April 16 (Reuters) - British wealth manager Ashmore on Thursday reported net outflows of $900 million for the third quarter of its fiscal year as escalating geopolitical tensions in the Middle East
UK's Ashmore swings to client outflows, shares fall
Third Quarter Results and Market Impact
Net Outflows and Investor Reaction
April 16 (Reuters) - British asset manager Ashmore on Thursday reported net outflows of $900 million for the third quarter of its fiscal year and said market volatility sparked by the Iran war prompted investors to take a "wait and see" approach.
Ashmore shares fell as much as 7% in early trading, before paring some losses, with the stock down 2% at 1115 GMT.
Emerging Markets Vulnerability
Emerging markets are often vulnerable to capital outflows, currency volatility, political instability and external shocks, pushing investors towards safe-haven assets.
Market Rally and Uncertainties
However, the quarterly period reported to end-March did not capture the market rally seen in recent days on hopes for a lasting deal to end the conflict, although huge uncertainties remain.
Analyst and Company Commentary
Analyst Perspectives
Analysts said the return to quarterly net outflows at Ashmore after recent improved performance was unexpected.
"We have previously questioned the sustainability of net flows... a view which appears justified by this update," analysts at Deutsche Numis said in a note.
Company Response
Ashmore said the outflow was mainly down to a redemption by a single institutional client and that subscription activity had otherwise been healthy.
CEO Statement
"Geopolitical events interrupted some of the macro tailwinds supporting emerging markets, but the reaction across most asset classes has so far been manageable and with limited price dislocations," CEO Mark Coombs said in a statement.
Assets Under Management
London-based Ashmore's assets under management also fell to $50.7 billion as of March 31, compared with $52.5 billion at the end of December.
Reporting Credits
(Reporting by Rishab Shaju in Bengaluru, additional reporting by Iain Withers; Editing by Nivedita Bhattacharjee)
