Ashmore assets boosted by higher-than-expected inflows

10th Jul 2014 09:30

Much stronger net inflows and a better investment performance helped emerging markets asset manager Ashmore beat consensus forecasts for fourth-quarter assets under management and arrest the previous quarter's decline. Assets under management increased 7% during the quarter to $75.0bn, having declined by a similar amount in the previous quarter. Net inflows totalled $1.6bn, while positive investment performance added $3.3bn.Chief Executive Mark Coombs said: "Improving sentiment and the consequent market recovery have benefited those investors who remained focused on the economic and political fundamentals in emerging markets and who took the opportunity to invest in mis-priced assets earlier in the year. "Looking ahead, the prospects for investment returns are enhanced by the on-going development of the asset class. "New countries being represented in indices broadens the diverse range of opportunities available and supports increasing allocations by dedicated investors."Net inflows were derived from a wide range of fixed income and equities themes, which Coombs said reflected a broad mix of clients by type and domicile, and were balanced in respect of mandate size. There was better-than-expected demand for blended debt, corporate debt and local currency assets, while multi-strategy experienced institutional demand offset the expected outflows from Japanese retail funds. There were net outflows in the external debt and overlay/liquidity themes.Ashmore said investment performance was boosted by buying into the "numerous periods of market weakness" over the past 12 months. "This approach has delivered positive investment performance over the quarter with all themes contributing except alternatives and overlay/liquidity, which were flat. Investment returns were particularly strong in the blended debt, local currency, external debt and equities themes."Shares in Ashmore climbed 3.22% to 366.01p by 09:25 on Thursday. OH