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Ashmore Group PLC on Thursday reported a drop in assets under management in its fourth quarter as it noted ‘broad-based risk aversion’.
Shares in Ashmore were down 5.6% at 193.50 pence in London early Thursday, placing it among the worst performing FTSE 250 stocks in opening dealings.
The emerging markets-focused asset manager reported total assets under management of $64.0 billion at the end of June, down 18% from $78.3 billion at the end of March. This comprised net outflows of $6.6 billion and negative investment performance of $7.7 billion.
The company said there was ‘broad-based risk aversion’ across asset classes globally. ‘As is typical in such a market environment, Ashmore's investment processes underperformed over the quarter,’ it said.
Chief Executive Mark Coombs said: ‘The global macro environment deteriorated in the quarter due to continued geopolitical tension, higher than expected inflation and more aggressive monetary tightening in the US leading to fears of recession and broad-based risk aversion. The decline in Ashmore's AuM over the quarter reflects this challenging market backdrop as asset values fell and investors de-risked portfolios.’
However, he added that ‘relatively healthy’ fundamentals in emerging markets still provide attractive long-term investments.
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