Ashmore AuM rises on higher net inflows

Emerging markets manager Ashmore on Thursday reported a 28% year-on-year interim rise in assets under management (AuM) driven by net inflows and despite a tougher global economic climate.

The company said AuM for the six months to December 31 rose to $98.4bn from $70.8bn “notwithstanding fluctuating investor sentiment and price volatility driven by a combination of global macro conditions and certain country-specific political events”. Net inflows were $5.7bn.

Adjusted core earnings rose 24% to £122.5m, while pre-tax profits rose 42% to £132.4m. The interim dividend was increased by 5% to 4.80 pence a share.

“The outlook for emerging markets remains positive, and while economic and market cycles are inevitable, there continue to be strong incentives for global investors to increase allocations to emerging markets in pursuit of higher risk-adjusted returns than are available today in the developed world capital markets,” the company said.

Asset prices were hit by events in “a small number of countries such as Argentina, Bolivia, Chile, Ecuador and Lebanon, and came in quick succession so prompting some investors to take profits following a period of strong performance in the first half of 2019”.

Investors who held their assets saw a strong recovery in prices as political situations began to normalise, the global trade environment improved, central banks continued to deliver a dovish message, and economic data improved in a number of emerging countries including China.

“Notwithstanding the price volatility during the six months, returns across the Emerging Markets asset classes were positive for the period as a whole, thereby continuing the broad-based rally that began in early 2016,” Ashmore said.