Ashmore assets under management down 5% in quarter; warns on US risks
Ashmore Group PLC on Monday reported a drop in assets under management in its financial third quarter, as institutional redemptions in local currency strategies offset positive investment performance.
Ashmore shares were down 3.6% at 128.90 pence in London on Monday morning.
The London-based investment manager said assets under management fell 5.3% to $46.2 billion as at March 31 from $48.8 billion at December 31.
The $2.6 billion decrease reflected net outflows of $3.9 billion, partially offset by positive investment returns of $1.3 billion.
The decline was largely driven by a 19% fall in local currency strategies to $14.0 billion, following what Ashmore described as ‘a small number of large institutional redemptions’ at the end of the quarter.
Corporate debt assets rose 6.5% to $4.9 billion from $4.6 billion, and alternatives grew 6.7% to $1.6 billion from $1.5 billion. Total fixed income assets declined 6.2% to $37.8 billion from $40.3 billion, while equities slipped 2.9% to $6.8 billion from $7.0 billion.
Ashmore said emerging markets performed well over the three months to March, supported by economic ‘resilience’, tech sector gains in China, and currency moves including a weaker US dollar and stronger euro.
Chief Executive Officer Mark Coombs said: ‘Ashmore’s active investment processes continued to deliver outperformance across a broad range of strategies. However, individual institutional asset allocation decisions resulted in a net outflow for the quarter.’
He added that despite recent market volatility tied to rising tariffs and shifting global trade terms, emerging markets assets have remained relatively resilient. ‘There are increasingly powerful reasons for investors to rebalance their asset allocations away from the US capital markets,’ Coombs said, citing tighter US fiscal policy, European stimulus, and China’s focus on domestic demand.
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