Ashmore's management fees miss forecasts, shares slide

Emerging markets specialist investor Ashmore ASHM reported lower-than-expected fee revenue and a dip in profit in its annual results on Friday, provoking a 7% drop in its shares in early trading.

Net management fees - a key component of company revenue - fell 19% to 129.7 million pounds ($175 million) in the year to June, missing analyst forecasts. Adjusted operating profit also fell a third to 49.4 million pounds on the prior year.

Analysts at JPMorgan said in a note they expected analyst downgrades to earnings forecasts after the results.

Ashmore has suffered consistent outflows of client cash but has said it expects to ultimately benefit from improving conditions in emerging markets as some investors diversify away from U.S. investments over Washington's erratic tariff policies.

The company reported net outflows of $5.8 billion, reduced from $8.5 billion a year ago, in flows figures that had previously been reported in a trading statement in July.

Ashmore said that the global macroeconomic environment remained complex but added that it was well-positioned to capture flows as investors shifted allocations from a weighting towards the United States.

($1 = 0.7402 pounds)