REG-Ashmore Group Plc Interim Management Statement

Released : 15/01/2009

http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20090115:RnsO6665L
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RNS Number : 6665L  
  
Ashmore Group PLC  
  
15 January 2009  
  
Ashmore Group plc  
  
+0700 15 January 2009   
  
SECOND QUARTER ASSETS UNDER MANAGEMENT UPDATE  
  
Ashmore Group plc ("Ashmore", the "Group"), a leading specialist emerging 
markets asset manager, announces today the following update on its assets under 
management ("AuM") in respect of the quarter ended 31 December 2008.  
  
Assets under Management ("AuM")   
  
 
                       Actual          Estimated       Estimated                  
  Theme                AuM             AuM             Movement vs 30 Sept 2008   
                       30 Sep 2008     31 Dec 2008     (%)                        
                       (US$billion)    (US$billion)                               
  Dollar Debt          19.2            14.7            -23.4                      
  Local Currency       7.4             5.4             -27.0                      
  Special Situations   5.0             4.4             -12.0                      
  Equity               0.3             0.1             -66.7                      
  Total                31.9            24.6            -22.9                      
  
  
The quarter saw assets under management fall 22.9% to US$24.6 billion, 
reflecting a continuation of the turbulent markets seen in the first quarter.  
The constituents were US$4.2bn of performance, and US$3.1bn of net outflows.   
  
Following a particularly aggressive fall in October, all relevant indices ended 
the quarter down, some significantly, and our performance reflects this.  There 
have been signs subsequently that markets are stabilising, with December 2008 
providing the first overall positive performance month across all themes since 
May 2008.    
  
The net outflows are relatively modest given the prolonged market uncertainty, 
and redemptions have largely reflected the liquidity needs of clients, rather 
than any adverse allocation to EM assets.   
  
There remain significant investment opportunities for our funds, where 
valuations have been driven lower by uncertainty surrounding the economic 
backdrop and reduced market liquidity, yet underlying business fundamentals are 
strong.  
  
In line with the Group's stated policy, FX hedges are undertaken through forward 
contracts.  FY08/09 management fees, reported in GBP, will not benefit from the 
current strength of the US Dollar, being fully hedged at current AuM levels at a 
rate of GBP1:1.95USD.  Hedge contracts of US$100m are also in place to partially 
hedge FY09/10 management fees at a rate of GBP1:1.79USD.  Under IFRS, the open 
hedge contracts are required to be marked-to-market as at 31 December 2008, 
whereas corresponding FX differences on management fees will only arise as those 
management fees are recognised in subsequent periods. This will create timing 
difference in the Interim Results and, to a lesser extent, the Final Results.    
  
The Group remains focused on its stated strategy to deliver long term investment 
outperformance; generate and diversify net management fee income through the 
attraction of net subscriptions across investment themes; and develop the 
Ashmore brand and business model.  The balance sheet remains strong, with cash 
balances of £300m, placing the Group in an excellent position to deliver on this 
strategy.    
  
Ashmore will announce its interim results in respect of the six months ended 31 
December 2008 at 0700 hours on 24 February 2009.  
  
For further information, please contact:  
  
Ashmore Group plc                        +44 (0)20 3077 6000  
  
Graeme Dell, Group Finance Director +44 (0)20 3077 6157   
  
Penrose Financial     +44(0)20 7786 4888   
  
Gay Collins / Jesper Lofgren             +44(0)7798 626282  
  
Ashmore@penrose.co.uk   
  
 
This information is provided by RNS  
  
The company news service from the London Stock Exchange  
  
  END  
  
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