Aided by net inflows of $4.3bn – which Ashmore reports were the highest for four years – and positive investment performance of $2.3bn, the group’s total AUM increased from $58.7bn to $65bn over the quarter.
The group noted that a reduced equity interest in Taiping Fund Management Company in August, from 15% to 8.5%, shaved $0.3bn off what the overall AUM figure could have been.
Net inflows were highest in Ashmore’s blended debt, local currency and external debt themes, while flows were flat in equities. As a result of an anticipated run-off of Japanese retail funds, there was a small outflow from the group’s multi-asset funds.
Absolute performance was strongest in blended debt and local currency, which the group said was partly the result of strengthening emerging markets currencies against the US dollar.
“Investors are increasingly focusing on emerging markets and it is encouraging to see strong inflows this quarter, said Mark Coombs, chief executive.
“Emerging markets are continuing to outperform as we would expect at this point in the cycle, with perceived challenges such as rising US interest rates having been anticipated and priced in. Ashmore’s investment performance continues to be very strong, meaning the group is well positioned as investors address their underweight allocations to emerging markets.”
