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 Potential US rate rise, cheap oil & the Europe opportunity

Potential US rate rise, cheap oil & the Europe opportunity

This week we analyse the implications of a possible rise in US interest rates, the impact of cheap oil and the European equity opportunity.  

Play Carmignac's Crowl: what QE could mean for Europe

Carmignac's Crowl: what QE could mean for Europe

The ECB is widely expected to finally fire its QE gun this week. Carmignac's Sandra Crowl discusses the implications for the eurozone.

Play Grexit worries, currency wars and a grizzly outlook for 2015?

Grexit worries, currency wars and a grizzly outlook for 2015?

The first Investment Pulse of the year looks at the potential impact of Greece leaving the euro, volatility in currency markets and the UK’s economic prospects.

Your Business: Cover Star Club

Profile: DIY investing is biggest threat to industry, says Whitechurch

Profile: DIY investing is biggest threat to industry, says Whitechurch

The industry is at risk of pushing potential investors down the DIY route unless it does more to make its services accessible says the Whitechurch Securities boss

Wealth Manager on Twitter