October 15, 2015 / 7:38 AM / 2 years ago

UPDATE 1-Ashmore Q1 assets under management drop 13 pct

(Adds share price, detail, analyst comment)

By Carolyn Cohn

LONDON, Oct 15 (Reuters) - Emerging markets-focused fund manager Ashmore suffered a 13 percent fall in assets under management over the last three months, hit by both withdrawals and weak investment returns.

Net outflows were $4.0 billion, while a negative investment performance caused an additional $3.8 billion drop in assets under management to $51.1 billion in the three months to the end of September, the first quarter of Ashmore’s financial year.

A stock market collapse in China has led to poor performance in the emerging markets asset class as a whole, with Ashmore reporting particular stress in local currency investments.

Asset managers Hargreaves Lansdown and Jupiter and hedge fund Man Group all reported falls in assets under management this week.

While concerns over global growth had hurt sentiment, Ashmore Chief Executive Mark Coombs said some investors were now “acting upon the value apparent in the emerging markets” and increasing allocations.

Ashmore said there were opportunities to buy high-yield corporate credit, local currencies and some hard currency debt following the drop in prices.

Ashmore’s shares were trading 0.5 percent higher at 284.6 pence at 0730 GMT, recovering after an initial dip.

Analysts at Shore Capital said they were positive about Ashmore’s business model, adding that “management have substantially boosted the credibility of the investment process with the call to add risk”.

They reiterated their “hold” rating on the stock and adding that any price under 250 pence would be “a good entry level”. (Editing by Sinead Cruise and Keith Weir)

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