Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

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

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.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Sam Vecht: the best opportunities in frontier markets

Sam Vecht: the best opportunities in frontier markets

Blackrock's Vecht evaluates frontier markets and explains where he sees the opportunities

Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter