BUZZ-Aberdeen and Ashmore down on Barcap downgrade, EM outflows to bite

** EM-focussed asset managers Aberdeen and Ashmore fall in early trade as Barcap downgrades stocks.

** Both companies vulnerable to EM outflows at the end of the year, Aberdeen downgraded to "equalweight", Ashmore to "underweight".

** Aberdeen second-top faller on FTSE 100, down 3.2 pct, with Ashmore down 1.8 pct on FTSE 250.

** "Our global strategy teams recently downgraded EM to neutral, citing an uncertain outlook as US rates rise, weaker forecast EM GDP data and a more cautious stance from volatility of EM FX," the bank says in a note.

** "We highlight that retail industry flow data into EM has deteriorated in recent weeks and institutions tend to review allocation decisions around calendar year ends."

** Henderson upgraded to "overweight" from "underweight", bank backing stock to turn around underperformance vs index.

(RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)