Some of the largest fund houses lost more than $700bn (£456bn) in assets in the third quarter, after China falls and continued investor nervousness.
In Q3, $727.7bn (£474.6bn) was wiped off the assets of the fnd management buinesses Franklin Templeton, JP Morgan Asset Management, State Street, BlackRock, T Rowe Price, BNY Mellon and State Street, reports the Financial Times.
BlackRock in particular was hit hard, with $215bn being wiped off its balance sheet in the quarter, as the asset manager struggle to cope with the fallout from the China market drops.
More pain could be to come as investors remain nervous and switch out of underperforming asset classes, says Amin Rajan, chief executive of consultancy Create Research. “We are going to see a lot of rebalancing. If [investors] do not see a lot of returns in asset class X, they will switch to asset Y.”
Jake Moeller, head of UK and Ireland research at Lipper, says: “I would anticipate more outflows. I would expect what has started [following the situation in] China to continue.”