Ashmore Group (LSE:ASHM) has had a difficult year to say the least, with net outflows of US$11.5 billion reported in its final results last month, and with analysts seeing not much hope of improvement in the first quarter update due on Friday 13th.
Given the ongoing weakness in returns from the emerging markets (EM) in which it specialises, shares in the FTSE 250-listed asset manager have been on the slide since early February.
Alongside its results, where revenues declined 24% as assets under management fell 23%, the group offered a positive spin on the future.
Chief executive Mark Coombs suggested that the negative cycle may be coming to an end and that the group's financial performance naturally lags this pick-up in markets and relative performance, something that has been experienced after previous down cycles.
He said Ashmore's medium-term growth potential and the business model "is designed to mitigate the impact of market volatility".
Some outflows are still expected to have occurred over the quieter summer period, said broker Peel Hunt in its preview of the first quarter update, given general lack of investor confidence.
"There remains scope to be optimistic that a recovery in sentiment towards EM should benefit Ashmore," analysts added, supported by a multi-year bull run in the US dollar.
As the Greenback reverses it should see increasing allocations to areas like EM, and improved investment performance, the analysts said, agreeing that this is typical of Ashmore’s investment process.