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Russia's invasion of Ukraine, a soaring dollar and China's
economic strains have combined to give emerging markets their
most difficult year on record.
London-based Ashmore said its assets under management had
tumbled by $14.3 billion to $64 billion during the quarter to
June 30, comprising $6.6 billion of net outflow and what it
described as $7.7 billion of negative investment performance.
The outflows - a term for how much money clients have pulled out
of funds - were more than double the $3 billion analysts had
been expecting.
Ashmore's shares fell as much as 5%, one of the worst performers
in the FTSE 250. The shares are at their lowest since mid-2009
and down nearly 70% since the start of the COVID-19 pandemic in
2020.
"The decline in Ashmore's AuM over the quarter reflects this
challenging market backdrop as asset values fell and investors
de-risked portfolios," Chief Executive Mark Coombs said.
Ashmore said the net outflows were concentrated in its "local
currency" and "blended debt" funds which invest in assets in
countries' own currencies rather than international currencies
such as the dollar or euro.
There had been substantially smaller outflows in the
international currency or "external debt" funds as well as from
EM equity and corporate debt funds.
Ashmore was a major holder of Russian debt before the invasion
in February. Since then, Western sanctions have forced Russia
into default, wiping out most of the bonds' value.
(Reporting by Marc Jones and Emma-Victoria Farr, editing by
Sinead Cruise and David Evans)
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