13th Jan 2015 07:41
LONDON (Alliance News) - Ashmore Group PLC Tuesday reported a drop in assets under management during the last three months of 2014, hit by a negative investment performance stemming from the markets sell-off in early December, as well as net outflows.
In a statement, the emerging markets asset manager reported USD63.7 billion of assets under management at the end of 2014, a drop from the USD71.3 billion in assets managed at the end of September. Ashmore reported a negative investment performance of USD2.8 billion, net outflows of USD4.2 billion, and the disposal of its stake in a Chinese real estate joint venture that reduced alternatives assets under management by USD0.6 billion.
According to a breakdown of assets under management provided by Ashmore, the group saw falls in all of its investment themes, with the largest drops coming in alternatives and in equities, followed by blended debt.
Chief Executive Mark Coombs said the group was hit by weaker commodity prices and the strength of the US dollar, as well as increased price volatility hurting emerging markets during the quarter.
"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," Coombs said.
"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," the CEO added.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Ashmore