Ashmore assets under management hit by flight from emerging markets

LONDON, July 14 (Reuters) – Investment group Ashmore’s (ASHM.L) assets under management dropped by $1.8 billion in the three months to June 30, down 3% from the previous quarter, as investors retreated from emerging markets owing to global macroeconomic uncertainties.

Net outflows amounted to $2.9 billion, the emerging markets-focused asset manager reported on Friday, citing institutional clients’ top-down asset allocation decisions to pull back on emerging market hard-currency debt and other fixed income in developing economies.

Analysts at Jeffries said the outflows significantly exceeded forecasts of $1.2 billion.

Meanwhile, a positive investment performance of $1.1 billion cushioned the overall impact on assets under management, which stood at $55.9 billion at the end of June.

Ashmore shares plunged by as much as 8.3% in early trade, extending this year’s losses to more than 16% and keeping the company on course for a third straight year in negative territory. The stock was down 6.8% by 0813 GMT.

“There remains some global macro uncertainty and certain investors have therefore reduced risk during the quarter,” said Chief Executive Mark Coombs.

“However, emerging markets continue to perform well, with support from improving fundamentals such as accelerating GDP growth, falling inflation and the potential for rate cuts, as well as the benefit of a weaker U.S. dollar.”

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