25th Feb 2014 09:06
LONDON (Alliance News) - Ashmore Group PLC Tuesday reported weak first-half results, with pretax profits down by a third and a USD2.9 billion net outflow, as emerging markets instability hurt the investment manager.
Ashmore Group shares fell 8.1% to 312.30 pence, placing it at the bottom of the FTSE 250 in morning trading.
The emerging markets specialist made a GBP79.5 million pretax profit for the six months ended December 31, 2013, compared with GBP120.2 million in for the corresponding period in 2012. The net outflow drove assets under management down by 2.7% to USD75.3 billion over the first-half. Revenue fell to GBP155.3 million from GBP167.8 million, as performance fees slumped to GBP700,000 from GBP15.3 million.
Ashmore increased its interim dividend to 4.45 pence from 4.35 pence.
"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," Mark Coombs, chief executive, said in a statement.
He added: "The recent instability in the markets in which Ashmore invests has created attractively valued securities and the economic and political fundamentals remain positive across many of the countries that comprise the diverse Emerging Markets investment universe. Ashmore has experienced and capitalised upon similar conditions before, and its long-standing and robust investment processes are well placed to deliver attractive returns for clients over the cycle."
By Samuel Agini; [email protected]; @samuelagini
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