Ashmore and other emerging market fund managers face further hits to earnings and worsening outflows, as investors retreat over concerns about higher interest rates, the war in Ukraine and exposure to China.

This year will be tougher for most investment managers across Europe as markets become more uncertain, say analysts at Bank of America. The US bank has slashed its earnings-per-share forecast for Ashmore by 6-9 per cent for the first quarter of 2022, and expects assets under management to fall a further 11 per cent — among the heaviest projected drops for UK managers surveyed by BoA.

Other leading investors with sizeable emerging market investments such as Abrdn, Schroders and Man Group are also exposed to these pressures. However, these managers are more diversified businesses than Ashmore, and less concentrated on emerging market debt.