Asset manager Ashmore reports slower quarterly outflows

(Reuters) -Wealth manager Ashmore on Monday reported lower than expected net outflows in the quarter through June as fewer investors pulled money out of its funds and emerging market equities outperformed developed markets amid a weaker dollar.

Shares rose as much as 2.3% after the London-listed wealth manager reported net outflows of $800 million in the quarter ended June 30, compared with $900 million expected in a company-compiled consensus. 

Ashmore's quarterly net outflows were driven by investors continuing to pull money from blended debt, local currency and corporate debt funds, offsetting positive flows into equities. The company had recorded net outflows of $3.9 billion in the prior quarter.

British asset managers have seen heavy outflows in the past year as investor sentiment has been hit by economic, geopolitical and trade uncertainty.

Investor sentiment remained subdued, but Ashmore expects to benefit from investors starting to shift money out of heavily weighted U.S. positions into cheaper assets, including those in emerging markets - in which it is focused - due to uncertainty over U.S. tariffs. 

"While recent EM mutual fund inflows have been concentrated in exchange traded funds, previously this has been a precursor to broader institutional behaviour," CEO Mark Coombs said in a statement.

The London-based firm's assets under management reached $47.6 billion for the quarter ended June 30, a 3% increase from the previous quarter and in line with a company-compiled consensus forecast.

"We do expect an improvement in Ashmore’s flows, but that is expected to be very gradual, with our current estimates pointing to small outflows until December 2025 and net inflows from calendar 2026 onwards," JPMorgan analysts said in a note.

(Reporting by Ankita Bora, Yadarisa Shabong and Yamini Kalia in Bengaluru; Editing by Sherry Jacob-Phillips and Bernadette Baum)