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Ashmore assets slump after emerging market sell-off

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LONDON | Thu Oct 13, 2011 9:19am BST

LONDON (Reuters) - Ashmore Group, the emerging markets-focused investment house, lost more than 10 percent of its assets in the quarter to end-September after the recent sharp sell-off in emerging markets hit its funds.

Ashmore (ASHM.L), which has the bulk of its assets in debt products, said assets droppped 10.5 percent to $58.9 billion (37.5 billion pounds) in its first quarter, driven by $7.1 billion of negative performance in its range of funds, with the largest falls coming in local currency, multi-strategy and equities products.

This weak performance was offset by $200 million of net inflows, principally into multi-strategy themes, during the quarter.

The drop was slightly better than Numis analyst estimates, who had forecast assets would fall to $58.2 billion, citing weaker performance of Ashmore's flagship funds -- several of which underperformed their benchmarks in September -- and the resulting outflows this implied.

Shares in Ashmore have fallen close to 15 percent since its admission to Britain's FTSE 100 blue chip index in mid-September, and closed at 331.4 pence on Wednesday, valuing the company at 2.27 billion pounds.

(Reporting by Tommy Wilkes, editing by Sinead Cruise)



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