Ashmore Group PLC on Monday said assets under management declined during the first quarter of the year, due to a negative investment performance and net outflows.

The London-based emerging markets-focused investment manager said AuM shrank by 3.9% to $51.9 billion on March 31 from $54.0 billion on December 30.

Ashmore said that this was due to a negative investment performance of $100 million and net outflows of $2.0 billion.

‘Against a backdrop of more subdued markets following the strong end to 2023, net outflows were predominantly driven by institutional clients continuing to reduce risk,’ Ashmore explained.

Chief Executive Officer Mark Coombs said: ‘Emerging Markets delivered a mixed performance over the quarter as stronger than expected economic data pushed back expectations of rate cuts by the US Fed. Looking beyond the short-term, macroeconomic stability in emerging countries underpins superior [gross domestic product] growth compared with the developed world, and many central banks continue to cut rates in response to lower inflation.

‘Ashmore remains well-positioned to benefit from the capital flows that should follow these positive market trends,’ he added.

Ashmore said it expects performance fees in the second half of its financial year, which ends on June 30, to be equivalent to the £8.0 million booked in the first half.

Shares in Ashmore were down 2.5% at 183.30 pence each in London on Monday morning.

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