Market turmoil hits assets at fund manager Ashmore

Turmoil in the markets has weighed down on fund manager Ashmore as it revealed a 9% slump in assets over the past year.

The FTSE 250 company told investors on Friday that its total assets under management slid to 83.6 billion US dollars (£65.2 billion) for the year to June after being rocked by market volatility.

Chief executive Mark Coombs said he believed the Ashmore Group had delivered a “solid” performance over the 12 months as it came up against a “backdrop of significant market dislocation”.

He said the company’s investment processes are now outperforming the sector as the markets continue to recover and client flows have stabilised.

It reported that profit before tax increased by 1% year on year to £221.5 million, as it decreased its operating costs.

The firm added that its “team-based culture” means that office working is optimal but said employees’ welfare is integral in determining how its staff return to the workplace.

Mr Coombs said: “The economic and social effects of the virus will continue for some time and the medium to long-term impact remains uncertain.

“However, the huge diversity of emerging markets means that countries will be affected and will respond differently, thereby providing a wide range of potential return scenarios for active managers.

“This provides clear incentives for investors to increase allocations to both equity and fixed-income markets in the emerging world and therefore supports the medium-term growth opportunity for Ashmore’s specialist approach.”