Ashmore Group PLC (LSE:ASHM) shares fell 7% as net outflows increased over the past quarter despite a positive investment performance for its emerging markets funds.
Total assets under management (AUM) fell by 3% to US$55.9bn in the final quarter of the fund manager’s financial year, with US$1.1bn of positive performance but net outflows of US$2.9bn.
Ashmore said net outflows in the period were equivalent to 5% of opening AUM, and increased from US$1.1bn in the third quarter, following US$7.6bn of net outflows in the first half.
The FTSE 250-listed group revealed that net outflows were driven by allocation decisions in external debt, blended debt and local currency themes.
On investment performance, roughly two-thirds of Ashmore’s AUM – across equity and fixed income strategies – are outperforming over one and three years.
Ashmore chief executive Mark Coombs said: “There remains some global macro uncertainty and certain investors have therefore reduced risk during the quarter.
“However, Emerging Markets continue to perform well, with support from improving fundamentals such as accelerating GDP growth, falling inflation and the potential for rate cuts, as well as the benefit of a weaker US dollar."
Analysts at City broker Peel Hunt commented: “Potential remains for the asset gathering cycle to turn, once we see more stability in the interest rate environment, particularly if the US$ weakens further.”