LONDON - British fund manager Ashmore reported a further $2 billion of quarterly net outflows of client cash on Friday, as investors continued to shun the emerging markets specialist firm's funds.

In a fourth quarter trading update, Ashmore also said its assets under management fell 5% to $49.5 billion at the end of June, down from $51.9 billion in the prior quarter.

Analysts at JPMorgan said in a note that Ashmore's figures missed consensus forecasts, adding that global geopolitical tensions were an unhelpful backdrop for emerging markets flows.

Shares in Ashmore fell more than 3% in early trading. The stock has fallen about a fifth over the year-to-date.

Ashmore said investor appetite for emerging markets remained subdued, although some industry data has pointed to healthy flows for the wider industry.

"As the trajectories of emerging and developed countries continue to diverge, investor appetite for emerging markets exposure will improve and capital flows will follow, supporting higher risk-adjusted returns in emerging markets over the medium term," said Ashmore CEO Mark Coombs.

Negative investment performance of around $400 million in the quarter also contributed to the dip in assets, Ashmore said.

Emerging markets performance over the three months was broadly in line with the previous quarter, the company added, with several strategies delivering positive returns, while local currency bonds were held back by a stronger U.S. dollar.

(Reporting by Yamini Kalia in Bengaluru and Iain Withers in London; Editing by Michael Perry and Mark Potter)