The shares of Ashmore subsided as the majority shareholders and chief executives, as well as majority owner of the emerging markets-focused fund manager, disclosed plans to sell his spike, concealing a rise in assets under management.

Owning 39 percent of the London-listed fund manager’s shares, Mark Coombs told he would look to diminish his pole to a “more appropriate level” over the mid-term by selling up to 4 percent a year into the market.

UBS analyst Michael Werner told, “We think this approach is appropriate and helps to address some of the longer-term issues that may arise from a CEO with a large stake ” in a client note tagging a “neutral” rating on the stock.

Ashmore shares were down to 6.3 percent at 387.4 pence at 0912 GMT, pushing them among the largest fallers on the FTSE mid-cap index.

Total assets were $76.7 billion at the end of December, Ashmore told, buoyed by $2.4 billion in new funds from both institutional and retail clients. Revenues rose up to 13 percent due to currency gains, as well as higher management fee income, but pretax profit fell down 6 percent on the behind of mark-to-market losses from new funds it had instituted with its own money.

Coombs told the outlook for Ashmore in 2019 was positive after a “ respectable operating performance” in the initial six months of its fiscal year.

He told, “The emerging markets are in good health with high GDP growth, low inflation, attractive valuations and, after a slight pause in allocations at the end of 2018, there is renewed momentum in capital flows”.

 

Related Articles
Next Story
Going Viral
Theresa May Set Up Brexit Department to Prevent Boris Johnson Handling Brexit Negotiation

Theresa May Set Up Brexit Department to Prevent Boris Johnson Handling Brexit Negotiation

by Susmita February 11, 2020
Jeremy Hunt claims that Theresa May plans to set up the Brexit department to stop Boris Johnson handling Brexit negotiations as foreign secretary. Mr Hunt said Mrs May made a "deliberate decision" to sideline the then Foreign Secretary Mr Johnson. The decision to create the now-defunct department was "a deliberate decision to take Brexit out of the hands of the Foreign Office while Boris (Johnson) was foreign secretary". While talking...