Ashmore enjoys return to net inflows

Net inflows returned at Ashmore Group in the three months to the end of March as investors regained confidence in emerging markets.

Assets under management increased by $3.7bn during the third quarter to $55.9bn, comprising positive investment performance of $2.3bn and net inflows of $1.4bn.

The quarter saw strong increases in flows into external and corporate debt, local currency, equities and the overlay/liquidity investment theme.

Net inflows were driven by an increase in subscriptions from new institutional mandates, bigger allocations from existing clients and a reduction in redemptions.

Emerging markets performed well in absolute terms and relative to developed markets, and the fuse 250 company's funds outperformed versus benchmarks.

"Ashmore delivered the anticipated return to net inflows this quarter, generated from a diverse range of existing and new clients, and the group's investment processes are continuing to deliver strong performance over one, three and five years," said chief executive Mark Coombs.

"The outperformance of emerging markets reflects accelerating economic growth and attractive absolute and relative valuations across emerging markets equity and fixed income markets. This increases the pressure on investors to address their underweight allocations."