Emerging market fund Ashmore sees full-year pre-tax profit fall 58%

LONDON, Sept 2 (Reuters) – Investment group Ashmore (ASHM.L) on Friday reported a 58% fall in full-year pre-tax profit and a double-digit drop in net income, citing widespread risk aversion due to the Ukraine war and inflation and higher interest worldwide.

Pre-tax profit for the 12 months to the end of June was £118.4 million ($136.62 million) at the emerging markets-focused wealth manager. Net sales fell 13% year-on-year to £257.2 million.

“While the near-term global macro environment remains uncertain, the situation in emerging markets is improving and the breadth of investment opportunities is helping to mitigate risks,” said Mark Coombs, Ashmore’s CEO.

Russia’s invasion of Ukraine, a rising dollar and China’s economic strains gave emerging markets their toughest year on record. Emerging market equities (.MSCIEF) and major developing world fixed income benchmarks are on track to return to negative returns in 2022.

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

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

The company said it kept its full-year dividend per share at 16.9 pence.

($1 = 0.8666 pounds)

Reporting by Karin Strohecker; Edited by Tom Wilson

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