Somerset CM profits fall 25% and AUM slips 20%

Financial year 'clearly divides pre- and post-Covid-19'

Emerging market specialist boutique Somerset Capital Management saw profits fall by almost a quarter and assets under management (AUM) by a fifth in the 12 months to 31 March 2020, despite net inflows.

Somerset said revenues in the period fell to £34m in its full-year results, from £38.8m the year before, with profits slipping to £14.9m, from £19.5m in 2019. While the 12 month period saw net inflows to the firm's mandates of £33m, negative market moves due to the Covid-19 pandemic combined to push AUM down to £4.5bn at its year-end, compared to £5.6bn last year. However, the firm's AUM had almost fully recovered those losses, reaching £5.4bn by 31 July 2020. Inflows in 2020 as at 31 July added up to £310m. SJP replaces Janus Henderson with Somerset CM on EM fund CEO Dominic Johns...