Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Reveal Undervalued Stocks Hiding in Any Market Get Started
Ashmore Group FY Pre-Tax Profit Dips as Investors Veer Away from Emerging Markets
© Reuters.
By Scott Kanowsky
Investing.com -- Fund manager Ashmore Group Plc (LON:ASHM) has reported a sharp slide in annual pre-tax income, as macroeconomic trends and the outbreak of the conflict in Ukraine led investors to shy away from riskier assets.
The UK-based firm, which specializes in emerging markets, posted a profit before tax of £118.4M for the year ending on June 30 - a slump of more than 58% compared to £282.5M in the previous period.
Meanwhile, assets under management declined by 32% to $64B, due mainly to negative investment performance of $16.6B and net outflows of $13.5B.
"The combination of geopolitical tension, high inflation figures and central banks tightening monetary policy, including the [Federal Reserve] in the second half of the year, with the consequent negative impact on market levels, meant that investor risk appetite was markedly lower as the period developed," Ashmore said in a statement.
However, the company still presented a relatively rosy outlook for emerging markets. Ashmore predicted that soaring consumer prices should abate in the coming quarters, which would persuade central banks to pull back on recent monetary policy tightening and subsequently stimulate widespread economic growth.
"This scenario would be consistent with a return to higher levels of investor risk appetite and improved sentiment towards Emerging Markets, providing meaningful catalysts for a recovery in asset prices from current levels," Ashmore said.
Ashmore also recommended a final dividend to shareholders of 12.1 pence per share.
Analysts at Peel Hunt said Ashmore's latest earnings were broadly in line with their estimates and backed its long-term outlook despite lingering immediate uncertainties.
Shares in Ashmore rose by more than 5% in early afternoon trading.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.