Fund manager Ashmore haemorrhages $9BN in just three months as Ukraine war prompts clients to pull cash from EM specialist
- Fund manager Ashmore’s assets have plummeted by $9bn since December
- Clients pulled $3.7bn from Ashmore Group amid volatile markets
- Outflows were highest in blended debt, which dropped 14.9%
Fund manager Ashmore has seen its assets under management plummet by $9billion in just three months as investors pulled their cash from the emerging markets specialist.
The London-listed firm told investors its assets had fallen from $87.3billion to $78.3billion in the three months to the end of March, with its funds having been hit by Russia’s invasion of Ukraine.
Markets have been rocked by the invasion and Ashmore said its clients had pulled $3.7billion from the investment manager as a result.
Emerging markets investor Ashmore has seen its assets plunge by $9billion in the first quarter amid the Ukraine war
The group said: ‘Against a backdrop of lower market levels, particularly following Russia’s invasion of Ukraine, and some institutional rebalancing, the group experienced net outflows in its fixed income and equity investment themes.’
Net outflows were highest within Ashmore’s blended debt funds, which saw total assets fall 14.9 per cent to $17.7billion.
All other categories suffered outflows except alternatives, which grew 13 per cent to $1.5billion.
Ashmore said institutional mandates accounted for the majority of the net redemptions over the period.
In terms of total returns, equity and alternative mandates achieved net gains over the quarter, while fixed income vehicles fell, with the main benchmark indices falling between 7 and 10 per cent.
Local currency, external debt and investment grade credit strategies outperformed on a relative basis, despite making a loss. Corporate debt, blended debt and equity vehicles underperformed the benchmarks.
Ashmore’s shares are down more than 2 per cent to 222.4 pence with its share price down more than 24 per cent year to date.
Chief executive Mark Coombs said the consequences of the Ukraine invasion are ‘far-reaching’.
‘The shock is likely to weigh on investor sentiment in the short term, but the consequences of the conflict will not be felt equally across the diversified set of more than 70 emerging market countries, as has already been seen with the impact of higher commodity prices.
‘Ashmore’s active management and deep-rooted experience of investing in emerging markets mean it is well positioned to understand and to act upon the current market volatility.’
The war in Ukraine has also impacted fund manager Brooks Macdonalds which this morning said its total funds under management had dipped by £600million to £16.7billion in the three months to the end of March.
Its net flows grew by £179million in the first quarter but ‘weaker global markets’ saw funds under management fall by 3.9 per cent.
Chief executive Andrew Shepherd said despite volatile markets driven by the Ukraine invasion it had been a ‘solid quarter’ because of continuing positive net flows.
The wealth manager’s share price is down 2.48 per cent to 2,423 pence.