UK's Ashmore reports $900 million quarterly outflows as Middle East war hits emerging markets (updated)

Ashmore

16/04/2026 07:37

Adds shares, analyst comment

April 16 (Reuters) - British asset manager Ashmore ASHM.L 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 are often vulnerable to capital outflows, currency volatility, political instability and external shocks, pushing investors towards safe-haven assets.

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.

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.

Ashmore said the outflow was mainly down to a redemption by a single institutional client and that subscription activity had otherwise been healthy.

"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.

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 by Rishab Shaju in Bengaluru, additional reporting by Iain Withers; Editing by Nivedita Bhattacharjee)

 ((Rishab.shaju@thomsonreuters.com ; +91 9048142177))