Ashmore Group AUM drops $3.1bn in just three months

Company vulnerable to potential Evergrande default

Ashmore Group, the specialist emerging markets asset manager, has seen its assets under management (AUM) drop from $94.4bn to $91.3bn since 30 June 2021.

Assets such as local currency, blended debt, and fixed income all saw 4% drops, with corporate debt decreasing by 8.8%. The company said that the drop comprised of $1bn of net outflows and $2.1bn of negative investment performance. Ashmore held significant holdings in debt issued by Chinese property giant Evergrande, with Bloomberg reporting that the company held $400m worth of bonds from Evergrande in June. "We attribute the relative weakness of Ashmore returns to a higher allocation to Chinese debt" wrote Credit Suisse analysts in August. Evergrande: Opportunity catalyst or the n...