Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Ashmore hit with £3bn outflow as emerging market woes bite

Ashmore hit with £3bn outflow as emerging market woes bite

Assets under management at Ashmore have dropped for the second quarter in a row, with investors continuing to flee local currency emerging market debt.

In the three months to 31 March 2014, Ashmore’s total assets fell by 6.9% or $5.2 billion (£3.1 billion) to $70.1 billion. At the same point in 2013 Ashmore ran $77.7 billion (£46 billion).

The principal outflow in the quarter was the result of a redemption in Ashmore’s overlay/liquidity business, where a currency hedge was unwound. Assets in the sector more than halved in the three months to $4 billion (£2.4 billion).

Assets in Ashmore’s local currency debt business also declined by $1 billion (£596 million) to $15.9 billion (£9.5 billion). In the equivalent period of 2013, the business grew by 29.5% to $17.1 billion (£10.2 billion).

‘Typically amid times of stress in global markets commentators predict the end of the emerging markets investment opportunity,’ said Mark Coombs, Ashmore’s chief executive.

‘The past six months have again stimulated nervousness and weaker sentiment among investors, but in our view emerging markets investing is about price and relative value and being prepared to acquire risk when others are not; it is not a temporary phenomenon that will pass.

‘During the quarter we have seen interesting price and geo-political moves combined with negative sentiment, which in turn makes us comparatively more positive about the outlook for investment returns than at this time last year.’

Ashmore’s share price closed yesterday at £3.50, and opened this morning 4.3% lower at £3.35. Since then it has rallied back to £3.57 in early trading.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter