The specialist emerging markets asset manager recorded $4bn worth of outflows, while negative investment performance of $3.8bn accounted for the rest of the fall in AuM from $58.9bn to $51.1bn.
According to the firm, the net outflows reflect a “typically quieter period, combined with a small number of large institutional redemptions” which it said, mostly occurred towards the end of the period.
But, it added, there was no discernable pattern in terms of institution or geography.
“Most investment themes experienced negative absolute investment performance in the quarter,” Ashmore said, “but was particularly evident in the local currency theme, which continued to be impacted by US dollar strength, and this also affected absolute returns in blended debt.”
On a more positive note, however, the firm said that the negative emerging market sentiment has opened up good opportunities for the firm’s value-based investment processes to “acquire risk at attractive prices, particularly in high yield corporate credit, local currencies and selected external debt markets where the underlying credits are sound but spreads have widened to attractive levels.”
Looking forward, Ashmore CEO, Mark Coombs, said, while the market remained challenging during the period, “certain investors are now acting upon the value apparent in the Emerging Markets and are increasing allocations.”
In a note out after the numbers, Numis said: “While we like Ashmore and believe it still offers an attractive medium to long term structural growth story, in the short term we see scope for further bad news (whilst EM sentiment remains weak) and expect material consensus downgrades (our forecasts are c.15%/c.25% below consensus for FY16/17).
