14th Oct 2020 09:51
(Alliance News) - Ashmore Group PLC on Wednesday said it saw its improving quarterly flow trend continue into the third quarter of 2020 with assets under management increasing 2.3%, or by USD1.9 billion.
The emerging markets asset manager said AUM increased in the third quarter of the year to USD85.5 billion on September 30 from USD83.6 billion on June 30. The quarterly improvement comprised of a positive investment performance of USD2.7 billion and net outflows of USD800 million.
The improving quarterly flow trend reflects diversified gross sales and a further decline in redemptions, Ashmore said.
Chief Executive Mark Coombs said: "The positive trends evident in the quarter to June were sustained in this period. Markets continued to recover from oversold levels, Ashmore's active investment processes generated strong outperformance, momentum in equities is increasing diversification and client flows continue to stabilise."
Ashmore said its active investment processes continued to deliver strong outperformance for the quarter and consequently one year relative performance has improved further.
Going forward, Coombs said: "While there are some near-term macro risks that may temper investors' risk appetite, such as Covid-19 and the US election, these environments have historically provided good investment opportunities for Ashmore's active processes to exploit and deliver outperformance for clients.
"At the same time, attractive valuations across equities and fixed income in emerging markets underpin returns notably when compared with those available in developed markets, and support ongoing incremental allocations."
Ashmore shares were up 8.4% at 393.60 pence each in London on Wednesday morning.
By Greg Roxburgh; [email protected]
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