* Net outflows $3.5 bln, misses forecasts
* Assets under management $75.3 bln
* Fee change to cut revenues by $25 mln
* Shares drop as much as 12 percent
By Tommy Wilkes
LONDON, Jan 14 Ashmore Group reported
large net outflows from its funds at the end of last year after
investors took fright at heightened volatility in its core
emerging markets, sending its shares down by more than 12
In a trading statement on Tuesday, Ashmore said clients
pulled out $3.5 billion more from its range of funds than they
put in during the last three months of 2013. This compared with
net inflows forecasts of $1.4 billion by analysts at Numis and
flat by Canaccord Genuity.
"Market performance and, to some extent, investor behaviour
during the quarter continued to be influenced by uncertainty
surrounding U.S. monetary policy and the heightened market
volatility experienced since early May last year," Mark Coombs,
Ashmore's billionaire founder said in the statement.
Coombs, however, said that greater clarity over U.S.
monetary policy this year, combined with the relative
attractiveness of emerging market assets over developed
countries, gave him confidence for the year ahead.
With investment performance adding $300 million to Ashmore's
assets during the quarter, assets under management overall at
the London-based group fell to $75.3 billion.
Ashmore also said the basis of calculation for the annual
investment management fee on two of its closed end funds was
amended during the quarter, with the pro forma annualised effect
reducing revenues by $25 million.
Analysts said this was likely to have led to the large fall
in the share price on Tuesday as well as the outflows, which
although larger than forecast suggested portfolio rebalancing on
the part of clients rather than a major pullback by
institutional investors, Ashmore's core client base.
Numis said in a note that it was a "disappointing statement
and we expect to cut our annualised EBITDA (earnings before
interest, tax, depreciation and amortisation) forecasts by 5-10
percent as a result."
Shares in Ashmore were changing hands at 370 pence at 0835
GMT, down 9.4 percent, after trading as low as 354 pence.