REG-Ashmore Group Plc Third Quarter Interim Managem

Released : 16/04/2009

http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20090416:RnsP6435Q
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RNS Number : 6435Q  
  
Ashmore Group PLC  
  
16 April 2009  
  
Ashmore Group plc  
  
+0700 16 April 2009   
  
THIRD QUARTER INTERIM MANAGEMENT STATEMENT  
  
Ashmore Group plc ("Ashmore", the "Group"), a leading specialist emerging 
markets asset manager, announces today the following interim management 
statement in respect of the period ended 31 March 2009.  
  
Assets under Management ("AuM")     
  
 
                       Actual               Estimated                    
  Theme                AuM                  AuM               Movement   
                       31 December 2008     31 March 2009                
                       (US$billion)         (US$billion)      (%)        
  External Debt        14.7                 14.4              -2%        
  Local Currency       5.4                  4.6               -15%       
  Special situations   4.4                  4.4               0%         
  Equity               0.1                  0.1               0%         
  Total                24.6                 23.5              -4%        
  
  
The quarter saw assets under management fall marginally to US$23.5 billion as a 
result of net redemptions of US$1.2 billion. These were most visible in the 
Local Currency funds, where the recent dollar strength and extreme volatility in 
local currencies have seen inflows slow, and some outflows. However, the long 
term prospects for the growth of the Local Currency theme remain extremely 
positive.  The modest decline in External Debt AuM reflects recent favourable  
sentiment in this asset class, with more attractive yields and some 
well-received new sovereign issuance. Furthermore, the inclusion of a 
substantial investment in corporate high yield assets, within this theme, 
underlines our view of the significant opportunity they currently present. AuM 
in Special Situations was flat on the prior quarter - reflecting the long term 
nature of the funds and a stabilisation in asset values - and looking forward we 
see excellent investment opportunities in this theme. Investment performance 
overall for the quarter was positive US$0.1 billion.  
  
The emerging market participation in the recent G20 Summit, and the agreement 
for the provision of additional funding for the IMF are extremely positive for 
the emerging markets asset class.  The underlying economies of many emerging 
markets countries remain relatively strong, despite being impacted by the 
problems of the developed world.  This misalignment creates significant value 
opportunities, which we believe will become increasingly apparent to investors, 
as those developing economies begin to emerge from the current difficulties 
first.  Although asset raising is particularly challenging at this time, as we 
indicated at the time of our interims and as is often the case when conditions 
are ripe for investment, we continue to see significant investment opportunities 
for our funds.  
  
The Group's strategy remains consistent; 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. With our strong product offering, and healthy 
balance sheet, we are extremely well positioned for recovery.    
  
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                                                   +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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