Ashmore reports sharp drop in revenues, but flags optimistic outlook

Ashmore´s full-year revenues and assets under management came under pressure during the company´s last financial year, even as management sounded an optimistic note on the prospects for the emerging market space.

The emerging markets investment manager reported an 18% drop in net revenues to £232.5m for the full year ending on 30 June, alongside a 10.7% fall in its assets under management to $52.6bn.

However, Ashmore chief Mark Coombs emphasised the fund manager´s "consistent investment process" which was designed to look through cycles, adding to risk during weaker markets, which "usually" provided string outperformance for clients as markets recovered.

Indeed, Coombs highlighted the ongoing challenges in the developed world, such as high indebtedness, political risk and reluctance to reform, which were not priced-in. In his opinion, that was reason enough for investors to shift or increase allocations towards the emerging market space.

Opertating costs during the reporting period were cut 7% to £92.3m, despite which profits before tax declined 8% to £167.5m and earning per share by 7% to 18.1p.

The investment manager proposed a final dividend per share of 12.1p, giving 16.65p total dividend per share for the year.