Emerging markets specialist Ashmore has announced a $3.7bn (£2.3bn) drop in assets under management since the end of June after negative performance.
The group said assets under management stood at $71.3bn thanks to a $3.4bn drop due to investment performance and net outflows of $300m.
Weaker markets hit the company and while its bond portfolios “performed relatively well”, the strong dollar meant returns from local currency bond funds and blended debt funds was hit.
The local currency, blended debt and corporate debt each still saw net inflows though.
Net outflows were experienced in the overlay / liquidity, equities and external debt themes, while “modest outflows” continued from the Japanese multi-strategy retail funds.
Assets in the alternatives theme reduced through “realisations and subsequent capital returns to investors”.
Mark Coombs, chief executive at the group, said the decline in assets in the quarter “reflects predominantly the correction in markets towards the end of the period, driven by dollar strength”.
“Against this backdrop, the fundamentals in emerging markets continue to be supportive and many of the market uncertainties of the past year are being resolved: the electoral cycle is substantially complete and has resulted in favourable reformist agendas in many countries; geopolitical risk is evident but isolated; and the US Treasury market has reacted in a measured way to the increasing prospect of higher short term rates,” he said.
“This provides a firm footing for Ashmore’s investment processes to take on risk and to deliver long-term investment performance for clients.”
