REG-Ashmore Group Plc Interim Management Statement

Released : 15/10/2009

http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20091015:RnsO8012A
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RNS Number : 8012A  
  
Ashmore Group PLC  
  
15 October 2009  
  
Ashmore Group plc  
  
+0700 15 October, 2009   
  
FIRST 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 30 September 2009.  
  
Assets under Management ("AuM")   
  
 
                         Actual           Estimated                        
  Theme                  AuM              AuM                   Movement   
                         30 June 2009     30 September 2009                
                         (US$billion)     (US$billion)          (%)        
  External debt          14.7             17.6                  20%        
  Local currency         4.2              5.3                   26%        
  Special situations     3.3              3.3                   -          
  Equity                 0.1              0.1                   -          
  Corporate high yield   0.5              0.7                   40%        
  Multi-strategy         2.0              2.0                   -          
  Other                  0.1              2.1                   n/m        
  Total                  24.9             31.1                  25%        
  
  
The quarter saw assets under management increase 25% to US$31.1 billion. The 
drivers of this were net inflows of US$3.6 billion, and positive performance of 
US$2.6 billion.  
  
In line with our experience in previous cycles, inflows have been earliest and 
strongest in the external debt theme, and are now beginning to resume in the 
local currency theme. The significant growth in the level of AuM in the "Other" 
theme is principally in local currency hedging/overlay strategies, where the 
Group's local currency capabilities are applied through an investment process 
tailored to suit different pools of capital. This accords with the Group's 
strategy of diversifying the sources of capital and investment themes offered, 
and whilst it represents the significant majority of AuM in this "Other" theme 
the average theme revenue margin will be significantly lower than the local 
currency theme.  
  
The investment performance during the quarter has been strong across the themes 
except in special situations, where valuations uplifts have lagged listed 
markets, as is usual emerging from stress events. We continue to see positive 
signs in respect of capital market activity - one of the principal drivers of 
revaluations.  
  
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.  
  
Trading conditions are in line with management expectations and the Group 
remains confident of its prospects for the current year.  
  
Foreign exchange  
  
The GBP:USD exchange rate has been relatively stable over the period (30 
September GBP1:1.60 vs 30 June 1.65), with an average rate for the quarter of 
GBP1:1.63USD. Forward foreign exchange contracts over US$30 million have matured 
in the period, effectively at this average rate, and US$90 million remain in 
place in respect of the remainder of FY09/10. These outstanding forwards have 
been marked-to-market at the quarter end rate. In line with the position at 30 
June 2009, there remain in place US$60 million of FX hedges in place for 
FY2010/11, which are hedge-accounted for.   
  
For further information, please contact:  
  
Penrose Financial  
  
Ashmore@penrose.co.uk  
  
Gay Collins  
  
+44 20 7786 4888 / +44 7798 626 282  
  
Elisha Vincent  
  
+44 20 7786 4833  
  
 
This information is provided by RNS  
  
The company news service from the London Stock Exchange  
  
  END  
  
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