Ashmore reports decline in AUM over last quarter

Arrow down1Emerging markets asset manager Ashmore Group has seen a decline in its assets under management (AUM) over the last quarter, with outflows of $2.6 billion (€2.4 billion).

The firm’s AUM declined from $63.7 billion to $61.1 billion, through a combination of net outflows of $2.0 billion and negative investment performance of $0.6 billion.

Small outflows were seen across a range of themes. The AUM in local currency, corporate debt, and blended debt each saw a decline of $0.6 billion between the end of December 2014 and the end of March 2015, while alternatives saw the greatest percentage of outflows, from $1.3 billion to $0.9 billion, or -30.8%.

The AUM in equities remained stable at $4.3 billion, while the overlay/liquidity theme saw a small uptick.

The firm comments that fixed income and equity markets have seen some recovery in the quarter, though local currency returns continue to be affected by the strengthening of the US dollar, affecting investment performance.

Mark Coombs, chief executive officer, Ashmore Group, says: "Those investors willing to look beyond short-term price volatility and to focus on fundamentals are benefiting from the recent recovery in markets.

However, some investors remain cautious given continued uncertainties such as the timing and impact of higher US interest rates.

“Ashmore's investment processes are delivering alpha as expected after buying into risk at lower market levels. In our experience, while flows tend to lag investment performance, the absolute and relative value opportunities across the range of emerging markets asset classes will increasingly be recognised by investors."

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