9th Jul 2015 07:02
LONDON (Alliance News) - Ashmore Group PLC Thursday reported a fall in assets under management over the course of its fourth quarter, mainly a result of redemptions in blended debt and equities.
Assets under management fell to USD58.9 billion at the end of June, according to Ashmore's estimates, down from USD61.1 billion at the end of March.
The emerging markets asset manager said the "small number of relatively large and lower revenue margin" redemptions in the two areas accounted for half of its overall net outflows in the quarter.
There were "modest" net outflows from external debt, local currency, multi-strategy and overlay/liquidity, Ashmore said, with capital being returned to investors in its alternatives theme and a "small net inflow" into corporate debt.
Subscriptions increased from the third quarter, with a "balance of new mandates and additional funding" from existing clients.
"Ashmore's investment processes delivered outperformance across its themes this quarter after acquiring risk in 2014 and early 2015 at lower market levels," Chief Executive Mark Coombs said in a statement.
"While emerging markets assets have performed well and some value has been realised, value-based investment opportunities remain across the range of emerging markets asset classes, particularly in corporate debt and local currency-denominated assets," Coombs said.
The CEO said that uncertainty about the timing and the effects of an increase in US interest rates is acting to prevent a "broad-based improvement in sentiment and activity levels".
"We expect that once there is greater clarity, the fundamental qualities of emerging markets coupled with the inherent value that remains apparent today will lead to higher levels of client activity and increased allocations," Coombs said.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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