Proactive Investors - Ashmore Group Plc (LON:ASHM)’s assets under management (AUM) fell by $2.1 billion (£1.7 billion) in the third quarter of its financial year, marking a 4% sequential decrease.
In a trading update, the FTSE 250-listed emerging markets asset manager stated: “Against a backdrop of more subdued markets following the strong end to 2023, net outflows were predominantly driven by institutional clients continuing to reduce risk.
“By investment theme, the net outflows were primarily in local currency, blended debt and corporate debt, and there was a small net inflow in the equities theme.”
Ashmore noted that hard currency markets performed relatively well over the period, driven by spread compression in high-yield markets, while equities also delivered positive returns.
Chief executive Mark Coombs added: "Emerging Markets delivered a mixed performance over the quarter as stronger than expected economic data pushed back expectations of rate cuts by the US Fed. Looking beyond the short-term, macroeconomic stability in emerging countries underpins superior GDP growth compared with the developed world, and many central banks continue to cut rates in response to lower inflation.
“An easing of US monetary policy will further boost hard currency bonds and, with the US dollar at or close to its cyclical peak, a weaker dollar will underpin returns from local currency bonds and equities. Ashmore remains well-positioned to benefit from the capital flows that should follow these positive market trends."
Shares were off 3.2% at 181.9p at the time of writing.
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