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Ashmore's six-month £41m profit fall as EM sell-off bites

by Danielle Levy on Feb 25, 2014 at 08:09

Ashmore's six-month £41m profit fall as EM sell-off bites

Ashmore Group posted a $2.9 billion (£1.7 billion) net outflow, as the fallout from the emerging market sell-off was felt in the second half of 2013.

Profit before tax plunged by £40.7 million to £79.5 million at the end of December, the specialist emerging market fund manager revealed in its unaudited interim results for the six months to the end of 2013.

Ashmore said assets under management had fallen 2.7% to $75.3 billion over the six month period. A net outflow of $2.9 billion was tempered by gross subscriptions of $7.3 billion and positive investment performance of $0.8 billion. Net management fees were up £1.6 million in comparison to the first half of 2013 at  £149.8 million.

Adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) was down £26.4 million over the period to £87.7 million, while a margin of 65% represented a 5% decline from the first half of the year.

Ashmore said an interim dividend of 4.45p per share would be paid on 11 April 2014.

Commenting on the results, Mark Coombs, chief executive, said that recent instability in emerging markets had created valuation opportunities.

'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% of assets outperforming their respective benchmarks over three years and it is particularly satisfying to report the strong outperformance across the equities theme,' he added.

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