Volatility causes difficulty for Ashmore Group

As Ashmore Group reports figures for the three months from June to September Graham Spooner, investment adviser at The Share Centre, explains what this means for investors. 

"Ashmore Group reported that assets under management for the period have fallen by 10.3% to $58.9bn. This was a result of the high levels of volatility over recent months, which has caused nervousness and uncertainty in the markets. The group's announcement saw its share price fall by more than 7% in early morning trading and it was the biggest loser on the FTSE 100.

"The group had seen a respectable rise in 2011 driven by investors' appetite for exposure to emerging markets. Inflows, largely from products aimed at retail investors gaining exposure to Asian markets, helped to partially offset the fall in assets under management.

"This fund management group is a play on the emerging markets story. Some investors keen on gaining exposure to these regions may see the fall in share price in early morning trading as an attractive entry point. However we would recommend new investors to be wary in the present economic climate and watch from the side lines for the time being."