Ashmore shares jump on solid AuM growth in first quarter

Shares in Ashmore rose strongly on Monday after the emerging market asset manager reported a 5% increase in assets under management (AuM) in the first quarter, helped by a positive investment performance and increasing investor appetite.

AuM totalled $51.8bn by 30 September, up $2.5bn over the three-month period, comprising a positive investment performance of $3.2bn and net outflows of $0.7bn.

Fixed-income AuM rose 5% to $43.3bn as all categories – external debt, local currency, corporate debt and blended debt – improved due to improvements in the macro environment, Ashmore said.

Meanwhile, AuM in the equities markets was up 9% at $7.3bn, but alternative AuM fell 8% to $1.2bn.

"Emerging markets performed well over the quarter, reflecting robust macroeconomic conditions in emerging countries, the positive impact of lower Fed rates weakening the US dollar, and targeted stimulus by the Chinese authorities,” said chief executive Mark Coombs.

“Consequently, investor appetite has been increasing and allocations to emerging markets should grow from the low current levels to capture the value available across equity and fixed income asset classes.”

Coombs said that Ashmore was “well-positioned” to benefit from improving momentum in client flows to emerging markets.

The stock was up nearly 7% at 208p by 1122 BST.