Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Ashmore AUM plunges due to coronavirus selloff in markets

Published 16/04/2020, 08:00
ASHM
-

LONDON (Reuters) - Emerging markets-focused money manager Ashmore (L:ASHM) on Thursday posted a 22% plunge in assets under management, slammed by an $18 billion loss on its investments, as a coronavirus-led selloff in financial markets bashed global stocks last month.

AUM dropped to $76.8 billion as at March end from $98.4 billion on Dec. 31, while net outflows amounted to $3.6 billion.

"Investment performance was negative in all investment themes as a result of the sharp, severe fall in global markets from mid-February," Ashmore said.

The London-listed investor posted net outflows in corporate debt, local currency and external debt investment strategies, with client redemptions concentrated in retail-oriented mutual funds in the first two themes.

Corporate debt and equities saw the biggest hits, seeing net outflows of 39% and 33% respectively, closely followed by multi-asset strategies which saw net outflows of 25%.

The sell-off has weakened performance against benchmarks over one and three years but comparisons remain good over five years, the company said. It said it now saw some of the "most attractive valuations" seen since the 2008 financial crisis.

"External debt is trading in excess of 600 basis points over the U.S. Treasury curve, more than twice its normal level, while equities are trading at 1.1 x book value, the same level as seen in the financial crisis," Ashmore said.

Commenting on its own business model, Ashmore said it had a "strong, liquid balance sheet" with no debt and more than 700 million pounds of financial resources including more than 400 million pounds of cash as at March 31.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.