Ashmore Group, the specialist emerging markets asset manager, has seen its assets under management drop 18.3% to $64bn in the three months to June 2022, amid outflows and negative performance.
Over the last quarter, the group experienced net outflows of $6.6bn and negative investment performance of $7.7bn, amounting to a total AUM drop of $14.3bn in just three months, according to a trading update.
AUM declined across all themes and asset classes, but net outflows were concentrated in the local currency and blended debt themes.
The firm said that local currency outflows were primarily from low margin institutional accounts, including overlay outflows of $2.5bn. The blended debt net outflows were split between mutual funds and a number of individual redemptions from institutional mandates.
Ashmore results 'reflect negative sentiment towards emerging markets
Across the board, AUM in fixed income declined by 18.6% to $56.3bn, assets in equities fell by 16.2% to $6.2bn and alternatives experienced a loss of 11.8% to $1.5bn.
CEO Mark Coombs attributed the decline in the firm's AUM over the quarter to a "broad-based risk aversion" from investors as the global macro environment continues to deteriorate and fears of recession mount.
"The decline in Ashmore's AUM over the quarter reflects this challenging market backdrop as asset values fell and investors de-risked portfolios," he said.
However, he noted that the economic developments across a range of emerging countries are in contrast to this global macro picture, as leading indicators across emerging markets continue to point to a slowdown in growth rather than an outright recession.
Ashmore Group AUM drops $3.1bn in just three months
"After 18 months of monetary policy tightening, many emerging countries are well ahead of the Fed and the ECB in tackling inflation, and are therefore offering relatively high real yields and attractive FX valuations," he explained.
"Sentiment will inevitably continue to be swayed by global macro and geopolitical developments, but the exceptional valuations and relatively healthy fundamentals currently evident in emerging markets provide attractive opportunities for long-term investors."
