Ashmore Investment Group reported a 58% drop in full-year pretax profits and a double-digit drop in net revenue on Friday, citing widespread risk aversion as a result of the Ukraine war, as well as inflation and higher rates globally.
The emerging markets-focused asset manager made £118.4 million ($136.62 million) in profit before tax in the fiscal year ending June 30. Year on year, net revenue fell 13% to £257.2 million.
“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 surging dollar, and China’s economic woes have combined to make this the most difficult year on record for emerging markets. In 2022, emerging market stocks and key fixed income benchmarks in developing economies are expected to deliver negative returns once more.
Ashmore, based in London, reported that its assets under management had fallen by $64 billion by the end of June, due to net outflows of $13.5 billion and negative investment performance of $16.6 billion.
According to the company’s statement, net management fees were £243.5 million, while performance fees were £4.5 million.
The company stated that its full-year dividend per share would remain at 16.9 pence.
(Adapted from FinancialPost.com)