Emerging markets asset manger Ashmore Group said assets under management fell $8bn to $56bn as of the end September 2022.
Declines in fixed income assets accounted for the majority of the AuM reduction after severe volatility and interest rate risks rocked the asset class. Ashmore has a substantial Fixed income business which makes up the majority of their assets under management.
Of the $8bn fall in AuM, $5bn were net outflows and $3bn was adverse investment performance.
“Global fixed income and equity markets fell over the quarter reflecting continued uncertainty around geopolitical risks, higher inflation and increasingly hawkish central banks,” said Mark Coombs, Chief Executive Officer, Ashmore Group.
“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. 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.”