Emerging Markets  

Ashmore shrugs off emerging market volatility to grow assets

Ashmore shrugs off emerging market volatility to grow assets

Emerging markets specialist Ashmore Group saw assets under management increase by $2.5bn (£1.9bn) during the three months to the end of September.

During a volatile quarter in emerging markets, Ashmore recorded net inflows of $1.9bn (£1.4bn), positive investment performance of $300m (£226m) and added a further $300m (£226m) through its  acquisition of a majority stake in Avenida, a Colombian real estate manager.

Total assets under management increased to $76.4bn (£57.6bn) over the period, a 3 per cent increase on the previous quarter but slightly down on the $76.5bn (£57.7bn) reported in the three months to 31 March.

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Emerging markets have been volatile for several months in part due to the strength of the US dollar.

Assets in emerging markets tend to perform badly when the US dollar is strong because many emerging market economies and companies must borrow in dollars so when it rises in value, costs of repaying existing debt or borrowing more rises, leaving less cash for shareholders, to expand businesses, or for government spending.

Mark Coombs, chief executive of Ashmore, said: "Net inflows continued through the quarter as clients responded positively to the opportunities created by price volatility across a broad range of merging markets asset classes."

He said the company has been selectively adding risk which had resulted in strong relative performance.

Mr Coombs said: "Given the likelihood for mispricing around near-term events such as elections in the US and several emerging markets countries, we anticipate there will be more opportunities to buy attractively-valued assets."

Ashmore said net inflows during the quarter were spread broadly across the fixed income themes of external debt, local currency, corporate debt and blended debt. In equities, net flows were flat, while the company saw net outflows from its multi-asset, alternative and overlay/liquidity themes.