Nervous investors pulled out $3.5 billion (£2.1 billion) from Ashmore during the final quarter of last year amid concerns about its overseas funds, it emerged today.
The company — led by billionaire Mark Coombs for the past two decades — blamed uncertainty over US monetary policy for overall assets under management falling by 4.1% to $75.3 billion during the period ending December 31.
The US Fed eventually opted to ease back its $85 billion stimulus programme late last month. Experts had warned that the end of money printing could hurt the emerging markets it operates in.
“Market performance and, to some extent, investor behaviour during the quarter continued to be influenced by uncertainty surrounding US monetary policy and the heightened market volatility experienced since early May last year,” Coombs said.
“There is now greater clarity over US monetary policy, and emerging market assets offer attractive prospective returns across both equities and fixed income.”
Despite his assurances, shares in the company tumbled more than 11% by 45p after the update.
Stuart Duncan at Peel Hunt, maintained his Buy on the company but added: “There were two negatives in the statement — net outflows of $3.5 billion and new fee arrangements that will reduce annual revenues by $25 million. We expect to reduce forecasts by around 5% to 6%, although given the long-term investment case we retain our recommendation.”
