City upbeat as turmoil knocks Ashmore fees
SHARES in emerging markets fund manger Ashmore climbed yesterday despite a slump in performance fees of nearly two-thirds.
Analysts responded warmly after the group managed to beat first-half expectations at a time when market swings have hit fund mangers.
Ashmore’s performance fees fell 61.7 per cent to £23m for the six months to 31 December as an increase in the number of lower margin accounts run for large individual investors combined with the slump in the asset class. Chief executive Mark Coombs said his strategy had been vindicated.
“It has been clearer than ever over the last six months that emerging markets are the driver of global GDP growth, and negative developed world events are happily having a profound impact on perceptions of relative risk globally and prejudices about emerging markets.”
The firm was hit by a drop in assets under management of $5.4bn (£3.4bn), or eight per cent to $60.4bn, in the period since 30 June, after taking a hit on its equity strategies.
Pre-tax profits for its first half rose two per cent to £129.8m while total net revenues rose four per cent to £181m. Shares climbed 3.8 per cent to 401.2p.