Ashmore Group shares (LON:ASHM) fell on Tuesday after the company said its investment performance was “modestly negative” in q2.

Assets under management were up by 0.4% to £76.7 billion at the end of December from £76.4 million in September.

This was as a result of net inflows of $0.5 billion mitigating a negative investment performance of £0.2 billion.

According to the trading update, Ashmore said that ‘net inflows were delivered in the corporate debt, blended debt, equities, multi-asset and overlay/liquidity themes.’

Meanwhile there was a ‘small net outflow’ in the local currency theme, whilst external debt and alternatives themes remained flat during the quarter.

As a result, the company said investment performance proved ‘modestly negative’ for the period.

“Despite the more challenging markets experienced for much of 2018, client flows remain resilient reflecting investors’ very low allocations to emerging markets and recognition of the value available,” commented chief executive Mark Coombs.

“The effect of tax-related stimulus on the US economy and its support for the US dollar started to fade towards the year end, removing the main headwind for emerging markets outperformance.

“The reduction in emerging markets asset prices despite improving economic growth suggests underweight investors will continue increasing allocations to emerging markets, and a return to the positive market trends experienced in 2016 and 2017.”

Shares in Ashmore are currently -2.63% as of 11:44AM (GMT) as the market reacts to the update.