Last checked at 
(Adds share price decline, analyst comment)
LONDON, Oct 14 (Reuters) - Ashmore Group's assets under
management fell by $3.1 billion in the third quarter of 2021, it
said on Wednesday, after weakness in emerging markets
investments led to a few large institutions withdrawing funds.
The UK-listed company said its assets under management
dropped to $91.3 billion in the three months to September 30
from $94.4 billion in the prior three-month period.
Net outflows of $1 billion over the period were influenced
by a small number of large institutional redemptions but there
was also a small net outflow from intermediary retail clients,
Ashmore said in its statement.
Ashmore's shares dropped more than 2% in early
trading to 316.4 pence - its lowest level since the pandemic
market rout in spring 2020. The stock traded at 0757 GMT at
320.8 pence.
"Investors have focused increasingly on the global growth
outlook, including the impact of higher commodity prices, supply
chain challenges and China's ongoing reforms," Ashmore CEO Mark
Coombs said.
However, Coombs added that a number of factors such as
rising vaccination rates, easing restrictions and central banks
hiking interest rates, making yields more attractive, were not
yet reflected in current valuations.
"Core flows remain negative as uncertainty deters client
activity," UBS analysts said in a note to clients, adding that
outflows had outstripped market consensus threefold and prompted
it to lower its 2022 earnings per share estimate by 5%.
Credit Suisse warned in August that Ashmore's exposure to
Chinese debt was dragging down its returns.
Researchers at Morningstar said in late September that
Ashmore retained significant holdings in debt issued by
embattled property giant China Evergrande Group, based
on data at the end of August.
The firm - a leading asset manager in emerging markets - has
seen its shares drop more than 25% this year following a nearly
17% decline in 2020.
Ashmore said it had won new mandates in external debt,
blended debt, local currency and equities in the past three
months to end-September, adding demand for investment grade
strategies continued to be good.
(Reporting by Karin Strohecker; editing by Jason Neely, Elaine
Hardcastle)
