Ashmore returns to inflows as assets grow $3.7bn

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Ashmore Group has returned to net inflows in Q3 hitting $1.4bn as emerging markets deliver strong performance both in absolute terms and relative to developed markets.

In total assets rose $3.7bn with investment performance delivering $2.3bn over the quarter.

AUM for the period ended 31 March now sit at $55.9bn.

A reclassification of assets following a change in investment guidelines saw $800m move from blended debt to external debt.

Local currency performed well over the period with assets up 9 per cent. Overlay/liquidity saw inflows boost assets 33 per cent despite flat performance.

Ashmore chief executive Mark Coombs says: “Ashmore delivered the anticipated return to net inflows this quarter, generated from a diverse range of existing and new clients.

Coombs adds: “The outperformance of Emerging Markets reflects accelerating economic growth and attractive absolute and relative valuations across Emerging Markets equity and fixed income markets. This increases the pressure on investors to address their underweight allocations.”

Ashmore had suffered $700m outflows in the previous quarter as the US election hit investor sentiment towards the sector.

Assets under management

Theme

Actual
31 December 2016

(US$ billion)

Estimated
31 March 2017

(US$ billion)

Movement

Q3 vs Q2

(%)

External debt1

11.4

12.9

+13%

Local currency

12.4

13.5

+9%

Corporate debt

5.2

5.5

+6%

Blended debt1

14.1

13.6

-4%

Equities

2.9

3.1

+7%

Alternatives

1.5

1.4

-7%

Multi-asset

1.1

1.1

Overlay / liquidity

3.6

4.8

+33%

Total

52.2

55.9

+7%