Share Dealing
Ashmore shares continue to fall after poor interim results
Dan Kilpatrick, 13 October 2011
Shares in Ashmore Group plunged this morning, following a disappointing interim management statement.
Shares were trading down 4.83 per cent at 315.40 pence at 10.30am, after rallying yesterday.
The news follows the group's announcement that assets under management had decreased 10.5 per cent to US $5.9 billion (£3.75 billion) for the period to 30 September 2011.
The asset management firm said the primary factor in this reduction was the poor investment performance of $7.1 billion (£4.5 billion).
Ashmore also saw outflows of $370 million (£235 million), in excess of the $220 million (£139 million) notified on 31 May 2011 and said this would 'result in a modest reduction of the upfront consideration'.
The group's shares had dropped on Tuesday after a weak September performance at some of its funds.
Analysis by Peel Hunt found that its Local Currency Debt Fund dropped by 10.2 per cent, with its Emerging Market Liquid Investment Fund falling by 8 per cent.
The management statement acknowledged falls in September, citing 'market volatility' resulting from the uncertain economic conditions in the United States and the Eurozone.
However, it continued, 'recent global economic events reinforce the fundamental attractiveness of the emerging markets asset classes.'
'In our experience over many cycles these market conditions provide some of the best investment opportunities, and we are actively informing current and potential clients that this is exactly the time to be adding steadily to emerging markets.'
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