UK Markets closed

Emerging market fund Ashmore sees full-year pretax profit slump 58%

·1-min read

By Karin Strohecker

LONDON (Reuters) - Investment group Ashmore reported on Friday a 58% drop in full-year pretax profits and double-digit declines in net revenue, citing widespread risk aversion due to the Ukraine war as well as inflation and higher rates globally.

Profit before tax came in at £118.4 million ($136.62 million) in the 12 months to the end June at the emerging markets-focused asset manager. Net revenue dropped 13% to £257.2 million year-on-year.

"While the global macro environment still presents some near-term uncertainty, the situation in emerging markets is improving and the breadth of investment opportunity helps to mitigate the risks," said Ashmore CEO Mark Coombs.

Russia's invasion of Ukraine, a soaring dollar and China's economic strains have combined to give emerging markets their most difficult year on record. Emerging market stocks and key fixed income benchmarks across developing economies are on track to deliver negative returns again in 2022.

London-based Ashmore said its assets under management had tumbled $64 billion by end-June after suffering net outflows of $13.5 billion and negative investment performance of $16.6 billion.

Net management fees came in at £243.5 million while performance fees stood at £4.5 million, the company said in its statement.

The firm said it had maintained its full year dividend per share at 16.9 pence.

($1 = 0.8666 pounds)

(Reporting by Karin Strohecker; editing by Tom Wilson)