The emerging markets specialist said uncertainty over a Federal Reserve interest rate rise was to blame for the large amount of money it saw leave.
The firm also noted the outflows were influenced by ‘a small number of relatively large and lower revenue margin redemptions in blended debt and equities’ accounting for half of the total.
“AUM at $58.9bn was 2% weaker than our $59.9bn forecast, due to weaker than expected net outflows and in line performance and FX,” said brokerage Numis. “The CEO highlights that there are a number of headwinds currently holding back flows, but he expects these to unwind in time.”
“Ashmore’s investment processes delivered outperformance across its themes this quarter after acquiring risk in 2014 and early 2015 at lower market levels,” said CEO Mark Coombs. “While emerging markets assets have performed well and some value has been realised, value-based investment opportunities remain across the range of emerging markets asset classes, particularly in corporate debt and local currency-denominated assets.
“Some investors are benefiting from allocations added in recent quarters, however a broad-based improvement in sentiment and activity levels continues to be held back by uncertainty regarding factors such as the timing and impact of US rate increases,” Coombs added. “We expect that once there is greater clarity, the fundamental qualities of emerging markets coupled with the inherent value that remains apparent today will lead to higher levels of client activity and increased allocations.”
