11th Feb 2016 07:49
LONDON (Alliance News) - Ashmore Group PLC on Thursday backed the investment case for key asset classes in emerging markets, as the investment manager reported a fall in assets under management and first-half pretax profit.
"Markets have remained volatile in early 2016, and while this can provide great value-based investment opportunities, sentiment is likely to continue to be affected by the lower oil price and ongoing concerns about slowing global growth, particularly with respect to China," Chief Executive Mark Coombs said.
"However, after a prolonged period of adjustment in emerging markets, the current yields across sovereign and corporate credit markets suggest these asset classes are well placed to deliver long-term outperformance, particularly with the backdrop of robust fundamentals," Coombs added.
The chief executive's comments came as Ashmore reported that assets under management fell to USD49.4 billion at the end of December from USD58.9 billion at the end of June. Pretax profit fell to GBP62.7 million in the six months ended December 31, versus GBP110.7 million the corresponding half the prior year, as net revenue dropped to GBP116.4 million from GBP164.0 million.
Ashmore maintained its interim dividend at 4.55 pence.
"Notwithstanding the effects that weaker markets and sentiment have had on AuM levels, Ashmore's inherently flexible cost base has delivered good cash generation and enabled the profit margin to be maintained at a high level in the first half of the financial year," Coombs said.
By Samuel Agini; [email protected]; @samuelagini
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