15th Jan 2020 08:34
(Alliance News) - Ashmore Group PLC on Wednesday posted a significant rise in assets under management in its second quarter, with a particularly strong performance from local currency and blended debt.
The emerging markets asset manager reported a 7.1% rise in assets under management to an estimated USD98.4 billion as at December 31, the end of its second financial quarter, compared to USD91.9 billion on September 30. This USD6.5 billion increase reflects net inflows of USD3.3 billion plus an investment performance of USD3.2 billion.
Local currency made up USD22.9 billion of total assets under management on December 31, up 16% from USD19.7 billion at the end of September, while blended debt increased 8.3% in the same period to USD26.7 billion from USD24.2 billion.
Ashmore will report its interim results for the six months ended December 31 on February 6.
Chief Executive Mark Coombs said: "Emerging markets delivered strong returns in calendar 2019 with the main benchmark indices delivering double-digit returns and largely outperforming developed world markets. Ashmore's value-driven investment processes took advantage of lower asset prices in the second half of the year and added risk, inevitably resulting in some weakness in short-term fixed income performance but also underpinning future outperformance.
"The outlook for capital flows to emerging markets in 2020 remains positive, based upon the continued availability of significant relative value and the diversity of investment opportunities across fixed income and equity asset classes, the lower growth and lack of yield in Developed Markets, and investors' underweight positions. Ashmore remains well-positioned to capture its share of higher allocations to emerging markets."
Shares in Ashmore were up 1.3% at 554.00 pence in London on Wednesday morning.
By Anna Farley; [email protected]
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