RNS Number : 6443H Ashmore Group PLC 25 February 2010 Ashmore Group plc +0700 25 February, 2010 UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2009 Ashmore Group plc ("Ashmore", the "Group"), a leading specialist emerging markets investment manager, today announces its interim results for the six months to 31 December 2009 Highlights Profit before tax up 40% to £112.4 million (2008: £80.3 million) Total net revenue up 42% to £148.8 million (2008: £104.5 million) Net management fees down 13% to £88.4 million (2008: £101.9 million) Performance fees up 9% to £53.3 million (2008: £48.9 million) Foreign exchange gain of £2.7 million (2008: £49.8 million loss) Operating margin of 72% (H1 2009: 70%) Assets under management ("AuM") of US$31.6 billion at 31 December 2009, an increase of US$6.7 billion (27%) from 30 June 2009 Basic EPS of 12.51p (2008: 8.48p) An interim dividend of 3.66p per share will be paid on 1 April 2010 (2008: 3.66p) Commenting on the results Mark Coombs, Chief Executive Officer of Ashmore Group plc said; " The six months ended 31 December 2009 have seen Ashmore achieving a satisfactory financial performance with assets under management increasing by 27% to US$31.6 billion as a result of good net inflows and positive investment performance underpinned by the strategies employed at the bottom of the cycle. "Ashmore remains well positioned to benefit from the opportunity presented by the increased importance of the emerging markets' role within the global order, and increased investor allocations into, and between, emerging markets." Analysts briefing There will be a presentation for analysts at 09.00 on 25th February at the offices of Goldman Sachs at Peterborough Court, 133 Fleet Street, London EC4A 2BB. A copy of the presentation will be made available on the Group's website at www.ashmoregroup.com For further information, please contact: Ashmore Group plc Penrose Financial Ashmore@penrose.co.uk Graeme Dell Gay Collins Elisha Vincent Group Finance Director +44 20 7786 4888 / +44 20 7786 4833 +44 20 3077 6000 +44 7798 626 282 Chief Executive Officer's Statement During the six months ended 31 December 2009 Ashmore Group Plc ("Ashmore" the "Group") achieved a satisfactory financial performance. The assets under management ("AuM") increased by 27% to US$31.6 billion during the period, as a result of good net inflows and positive investment performance. The profit before tax increased by 40% to £112.4 million (H1 2008/09 £80.3 million) resulting in basic earnings per share of 12.51p (H1 2008/09 8.48p). AuM and financial performance AuM development The overall increase of US$6.7 billion in AuM comprised net subscriptions of US$3.9 billion, and positive investment performance of US$2.8 billion. Gross subscriptions were US$5.6 billion which included further subscriptions from existing clients and new segregated mandate and fund launches, which will be outlined in the investment theme reviews below. Gross redemptions declined substantially, as expected, to a level of US$1.7 billion (H1 2008/09: US$8.0 billion) arising principally from clients' continued needs for liquidity, which they often meet through a rebalancing process following periods of strong emerging market performance relative to other asset classes. Revenue analysis The Group's management fee income (net of distribution costs) reduced due to the lower levels of average AuM compared to a year ago and some reduction in average revenue margins to 97 bps (FY2008/09 107bps) arising from theme and client mix effects. Performance fee income increased to £53.3 million, arising principally from strong investment performance for funds with a 31 December 2009 year end. A stable US$: GBP exchange rate in the period contrasted with the extraordinary volatility and dollar strength last year. A small net realised and unrealised foreign exchange gain resulted, compared to the significant losses of last year. Overall the Group's net revenue increased by 42%, from £104.5 million to £148.8 million. Operating costs and margins The Group's tightly controlled cost structure has been maintained, with its low proportion of recurring costs and large proportion of variable performance-related costs. Recurring personnel costs have increased in line with the planned additions to headcount, bringing total employee numbers within the Group to 156 (30 June 2009:142; 31 December 2008:138). Variable compensation including performance-related bonuses, share based payments and associated social security costs is calculated as a percentage of earnings before variable compensation, interest and tax "EBVCIT". This has been accrued at a rate of 20%, (H1 2008/09:20%; FY2008/09:14%). Investment theme reviews External debt External debt, our longest established and largest theme, comprises principally US Dollar and other hard currency denominated instruments, which may include derivatives, investing principally in sovereign bonds. AuM at 31 December 2009 were US$17.6 billion, an increase of US$2.9 billion (20%) from 30 June 2009, with net subscriptions accounting for US$0.8 billion and positive performance of US$2.1 billion. In line with the third phase of our strategy, to mobilise emerging markets capital, the subscriptions include significant additional inflows from existing emerging market central bank & sovereign wealth fund clients. During the period the theme contributed £37.5 million in management fees at an average margin of 73 bps, and £33.5 million of performance fees (H1 2008/09: £42.7 million; 86 bps; and £17.4 million). Local currency The local currency investment theme comprises local currency and local currency denominated debt instruments, which may include derivatives, investing in FX and mainly sovereign bonds. AuM at 31 December 2009 were US$5.7 billion; an increase of US$1.5 billion (36%) from 30 June 2009, with net subscriptions of US$0.9 billion and positive performance of US$0.6 billion. Included in net inflows were three new mandates: a central government pension fund, a US based family office and, within one of our local asset management subsidiaries, a new mandate from a family office. During the period the theme contributed £15.3 million in management fees at an average margin of 96 bps, and £12.8 million of performance fees (H1 2008/09: £22.4 million; 117 bps; and £14.9 million). Special situations The special situations theme comprises investments in both distressed debt (principally for control) and/or private equity. AuM at 31 December 2009 were US$3.1 billion, a decrease of US$0.2 billion (6%) from 30 June 2009. Net redemptions were US$0.1 billion and there was negative investment performance of US$0.1 billion. Redemptions included an amount of US$0.1 billion in respect of the payment of a first realised profit distribution from the GSSF4 fund in December. During the period the theme contributed £21.2 million in management fees at an average margin of 215 bps, and £4.5 million of performance fees (H1 2008/09: £21.4 million; 185 bps; and £16.2 million). Equity The equity investment theme comprises public equity and equity-related securities. The instruments invested in by the funds can include equities, warrants and equity derivatives. AuM at 31 December 2009 were US$0.2 billion, an increase of US$0.1 billion from 30 June 2009 with positive investment performance of US$0.1 billion. During the period the theme contributed £0.8 million in management fees at an average margin of 186 bps, and £2.4 million of performance fees (H1 2008/09: £0.9 million; 112 bps; and £0.1 million). Corporate high yield The corporate high yield theme comprises investments in corporate debt within emerging markets. This asset class offers investors a risk-return profile distinct from other segments of emerging markets fixed income. AuM at 31 December 2009 had increased by 40% to US$0.7 billion from US$0.5 billion at 30 June 2009 including net subscriptions of US$0.2 billion. During the period the theme contributed £3.4 million in management fees at an average margin of 173 bps, and £0.1 million of performance fees (H1 2008/09: £2.6 million; 192 bps; and nil). Multi strategy The multi-strategy funds supplement the core product range, investing into the five core themes and any new themes where appropriate. They include Ashmore Global Opportunities Limited, a permanent capital vehicle, which listed on the LSE in December 2007. AuM at 31 December 2009 were US$2.0 billion, with no change from 30 June 2009. Net redemptions were US$0.1 billion with positive investment performance of US$0.1 billion. During the period the theme contributed £9.2 million in management fees at an average margin of 145 bps, and no performance fees (H1 2008/09: £11.8 million; 132bps; and £0.3 million). Other This includes new themes developed in line with our strategy to diversify our capabilities and investor base. At 31 December 2009 this included fund of third party funds, real estate, overlay/hedging strategies and liquidity management including the liquidity fund, with its Standard & Poor's "AAAm" rating, which is principally used to manage the cash components of the underlying Ashmore funds retained for liquidity purposes. AuM at 31 December 2009 were US$2.3 billion up from US$0.1 billion at 30 June 2009. Net subscriptions were US$2.2 billion which included a significant new currency overlay mandate for a central government pension fund and a first close of a small dedicated real estate fund in December. During the period the theme contributed £1.0 million in management fees at an average margin of 22 bps (H1 2008/09: £0.1 million). AuM movements by investment theme as classified by mandate AuM at AuM at Av mgt 30 June Net subs Net 31 December fee 2009 (reds) performance 2009 margin Investment theme US$bn US$bn US$bn US$bn bps External debt 14.7 0.8 2.1 17.6 73 Local currency 4.2 0.9 0.6 5.7 96 Special situations 3.3 (0.1) (0.1) 3.1 215 Equity 0.1 - 0.1 0.2 186 Corporate high yield 0.5 0.2 - 0.7 173 Multi strategy 2.0 (0.1) 0.1 2.0 145 Other 0.1 2.2 - 2.3 22 Total 24.9 3.9 2.8 31.6 97 Balance sheet, cash flow, seeding & foreign exchange Balance sheet It is the Group's policy to maintain a strong balance sheet in order to support regulatory capital requirements, to meet the commercial demands of current and prospective investors, and to fulfil the development needs across the business including funding the establishment costs of local asset management ventures and seeding new funds. As at 31 December 2009, total equity attributable to shareholders of the parent was £331.9 million (31 December 2008: £262.3 million; 30 June 2009: £308.5 million). There is no debt on the Group's balance sheetand information regarding the principal risks, uncertainties and related party transactions is provided in the accompanying notes to the financial statements. Cash flow Cash has decreased during the six months to 31 December 2009 from £288.4 million to £269.3 million. The Group's operating activities remain highly cash generative but in contrast to H1 2008/09, the majority of performance fees were related to funds having a 31 December year end and were received in January 2010. These resulted in the significantly increased levels of trade and other receivables and payables at 31 December 2009. Material non-operating cash outflows during the period were dividends (£57.2 million), purchase of available for sale investments (£5.6 million), purchase of own shares (£5.1 million) and purchase of non-current assets held for sale (£3.0 million). Seeding The Group supports the creation of new business by seeding new funds where necessary. As at 31 December 2009 the amount invested was £24.9 million (at cost) with a market value of £40.3 million. During the period amounts previously classified as non-current assets held for sale were reclassified as available for sale assets as they are no longer controlled by the Group. Upon this reclassification a profit of £4.6 million was recognised in the income statement which is characterised as finance income, together with the Group's interest income, reflecting the nature of the activity. Foreign exchange The Group's foreign exchange hedging policy of hedging up to two thirds of its foreign exchange exposure in connection with net management fees for up to two years forward has remained in force. At the beginning of the period the level of foreign exchange hedges in place was US$180 million and this fell to US$120 million at 31 December 2009 through the contractual expiry of the forward foreign exchange contracts at the effective average exchange rate for the period. No further hedging transactions were undertaken in the period given the less attractive GBP:USD rates available compared with those forecast. The balance at 31 December 2009 consisted of US$60 million forward foreign exchange contracts for the remainder of the financial year, and an option collar protecting the sterling value of US$60 million of management fee revenue from being impacted by currency movements outside the range of GBP 1.52 - 1.70 US$ for FY2010/2011. The current year forwards have been marked to market at the period end rate of GBP: US$ 1.617, whilst, as designated hedges, the mark to market movements in the value of the options continue to be taken through reserves. Dividend The Board has determined that an interim dividend of 3.66 pence per share (2008: 3.66 pence) per share will be paid on 1 April 2010 to all shareholders who are on the register on 12 March 2010. Strategy and outlook Over the last six months the team at Ashmore has maintained its focus on the execution of the Group's stated strategy. Investment performance, underpinned by the strategies employed at the bottom of the cycle, has been strong, with 98% by AuM of those accounts managed to benchmarks outperforming their benchmarks over 12 months. Asset raising remains a challenge, but work on new opportunities, projects and initiatives that were outlined in September has continued apace. A number of new fund launches have been completed, although at smaller sizes than pre-crisis as always at this time in the cycle. New segregated and dual brand mandates have also been won. At the current time the quantum and range of activities in progress has increased further, with a number of major institutional RFPs underway. During the period the world has slowly continued to progress out of the credit crisis and its immediate aftermath. We are seeing clearly that this process is not universal. A number of economies traditionally viewed as developed have taken a major backwards step relative to the larger emerging markets. This emphasises the three views we have consistently expressed: the increased importance of the emerging markets' role within the global order; that there will be increased allocations from investors towards emerging markets; and ultimately, that the largest source of capital to manage over the long term remains the capital from within the emerging markets. Ashmore remains well positioned to benefit from the opportunity presented and continues to add the resources necessary to take full advantage over the long term. Mark Coombs Chief Executive Officer 25 February 2010 Consolidated Statement of Comprehensive Income Unaudited Unaudited Audited 6 months to 6 months to 12 months to 31 December 2009 31 December 2008 30 June 2009 Note £m £m £m Management fees 89.4 104.6 186.8 Performance fees 53.3 48.9 52.5 Other revenue 4.4 3.5 6.4 Total revenue 2 147.1 157.0 245.7 Less: Distribution costs (1.0) (2.7) (3.6) Add: Foreign exchange 3 2.7 (49.8) (38.6) Net revenue 148.8 104.5 203.5 Personnel expenses (32.9) (23.2) (36.0) Other expenses (9.2) (8.1) (16.9) Operating profit 106.7 73.2 150.6 Finance income 4 5.7 7.1 9.2 Profit before tax 112.4 80.3 159.8 Tax expense (28.1) (23.3) (44.3) Profit for the period 84.3 57.0 115.5 Other comprehensive income: Exchange adjustments on - 0.7 0.5 translation of foreign operations Net gains on 6.2 0.6 2.3 available-for-sale financial assets including deferred tax Gains on (4.6) - - available-for-sale financial assets previously recognised directly in equity Total comprehensive 85.9 58.3 118.3 income for the period Attributable to: Equity holders of the 85.5 58.2 117.8 parent Minority interest 0.4 0.1 0.5 Total comprehensive 85.9 58.3 118.3 income for the period Earnings per share: Basic 5 12.51p 8.48p 17.12p Diluted 5 11.74p 7.90p 15.99p Consolidated Balance Sheet Unaudited Unaudited Audited As at As at As at 31 December 2009 31 December 2008 30 June 2009 Note £m £m £m Assets Property, plant and equipment 4.3 4.0 4.6 Intangible assets 6.7 6.7 6.7 Deferred acquisition costs 10.3 12.4 11.3 Other receivables 0.7 1.0 0.9 Deferred tax assets 18.1 8.0 14.0 Total non-current assets 40.1 32.1 37.5 Trade and other receivables 157.4 32.9 33.1 Available-for-sale financial 7 36.2 - 4.8 assets Derivative financial 0.2 - 0.8 instruments Cash and cash equivalents 269.3 301.8 288.4 Total current assets 463.1 334.7 327.1 Non-current assets held for 8 16.9 16.6 34.8 sale Total assets 520.1 383.4 399.4 Equity Issued capital - - - Share premium 0.3 0.3 0.3 Retained earnings 331.6 262.0 308.2 Total equity attributable to 331.9 262.3 308.5 equity holders of the parent Minority interests 2.1 2.4 2.0 Total equity 334.0 264.7 310.5 Liabilities Deferred tax liabilities 4.1 2.1 1.5 Total non-current liabilities 4.1 2.1 1.5 Current tax 24.9 20.3 24.0 Derivative financial 2.6 41.4 5.0 instruments Trade and other payables 149.2 54.9 51.0 Total current liabilities 176.7 116.6 80.0 Non-current liabilities held 8 5.3 - 7.4 for sale Total liabilities 186.1 118.7 88.9 Total equity and liabilities 520.1 383.4 399.4 Consolidated Statement of Changes in Equity Total equity attributable to equity holders of the parent Issued Share Retained Minority Total capital premium earnings interest equity £m £m £m £m £m £m Audited - 0.3 271.5 271.8 1.5 273.3 balance at 1 July 2008 Total - - 58.2 58.2 0.1 58.3 comprehensive income for the period Issue of share - - - - 0.8 0.8 capital Treasury - - (6.5) (6.5) - (6.5) shares Share based - - 0.9 0.9 - 0.9 payments Current tax - - 0.2 0.2 - 0.2 related to share based payments Deferred tax - - (5.3) (5.3) - (5.3) related to share based payments Dividends to - - (57.0) (57.0) - (57.0) equity holders Unaudited - 0.3 262.0 262.3 2.4 264.7 balance at 31 December 2008 Total - - 59.6 59.6 0.4 60.0 comprehensive income for the period Own shares - - (0.8) (0.8) - (0.8) Treasury - - (0.4) (0.4) - (0.4) shares Share based - - 7.3 7.3 - 7.3 payments Deferred tax - - 5.4 5.4 - 5.4 related to share based payments Dividends to - - (24.9) (24.9) - (24.9) equity holders Other movement - - - - (0.8) (0.8) Audited - 0.3 308.2 308.5 2.0 310.5 balance at 30 June 2009 Total - - 85.5 85.5 0.4 85.9 comprehensive income for the period Own shares - - (12.4) (12.4) - (12.4) Share based - - 4.3 4.3 - 4.3 payments Deferred tax - - 3.2 3.2 - 3.2 related to share based payments Dividends to - - - - (0.3) (0.3) minority interests Dividends to - - (57.2) (57.2) - (57.2) equity holders Unaudited - 0.3 331.6 331.9 2.1 334.0 balance at 31 December 2009 Consolidated Cash Flow Statement Unaudited Unaudited Audited 6 months to 6 months to 12 months to 31 December 2009 31 December 2008 30 June 2009 Note £m £m £m Operating activities Cash receipts from 100.6 159.2 198.9 customers Cash paid to suppliers (27.2) (51.1) (48.0) and employees Cash generated from 73.4 108.1 150.9 operations Taxes paid (26.0) (28.2) (47.7) Net cash from operating 47.4 79.9 103.2 activities Investing activities Interest received 1.2 6.6 9.3 Acquisition of - (3.7) (3.7) subsidiary Net purchase of (3.0) - (6.9) non-current assets held for sale Net purchase of (5.6) - (4.7) available-for-sale financial assets Purchase of property, (0.4) (1.1) (2.1) plant and equipment Net cash (used in)/from (7.8) 1.8 (8.1) investing activities Financing activities Dividends paid to equity 6 (57.2) (57.0) (81.9) holders Dividends paid to (0.3) minority interests Net purchase of own (5.1) - (0.9) shares Purchase of treasury 9 - (6.5) (6.9) shares Net cash used in (62.6) (63.5) (89.7) financing activities Net (decrease)/increase (23.0)) 18.2 5.4 in cash and cash equivalents Cash and cash 288.4 279.2 279.2 equivalents at beginning of period Effect of exchange rate 3.9 4.4 3.8 changes on cash and cash equivalents Cash and cash 269.3 301.8 288.4 equivalents at end of period Cash and cash equivalents comprise: Cash at bank and in hand 269.3 301.8 288.4 269.3 301.8 288.4 Notes to the Financial Statements 1) Basis of preparation and significant accounting policies The interim report is unaudited and does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the EU and the Disclosure Rules and Transparency Rules of the Financial Services Authority ("FSA"). The comparative figures for the financial year ended 30 June 2009 are not the company's statutory accounts for that financial year. Those accounts have been reported on by the company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. The accounting policies applied in these interim financial statements are consistent with those applied in the Group's annual report and accounts for the year ended 30 June 2009, except that with effect from 1 July 2009, the Group adopted the following new standards and interpretations: IFRS 2 Revised: Share-based Payments This standard has been amended to clarify the definition of vesting conditions. The amended standard also requires a cancellation of a share-based award, whether by the entity or other parties, to be accounted for as an acceleration or modification of the vesting period. The adoption of this amendment has not had a material impact on the financial performance or position of the Group. IFRS 3 Revised: Business Combinations This revised standard changes the accounting applied to the acquisition of non controlling interests and the loss of control of subsidiaries. Adoption of this revised standard has had no impact on the financial performance or position of the Group. IFRS 8: Operating Segments This standard requires disclosure of information about the Group's operating segments and replaces the requirement to determine primary and secondary reporting segments of the Group. Additional disclosures are also required for single segment businesses, including information about major customers and the location of material non-current assets. Adoption of this standard had no material impact on the disclosure in the accounts since management continue to regard the Group's services as comprising one business segment (being provision of investment management services) and that its operations are not run on a discrete geographic basis. Disclosure regarding significant revenue sources is given in note 2. No additional disclosure is required for non-current assets on the basis that all material non-current assets are held in the UK. IAS 1 Revised: Presentation of Financial Statements This revised standard introduces the Statement of Comprehensive Income, which presents all items of recognised income and expense, either in one single statement, or in two linked statements. The Group has elected to present a single statement in the form of a Consolidated Statement of Comprehensive Income. IAS 27 Revised: Consolidated and Separate Financial Statements Changes to IAS 27 and IFRS 3 work together such that a business combination leading to acquisition accounting applies only at the point where control is achieved. The revised standard also identifies that changes in a parent's ownership interest in a subsidiary that do not result in a loss of control are accounted for within shareholders' equity. Adoption of this revised standard has had no impact on the financial performance or position of the Group. The annual report and accounts are available on the Group's website. 2) Revenue Management fees are accrued throughout the period in line with fluctuations in the levels of assets under management. Periodic performance fees are recognised only if performance hurdles have been achieved in a period. The Group is not reliant on any single source of revenue and no individual fund provides more than 5% of total revenue through management fees. Two of the Group's fund provided 16.0% and 10.2% of total revenue in the reporting period when considering management fees and performance fees on a combined basis. 3) Foreign exchange The only foreign exchange rate which has a material impact on the reporting of the Group's results is the US dollar. Closing Closing Closing Average Average Average rate rate as at rate as at rate as rate rate at year 31 31 six six months December December 30 June months ended 2009 2008 ended ended 2009 31 31 December December 2008 30 June 2009 2009 US dollar 1.6170 1.4593 1.6458 1.6338 1.6984 1.6044 Analysis of foreign exchange 6 months to 6 months to 12 months to 31 December 2009 31 December 2008 30 June 2009 £m £m £m Realised and unrealised (1.1) (54.2) (42.4) hedging losses Translation gains on 3.8 4.4 3.8 non-Sterling denominated monetary assets and liabilities Total foreign exchange 2.7 (49.8) (38.6) gains/(losses) 4) Finance income Analysis of Finance income 6 months to 6 months to 12 months to 31 December 2009 31 December 2008 30 June 2009 £m £m £m Interest on cash and cash 0.8 7.1 9.2 equivalents Finance income 4.9 - - Total finance income 5.7 7.1 9.2 Included within finance income is £4.6 million in relation to the reclassification of two of the Group's seed capital investments from non-current assets held for sale to available-for-sale financial assets (note 8). 5) Earnings per share Basic earnings per share is calculated by dividing the profit for the period attributable to equity holders of the parent of £83.9 million (six months to 31 December 2008: £56.9 million) by the weighted average number of ordinary shares in issue during the period. Diluted earnings per share is calculated as for basic earnings per share with an adjustment to the weighted average number of ordinary shares to reflect the effects of all dilutive potential ordinary shares. There is no difference between the profit for the period attributable to equity holders of the parent used in the basic and diluted earnings per share calculations. A reconciliation of the figures used in calculating basic and diluted earnings per share is shown below: 6 months to 6 months to 12 months to 31 December 2009 31 December 2008 30 June 2009 Weighted average number of 670,680,026 670,469,341 671,667,998 ordinary shares used in calculation of basic earnings per share Effect of dilutive potential 44,151,164 49,804,829 47,330,538 ordinary shares - share options Weighted average number of 714,831,190 720,274,170 718,998,536 ordinary shares used in calculation of diluted earnings per share 6) Dividends An analysis of dividends is as follows: 6 months to 6 months to 12 months to 31 December 2009 31 December 2008 30 June 2009 Dividends declared/proposed in respect of the period: Interim dividend declared per 3.66 3.66 3.66 share (p) Final dividend . - 8.34 proposed/declared per share (p) Dividends paid in the period: Interim dividend paid(£m) . - 24.9 Interim dividend per share . - 3.66 (p) Final dividend paid(£m) 57.2 57.0 57.0 Final dividend per share (p) 8.34 8.34 8.34 Dividends are recognised in the accounts in the year in which they are paid, or in the case of a final dividend when approved by the shareholders. The board has approved an interim dividend for the six months to 31 December 2009 of 3.66p per share (six months 2008: 3.66p). This will be payable on 1 April 2010 to shareholders on the register on 12 March 2010. 7) Available-for-sale financial assets Investments at fair value 6 months to 6 months to 12 months to 31 December 2009 31 December 2008 30 June 2009 £m £m £m Equities - listed 7.4 - 4.8 Equities - unlisted 7.4 - - Debt securities - unlisted 21.4 - - Total 36.2 - 4.8 8) Non - current assets and non-current liabilities held for sale Where Group companies inject seed capital into funds operated and controlled by the Group, then the fund is classified as being held for sale. Typically, if the fund remains under the control of the Group for more than one year from the original investment date it will cease to be classified as held for sale, and will be consolidated line by line. In determining whether to execute the reclassification, the Group will have regard to the proximity of loss of control, and the extent to which consolidation of the fund on a line by line basis would be material to the presentation of the Group's financial statements.