Ashmore claims EM turning point despite plummeting profits

investmentweek.co.uk:

Despite the downturn, chief executive Mark Coombs claimed the firm’s consistent strategy was designed to 'mitigate the impact of market volatility'.

In the firm's annual results yesterday (6 September), it revealed its adjusted operating profits declined 35% to £106.2m due to the drop in AUM.

The firm was forced to dip into cash reserves to maintain its dividend of 16.9p throughout the year, which it was able to manage due to a £480m cash reserve with no debt.

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Despite the downturn, chief executive Mark Coombs claimed the firm's consistent strategy was designed to «mitigate the impact of market volatility».

He added: «There is mounting evidence that the negative cycle has turned and, while the recovery may not be a straight line, it is well-supported by improving fundamentals across the larger emerging countries.»

Meanwhile, Ashmore's finance director Tom Shippey said that while emerging markets were «more volatile and more cyclical», they had been performing well since September 2022.

«A weaker dollar is typically good for emerging markets, emerging central banks are ahead of developed world central banks in the rates cycle and the longstanding structural trend that EM grows faster than developed countries still stands,» he added.

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