In a quarterly trading statement today (13 October), the firm revealed that its total assets under management declined by 8% in the three months to 30 September, largely driven by a 9% drop in its fixed income assets.
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External debt AUM dropped from $11bn to $8.9bn, a decline of 19%, while corporate debt fell from $6.5bn to $5.5bn.
The firm said last month in its annual results to 30 June that AUM had dropped 23% throughout the last financial year, while revenue declined by 25%.
Today, Ashmore said that net outflows had been at a "similar level to the prior quarter", crediting continuing institutional risk aversion.
However, the firm did see net inflows into the local currency and alternatives themes, with the latter being the sole theme to see an increase in AUM, rising from $1.5bn to $1.6bn.
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CEO Mark Coombs said: "Emerging markets were largely rangebound this quarter and overall delivered slightly negative returns. After three quarters of positive returns, such a period of consolidation within a longer recovery cycle is normal, and there continue to be positive fundamental trends in emerging markets.
"For example, central banks in many countries are cutting policy rates in response to falling inflation, which supports the outlook for local bond and equity markets and provides an opportunity to take advantage of lower asset prices.
"Significantly, India will be included in the main local currency bonds benchmark from mid-2024, illustrating the positive ongoing reforms in emerging countries and providing greater investment diversification.
"Ashmore continues to deliver longer-term outperformance for clients across a broad range of strategies and is well-positioned to benefit from further recovery in emerging markets."