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Mark Coombs: Buy emerging markets on the dips

 

Nick Goodway
Tuesday 25 February 2014 08:59 EST
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Billionaire fund manager Mark Coombs, founder and chief executive of Ashmore, reckons that the recent turmoil in emerging markets presents strong buying opportunities for investors.

His remarks came as Ashmore reported a 33% fall in first-half profits to £79.5 million after a number of clients who had dipped into emerging markets in early 2013 pulled out as soon as the turmoil started. As previously announced, assets under management fell 2.7% to £75.3 billion in the six months to December. Profits were also hit by the strength of sterling against the dollar which caused a £30 million markdown to markets.

Finance director Tom Shippey’s picks are China, where Ashmore has become the first non-Chinese firm to be given access to a wide range of domestic securities, Korea, which he says is being export driven, and the whole of Africa.

Ashmore is raising its first-half dividend from 4.35p a share to 4.45p, which means Coombs, who owns 42% of the business, picks up a cheque for £13 million.

The shares dropped 23p to 317p.

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