Argo Group (LON:ARGO), the AIM listed emerging markets fund manager, this morning reported that it had seen a steady, profitable performance across all its funds during the first six months of the year. For the period ended June 30, 2010 the group generated revenues of US$5.6m against US$5.8m last year with management fees accounting for US$5.1m against US$5.5 m. Pre-tax profits came in at US$1.2m, down from US$2.0m. Assets under management decreased during the period by 8.3% to US$403.1m. Shares in the company responded with a 4% rise to 13p.
Kyriakos Rialas, Argo’s chief executive, said: “As Argo’s flagship fund enters its 10th year of existence the company continues to produce a steady and profitable performance. During the period Argo paid a dividend and carried out a successful buyback of shares whilst still maintaining its strong balance sheet and liquidity. We are confident that Argo is well-positioned to take advantage of the record levels of recent inflows into emerging markets and that the company will continue to produce positive results.”
Argo's primary business is to deliver a diversified approach to investing in emerging markets. Its investment objective is to provide investors with absolute returns in the six funds that it manages by investing in fixed income, special situations, local currencies and interest rate strategies, private equity, real estate, quoted equities, high yield corporate debt and distressed debt.
Looking ahead, it said it was satisfied with the current company composition in terms of headcount and assets under management. More emphasis is being placed on direct communication with existing and new investors with the purchase of two databases to assist in growing the funds with additional subscriptions. In addition, Argo said it had recently observed greater mobility and a new air of optimism in the market conditions that would affect positively the workout of some of the less liquid and private equity transactions in the funds.
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