Ashmore posts flat quarterly flows as emerging markets recover

Specialist emerging markets asset manager Ashmore Group updated the markets on its assets under management on Friday, for the quarter to 30 September.

The FTSE 250 firm said assets under management increased by $2bn during the period, driven solely by positive investment performance, with net flows flat for the three months.

It said the neutral net flow for the quarter resulted from small net inflows into the blended debt, local currency, corporate debt and overlay/liquidity themes, offset by equally small net outflows from equities, external debt, and multi-asset.

Flows were flat in the alternatives theme during the period, the board said.

It added that positive investment performance was delivered across the liquid asset classes of blended debt, external debt, local currency, corporate debt, equities and multi-asset, reflecting an ongoing rally in emerging markets and Ashmore's strong relative performance.

Performance was neutral in alternatives and overlay/liquidity.

“The continued improvement in net flows is encouraging in what is typically a quiet quarter,” said CEO Mark Coombs.

“The stability of Emerging Markets over recent months contrasts with the volatility experienced during the same period in 2015 and 2014.”

Coombs said the ongoing recovery in emerging markets asset prices through 2016 and the attractive returns on offer across a diverse range of investment themes are causing investors to reconsider their underweight positions.

“This inevitably takes time, but Ashmore's consistent investment processes are delivering strong outperformance across fixed income and equities, putting Ashmore in a good position to capture allocations.”