Monday 18 December 2017

Shares in Ashmore Group take a tumble

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Sarah Jones

SHARES in Ashmore Group tumbled by the most since 2009 after clients withdrew $3.5bn in funds from the emerging-markets money manager.

Assets under management fell 4.1pc to $75.3bn in the three months to December 31, the London-based company said yesterday, as net outflows overshadowed a $300m investment gain. The stock sank 12pc to 359.7 pence during trading.

The market "continued to be influenced by uncertainty surrounding US monetary policy" in the second quarter, said Mark Coombs, Ashmore's chief executive officer. "There is now greater clarity over monetary policy, and emerging market assets offer attractive prospective returns.

This continues to give us confidence for the year ahead."

Emerging-market equities have declined 7pc since May amid concern that cuts in US Federal Reserve stimulus will reduce investor demand for risker assets.

In contrast, developed markets have rallied as the Fed's decision to slow asset purchases boosted confidence in the US recovery.

Ashmore said the majority of the net outflows came from a small number of redemptions from mandates in combined corporate and government debt and foreign exchange.

External debt, equities and multi-strategy investments also had outflows. (Bloomberg)

Irish Independent

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