Ashmore Drops on Lower Performance Fees Booked in August

Ashmore Group Plc (ASHM), a U.K. fund manager focusing on emerging markets, declined in London trading after performance fees fell 57 percent.

The stock dropped 3.7 percent to 385 pence a share, giving the company a market value of 2.73 billion pounds ($4.3 billion). The annual fees for funds booked at end of August dropped to 18.8 million pounds from 43.5 million pounds a year- earlier, the London-based firm said today in a statement.

“This number is a little disappointing albeit not unexpected given the degree of market dislocation prevailing throughout August,” Mark Williamson, a London-based analyst at Peel Hunt with a “buy” rating on Ashmore, wrote in a note to clients today.

Ashmore, which has almost half its assets invested in emerging-market debt, has risen 13 percent in London trading this year even though inflation has slowed growth in developing economies such as China and Argentina. Ashmore’s flagship Emerging Markets Liquid Investment Portfolio fund, with $4.2 billion of assets, is up 9.9 percent this year beating 98 percent of rivals, according to data compiled by Bloomberg.

Net income climbed to 189 million pounds in the 12 months to June 30, from 160 million pounds a year earlier, the company said. That beat the 180 million-pound estimate of 14 analysts surveyed by Bloomberg.

“This was broadly a good year for the group, with strong growth in assets under management from both out-performance and net subscriptions,” Chief Executive Officer Mark Coombs said in the statement.

Ashmore will pay a second-half dividend of 10.34 pence a share, bringing the year’s payout to 14.5 pence a share. The firm paid 13 pence a share in the year to June 30, 2010.

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