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Ashmore Group PLC on Friday reported a 13% fall in assets under management in its first quarter, led by external debt, local currency, blended debt themes.
Ashmore is a London-based emerging markets investment manager.
In the first quarter ended September 30, assets under management fell 13% to $56.0 billion from $64.0 billion at the June 30 financial year-end. It reported $94.4 billion a year ago, for September 30, 2021.
External debut dropped by 17% to $11.9 billion from $14.4 billion. Local currency decreased by 11% to $18.3 billion from $20.6 billion, while blended debt went down by 15% to $12.3 billion from $14.4 billion.
Fixed income declined by 14% to $48.6 billion from $56.2 billion.
Ashmore reported net outflows amounting to $5.0 billion, as well as a $3.0 billion hit from its investment performance.
‘The net outflows were predominantly a result of institutional investors reducing exposure in the external debt, local currency and blended debt themes,’ Ashmore said.
It added that continued high levels of inflation and consequently more ‘hawkish central banks around the world meant that the main emerging markets fixed-income indices declined by between 3% and 6% over the quarter, while equity indices fell by between 2% and 12%’.
Chief Executive Officer Mark Coombs said: ‘Valuations across equity and fixed income Emerging Markets are exceptionally attractive and yet investors have lighter positions following a period of lower risk appetite. This provides a firm foundation for performance and higher allocations to capture the longer term growth and investment opportunities available in emerging markets as macroeconomic conditions begin to improve.’
Last month, the company reported a reduced pretax profit in the year to June 30 to £118.4 million from £282.5 million, as management fees fell to £247.0 million from £276.4 million. ‘Second-half market weakness resulted in £49.9 million unrealised mark-to-market loss on seed capital investments,’ it explained.
Shares were down 2.8% at 185.10 pence each on Friday morning in London.
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