Total assets decreased by $5.2bn (£3.1bn) to $70.1bn in the three months up to 31 March. By comparison, in the same period last year Ashmore’s AUM stood at $77.7bn (£46bn).
A low-margin overlay theme at the end of the quarter was a key driver of net outflow, according to the firm. This was attributed to the underlying investment portfolio no longer requiring the currency hedges provided by the overlay. Local currency, blended debt and multi-strategy saw smaller net outflows. Modest inflows were seen in external debt and equities.
Assets in the group’s local currency debt division fell 5.9% to $1bn to $15.9bn. In the same period last year, the business saw a 29.5% hike to $17.1bn.
“The past six months have again stimulated nervousness and weaker sentiment among investors, but in our view emerging markets investing is about price and relative value and being prepared to acquire risk when others are not; it is not a temporary phenomenon that will pass,” CEO Mark Coombs said.
He added that during the quarter interesting price and geo-political moves, combined with negative sentiment, created a comparatively more positive picture on the outlook for investment returns that last year.
