- Wednesday, October 16, 2024
Ashmore Group, an emerging markets assets manager, announced a decline in pretax profit for fiscal year 2023. The company cited a weaker first half-year due to tightening policy rates, banking failures, and geopolitical tensions. However, they also highlighted that market conditions in emerging markets are showing signs of recovery.
In the year ended June 30, pretax profit fell to £111.8 million ($140.5 million), compared to £118.4 million in fiscal 2022. Analysts had anticipated a pretax profit of £114.1 million, based on a consensus of estimates from nine brokers.
Net revenue, adjusted for distribution costs and foreign exchange, decreased to £196.4 million from £262.5 million the previous year. The decline in net management fees, amounting to £183.2 million from £243.5 million, reflected a 13% decrease in assets under management and a 1 basis point drop in the net management fee margin to 38 basis points.
Despite the challenging conditions, Ashmore's board declared a stable dividend of 12.1 pence.
Ashmore's Chief Executive, Mark Coombs, expressed optimism about the future outlook, stating that there is growing evidence of a positive turnaround. He emphasized that while the recovery may not be linear, it is supported by improving fundamentals in major emerging countries. Coombs believes that Ashmore is well-positioned to benefit from the recovery in emerging markets.
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