Life was good for asset managers last year, as pandemic savings were poured into markets and government stimulus fed through to rising earnings forecasts and higher share prices. But the current downturn in securities markets, with tumbling valuations and soaring inflation hindering the ability of companies and consumers to invest, is painful.
With recession looming, there could be worse to come. Assets under management are under pressure, as demonstrated by emerging market specialist Ashmore (ASHM), which lost almost 20 per cent of assets in the quarter to the end of June. Meanwhile, Jupiter (JUP) also continues to struggle with outflows. It would be foolish to take too negative a view of an entire sector – full-year results at Liontrust Asset Management (LIO) were solid, for example. But nor would it be a surprise, as more updates emerge from key players, if forecasts and ratings are sent further downwards.
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