11th Sep 2014 08:07
LONDON (Alliance News) - Ashmore Group PLC Thursday reported a 34% drop in full-year pretax profit, as it came under pressure due to emerging-market volatility, lower performance fees and the strength of the pound.
In a statement, the emerging markets asset manager said it made a GBP170.3 million pretax profit in the year ended June 30, compared with GBP257.6 million last year. Ashmore said GBP46.0 million was due to foreign exchange translation, while GBP30.1 million was due to lower performance fees as a consequence of the market sell-off in May and June 2013 and continued volatility throughout the first half of the financial year.
Chairman Michael Benson said the remainder is largely explained by a reduction in net management fees, offset by lower operating costs.
Assets under management declined to USD75.0 billion from USD77.4 billion, mainly due to redemptions from the lower-margin overlay/liquidity theme.
Despite Ashmore's troubles over the year, Benson said the asset manager's focus on emerging markets has enabled it to contend with the volatile market conditions.
"Assets under management were resilient, and the group's investment processes identified and acted upon value becoming apparent as non-dedicated investors withdrew from the asset class. The diversity of emerging markets requires a specialist, active investment approach and Ashmore's long track record positions it well for future profitable growth," Benson said in a statement.
Ashmore increased its full-year dividend to 16.45 pence from 16.10 pence.
Ashmore shares were Thursday quoted down 5.8% at 324.80p.
By Samuel Agini; [email protected]; @samuelagini
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