Ashmore Group has reported that pre-tax profit fell 34 per cent to £170.3m in the year to June 30 2014, citing the impact of sterling’s strength on its results.
The emerging market asset manager announced that assets under management also fell during the year from US$77.4bn to $75bn.
Net revenue for the year was 26 per cent lower than in the previous year at £262.9m, which the group has attributed to the strength of sterling against the US dollar and a lower contribution from performance fees.
It confirmed that earnings before interest, tax, depreciation and amortisation (EBITDA) was £174.7m in the year to end of June, compared to £252.2m a year earlier.
Mark Coombs, chief executive of Ashmore Group, said its full-year results reflected the impact of market volatility during the period.
He added: “Emerging nations are generally in good health; aggregate GDP growth in emerging markets was 4.5 per cent in 2013 and is expected to be higher still in 2014, inflation is at acceptable levels, and FX reserves remain strong.
“This is an important backdrop as the global economy evolves; developed markets are weaning themselves off unprecedented monetary policy experiments while emerging markets need to decide how to manage substantial FX reserves in the face of potential foreign currency weakness. This will lead to greater balance and rising emerging markets relevance in investment portfolios.”
Shares in Ashmore Group were trading down 5.42 per cent at 326.20p at 8.49am today.
