Ashmore Shares Decline After Assets Drop $3.7 BillionSarah Jones
Ashmore Group Plc declined in London trading after the emerging-market money manager said first-quarter assets shrank by $3.7 billion.
The shares fell as much as 2.1 percent to 294.90 pence, the lowest since March, and were down 1.8 percent at 8:12 a.m. Assets under management dropped 4.9 percent to $71.3 billion in the three months through September as the company lost $3.4 billion from investments and posted $300 million of net outflows, Ashmore said in a statement today.
The decline “reflects predominantly the correction in markets toward the end of the period, driven by U.S. dollar strength,” Chief Executive Officer Mark Coombs said in the statement. “Against this backdrop, the fundamentals in emerging markets continue to be supportive and many of the market uncertainties of the past year are being resolved.”
Ashmore’s shares have tumbled 25 percent this year amid concern that the Federal Reserve will start withdrawing monetary stimulus, undermining demand for riskier assets. The stock tumbled last month after reporting a 34 percent drop in full-year profit, hurt by lower performance fees.
Aberdeen Asset Management Plc, which also invests a large portion of its assets in global emerging markets, has fallen 21 percent this year.