Emerging markets performance pushes Ashmore higher in first quarter

Ashmore Group updated the market on its assets under management for the first quarter on Friday, confirming the figure increased $6.3bn during the period, including positive investment performance of $2.3bn and net inflows of $4.3bn.

The FTSE 250 emerging markets specialist asset manager said total assets under management were estimated to be $65bn as at period end on 30 September, up 11% from the year-end figure on 30 June.

Looking at the asset breakdown, external debt was up 10% to $14.4bn, local currency rose 7% to $12.7bn and corporate debt was ahead 10% at $6.9bn.

Blended debt rose 14% to $18.8bn, equities were 3% higher at $3.5bn, alternatives were 7% firmer at $1.6bn, the multi-asset category was unchanged at $1.1bn, and overlay was up 25% at $6bn.

The increased levels of client engagement and activity experienced over recent months resulted in “strong” gross subscriptions during the quarter, the board said, notably with the funding of several large institutional mandates in external debt and blended debt.

At the same time, gross redemptions reportedly continued to fall quarter-on-quarter, delivering the highest net inflows for four years, according to the board.

Net inflows were strongest in the overlay/liquidity, blended debt and external debt themes and “good” net inflows were delivered into local currency and corporate debt themes, Ashmore said.

There was also a small net inflow in the alternatives theme.

Net flows were flat in equities and there was a small net outflow in the multi-asset theme as a result of the anticipated runoff of Japanese retail funds.

Ashmore said its active management style, coupled with the ongoing and broad-based rally in emerging markets, maintained its “attractive absolute and relative performance” track records.

Absolute performance was highest in blended debt and local currency - partly the result of strengthening emerging markets currencies against the dollar -followed by external debt and corporate debt.

Investment performance in alternatives was flat in the period.

Performance of the group's funds against benchmarks continued to be “very strong” over one, three and five years.

“Investors are increasingly focusing on emerging markets and it is encouraging to see strong inflows this quarter,” said chief executive Mark Coombs.

“Emerging markets are continuing to outperform as we would expect at this point in the cycle, with perceived challenges such as rising US interest rates having been anticipated and priced in.

“Ashmore's investment performance continues to be very strong, meaning the group is well positioned as investors address their underweight allocations to emerging markets.”