Welcome to our new website! Let us know what you think..

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
Citywire TV
Play Gervais Williams: the real reason to worry about Quindell

Gervais Williams: the real reason to worry about Quindell

Citywire AA-rated manager Gervais Williams has argued that sentiment is the true danger to Quindell.

Play AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

Henderson International Income trust manager Ben Lofthouse shares his thoughts on recent developments in the tobacco sector in this video.

1 Play Renewable energy: what I found on my solar farm trip

Renewable energy: what I found on my solar farm trip

Renewable energy is attracting a lot of investor interest, so I headed to the UK's largest solar farm to find out more.

Your Business: Cover Star Club

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Nineteen months on from the merger of Quilter Cheviot chief executive Martin Baines says the deal is now paying dividends.

Wealth Manager on Twitter