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Ashmore Group PLC on Friday said investor appetite for emerging markets exposure will improve as it announced a decline in risk appetite and a fall in assets under management. The London-based emerging markets-focused investment manager said assets under management declined 4.6% to $49.5 billion as at June 30 from $51.9 billion from March 31. ‘Emerging markets returns have been positive over the past year and Ashmore has delivered outperformance across a broad range of strategies, but in contrast to this point in previous cycles, investor risk appetite remains subdued and institutional decisions to reduce emerging markets exposure continue to drive net outflows,’ Ashmore said. It added: ‘This trend was notable in the blended debt theme this quarter, which, combined with small net outflows from corporate debt and equities, exceeded the net inflows into the local currency and external debt themes.’ More positively, Chief Executive Officer Mark Coombs said: ‘As the trajectories of emerging and developed countries continue to diverge, investor appetite for emerging markets exposure will improve and capital flows will follow, supporting higher risk-adjusted returns in Emerging Markets over the medium term.’ Ashmore will release its half-year results on September 5. Ashmore shares fell 2.8% to 175.00 pence each on Friday morning in London. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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