Ashmore sees AuM decline amid emerging-market volatility

10th Apr 2014 08:03

- AuM down 6.9 per cent- AuM at 70.1bn by March 31st- Outlook more positive than a year agoEmerging markets asset manager Ashmore reported a seven per cent decline in assets under management (AuM) during its third quarter, but said it is "more positive" on the outlook that at the same time last year.AuM totalled $70.1bn in the three months to March 31st, down 6.9% from $75.3bn at the end of December, through a combination of net outflows of $6.2bn and positive investment performance of $1bn.Ashmore said that the net outflow was mainly due to a redemption from the low-margin overlay theme at the end of the quarter, "as a result of the underlying investment portfolio no longer requiring the currency hedges provided by the overlay". Smaller net outflows were experienced in local currency, blended debt and multi-strategy, the company said. Meanwhile, external debt and equities saw modest net inflows.The positive investment performance was helped by external debt and blended debt, with local currency and corporate debt generating modest improvements.Chief Executive Mark Coombs said that analysts typically predict the end of the emerging markets investment opportunity amid "times of stress" in global markets. "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," Coombs said."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."BC