Ashmore: AUM flatline as asset manager takes hit from ‘stresses in banking system’
Ashmore has said the assets under management were broadly stable in the most recent quarter despite high interest rates and ongoing market turbulence.
The London-listed asset manager reported a total increase of funds under management of just one per cent for the quarter ending on March 31 on Monday, to a total of £46.4bn ($57.7bn.)
Chief executive Mark Coombs said higher interest rates had caused “stresses in the banking system,” but remained bullish as he noted market conditions could benefit from any potential cut in interest rates and drop in inflation.
Coombs added: “Greater stability in markets benefits investor risk appetite, with history suggesting that recovery cycles last for several years, meaning that the medium-term outlook for investment returns and capital flows is positive for emerging markets,.
Net inflows were $1.6bn while outflows totalled $1.1bn, the company reported.
Asset managers have reported steep falls in the past year, as high interest rates and market volatility has spooked investors and caused investments to plunge in value.
Other London-based investors have also reported sharp falls in assets last year. Coombs has so far been bullish on the rebound in risk appetite. In a trading update earlier this year, he said the loosening of Chinese covid restrictions and deflation would spur a rebound in risk appetite among investors.