Aberdeen and Ashmore downgraded on EM outflow fears

Goldman Sachs and Morgan Stanley have downgraded a number of asset management firms on fears some fund groups will see net outflows for the second quarter of this year.

Asset managers have been at the forefront of a sell-off in the FTSE 100 in recent weeks, with Aberdeen and Schroders two of the worst-hit groups. Aberdeen tumbled 7.9% yesterday on news emerging market funds suffered their biggest net outflows on record, taking its total losses for the last month to 22%. Schroders has also fared badly this month, falling 15%. In a note, Goldman Sachs said the risks of net outflows from fund groups, particularly those with large emerging markets exposure, had been underestimated. "Despite the strong start to 2013, equity flows into the European asse...