarks over three years and it is particularly
satisfying to report the strong outperformance across the
equities theme,” Mark Coombs, chief executive at Ashmore
Group.
"The recent instability in the markets in which Ashmore invests
has created attractively valued securities and the economic and
political fundamentals remain positive across many of the
countries that comprise the diverse emerging markets investment
universe. Ashmore has experienced and capitalised upon similar
conditions before, and its long-standing and robust investment
processes are well placed to deliver attractive returns for
clients over the cycle,” he said.