Investors flee Emerging markets fund manager Ashmore

Investors pulled billions from the emerging markets fund manager Ashmore last year amid fears of China’s economic problems sparking cost cuts by the group to shore up its highly prized dividend.

Ashmore said funds under management fell to $58.9 billion (£38.2 billion) at the end of June, against $75 billion a year earlier, after investors moved their cash.

The company, led by billionaire investor Mark Coombs, managed to post a 6% rise in pre-tax profits to £181.3 million after keeping a lid on bonus payouts and other costs.

An £18 million boost from positive foreign exchange movements also contributed to the profit increase.

Today’s results do not include the impact of this summer’s market tremors in China, which have sparked a 20% decline in the flagship MSCI emerging market equity index since July.

Coombs is still upbeat about his group’s prospects.

“The past year has been challenging, with continued volatility in global markets,” he said.

“Yet the fundamentals across the emerging markets universe ... remain sound.”

Ashmore boosted the full-year dividend 1% to 16.65p.