Ashmore gets £980m boost from emerging market rises

wild card emerging markets cardsEmerging markets continued to give a boost to Ashmore’s assets under management adding $1.3bn (£980m) to the asset manager in the forth quarter of 2016.

In a trading statement, published today, the firm says assets under management increased from $51.3bn at the end of March to $52.6bn at the end of June.

Investment performance at the group was $2bn, with net outflows of $700m for the period. External debt, local currency and corporate debt saw positive investment performance returning 6 per cent, 2 per cent and 9 per cent respectively for the period.

Ashmore Group  chief executive Mark Coombs says: “Emerging markets asset classes have continued to perform well and Ashmore’s investment processes delivered good absolute and relative performance during the quarter. These asset classes are among the best performing so far in 2016, for example local currency bonds have returned 14 per cent and yield over 6 per cent.

“The highly attractive yields and uncorrelated equity returns are supported by solid fundamentals such as higher GDP growth, low and stable inflation, flexible monetary policies and improving current accounts. In contrast, developed markets offer lower returns and appear to have mispriced economic and political risks.”