10th Apr 2014 07:20
LONDON (Alliance News) - Ashmore Group PLC Thursday suffered a decline in assets under management in the third-quarter, as a USD1.0 billion positive investment performance failed to offset USD6.2 billion in net outflows.
Overall, assets under management declined to an estimated USD70.1 billion at the end of the quarter to March 31, compared with USD75.3 billion at the end of 2013.
In a statement, the emerging markets-focused asset manager said the net outflow was principally attributable 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. External debt and equities saw modest net inflows.
Positive investment performance was driven by external debt and blended debt, with local currency and corporate debt generating modest positive performance. The other investment themes were broadly flat.
"Typically amid times of stress in global markets, commentators predict the end of the emerging markets investment opportunity. 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," Mark Coombs, chief executive, said in a statement.
"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," Coombs added.
Ashmore shares were Thursday quoted at 353.80 pence, up 1.1%.
By Samuel Agini; [email protected]; @samuelagini
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