REG-Ashmore Group Plc Trading Statement

Released : 16/07/2009 06:00:00
RNS Number : 7555V  
Ashmore Group PLC  
16 July 2009  
 Ashmore Group plc  
+0700 16 July 2009   
Ashmore Group plc ("Ashmore", the "Group"), a leading specialist emerging 
markets asset manager, announces the following trading update and Assets under 
Management ("AuM") statement in respect of the period ended 30 June 2009.  
Assets under Management    
                       Actual           Estimated        Estimated  
  Theme                31 March         30 June          Movement   
                       2009             2009             Q3vsQ4     
                       (US$ billion)    (US$ billion)    (%)        
  External Debt        14.4             16.0             +11%       
  Local Currency       4.6              4.5              -2%        
  Special Situations   4.4              4.3              -2%        
  Equity               0.1              0.1              -          
  Total                23.5             24.9             +6%        
The final quarter of the financial year ended 30 June 2009 saw AuM increase by 
US$1.4 billion (6%) to US$24.9 billion.  This increase comprises investment 
performance of US$1.9 billion, arising in external debt and local currency, 
partially offset by net redemptions of US$0.5 billion, solely within the local   
currency theme.  
During the financial year ended 30 June 2009, AuM decreased to US$24.9 billion 
from US$37.5 billion. Investment performance was US$5.1 billion adverse; US$7.1 
billion adverse in the first half, and US$2.0 billion positive in the second 
half.  Net redemptions in the period were US$7.4 billion, of which US$5.7 
billion arose in the first half of the year across all themes, largely 
reflecting the liquidity needs of our clients in the extreme market conditions. 
Over the second half, redemptions have slowed significantly, while subscription 
levels have begun to increase within both public funds and segregated mandates, 
with net subscriptions achieved in May and June.     
The expansion of the average revenue margin experienced in the first half, 
principally because of the AuM mix, has been impacted by the timing and make up 
of external debt and local currency redemptions at the back end of the first 
half, and through the second half. This has resulted in the average revenue 
margin for the final quarter returning to the FY07/08 level of 103bps.    
The results for the full year ended 30 June 2009 are in-line with management 
expectations in the current operating environment.  The loss for the year in 
respect of FX hedge contracts is £42.8 million (6 months to 31 December 2008: 
£54.2 million), of which £4.5 million (6 months to 31 December 2008: £12.7 
million) relates to the mark-to-market of forward contracts to partially hedge 
FY09/10 management fees. These FY09/10 forward contracts have an aggregate 
notional value   
of US$120 million, marked at the year end rate of GBP1:1.6458USD.  Any future 
gains or losses on these contracts will arise from deviations from this year end 
The Group will announce its results in respect of the financial year to 30 June 
2009 on   
15 September 2009. There will be a presentation for analysts at 0900 on that 
date at the offices of Goldman Sachs at Peterborough Court, 133 Fleet Street 
London EC4A 2BB. A copy of the presentation will be made available on the 
Group's website at  
For further information, please contact:  
Ashmore Group plc      
Graeme Dell, Group Finance Director +44 (0)20 3077 6000  
Penrose Financial     +44(0)20 7786 4888   
Gay Collins                                  +44(0)7798 626282   
This information is provided by RNS  
The company news service from the London Stock Exchange