Ashmore Group (LSE:ASHM) saw a US$2.4 billion (£1.86 billion) sequential decline in assets under management in the fourth quarter, as investors remained cautious about the fund manager’s primary focus on emerging markets.
Net outflows increased to US$2 billion during the period, despite Ashmore noting that returns from emerging markets had been positive.
This marks the second consecutive quarter of multibillion-dollar outflows, following US$2.1 billion in the third quarter.
“Investor risk appetite remains subdued, and institutional decisions to reduce emerging markets exposure continue to drive net outflows,” said Ashmore.
“This trend was particularly evident in the blended debt theme this quarter, which, combined with minor net outflows from corporate debt and equities, surpassed the net inflows into the local currency and external debt themes.”
Chief executive Mark Coombs added: “As the trajectories of emerging and developed countries continue to diverge, investor appetite for emerging markets exposure will improve, and capital flows will follow, supporting higher risk-adjusted returns over the medium term."