Ashmore Group saw more than $2.6bn withdrawn from its funds in the three months to the end of June, as macro uncertainty drove investors to reduce risk.
The specialist emerging markets asset manager's assets under management dipped 3% in the fourth quarter to $55.9bn, as net outflows offset positive investment performance of $1.1bn.
In its quarterly update for the three months to the end of June, the firm said net outflows were primarily the result of top-down asset allocation decisions by institutional clients in the external debt theme, which suffered $1.6bn in outflows - a decline of 13% over the period.
The blended debt, corporate debt and local currency themes also experienced outflows of $400m, $100m and $100m, respectively.
BofA reiterates 'underperform' rating on UK asset managers amid subdued flows
In total, investors pulled $2.2bn from the firm's fixed income bucket, while equities saw inflows of $300m and alternatives added $100m.
In terms of performance, emerging markets returned between +1% and +2.5% over the quarter in the main benchmark indices, Ashmore said. Local currency markets also performed well, supported by continued weakness in the US dollar and rapidly falling inflation in larger emerging economies.
Over the three months, Ashmore delivered outperformance in local currency, equities and investment grade strategies, and underperformed in other external debt, corporate debt and blended debt strategies. As at 30 June, approximately two-thirds of the firm's AUM is outperforming over one and three years.
Sunday Times Rich List reveals mixed fortunes for the UK's biggest investment names
Mark Coombs, CEO of Ashmore Group, said: "There remains some global macro uncertainty and certain investors have therefore reduced risk during the quarter.
"However, emerging markets continue to perform well, with support from improving fundamentals such as accelerating GDP growth, falling inflation and the potential for rate cuts, as well as the benefit of a weaker US dollar.
"Against this developing backdrop, and as expected at this point in the cycle, Ashmore's active investment management approach is delivering outperformance across a range of equity and fixed income strategies."
