Investment group

British investment group Ashmore hit by emerging market difficulties and institutional exits

LONDON, Oct. 14 (Reuters) – Ashmore Group’s assets under management fell by $ 3.1 billion in the third quarter of 2021, he said on Wednesday, after weak investment in emerging markets led a few large institutions to withdraw funds.

The UK-listed company said its assets under management fell to $ 91.3 billion in the three months to September 30, from $ 94.4 billion in the previous three-month period.

Net outflows of $ 1 billion over the period were influenced by a small number of large institutional buyouts, but there was also a small net outflow from middleman retail clients, Ashmore said in her statement.

Ashmore shares (ASHM.L) fell more than 2% early in trading to 316.4 pence – its lowest level since the market’s pandemic rout in spring 2020. The share traded at 0757 GMT at 320.8 pence.

“Investors have increasingly focused on the prospects for global growth, including the impact of rising commodity prices, supply chain challenges and ongoing reforms in China,” he said. Ashmore CEO Mark Coombs said.

However, Coombs added that a number of factors such as rising vaccination rates, easing restrictions, and rising interest rates by central banks, making yields more attractive, were yet to be seen. reflected in current valuations.

“Core flows remain negative as uncertainty discourages client activity,” UBS analysts said in a note to clients, adding that the exits had exceeded the market consensus by three and prompted it to reduce its estimate of its earnings per share for 2022 by 5%.

Credit Suisse warned in August that Ashmore’s exposure to Chinese debt was slowing its yields.

Morningstar researchers said in late September that Ashmore retained significant holdings in debt issued by distressed real estate giant China Evergrande Group (3333.HK), based on data as of late August. Read more

The company – one of the leading asset managers in emerging markets – has seen its shares fall by more than 25% this year after falling almost 17% in 2020.

Ashmore said he won new mandates on external debt, blended debt, local currency and equities in the past three months through the end of September, adding that demand for investment grade strategies continued to grow. be good.

Reporting by Karin Strohecker; edited by Jason Neely, Elaine Hardcastle

Our standards: Thomson Reuters Trust Principles.


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