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Ashmore pretax profit slips 23% on outflows, investment performance

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LONDON (Reuters) – Ashmore Group saw its pretax profit drop 23% in the six months to the end of 2021 as net outflows and poor investment performance hit the emerging markets investment firm’s assets under management.

The firm delivered a pretax profit of 116 million pounds ($157.05 million) during the six months ending Dec. 31 compared to the same period the previous year. Adjusted diluted earnings per share slipped by 19% 10.4 pence.

A negative investment performance to the tune of $3.9 billion and net outflows of $3.2 billion saw its assets under management shrink to $87.3 billion in the period.

“These financial results reflect the negative sentiment towards Emerging Markets assets at this point in the cycle,” Mark Coombs, chief executive officer of Ashmore Group said in a statement, adding he expected headwinds for developing market assets to fade.

“Emerging Markets typically outperform in a period of rising U.S. interest rates, so a Fed rate move should be a significant catalyst,” he added.

Emerging market equities dropped nearly 5% in 2021.

The firm said it would maintain its interim dividend at 4.80 pence.

($1 = 0.7386 pounds)

Ashmore pretax profit slips 23% on outflows, investment performance

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