FollowThe assets managed by Ashmore Group hit their lowest in the past three years during the 4th quarter of 2014. This is because of the sell-off in emerging market securities with many of its investors withdrawing more cash.
The manager of the emerging market-focused money stated last Tuesday that portfolio losses resulted to a decline in assets under its management for the fourth quarter which amounts to $2.8 billion. Meanwhile, the investors started to pull out cash with a net of $4.2 billion, most of them from fixed-income and currency funds.
Another factor that caused the cutting of assets of the sales group is its Chinese real estate venture for $600 million as the assets that Ashmore managed fell to $63.7 billion at the end of the 4th quarter from the $71.3 billion in the 3rd quarter.
This level is the lowest that the sales group ever recorded since 2011 which happened because of the challenges faced by the emerging market funds and it had $60.4 billion assets under its management. Back in December of 2011, the prospect of higher U.S. interest rate resulted to the bailing out of investors of riskier assets they purchased in search for better yields.
Ashmore’s net outflows in debt funds were brought about by the small number of assets under its management for one investor or organization. The sales group also said that many investors exited their equities, multi-strategy funds and local currencies.
