Ashmore assets rise 9 per cent but net outflows persist
Wealth manager Ashmore Group’s (ASHM) assets under management (AUM) rose by $7.5bn in the second quarter as positive market movements helped to offset outflows.
The investment manager, which focuses on emerging markets, said total AUM rose 9 per cent to $93bn as at 31 December, after a positive investment performance of $8.1bn.
But Ashmore still saw net outflows, concentrated in European and US intermediary retail channels, of $0.6bn. This comes after outflows of $0.8bn in the first quarter, which were offset by a solid investment performance.
Investors did not seem too phased by the continued outflows with its share price rising more than one per cent in early trading before dipping to trade 0.4 per cent lower.
Ashmore benefited from a resilience performance by emerging markets in the quarter and the wealth manager claims to have “delivered outperformance” across fixed income and equities.
Equities saw net inflows rise 27 per cent to $6.5bn likely helped by another volatile period for the market amid the US election and further lockdown restrictions.
“Ashmore continued to deliver strong relative investment performance over the quarter and current equity and fixed income valuations in Emerging Markets suggest there is much further to go in terms of recovery investment returns,” said chief executive Mark Coombs.
Looking forward the rollout of the vaccine will present an opportunity for “investors to increase exposure to higher return Emerging Markets asset classes and to benefit from economic and market recoveries as they continue to develop in 2021.”