Emerging market attraction drives Ashmore assets

Emerging market attraction drives Ashmore assets

Emerging markets specialist Ashmore saw its assets grow by £4.8bn in the three months to 31 March 2018, as demand for emerging market assets remained strong.

As FTAdviser previously reported, emerging market equities performed well in the first quarter of 2018. A weak dollar, as it is now, is traditionally good for emerging market assets. 

Justin Onuekwusi, multi asset fund manager at Legal and General, said he regards emerging market bonds as an attractive asset class at the moment.

Ashmore’s £4.8bn increase in assets came as a result of £4.4bn of inflows and £400m of investment performance.

The company said this is the strongest quarter it has had for inflows since June 2013.

Mark Coombs, chief executive of Ashmore, said he expected over the medium to longer term, "positive investor sentiment towards emerging markets will continue" due to attractive valuations, "the need for institutional investors to address underweight allocations, better earnings and credit fundamentals, and relative currency strength arising from further US dollar weakness".

He added that the increased market volatility experienced over the past three months "has had little effect on the fundamental drivers of returns in emerging markets and, as expected, both emerging markets fixed income and equity markets have outperformed".

Volatility that originates in the developed world typically leads to emerging markets assets being mispriced, he said, which he argued presents attractive investment opportunities for Ashmore.