10th Jul 2014 07:40
LONDON (Alliance News) - Ashmore Group PLC Thursday reported 7% growth in assets under management during its fiscal fourth quarter, the first growth since its fiscal first quarter, driven by USD1.6 billion of net inflows and a positive investment performance of USD3.3 billion.
The specialist emerging markets asset manager said assets under management are estimated to have risen to USD75.0 billion in the three months to end-June, from USD70.1 billion at the end of March.
It had reported 1.4% quarterly growth in assets under management in its fiscal first quarter, but then assets under management declined 4.1% in the second quarter and 6.9% in the third quarter.
"Net inflows were delivered across a range of fixed income and equities themes. The flows reflect a broad mix of clients by type and domicile, and were balanced in respect of mandate size. There was good demand for blended debt, corporate debt and local currency assets, while multi-strategy experienced institutional demand which offset the expected outflows from Japanese retail funds. There were net outflows in the external debt and overlay/liquidity themes," the company said in a statement.
It said its investment performance was driven by buying into the "numerous" periods of emerging market weakness over the past 12 months. It said investment returns were particularly strong in blended debt, local currency, external debt and equities, and all themes contributed to the investment gains except alternatives and overlay/liquidity, which were flat.
"Looking ahead, the prospects for investment returns are enhanced by the on-going development of the asset class. New countries being represented in indices broadens the diverse range of opportunities available and supports increasing allocations by dedicated investors," Chief Executive Mark Coombs said.
Ashmore will report its full preliminary results for the financial year to June 30 on September 11.
Ashmore shares were up 4.6% at 370.90 pence early Thursday, the biggest rise on the FTSE 250.
By Steve McGrath; [email protected]; @stevemcgrath1
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