Ashmore Group sheds $2.2bn in assets, wary of Fed rate hikes

9th Jul 2015 08:11

Emerging markets asset manager Ashmore Group shed more assets in the latest three month period and said it remains cautious of US rate hikes.The company's assets under management dropped $2.2bn or 3.3% to $58.9bn for the quarter ended on 30 June. Ashmore said the net flow for the period was influenced by a small number of relatively large and lower revenue margin redemptions in blended debt and equities, which accounted for half of the net outflow in the quarter.Ashmore chief executive Mark Coombs said opportunities remain across the range of emerging market asset classes, particularly in corporate debt and local currency-denominated assets.Coombs added confidence was being held back by the uncertainty of US rate increases and the resulting impact on emerging markets."We expect that once there is greater clarity, the fundamental qualities of emerging markets coupled with the inherent value that remains apparent today will lead to higher levels of client activity and increased allocations," Coombs remarked.Shore Capital rated the stock at 'hold' with a price target of 275p and said further outflows complete a tough year.