Ashmore Group’s assets under management fell 3.6% to $58.9 billion in the three months ended June 30, with positive investment performance insufficient to offset net outflows.
In a financial update Thursday, the emerging markets money manager said it recorded net outflows of $3 billion. Positive investment performance contributed $800 million to AUM.
Assets under management fell 11.6% in equities to $3.8 billion, blended debt fell 9.8% to $15.7 billion, and multistrategy assets fell 5.9% to $1.6 billion.
Overlay and liquidity strategies decreased 3.7% to $2.6 billion, and external debt assets under management fell 1.6% to $12 billion.
Alternatives fell 11.1% to $800 million. Capital was returned to investors in this strategy, the firm said.
However, corporate debt strategies increased assets under management 5.9% to $7.2 billion, and local currency was up 0.7% to $15.2 billion.
Mark Coombs, CEO at Ashmore Group, said in the update that ongoing uncertainty over the timing of U.S. interest rate hikes was holding back otherwise positive factors.
“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 U.S. rate increases,” he said. “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.”
