* Assets under management down 3.3 pct at end-June
* Net outflows $600 mln, mostly equities, multi-strategy
* Performance fees for the year estimated at 25 million stg
* Shares down 5.8 pct
By Tommy Wilkes
LONDON, July 12 Funds house Ashmore Group
reported a loss of about a fifth of the money it
manages in equities during its fourth quarter as worries about
the euro zone debt crisis and a flagging global economy rattled
The London-based manager, which focuses on managing
investments in emerging markets, also said in a statement on
Thursday performance fees would likely fall versus the previous
year's, helping to send its shares down more than 5 percent and
making it the biggest FTSE 100 faller.
Ashmore is among the first UK fund managers to update the
market on performance during the three months to end-June.
The firm said its assets under management dropped 3.3
percent to $63.7 billion in the period. Analysts at Numis had
forecast assets would fall to $64.9 billion.
This decrease included net outflows of $600 million and
investment losses of $1.6 billion.
Performance fees for the year are estimated at 25 million
pounds ($38.9 million), earned almost entirely in the first
half, the group said. This is down sharply from the 85.4 million
pounds earned in the previous year.
Shares in Ashmore were down 5.8 percent at 0754 GMT, the
biggest fall in the FTSE 100, down 0.78 percent.
"We continue to believe that EM (emerging markets) is a
structural long-term asset management growth theme, but we also
note that Ashmore has the short-term challenge of declining fee
yields. So future earnings growth at Ashmore may not be as
strong as the AuM growth potential suggests," analysts at Numis
Ashmore has said in the past that the growth of emerging
markets as an asset class was reducing the firm's ability to
earn performance fees.
Ashmore said net outflows within equities were spread across
public and segregated mandates, reducing assets under management
in equities to $6.2 billion from $7.8 billion three months
Last year the group bought a stake in U.S.-based Emerging
Markets Management in an effort to beef up its equities
That deal lifted the percentage of its assets held in
equities to 20 percent from 1 percent, but that has since
dropped to less than 10 percent after recent falls.
Ashmore also said clients exited its multi-strategy products
during the most recent quarter, predominantly from one of its
Japanese retail funds.
However, its external debt products, which performed
positively during the quarter, enjoyed net inflows after the
manager won a new segregated mandate.
Ashmore will report its full-year results on 11 September.