Asset manager Ashmore suffers due to war, inflation and high rates but looks to improving conditions

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Emerging Markets asset manager the Ashmore Group suffered due war, inflation and higher interest rates, but hopes the next 12 months offers potential for better conditions.

The group registered $64bn assets under its management but 13 per cent lower net revenue year-on-year for the year ending 30 June.

 Its statutory profit before tax declined by 58 per cent to £118.4 million, with weak and volatile markets allowing the acquiring of risk at oversold prices. 

It looked ahead to the next 12 months saying there is potential for inflation to moderate, allowing better macroeconomic conditions, while emerging markets’ increasing diversity could mitigate risks. 

“While the global macro environment still presents some near-term uncertainty, the situation in Emerging Markets is improving and the breadth of investment opportunity helps to mitigate the risks”, said  Mark Coombs, chief executive of Ashmore Group.

Saying its “investment approach has been proven across many different market cycles”, Ashmore hoped “risk appetite will improve as some of the recent macro headwinds abate, supporting a recovery in Emerging Markets asset prices and higher investor allocations.