Shares in FTSE 250-listed Ashmore Group fell sharply on Friday after the emerging markets investment manager reported a decline in assets under management in its fourth-quarter trading update, driven by continued net outflows.
The stock was down 3.4% in morning trading at 186.7p, making it one of the worst performers on the mid-cap index. The FTSE 250 itself slipped 0.2% to 20,145 points as broader market sentiment remained cautious ahead of next week's Bank of England interest rate decision.
Ashmore said assets under management stood at $52.8bn at the end of June, compared with $54.5bn at the end of March. The $1.7bn reduction reflected net outflows of $2.3bn, partially offset by positive investment performance of $0.6bn. The company noted that investor risk appetite remained subdued, particularly among institutional clients, as uncertainty over the pace of US rate cuts and China's economic recovery weighed on emerging market sentiment.
The update comes amid a challenging period for emerging market fund managers, with many investors shifting allocations toward developed market fixed income. Analysts at RBC Capital Markets described the outflows as "broadly in line with expectations" but noted that the pace of redemptions remained a concern for the sector. "Ashmore's flows continue to reflect a cautious institutional investor base," they said in a note. "The absence of a clear catalyst for renewed emerging market appetite means pressure on the share price could persist in the near term."
For UK investors and pension holders with exposure to emerging market funds, the persistent outflows at Ashmore serve as a barometer of broader sentiment toward developing economies. The company's performance is closely watched as a proxy for institutional appetite for higher-risk, higher-yield assets, which can influence returns on multi-asset pension portfolios.