EM specialist Ashmore sees assets rise by $2.8bn

EM specialist Ashmore sees assets rise by $2.8bn

Emerging market fund manager Ashmore Group has reported a $2.8bn (£2.1bn) boost to its assets under management for the three months to June following a strong showing from its equity and corporate debt funds.

The increase was due to a combination of $1.6bn (£1.2bn) in positive investment performance and $1.2bn (£920m) of net inflows.

Ashmore said it saw momentum in gross sales across the whole its whole fund range, and a fall in gross redemptions. Inflows came from diverse client types, and included new business and higher allocations from existing clients.

The group said emerging market assets delivered good absolute returns over the quarter, outperforming developed world fixed income and equity markets.

Mark Coombs, the company's chief executive, said: “Ashmore has performed well over the past 12 months, delivering a 12 per cent increase in AUM through strong investment performance and net inflows in the past two quarters.

"Emerging markets asset prices have started to reflect the resilient fundamentals of the underlying economies and investor activity levels are responding.

"Looking ahead, there is substantial absolute and relative value still available in emerging markets and investor allocations have much further to run from their significantly underweight levels.”

Corporate debt was the strongest performer in AUM terms in the three months to 30 June. The group reported a 15 per cent increase in its corporate debt products to $6.3bn (£4.8bn), and a 10 per cent rise in equities to $3.4bn (£2.6bn).

As well as these two asset classes, blended debt and alternatives also saw net inflows, while flows were flat in external debt, multi-asset and overlay/liquidity strategies. Local currency saw a net outflow following a large withdrawal from an institutional client.