Ashmore Group (LSE:ASHM) PLC reported an US$8bn decline in assets under management (AuM) in the three months to 30 September 2022 from the previous quarter to end-June.
The emerging markets asset manager said the decline comprised net outflows of US$5bn and negative investment performance of US$3bn.
Outflows were predominantly a “result of institutional investors reducing exposure in the external debt, local currency and blended debt themes”, the company said.
It said high levels of inflation led to more hawkish central banks, meaning emerging markets fixed income indices declined by between 3% and 6% over the quarter, while equity indices also fell by between 2% and 12%.
"Global fixed income and equity markets fell over the quarter reflecting continued uncertainty around geopolitical risks, higher inflation and increasingly hawkish central banks. This has increased the risk of recession in many countries and pushed bond yields higher and equity valuations lower in both Developed and Emerging Markets," said chief executive Mark Coombs.
"Investor risk appetite therefore remains limited in the near term and Ashmore's AuM movement this quarter reflects the impact of lower market levels and investors continuing to reduce risk,” he added.
Ashmore said performance in the period and the longer term is “consistent with the recent pattern of outperformance in local currency, equities and investment grade products, and some underperformance in fixed income strategies with a high yield base”.