Ashmore Group’s assets under management increased by 4 per cent in the first quarter of the year after seeing strong returns from emerging markets.
A trading update published today (19 April) revealed Ashmore’s assets under management recovered slightly, reaching $51.3bn (£35.8bn) in the three months to the end of March, up from $49.4bn (£34.5bn) at the end of December.
Despite showing a modest recovery, assets under management were still below the $58.9bn (£41.1bn) figure posted in June last year.
The company also cited net outflows of US$1.1bn (£0.77bn), particularly in blended debt, external debt, corporate debt, multi-asset and local currency.
But the fund house, which specialises in emerging markets, posted an increase in investment performance, mainly after prices recovered from over-sold levels earlier this year.
Mark Coombs, Ashmore chief executive, said: “Markets rallied towards the end of the quarter as some of the headwinds that have affected sentiment and held back returns, such as the falling oil price and strong US dollar, started to recede.”
Investment performance was particularly strong in local currency, as emerging markets currencies strengthened against the US dollar, blended debt and external debt.
Mr Coombs said there is still value available in emerging markets, and suggested investors should be looking to increase their allocations.
“In previous cycles, asset flows typically lagged the initial strong recovery in prices and we anticipate a similar pattern in this cycle.”
katherine.denham@ft.com
