6th Sep 2016 06:41
LONDON (Alliance News) - Emerging markets fund manager Ashmore Group PLC on Tuesday said its assets under management sunk in its financial year to the end of June, despite an improvement in markets and investor sentiment in the second half.
The FTSE 250 company said assets under management at the end of June fell to USD52.6 billion from USD58.9 billion a year earlier.
Pretax profit for the group declined 8.0% to GBP167.5 million in the recent financial year from GBP181.3 million a year prior, as revenue fell 18% to GBP211.6 million from GBP268.1 million. The decline in revenue was caused by lower management and performance fees.
Ashmore declared a final dividend of 12.1 pence per share, taking its total payout to 16.65p, flat year-on-year.
"Ashmore's strategy and business model are designed to deal with the fluctuations of market cycles, and while the past few years have presented challenges to emerging markets, these results for the financial year demonstrate that the group has maintained its high profitability and continued to generate cash," said Mark Coombs, Ashmore's chief executive.
"In weaker markets, Ashmore's consistent investment processes acquire risk and these actions usually provide strong outperformance for clients as markets recover," he added.
Coombs added the rally in emerging markets asset prices so far in 2016, in combination with ongoing challenges in developed markets, should incentivise investors to start putting money back into emerging markets-focused investments in Ashmore's current financial year.
By Sam Unsted; [email protected]; @SamUAtAlliance
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