ASSETS under management at Ashmore Group dropped by $3.1bn (£2.3bn) in the third quarter of 2021, the UK-listed company said in an investor update yesterday.

The news marks a blow for the company, which specialises in emerging markets, as just last month the firm saw its assets under management swell to almost $95bn over the course of the year.

The drop to $91.3bn in the three months to the end of September follows challenges in emerging market investments.

Net outflows of $1bn over the quarter were influenced by a small number of large institutional redemptions, Ashmore said. Market sentiment "deteriorated" during the quarter, "and the consequent reduction in investor risk appetite in September meant that returns were negative for the period overall."

Shares in the investment group initially fell by more than two per cent in early trading but recovered slightly to a 0.4 per cent drop.

(c) 2021 City A.M., source Newspaper