Ashmore Group has seen its assets under management decline by almost 11 per cent in the final three months of 2014 to $63.7bn (£42.1bn), its second quarter assets under management statement revealed.
Ashmore blamed negative investment performance of $2.8bn (£1.84bn), net outflows of $4.2bn (£2.77bn) and the disposal of the group’s interest in a Chinese real estate joint venture that reduced alternatives assets under management by $600m (£398m) for an overall decline in AUM at the end of 2014.
Mark Coombs, chief executive of Ashmore Group, said investment performance predominantly reflected the sharp sell-off in markets in early December that particularly affected local currency markets.
Performance was therefore weakest in the local currency and blended debt themes, with Mr Coombs adding the latter having an allocation to local currency assets.
He said external debt, corporate debt and multi-strategy also saw negative investment performance. Equities, alternatives and overlay/liquidity were flat, Mr Coombs added.
Mr Coombs said net outflows in the blended debt theme resulted from a small number of segregated accounts and net outflows were also experienced in equities, external debt and, to a lesser extent, in local currency, multi-strategy, corporate debt and overlay/liquidity.
Capital was returned as planned to investors in the alternatives theme, he said.
He said: “Weaker commodity prices, US dollar strength and increased price volatility impacted upon emerging markets during the quarter, although the diverse range of return opportunities in the asset class continued to show through.
“While asset prices have fallen, uncertainty over the timing and pace of Federal Reserve rate increases is likely to weigh on sentiment in the near term.
“However, emerging markets’ fundamentals remain sound and previous uncertainties, such as election cycles, have abated.
“Therefore, as is typically the case following a sharp and widespread fall in asset prices, emerging markets provide very attractive near-term return opportunities, particularly in blended debt, local currency and equities, for Ashmore’s investment processes to capture on behalf of clients.”
emma.hughes@ft.com
