(Finance) – Ashmore Groupa British investment manager dedicated to emerging markets, closed the first quarter (to 30 September) with assets under management (AUM) increased by $2.5 billion, including positive investment performance of $3.2 billion and net outflows of $0.7 billion. AUM stood at $51.8 billion.
THE emerging markets have produced strong returns over the three months, with fixed income indices rising 4% to 9% and equities up 8%. Ashmore’s active investment processes continued to outperform across both equity and fixed income strategies in the quarter.
THE net flows improved compared to previous quartersdriven by an increase in gross subscriptions from institutional investors across a range of investment themes and a reduction in redemptions. This pick-up in activity is consistent with an increase in investor risk appetite following improvements in the broader macroeconomic environment and building on the positive returns delivered by emerging markets over the past two years. By investment theme, there were net inflows into foreign debt and equities, net outflows into local currency and mixed debt and, following successful realizations, a net return of capital to clients in alternative funds.
“Emerging markets performed well in the quarter, reflecting strong macroeconomic conditions in emerging countries, the positive impact of low Fed rates that weakened the U.S. dollar, and targeted stimulus from Chinese authorities,” said the CEO Mark Coombs – As a result, investor appetite has increased and allocations to emerging markets are expected to increase from current low levels to capture the value available in equity and fixed income asset classes.”
(Photo: Photo by Sean Pollock on Unsplash)