The emerging markets fund manager Ashmore (LON:ASH) has been downgraded by UBS on valuation grounds and tighter emerging market bond spreads.

The bank has moved its recommendation to ‘neutral’ from ‘buy’, while the target price has also been shaved back – by 15 pence a share to 375 pence.

At 12.30pm, the stock was off 3% at 354.9 pence.

In a note to clients, UBS said: “We have undertaken some detailed emerging market debt fund comparative analysis, and conclude that despite good performances in 2012 by Ashmore funds, the three- and five-year performance remains mixed, which could challenge the premium pricing.”