Ashmore Suffers Outflows as Clients Spooked by Emerging Marketsby
Ashmore Group Plc reported another quarter of net outflows as the London money manager’s clients sold equities and bonds amid concern that a slowdown in China will hurt emerging markets.
Assets under management fell $7.8 billion in the three months through September to $51.1 billion, with net outflows of $4 billion, the company said in a statement Thursday. Assets dropped $2.2 billion in the three months through June.
“The market environment remained challenging during the quarter and influenced client behavior in what is typically a quieter period,” Chief Executive Officer Mark Coombs said in the statement. “Concerns over global growth prospects affected sentiment and resulted in price weakness and greater volatility across global markets.”
Shares in Ashmore, which specializes in emerging markets, dropped to a five-year low in September as countries from Brazil to Malaysia were hurt by a selloff in China. The stock has since recovered and was up 1.2 percent for the year at the close of trading in London on Wednesday.
The MSCI Emerging Markets Index lost about 10 percent this year and Martin Gilbert, chief executive officer of Ashmore’s competitor Aberdeen Asset Management Plc, said last month there’s been no respite in outflows from his company’s funds.
Aberdeen invests about a quarter of its $483 billion of assets in developing markets and Gilbert said he was surprised by the contagion effect from China, as well as the “rapid increase” in redemptions.