Ashmore Group has suffered a drop in its assets under management in the three months ending September, a result of both negative
investment performance and outflows.
The specialist emerging markets asset manager reports assets under management of $71.3 billion (€56.3 billion), a decline of $3.7 billion since the end of June. The drop is attributed to negative investment performance of $3.4 billion and net outflows of $0.3 billion.
Overlay/liquidity strategies suffered the largest outflows, losing a quarter of its assets under management over the three-month period. Multi-strategy lost 18.5%, equities 14.8% and alternatives 12%.
In contrast, local currency, blended debt and corporate debt themes each attracted net inflows. Bonds across all fixed income themes performed reasonably well, Ashmore Group says, but the strengthening dollar affected local currency returns, weakening investment performance in local currency and blended debt.
Although subscriptions maintained a similar level to the same period last year, increasing redemptions towards the end of the period resulted in a net outflow between the end of June and end of September.
Mark Coombs, chief executive officer, Ashmore Group, says: “The decline in assets under management over the quarter reflects predominantly the correction in markets towards the end of the period, driven by US dollar strength.
“Against this backdrop, the fundamentals in emerging markets continue to be supportive and many of the market uncertainties of the past year are being resolved.”
Coombs adds that more positive global developments, such as favourable reforms in some emerging market countries, may provide opportunities for Ashmore’s investment processes to take on risk in search of long-term performance.
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