Ashmore share price down as equity shrinks

City A.M. Reporter
SHARES in funds house Ashmore tumbled 6.7 per cent yesterday after it said it has lost about a fifth of the money it manages in equities during the last quarter.

The London-based manager, which focuses on investments in emerging markets, reported a 20.5 per cent drop in equities to $6.2bn (£4bn) in the three months to the end of June, as the volatility rocking the world’s equity markets ate into its holdings.

Ashmore also said in a trading statement yesterday performance fees would likely fall to £25m, down from the £85.4m earned in the previous year, with almost all of the fees coming in the first half of the year.

Ashmore is among the first UK fund managers to update the market on performance during the quarter.

The firm said its assets under management dropped a worse-than-forecast 3.3 per cent to $63.7bn in the period.

This decrease included net outflows of $600m and investment losses of $1.6bn.

Last year’s purchase of US-based Emerging Markets Management has not yet beefed up the equities division as hoped. The acquisition boosted the percentage of its assets held in equities to 20 per cent from one per cent, but that has since dropped to less than 10 per cent.

Ashmore also said clients exited its multi-strategy products during the most recent quarter, predominantly from one of its Japanese retail funds.