Listed asset manager Ashmore today released a trading statement for its first quarter ending 30 September which revealed assets under management (AUM) declined by $3.1 billion over the period, comprising net outflows of $1.0 billion and negative investment performance of $2.1 billion.

There were net inflows in the external debt and equities themes and net outflows in the local currency, corporate debt and blended debt themes over the quarter.

The firm stated the net outflows were influenced by a small number of large institutional redemptions and there was a small net outflow from intermediary retail clients.

However, new mandates were won in external debt, blended debt, local currency and equities, and there was good demand for investment grade strategies according to Ashmore.

The decline in AUM was further explained by a decline in market sentiment, prompted by the macro environment, which further deteriorated as the quarter progressed, and the consequent reduction in investor risk appetite in September meant that returns were negative for the period overall.

Mark Coombs, Chief Executive Officer, Ashmore Group said: "Investors have focused increasingly on the global growth outlook, including the impact of higher commodity prices, supply chain challenges and China's ongoing reforms. Meanwhile, vaccination rates are increasing and restrictions are easing across a wide range of Emerging Markets, delivering a pickup in leading indicators and a broadening of economic growth. Further, central banks in emerging countries are raising interest rates, reinforcing the attractive yields available. This positive fundamental backdrop is not reflected in current valuations, presenting an opportunity for Ashmore's active investment processes to exploit and enabling investors to benefit from increasing their allocations to Emerging Markets."